HyreCar Provides Business Update and Indication of First Quarter 2020 Revenue
Revenues Estimated Between
“We had tremendous momentum going into the first quarter, and rental day performance from Q1 shows the power of our platform. Initially average daily rentals on a weekly basis grew 18% from the first week of the year to the second week in March, where we achieved our largest historical daily rental numbers. After that, average daily rentals declined 23% from the first two weeks of March vs. the last two weeks in March, because of the unprecedented economic slowdown due to COVID-19. Rental days appear to have normalized at these levels since then. This compares favorably to the 50% to 75% ridership year-over-year declines announced by Uber and Lyft,” said
While ridership on Uber and Lyft platforms has declined significantly across the country, the current crisis has enabled
Many would-be driver applicants don’t have a car and commercial insurance required to work for these services. HyreCar’s commercial insurance policy provides drivers access to coverage that protects them while driving for these platforms. Most importantly, many personal auto insurance policies don’t provide the coverage that HyreCar’s insurance provides, leaving drivers exposed to liability and physical damage in the event of an accident. HyreCar’s platform and insurance solutions seamlessly allow drivers access to thousands of vehicles so they can take advantage of the current opportunity in delivery. We’re early in these initiatives, but we see considerable opportunities in this space and it’s part of the reason we’ve normalized our active rental days. We believe that this will remain a larger part of our business even when the COVID-19 situation allows people to start using rideshare again in numbers that we saw in the first quarter.
In addition, we are in the process of submitting our application to our banking partner as a preferred existing client under the SBA Payroll Protection Program, and expect to qualify for funding to support fixed costs like payroll, rent and utilities through the second quarter, which we believe will ultimately be forgiven. This coupled with reductions to large portions of our variable costs will improve our already strong cash position. We are experiencing significantly lower expenses, including insurance costs, in just the past few weeks. Finally, with cost-cutting measures including a meaningful reduction in the compensation of our management team as well as considerably lower operating expenses like marketing and travel, we are confident in our position to weather this historic event as a company and emerge even stronger.
Statements in this release concerning HyreCar Inc.’s (“HyreCar” or the “Company”) future expectations and plans, including, without limitation, HyreCar’s future earnings, partnerships and technology solutions, its ability to add and maintain additional car listings on its platform from car dealers, and consumer demand for cars to be used for ridesharing, may constitute forward-looking statements for the purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995 and other federal securities laws and are subject to substantial risks, uncertainties and assumptions. You should not place reliance on these forward-looking statements, which include words such as “could,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “may,” “continue,” “predict,” “potential,” “project” or similar terms, variations of such terms or the negative of those terms. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, the Company cannot guarantee such outcomes.
Chief Financial Officer