HyreCar, a car rental platform and marketplace for car-sharing drivers, saw their revenue grow and their costs drop during their recently quarter by focusing on growing their commercial efforts for fleet managers and car dealerships.
The company finished the quarter with a total of 170 commercial accounts, a 49% increase when compared to last year. These new accounts have boosted the number of cars on the platform to 2,300, up from 1,700 during the same time last year. The number of drivers using HyreCar also increased by 54% to over 2,800.
“We expect that newly formed account manager roles focused on growing inventory in existing commercial accounts,” Chief Executive Joe Furnari said during an earnings call yesterday. “[We also expect] 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,” he said, 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.
HyreCar saw their revenue during the second quarter go up to $3.8 million, up 67%. Their losses dropped to $2 million, down from $5 million from last year, a nearly 60% drop.
The company also operates two OEMs, an international focuses one and a domestic focused one. Furnari stated that the company would add “three or four more."
One of their pilot OEMs already has 350 possible dealerships added into HyreCar's sales pipeline which doubles their consumers clients.
“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.
The new pilots have also created a new ownership campaign where drivers using HyreCar vehicles can own the cars they drive in within three months if they meet weekly renting goals. Furnari also spoke about this program when asked about the loss of revenue streams after the rental period was over.
“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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