The startup world can be a ruthless place, and San Francisco-based car rental company Kyte just learned that the hard way. After riding high on a wave of venture capital and pandemic-era travel chaos, the company is now officially toast.

The Rise and Fall of a Tech Darling

Kyte seemed like the ultimate millennial dream: a car rental service that would bring wheels directly to your doorstep. No more waiting in soul-crushing rental car lines or navigating complicated pickup processes. Just you, an app, and sweet automotive freedom.

At its peak, Kyte was operating in 14 cities with a fleet of over 2,000 vehicles and had raised a whopping $300 million in financing. But tech dreams don’t always translate to sustainable business models. When travel patterns shifted and capital became scarce, Kyte found itself in a financial dead end.

The Pandemic Pivot Gone Wrong

Initially, Kyte looked like a winner during the pandemic. Traditional rental car companies were struggling with limited inventory, and Kyte’s flexible model seemed perfectly timed. But as travel normalized and investors tightened their belts, the startup couldn’t maintain its momentum.

The Final Destination

In a final twist of Silicon Valley drama, Kyte sold its customer list to competitor Turo and entered receivership. Many customers are still waiting on refunds, a stark reminder of the volatile startup ecosystem. Another cautionary tale in the ever-changing landscape of tech innovation.