HyreCar (NASDAQ:HYRE), the carsharing marketplace, saw its revenue in the fourth quarter more than double as it expanded its HyreCar platform to include all 50 states in the US, in a bid to provide cars for Uber and Lyft drivers.
It is estimated that 40% of the 50,000 drivers applying monthly to services like Lyft and Uber do not own a qualifying vehicle. On the flip side, there are owners with idle vehicles who have no desire to work as a driver, but who could leverage that vehicle for revenue.
HyreCar works as an intermediary, a matchmaker of vehicles and qualified drivers.
In its latest reporting period, the Los Angeles-based company saw its revenue climb to $3.1 million, up from $1.3 million in the year-ago quarter. Its net loss, however, widened to $2.6 million, or $0.31 loss per share, from a loss of $1.3 million, or $0.28 loss per share, in the corresponding period last year.
The results failed to impress the Street’s analysts who had forecast that HyreCar would lose $0.13 per share on revenue of $3.22 million.
And after pushing HyreCar shares up earlier in the day, investors had a change of heart and the stock fell 5% to $5.80 in Friday’s morning trade.
Over 100 car dealers are now listing more than 1,200 cars on HyreCar’s platform, said Joe Furnari, CEO of HyreCar in a statement.
“Growth is directly correlated to offering a complete solution for automotive dealers to earn incremental revenue streams on otherwise idle inventory,” Furnari said.
The company’s cash slipped to $6.8 million as of December, compared to $8.7 million in September.
On an optimistic note, HyreCar said it increased the number of days when vehicles were rented to 393,000 in 2018 from 178,000 in 2017.
Contact Ellen Kelleher at [email protected]