- Rents cars to rideshare drivers with no long-term contracts
- Takes care of insurance and maintenance and gives riders flexibility to change vehicles
- Provides a platform for auto fleet operators to rent their cars
What EVmo does:
EVmo Inc (OTCPINK:YAYO), formerly YaYo Inc and RideShare Rental Inc, acts as a bridge between drivers, who need cars in order to work for companies like Uber and Lyft, and auto fleet operators who want to rent to the rideshare market.
The company rents to rideshare drivers and takes care of auto insurance and maintenance. For fleet operators, the company provides an online platform on which they can rent their vehicles. According to Global Market Insights, the ridesharing market in North America was $4.5 billion in 2019 and expected to grow at a compound annual growth rate (CAGR) of 6.5% through 2026.
EVmo offers daily, weekly and long-term rentals in major cities including Oakland, Los Angeles, Seattle, Las Vegas, Chicago and others, with more expected in the coming months.
Electric vehicles (EV) are a priority for EVmo, particularly after Uber and Lyft both announced plans to go entirely electric by 2030. Not every driver has an EV, which makes renting from EVmo a viable solution. Drivers can use EV charging stations at EVmo (OTC:YAYO) locations, or even swap into another car entirely.
The company also operates an ambassador program, through which drivers can earn a 10% discount for referring others. That stacks up, so it’s possible to rent a car for free with enough referrals.
How is it doing:
On August 17 this year, the company told investors it had posted another quarter of record revenue and expects this year and 2022 to be 'breakouts' for the company.
For the second quarter ended June 30, 2021, the company saw revenue grow 67.8% to $2.7 million, from $1.6 million in the same period a year earlier.
Post quarter end, EVmo (OTC:YAYO) (OTC:YAYO) completed a $15 million debt financing and commitment, the balance of which is not reflected in the June 30 balance sheet, the firm noted, adding that gross profit was up 158.1% in the latest quarter versus 2Q, 2020 and up 43.4% compared to the first quarter this year.
The financing was with New York based Energy Impact Partners (EIP) and EVmo (OTC:YAYO) described it at the time of closing in July as a "significant step" towards a 10,000 car and van expansion over the next 18-24 months. The company's cash and equivalents totaled $0.2 million as of June 30, 2021.
In May, EVmo reported record first-quarter 2021 revenue of $2.3 million, up 31.3% year-over-year, as the percentage of EVs in its managed fleet grew to 14% during the period.
The company also generated a gross profit that was 57% higher than 1Q 2020 and expects its gross margins will expand significantly in 2021
A month earlier, EVmo had posted revenue of $7.6 million for 2020 as a whole, a company record, and said it rented the highest number of vehicles in its history, including 40 recently deployed EVs. The Los Angeles-based firm also jumped into the last-mile logistics space, adding high-roof cargo vans for delivery.
The company said it took delivery of its first fleet of Tesla vehicles on March 25 this year through its fleet partnership agreement. The plan is to go all-electric by the end of 2021.
EVmo also underwent a leadership change this year. On March 3, then-CEO Ramy El-Batrawi, acting through his holding company X LLC, completed the sale 6 million shares of stock to Acuitas Group Holdings LLC, giving Acuitas a controlling stake.
Acuitas Group’s sole owner Terren Peizer has become executive chairman of the company’s board of directors, which has been expanded from five to seven members, while former board chair Stephen Sanchez is now serving as CEO.
Looking ahead, a major priority for the company is uplisting to the Nasdaq exchange.
- Expansion if fleet and moved into additional markets
- EV purchases to go all-electric
- New leadership hitting the ground running
What the boss says:
"Second quarter revenue exceeded pre-COVID-19 levels, demonstrating the strength of our business model and the rapidly growing demand for our services as the re-opening of the economy continues," said CEO Stephen Sanchez in the firm's most recent results statement.
"Importantly, the quarter’s revenue doesn’t reflect the effect of the debt financing capital deployed, and future capital deployed. Capital and the associated internal rates of return are the fuel to our potential exponential growth and profitability.Even before scale, our gross margins are better than public company comparables that are at greater scale.
"We continue to maintain strong gross margins of approximately 28%, improving 52% over the second quarter of 2020, making the company's core rental operations profitable before taking into account corporate overhead and one-time costs. We expect our gross margins will continue to expand throughout 2021 as we substantially increase our fleet and transition to an EV model.
"We are on a mission to rent every car, every day and provide excellent service in the process, and we are committed to an environmentally friendly user platform. We buy right, maintain high utilization through our maintenance excellence program, and are forging key strategic relationships to drive our environmental and economic initiatives. Our plans are bold and aggressive, and we believe that 2021, and particularly 2022 should be breakout years for EVmo."
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