Turo Faces Scrutiny After Deadly Attacks Highlight Risks of Peer-to-Peer Rentals

Car-rental startup Turo is under heightened scrutiny following two tragic attacks in Las Vegas and New Orleans where rented vehicles were used as weapons, resulting in 15 fatalities and dozens of injuries. These unrelated incidents have highlighted vulnerabilities in peer-to-peer rental platforms, where large vehicles can be rented affordably and with minimal delays.

Turo employs a proprietary algorithm, the Turo Risk Score, to screen renters and set fees. While most renters are approved almost immediately after submitting basic identification, the company has faced criticism about whether its vetting process is sufficient to address safety concerns. Turo confirmed that neither driver involved in the attacks had a criminal history.

The timing of these events could complicate Turo’s aspirations for a public listing. The company, which has raised over $500 million and achieved unicorn status, has delayed its IPO amid challenging market conditions. While revenue is growing steadily, Turo acknowledges in its filings that safety and security risks posed by hosts or renters could damage its reputation and business model.

These incidents underscore the challenges that peer-to-peer platforms face in balancing accessibility with robust safety measures, particularly as public and investor scrutiny intensifies.