CORAL SPRINGS, FL / ACCESSWIRE / July 30, 2018 / This morning HyreCar (NASDAQ: HYRE) announced a strategic partnership with DriveItAway. While DriveItAway is not a household name, this partnership has major implications for HyreCar and the future of "Mobility-as-a-Service" in the ride-sharing industry.
The growth in ride-sharing has been phenomenal, with Uber and Lyft delivering millions of riders each day. Forecasts for this business are for continued rapid growth, led by strong demand for the product. This is particularly true with millennials as they tend to delay car ownership for as long as possible, creating a strong demand from that demographic.
The biggest issue in achieving this growth, and satisfying the demand is a lack of drivers. Or, more exactly, a lack of drivers with suitable cars. Which makes sense when you think about; those most likely to be a ride-share driver are the people least likely to own a car that qualifies for the platform.
This is where HyreCar's platform comes into play. They have built a robust, scalable infrastructure that allows drivers to be paired with available cars for rent on a short term basis. This benefits Lyft and Uber as their potential drivers have now been enabled as drivers, and it also benefits car owners who derive an additional source of income from otherwise idle vehicles. Truly a win/win situation.
However, the issue that has confronted HyreCar early in their growth is how to achieve scale rapidly. Enter John Possumato and DriveItAway. John has built a business around enabling owners of dealerships to start transitioning towards the future. Which, is not traditional car sales and leasing; it is Mobility-as-a-Service.
By partnering up, HyreCar and DriveItAway will be able to bring a compelling offering to owners of fleets of vehicles. These people see that Uber and Lyft (i.e. ride-sharing) are the future. Now, they will be able to be a part of the solution, bringing their vehicles to those platforms through HyreCar.
Lyft in particular seems to be the company most likely to drive business for HyreCar. DriveItAway has an established relationship with Lyft, as they were the partners who created the successful "Lyft your downpayment" program. Possumato brings a deep relationship with Lyft over to HyreCar. As Lyft has plenty of drivers looking for vehicles, HyreCar could be in a very optimal position to help Lyft if they start launching fleets of vehicles into this market.
As an investor, realize that the automobile industry is being turned on its head. Tesla is bringing electric vehicles to the masses. Uber and Lyft have upended the taxi industry and are making inroads into the rental market. And, millennials delaying purchases, or now subscribing to cars, is disrupting the dealer network.
It used to be that everyone owned their car. Now, Mobility-as-a-Service is a rapidly approaching future. HyreCar is a great proxy on the ride-sharing success of Uber ($52B valuation) and Lyft ($15B valuation). This partnership with DriveItAway puts them in a strong position to be a major factor in this burgeoning industry.
This article was originally published by Tailwinds Research Group.
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SOURCE: CNA Finance, LLC
