Flightcar, a US-based car-sharing service backed by a range of corporates including internet company Tencent, has closed down and sold its technology platform to carmaker Mercedes-Benz, according to Forbes.
Founded in 2012, Flightcar operated a service that enabled car owners to leave their vehicles at the airport and rent them out to other users while they were away. The offering meant car owners could both avoid parking fees and earn some money.
The acquisition follows a struggle by Flightcar to scale its business. The company had expanded to 17 locations and hired 150 staff at its peak in 2015, but closed five stations and reduced its headcount to around 90 following a $20.7m series B round in September 2015.
Financial details of the deal have not been disclosed. Flightcar has shut down its 12 airport stations across the US, and some employees including CEO Rujul Zaparde are said to be joining Mercedes-Benz.
Mercedes-Benz conducted the transaction through its Research and Development North America division and will integrate Flightcar’s product into its lab for mobility services.
The 2015 series B round featured Tencent, travel services provider Priceline and telecommunications firm SoftBank’s corporate venturing unit, SoftBank Capital, as well as venture capital firms GGV Capital, General Catalyst Partners and First Round Capital.
SoftBank Capital and Comcast Ventures, the investment arm of cable and media company Comcast, General Catalyst, First Round and angel investor Eduardo Saverin contributed to a $13.5m series A round in 2014 that was led by GGV Capital.
Flightcar had previously secured $600,000 in seed funding in 2013 and $5.5m from SoftBank Capital, First Round, General Catalyst, Seacrest Global, Andreessen Horowitz and assorted angel investors later that same year.