IAC is investing $250 million in Turo, a peer-to-peer car-sharing firm that is often referred to as the Airbnb for cars.
IAC said Wednesday the investment would make it the largest shareholder in Turo. The funding brings Turo’s total equity raised to $470 million.
Similar to home sharing services, Turo allows users to rent out their personal vehicle to other users and markets itself as a rental car alternative for consumers.
Turo says it has grown steadily in the U.S. and internationally in the past two years, counting more than 10 million members and approximately 400,000 listed vehicles.
The company expects to use the fresh funding from IAC to kickstart additional growth and further “refine the customer experience.”
IAC CEO Joey Levin, who will join Turo’s board as a result of the move, said the company is at the forefront of a broader disruption of the rental car industry.
“Turo has incredible scale and is benefiting from clear network effects in a very large market where consumers want better, more tailored experiences — perfect for IAC,” Levin said in a statement.
“Just as we’ve seen with travel, dating and home services, technology is accelerating a shift in the transportation space as the economics of car ownership change and the more than $60 billion global car rental market faces disruption and expansion with peer-to-peer car sharing services like Turo taking hold,” he added.
Recently, IAC has deepened its investments in the transportation space. Last February, the company invested $15 million in on-demand car leasing platform Honcker and in 2017, IAC invested in trucking start-up Convoy.