HyreCar Inc (NASDAQ: HYRE) is a stock that has garnered quite a bit of attention as of late, and for good reason. At the end of the day, when we talk about HYRE, we’re talking about a stock that gives investors a chance to get in on the emerging mobility as a service (MaaS) industry without breaking the bank. Beyond the simplicity of getting involved in an emerging market, HyreCar has something real to offer.
The company created a proprietary insurance product that filled two big voids in the MaaS industry. This has caught the attention of many and led to a recent partnership that could catapult the company’s platform to the next level.
A Brief Overview Of What HyreCar Does
We’ve gone into great detail with regard to HYRE in the past, so, we’re just going to touch the surface here before getting to what’s new. HyreCar is a company that has created a platform connecting drivers who want to work for rideshare or other mobility as a service companies with vehicles that qualify them for the job. The company’s claim to fame however is its proprietary insurance product. Each car rented through the HyreCar platform comes with insurance that covers the vehicle between routes, when there are gaps in the coverage that MaaS companies are legally required to provide.
HYRE Solves Two Major Problems With MaaS As We Know It
The MaaS industry is an explosive one. In fact, in the year 2017, the industry had a total value of $38.76 billion. However, by the year 2025, it is expected that the industry will be worth $358.35 billion, growing nearly 10X in 8 years! This growth will ultimately come from stronger consumer demand as the innovative companies like HyreCar join the MaaS market and find solutions to key problems. When it comes to HYRE, the company solves two key problems within the industry:
- Drivers Don’t Have Adequate Vehicles – A large percentage of the drivers that would like to join the MaaS workforce are being held back. That’s because these drivers simply don’t have a vehicle that qualifies for popular MaaS platforms. In fact, Uber and Lyft see this problem first hand with 30% and 50% of registered drivers not having adequate vehicles for the service respectively. HyreCar solves this problem by connecting prospective MaaS drivers with vehicles from within their communities at a highly competitive cost when comparing rates to traditional rental services.
- There’s No Gap Insurance Option – MaaS companies are legally required to provide their drivers with insurance while the driver is performing a work-related task. However, there are stretches throughout the day that these drivers are not performing a work-related task. During these times, the vehicles used are not covered, creating what could become a very costly gap in insurance coverage. Once again however, HyreCar has solved this issue. Each vehicle rented with HYRE comes with a proprietary insurance product that fills in these gaps in coverage.
A New Partnership Adds Tremendous Value
In a recent report, Tailwinds Research Group outlined their bullish view of HYRE. In their article, one of the key points of focus had to do with how the mobility industry is changing. More Millenials are opting to use rideshare services and public transportation than generations of the past. As a result, the automobile industry is being turned upside down. Nonetheless, HyreCar, through a new partnership, seems to have a solution for this as well.
The partnership was entered into with a company known as DriveItAway, one that brings plenty to the table. DriveItAway is a rental vehicle platform that’s designed to connect Uber and Lyft drivers with vehicles that are rented through dealerships. They also have their feet dug deep into the ride-sharing industry. In fact, DriveItAway was the company that helped Lyft bring the successful “Lyft your downpayment” program to market.
DriveItAway and HyreCar Seem Like Competing Services. How Does The Partnership Create A Mutual Benefit?
In some ways, HyreCar and DriveItAway are competitors. Ultimately, they both provide rental vehicles to MaaS drivers that do not otherwise have a vehicle that qualifies them for the platform. However, both of the parties in this partnership bring unique qualities, that when leveraged properly, can generate massive growth on both sides of the coin:
- DriveItAway – DriveItAway already has various established relationships with dealerships. Perhaps more importantly, the company has an established relationship with Lyft. These relationships can greatly expand the reach of the HyreCar platform.
- HyreCar – HYRE brings a proprietary insurance product to the partnership. This combined with an incredibly intuitive platform can greatly expand the value proposition posed by DriveItAway.
The Bottom Line
The bottom line is that HYRE is a stock that’s well worth looking at. Bringing key solutions to an emerging market, the company has caught the attention important players within the industry. As a result, HyreCar is quickly ingraining itself as a cornerstone in the MaaS industry, one that is expected to grow tenfold in seven years. At the end of the day, this is a potentially profitable opportunity that’s hard to ignore.