What is Awto Announcing?
AWTO ANNOUNCES CLOSURE OF OPERATIONS. São Paulo, March 31 – Awto, a flexible vehicle rental company, announced today its decision to cease operations in Chile and Brazil, initiating the process of permanently closing its activities. This announcement comes after a careful analysis of various strategic alternatives and an assessment of current market conditions and the company’s particularities. The challenging economic scenario and constant changes in market demand made it unfeasible to continue operations, leaving the company with no alternative but to close its doors.
Main Benefit and Key Figures
The closure process has been organized to benefit all parties involved, ensuring a smooth transition. Below is a list of the key figures and facts that highlight the main aspects of this announcement:
- Final operational day for customers: April 30, with ongoing trips allowed to be completed.
- Option for refunds: Customers can request refunds for unused credits and packages until the final date.
- Employee support: Awto will provide severance packages to its employees as required by current legislation to facilitate career transitions.
- Action for suppliers and partners: Negotiations are underway to ensure an orderly and fair termination of contracts and services.
- Service impact: Vehicles are unavailable for new trips from now on, with returns to designated parking lots mandated.
Challenges and Strategic Decisions
The decision to close operations was the result of months of meticulous evaluation and strategy discussions… The company faced an economic environment that was increasingly challenging, leaving little room for sustainable growth. Awto weighed all possibilities and decided that the difficult market conditions combined with the inability to secure the necessary financing made it impossible to keep moving forward. There was a strong emphasis on fulfilling all existing obligations and ensuring that all stakeholders experienced a responsible transition.
The Impact on Operations and Customer Guidelines
For customers, this closure means that all operations will officially end on April 30, which is the final date to request refunds for unused credits and packages. Users with ongoing trips will still be allowed to complete their journeys, but new trips are no longer permitted as the vehicles have been temporarily rendered unavailable for additional rentals. The company has set up multiple contact points including WhatsApp, email, and a phone service available Monday to Friday from 9 AM to 5 PM until April 30, offering clear instructions and support during this transition.
A Journey Across Borders: Brazil and Chile
Almost 10 years ago, Awto set out to revolutionize mobility in Santiago, Chile by making the idea of renting a car by the minute a real possibility. The company expanded rapidly, with white and light blue tones becoming a common sight on the streets as more vehicles joined the fleet. In 2022, operations stretched across borders to Brazil, reinforcing the company’s roots in Chile while embracing new markets. Despite the enthusiasm and commitment to offering sustainable and efficient mobility solutions, multiple challenges accumulated over time. The company always had the ambition of reaching regions with the vision of being Carbon Neutral in its operations, and its impact on decongesting city traffic was notable. Now, faced with significant economic hurdles and financing obstacles, Awto announces its difficult decision to end operations in both countries.
Project Impact: Linking to Sustainable Development Goals
- SDG 11: Sustainable Cities and Communities – Awto contributed to decongesting city streets and providing mobility solutions that eased urban congestion.
- SDG 13: Climate Action – With a vision for Carbon Neutral operations, the company worked towards reducing its environmental footprint.
- SDG 9: Industry, Innovation, and Infrastructure – The innovative approach of renting vehicles by the minute helped modernize mobility infrastructure in urban areas.
- SDG 8: Decent Work and Economic Growth – By creating employment opportunities and engaging in new markets, Awto impacted local economies positively.
Awto Says Goodbye: A Fond Farewell
Today, with great sadness and after 10 adventurous years, Awto says goodbye. The company proudly recalls its journey – beginning in Santiago, Chile, and expanding into Brazil – as a time filled with innovation, commitment, and passion for redefining mobility. The announcement is both a farewell and a thank you note to customers, employees, suppliers, and partners for trusting Awto and for joining in on this exciting journey. While the end of operations marks the close of one chapter, the contributions made to urban mobility, intermodality, and decongestion will remain a significant part of the city’s legacy. This transition, handled with responsibility and clear communication, aims at ensuring that the impact on all stakeholders is minimal, and that the story of Awto is remembered as a pioneering effort that changed city mobility forever…
