Kyte Ends Operations After Attempting to Compete with Hertz
Kyte, a startup once aiming to rival Hertz, has shuttered its operations. The company, which had prided itself on delivering an innovative approach to car rentals, has entered into receivership after failing to overcome significant financial duress.
After making the drastic decision to reduce staff and withdraw from most U.S. markets last year, Kyte attempted to stay afloat by selling its customer list to Turo. Despite these efforts, financial troubles persisted into 2025, forcing its main lender to repossess and sell Kyte's fleet of vehicles.
The board's pursuit of new funding options proved futile, culminating in the decision to dissolve the company. Many customers who had pre-booked rentals found themselves without refunds; some succeeded in securing charge-backs through their credit card providers, as suggested by CEO Nikolaus Volk.
Founded in 2019, Kyte had grown to service 14 markets with a business model similar to Zipcar, providing on-demand rentals while maintaining its own vehicle fleet. The startup achieved over $300 million in financing throughout its existence and made considerable market impacts before its closure.
This recent shutdown marks a trend of struggle within the vehicle rental industry. Similar companies like Getaround ceased U.S. operations in favor of the European market, and TrueCar's Scott Painter redirected his strategy away from vehicle subscriptions to address ongoing challenges.
The downfall of Kyte underscores the volatile nature of the car rental market, especially for new and innovative businesses trying to compete with established players.
