HyreCar Inc (NASDAQ: HYRE) made a big announcement just minutes ago. In a press release, the company announced a new strategic partnership that could prove to be a massive generator. Today, we’ll talk about:
- The strategic partnership;
- why this is such a big deal for HYRE; and
- what we’ll be watching for ahead.
HYRE Enters Strategic Partnership
As mentioned above, HyreCar released some pretty good news today. In a press release issued earlyt his morning, the company announced that it has entered into a strategic partnership with DriveItAway. DriveItAway is a company that has set itself in the position as a leader in dealership-focused mobility solutions. In fact, DriveItAway is the host of the “Lyft Your Down Payment” program as well as the “Drive For Your Down Payment”program. These programs allow dealerships to implement a rental program for ridesharing drivers who want to raise money to buy a vehicle. Ultimately, these programs lead to more vehicle sales and more fixed operations revenue for the store.
In the release, HYRE said that the newly minted partnership will provide access to a turnkey solution to generatie additional revenue through Mobility as a Service, Shared Mobility, and subscriptions. In a statement, John F. Possumato, CEO at DriveItAway, had the following to offer:
Our program offers the best of everything, today, for a car dealer… By providing a new, easily managed Shared Mobility department, our dealers are preparing for the “Mobility as a Service” future which will allow a quick and efficient way to create new scalable revenue streams. Most importantly, we are also introducing a new customer base for the store for vehicles sales and fixed operations. As a ‘path to ownership’ to our driver customers, we are enabling new buyers to the store, not ‘poaching’ current prospects in the market.
The above statement was followed up by Joe Furnari, CEO at HYRE. Here’s what he had to offer:
This partnership underscores our mission to building roads to financial freedom… We are focused on creating strategic alliances that expand our supply of vehicles, which will provide us with the infrastructure to scale. We are excited to become the franchise solution for vehicle suppliers who want to tap into the growing mobility industry.
Why This Is A Big Deal
At the end of the day, this strategic partnership is overwhelmingly beneficial to both parties. The reality is that current estimates put Mobility as a Service on a path toward massive growth. In fact, it’s estimated that this industry will become a $358.35 billion market by the year 2025. That’s about ten-fold growth from the 2017 market that generated $38.6 billion. Ultimately this partnership will drive revenue for HYRE by allowing DriveItAway affiliated dealerships to immediately list their vehicles on the HyreCar platform in 34 states and Washington, D.C. So, the potential for revenue growth through this partnership is tremendous!
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on HYRE. In particular, we’re interested in following the company’s growth as a provider of vehicles to the rideshare industry, especially considering the news that was released today as it may prove to be an incredible driver of revenue. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!