HyreCar has partnered with TrueCar to connect gig drivers with auto dealers in an expansion of its earn-to-own program, which offers gig drivers a path to ownership on vehicles rented out for ride-hailing and food-delivery services. TrueCar provides the infrastructure to connect dealers with gig workers looking to purchase a vehicle.
HyreCar works with lenders such as ACC Consumer Finance and Westlake Financial to provide short- and full-term financing on vehicles used for gig services, Brian Allan, HyreCar senior vice president of strategic partnerships, told Auto Finance News.
The program is designed to help mitigate the drop-off rate for drivers on HyreCar’s platform, Allan said, and connect drivers with dealers who are conscious of gig drivers’ specific needs. Many gig drivers find it difficult to secure financing due to the inconsistent nature of their income.
“Basically, we create an ecosystem for the dealers that is welcoming to these renters and will work with them,” Allan said, noting that the next phase is to incorporate coupons and OEM rebates into the process.
Drivers spend an average of six to eight weeks on HyreCar’s platform before they drop off and purchase the vehicle, Allan said. “That’s when some customers defect. They use our platform as a stepping stone to buy a car.”
To mitigate the drop off rate, HyreCar connects its customers to retail dealers through TrueCar and financiers and collects a fee. ACC Consumer Finance offers 24-to-36-month financing options, while Westlake Financial offers longer term loans.
“TrueCar has the network of dealers that can recognize the special needs [of gig workers], there’s a decent percentage of subprime. And they need to work with dealers that can help them get financed,” Allan said. “We also have a lot of prime customers that are retired police officers or military government workers. And now we have unemployed hospitality people that have fine credit, but now they’re unemployed through no fault of their own.”
HyreCar’s website averages about 200,000 unique visitors per month, and 15% of those download the company’s app, Allan said. Of those, more than 90% need an automobile to work in a gig economy, he added.
Shares of HyreCar [Nasdaq: HYRE] were up 0.28% to $7.16 at market close. The company has a market cap of $126.93 million.