Daimler Mobility Services, a division of Germany’s automotive company Daimler, has made an investment in Turo Inc., the US market leader in the area of peer-to-peer (“P2P”) carsharing, in the context of a financing round. An Eversheds Sutherland team led by Sven Schweneke advised the US carsharing provider on the strategic partnership.

In parallel with the start-up’s financing round with a volume of USD 92 million, Daimler’s private carsharing platform Croove will be combined with the US company, which has over 4 million customers and over 170,000 vehicles on its home market. Croove connects private car renters and owners – irrespective of the vehicle brands. Both platforms allow renters to quickly and easily find and hire a private vehicle which fits their expectations in terms of specifications and price via an app or the website – completely independent of a fixed rental station.

In addition to Daimler Mobility Services, SK Holdings of South Korea also participated in the financing round as a co-lead investor. Further participants were Turo’s insurance partner Liberty Mutual, Founders Circle Capital as well as all existing investors.

Open peer-to-peer carsharing to launch in Germany in 2018

Turo intends to enter the German market in 2018. Turo initially started out as RelayRides in Boston and was founded in 2009. Shortly afterwards, the company moved its seat to San Francisco. Since 2012, Turo has been operating everywhere in the US. At the end of 2016, Turo also became available in Great Britain. Croove launched in Berlin in mid-April 2017, as well as in additional German cities, following a pilot project at the end of 2016 in Munich.

Eversheds Sutherland’s Private Equity Partner Sven Schweneke comments:

“The automotive industry is undergoing profound changes and the partnership between Turo and Daimler is an example of the cooperation between innovative start-ups and established car manufacturers. New concepts will bring lasting change to the individualisation of mobility and the German peer-to-peer carsharing sector offers our client unique opportunities in this respect.”

An Eversheds Sutherland team led by Sven Schweneke (Partner, private equity/M&A) advised Turo on the acquisition of Croove. Further members of the team were: Dirk Kramer (Counsel), Martin Sanftleben (Associate, both private equity/M&A), Frank Achilles (Partner, labour and employment law, all Munich). Fenwick & West LLP acted as international lead counsel to Turo with Samuel Angus (Partner, San Francisco) leading.