Kyte

Rental car startup Kyte, which once billed itself as a top competitor to Hertz, has completely shut down as of August 2025. The company, which had raised over $300 million and operated in 14 markets, entered receivership after failing to secure new financing and falling behind on loans, leading its main lender to repossess and liquidate its vehicle fleet. This follows a restructuring in 2024, when Kyte exited most U.S. cities and laid off staff after struggling to achieve profitability in several markets. While it sold its customer list to Turo in July 2025, many customers with prebooked trips are now seeking refunds. Founded in 2019, Kyte offered on-demand rental car deliveries and controlled its own fleet, positioning itself in the competitive transportation and mobility industry as a venture-backed startup.

In October 2024, rental car startup Kyte underwent a major restructuring to ensure its survival, cutting its workforce by 40% to 50% and drastically scaling back operations. The company, which had rapidly expanded to over a dozen U.S. markets, is now retreating to focus solely on its two strongest markets: San Francisco and New York City. This decision came after the company explored a sale and faced challenges with unit economics and generating free cash flow in a capital-constrained environment. The layoffs heavily impacted engineering, consumer, and growth teams as Kyte aims to reach profitability within the next 18 months.