December 18th 2024.
Fluid Truck, the popular Denver-based vehicle rental app, has faced financial struggles due to overexpansion during the pandemic. However, there is good news on the horizon as the company has been acquired by Kingbee Rentals, a similar company located in the suburbs of Salt Lake City.
The acquisition, which was finalized this week, includes the purchase of Fluid's technology and the employment of over 100 of its employees. Kingbee paid approximately $10 million for the acquisition and was the only bidder. The deal is set to close on Friday.
Fluid Truck's spokesperson, Liz Gonzalez, expressed excitement for the future with Kingbee, stating that this partnership will ensure business continuity and bring new opportunities to deliver even greater value to their customers. She also mentioned that this acquisition will maximize outcomes for all stakeholders.
The sale was approved by a bankruptcy judge on Tuesday, following a settlement between Fluid and its vehicle owners. These owners had accused the company of using their money to fill its financial gaps. However, the judge acknowledged that this outcome may not be perfect, but it is the best option available.
Josef Mintz, a lawyer representing the vehicle owners and other creditors, also acknowledged that this may not be a perfect resolution, but they are resolved to support the sale. As part of the settlement, Kingbee has agreed to assist the vehicle owners in finding and retrieving their vehicles, alleviating one of their main concerns.
Scott Avila, the interim CEO of Fluid, testified that the majority of the vehicle owners have agreed to lease their vehicles through Kingbee, as selling them off would decrease their value and leaving them stranded would be wasteful. He also stated that this sale is the best outcome available.
The sale of Fluid Truck will not only benefit Kingbee but also potentially preserve jobs for up to 113 of Fluid's employees. Avila explained that the company faced financial challenges due to weaker-than-expected demand and an inability to control expenses. This led to a severe liquidity shortage by August, and that's when Kingbee stepped in with interest to acquire the company.
Fluid Truck was founded in 2016 as Fluid Market, an app that allowed users to rent a variety of household items and vehicles. By 2018, the company shifted its focus solely to vehicle rentals and raised over $80 million from investors. The pandemic initially benefited Fluid Truck, as home deliveries increased, but their expansion plans and financial struggles eventually led to the bankruptcy filing in October.
Despite the challenges faced by Fluid Truck, Avila remains optimistic about the future with Kingbee. He believes that this acquisition will not only save jobs but also help the company continue to provide excellent service to their customers. With this acquisition, Kingbee is set to become a leading provider in the truck-sharing space. This is great news for both companies and their stakeholders.
In conclusion, despite facing financial difficulties, Fluid Truck's acquisition by Kingbee provides a positive outlook for the company's future. This partnership will not only ensure business continuity but also create new opportunities for growth. It's a win-win situation for all parties involved and is a testament to the hard work and dedication of the teams at Fluid Truck and Kingbee.
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