HyreCar Inc., the car-sharing marketplace for ride-sharing drivers, has announced that it has renewed its partnership with Y-Risk, LLC, a brand of The Hartford, to provide a comprehensive, multi-faceted liability insurance program. The renewed insurance program, which was previously underwritten by Y-Risk on behalf of AIG, now resides with The Hartford. This move was enabled by the acquisition of Y-Risk, which became part of The Hartford in December 2018, and has partnered with HyreCar since 2017.
Working closely with Y-Risk to maximize efficiencies in its insurance program, HyreCar significantly reduced its costs, secured increased capacity and enhanced insurance features which allow two new service tiers that better address the needs of customers. HyreCars insurance fills a coverage gap during the time the vehicles are rented on the HyreCar platform but are not yet in service for Transportation Network Companies (TNC) like Lyft, Uber and food or package delivery services such as Postmates, Grubhub and other similar delivery platforms.
Achieving a profitable business model in this new world of Mobility as a Service is a key milestone, said Joe Furnari, CEO of HyreCar. The dual impact of a higher contribution margin from these new tiers, plus a lower contribution to cost of goods sold from insurance premiums, will dramatically enhance our net revenue margin and gross profit margin going forward; this is in conjunction with continued strong revenue growth that will move us toward being cash flow positive in Q2.
Were excited to renew the partnership with HyreCar and leverage Y-Risks enhanced data analytics and underwriting capabilities, said Bernie Horovitz, CEO of Y-Risk. HyreCar and Y-Risk are operating on the leading edge of the insurance industry, combining our deep underwriting expertise with a strong understanding of the fast-paced world of the tech-enabled economy.