HyreCar Provides Business Update and Indication of First Quarter 2020 Revenue

HyreCar Inc. (NASDAQ: HYRE), the carsharing marketplace for ridesharing, food, and package delivery services, today announced preliminary results for the first quarter ended March 31, 2020. First-quarter revenues are expected to be between $5.5 and $5.6 million, with the number of rental days topping 229,000 for the quarter, up 16% sequentially from the prior quarter’s total of 197,000, and 66% year-over-year, even with the effect of the last two weeks of the quarter with the COVID-19 situation. Additionally, we expect to release our 2019 10-K by April 14, 2020.

“We had tremendous momentum going into the first quarter, and rental day performance from Q1 shows the power of our platform. Initially average daily rentals on a weekly basis grew 18% from the first week of the year to the second week in March, where we achieved our largest historical daily rental numbers. After that, average daily rentals declined 23% from the first two weeks of March vs. the last two weeks in March, because of the unprecedented economic slowdown due to COVID-19. Rental days appear to have normalized at these levels since then. This compares favorably to the 50% to 75% ridership year-over-year declines announced by Uber and Lyft,” said Joe Furnari, Chief Executive Officer of HyreCar. “We believe this is because our business model and platform allow us to leverage new opportunities within this crisis. At the same time, we believe that this crisis will change transportation-as-a-service, ridesharing, and delivery for drivers and consumers for a long time to come and we are adapting our business to benefit from long-term change in these markets.”

While ridership on Uber and Lyft platforms has declined significantly across the country, the current crisis has enabled HyreCar to shift its driver and vehicle supply focus towards delivery services and explore more partnerships. We have spent the last two weeks transitioning our drivers and our business quickly to help our drivers during this difficult time and we believe that it is working. HyreCar’s recent survey showed that approximately 60% of the drivers have shifted to food and package delivery, including Doordash, Postmates, Instacart and Amazon. Most of those say that they will continue to do delivery after the COVID-19 situation. We’ve seen that delivery service drivers have the ability to earn what rideshare drivers were making just a few short weeks ago. Instacart and Amazon have announced plans to onboard a combined 400,000 employees with approximately 100,000 positions in California alone.