Posted on January 28, 2021 by Brad Steveson
HyreCar Inc. (HYRE) said it has entered into new and expanded strategic partnerships to significantly increase car supply on its platform in key markets. The company said the formal partnerships include AmeriDrive Holdings, an automotive mobility fleet manager, and Cogent Bank’s Specialty Lending Unit.
The company said AmeriDrive has entered into agreements with vehicle supply partners that can provide more than $65 million in assets to ensure supply. I believe that represents somewhere between 5,000 and 6,000 additional cars added to the platform, which would match what CEO Joe Furnari said in the last earnings call.
This increased supply should allow HYRE to fill more of the demand it has for cars on the platform. I have projected somewhere in the neighborhood of 46c in EPS (earnings per share) for 2021 with this amount of supply assuming a gradual rollout throughout the year. For additional background and commentary on this story, I previously wrote about how HYRE successfully navigated the Covid-19 induced hit to ridesharing here.
I think Mr Furnari summed this news up perfectly with the following quote: “In one of the most challenging years imaginable, we have been able to sustain a 50% growth rate with just over 3,000 cars by maximizing vehicle utilization. These partnerships will help us significantly increase vehicle supply to our expanded ecosystem while securing strong and sustainable growth in 2021 and thereafter.”
The company’s stock has traded as high as $8.69 up 19% so far today. I will continue to follow this developing growth story.
Disclosure: I am long and may buy or sell shares within the next 72 hours.