HyreCar Focused on Sustainable Topline Growth and Profitability as In-fleeted and Net New Vehicle Counts Increase

Rhea-AI Summary

HyreCar Inc. (NASDAQ: HYRE) has announced significant developments regarding its joint venture with AmeriDrive and leadership changes. A $100 million credit line was closed on September 6, 2022, facilitating the purchase of over 1,300 vehicles, with 1,000 already in the fleet and utilization nearing 70%. On December 9, 2022, Eduardo Iniguez was appointed Interim CEO, focusing on accelerating the company toward cash flow breakeven while optimizing operational expenses, achieving annualized savings of over $2.8 million. HyreCar aims for expansion in fleet size and geographic reach.

Positive

• Closed a $100 million revolving line of credit to enhance vehicle acquisition.
• Acquired over 1,300 vehicles, with a utilization rate approaching 70%.
• Interim CEO's focus on cash flow breakeven and operational efficiency resulted in annualized savings of over $2.8 million.

Negative

• None.

LOS ANGELES, Dec. 12, 2022 (GLOBE NEWSWIRE) -- HyreCar Inc. (NASDAQ: HYRE), the carsharing marketplace for ridesharing and food and package delivery services, today announced updates on progress of its joint venture with AmeriDrive and changes to its leadership team.

On September 6, 2022, HyreCar closed a $100 million revolving line of credit with Credit Suisse and Medalist Partners for its fleet partner, AmeriDrive, to purchase cars for exclusive listing on HyreCar through a joint venture. Since October 19, 2022, the joint venture company has drawn $25 million on the line for the purchase of over 1,300 vehicles, with 1,000 vehicles already acquired. Over 200 net new cars have been in-fleeted with utilization approaching 70%. The balance of the vehicles, approximately 800, are expected to be in-fleeted within 60 days as they complete reconditioning and are moved to new markets.

On Friday, December 9, 2022, HyreCar announced the appointment of Eduardo Iniguez as Interim CEO of HyreCar. Iniguez is laser-focused on managing the joint venture as it continues to acquire and deploy cars through the line. At the same time, he will continue to optimize operating expenses to accelerate the company’s path towards cash flow breakeven.

Prior to HyreCar, Iniguez was the VP of Corporate Finance at AllClear, a global aerospace and defense manufacturing, distribution, and logistics company. There, he served as CFO of one of the company’s joint ventures and had direct responsibility for 11 P&Ls with the GMs of five business units, including the largest privately-held aerospace distribution company in the world, indirectly reporting to him. He led multiple successful mergers and acquisitions, partnering with some of the most respected private equity firms to scale businesses and increase enterprise value. In the past seven months at HyreCar, he has led the restructuring of headcount to build lean, high-performing teams and aggressively managed spend to balance growth and margin expansion, resulting in annualized savings of over $2.8 million.

“I believe that a disciplined approach to tech-enabled operational excellence and continuous improvement of unit economics will translate to enhanced customer and shareholder value,” said Iniguez. “With the warehousing line of credit and continued organic growth, I believe that HyreCar is poised for tremendous scale. I am proud to work with and draw upon the expertise of the leadership team and work together to execute our shared vision.”

Iniguez leads a deepening bench of executive talent including CTO, Greg Tatem, and SVP of Growth, AJ Lee, who have been pivotal to the renewed focus on operational execution.

“The AmeriDrive team is pleased to continue our partnership with Eduardo. I look forward to working closely with him and the HyreCar management team to increase our fleet size, expand our geographic footprint, and continue to optimize our joint operations for scale,” said Daniel Florence, COO of AmeriDrive and former COO of Sixt North America.

“With his extensive experience in general management, operational finance, and public accounting, the Board is confident that Eduardo will continue to drive the company’s strategy and execution forward in partnership with our very talented executive team,” said the HyreCar Board of Directors.

About HyreCar
HyreCar Inc. (NASDAQ: HYRE) is a national carsharing marketplace for ridesharing, food, and package delivery via its proprietary technology platform. The company has established a leading presence in Mobility as a Service (MaaS) through individual vehicle owners, dealers, rental agencies, and OEMs that wish to participate in new mobility trends. By providing a unique opportunity through a safe, secure, and reliable marketplace, HyreCar is transforming the industry by empowering all to profit from Mobility as a Service. For more information, please visit hyrecar.com.

Forward-Looking Statements
Statements in this release concerning HyreCar Inc.’s (“HyreCar” or the “Company”) future expectations and plans, including, without limitation, HyreCar’s future earnings, partnerships and technology solutions, its ability to add and maintain additional car listings on its platform from car dealers, and consumer demand for cars to be used for ridesharing, may constitute forward-looking statements for the purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995 and other federal securities laws and are subject to substantial risks, uncertainties and assumptions. You should not place reliance on these forward-looking statements, which include words such as “could,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “may,” “continue,” “predict,” “potential,” “project” or similar terms, variations of such terms or the negative of those terms. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, the Company cannot guarantee such outcomes. HyreCar may not realize its expectations, and its beliefs may not prove correct. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors, including, without limitation, market conditions and the factors described in the section entitled “Risk Factors” in HyreCar’s most recent Annual Report on Form 10-K and HyreCar’s other filings made with the U. S. Securities and Exchange Commission. All such statements speak only as of the date made. Consequently, forward-looking statements should be regarded solely as HyreCar’s current plans, estimates, and beliefs. Investors should not place undue reliance on forward-looking statements. HyreCar cannot guarantee future results, events, levels of activity, performance, or achievements. HyreCar does not undertake and specifically declines any obligation to update, republish, or revise any forward-looking statements to reflect new information, future events, or circumstances or to reflect the occurrences of unanticipated events, except as may be required by applicable law.

Investors:
Scott Arnolds
CORE IR
scotta@coreir.com

Media:
Allie Potter
Skyya PR for HyreCar
allie@skyya.com

FAQ

What are the recent developments for HyreCar (NASDAQ: HYRE)?

HyreCar announced updates on its joint venture with AmeriDrive, including a $100 million credit line for vehicle acquisition and the appointment of Eduardo Iniguez as Interim CEO.

How many vehicles has HyreCar acquired recently?

HyreCar has acquired over 1,300 vehicles through its joint venture, with 1,000 already in the fleet.

What is the utilization rate of the vehicles acquired by HyreCar?

The utilization rate of the vehicles acquired by HyreCar is approaching 70%.

Who is the new Interim CEO of HyreCar?

Eduardo Iniguez has been appointed as the Interim CEO of HyreCar.

What financial savings has HyreCar achieved under its new Interim CEO?

HyreCar has achieved annualized savings of over $2.8 million under Interim CEO Eduardo Iniguez.