HyreCar adds dealers to boost 2Q revenue, cut losses | Auto Finance News | Auto Finance News

HyreCar adds dealers to boost 2Q revenue, cut losses

HyreCar has been focused on expanding commercial accounts — which include auto dealers and fleet managers — to boost revenue and cut net losses in the second quarter.

HyreCar, a mobility-as-a-service carsharing marketplace, closed out the quarter with 170 commercial accounts, up 49% year over year. Those accounts provided 2,300 vehicles to the platform, compared with 1,700 in the prior-year period. HyreCar’s number of active drivers grew 54% to 2,837.

“We expect that newly formed account manager roles focused on growing inventory in existing commercial accounts and the additions to our commercial team focused on bringing large dealer groups on board will increase the average number of cars per dealer significantly by the end of the year,” Chief Executive Joe Furnari said during an earnings call yesterday, noting that lack of inventory is a large obstacle facing HyreCar. “This commercial opportunity matches our constant ballooning demand from drivers needing cars, which was over 30,000 driver leads last month,” he said.

Second-quarter revenue shot up 67% to $3.8 million. Net losses improved to $2 million, compared with $5 million in the prior-year period — a 59% decrease.

In addition, HyreCar is in pilots with two OEMs — one domestic, and one international, Furnari said, with “three or four more throwing their hats in the ring.” One of those pilots has added 350 prospective franchise dealerships to HyreCar’s sales pipeline, nearly double its current consumer accounts.

“Feedback from our OEM and dealership initiatives has been positive so we’re doubling down on efforts to build scale and capacity into the platform to accommodate our vehicle suppliers,” Furnari said.

These pilots have also spurred a new earn-to-own campaign, which would allow drivers to walk away with the vehicle in three months after fulfilling a weekly rental requirement. When asked about the potential loss in revenue stream, Furnari pointed to the median rental time, which is 18 days.

“We have so many leads that even if you lose [a driver] early, it doesn’t matter,” Furnari said. “You just replace [them]. Think of cars as programs. It doesn’t matter who’s staying, and it just matters that they’re occupied.”

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