What Caused HyreCar (HYRE) Stock to Spike After-Hours?

HYRE shares rose 10.00% to $0.99 in after-hours trade at the last post. In absence of significant news, HYRE stock managed to recover a loss of -12.62% it suffered on Friday.

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What has HYRE been up to recently?

Gig driver fleet provider AmeriDrive Holdings Inc (ADHI) has partnered with HyreCar (HYRE) to form a joint venture (JV).

  • AmeriDrive will expand its fleet and geographical footprint significantly through the JV announced last week.
  • In a recent announcement, HyreCar and AmeriDrive announced a $100 million warehousing line of credit.
  • The facility will be used by AmeriDrive to purchase vehicles for exclusive listing on HYRE.
  • Following the addition of Daniel Florence as AmeriDrive’s Chief Operating Officer, the announcement follows.
  • During the next 12 to 18 months, AmeriDrive plans to add between 6,000 and 7,000 cars to its fleet under the leadership of the newly appointed COO, working closely with the HyreCar team.
  • AmeriDrive will focus on optimizing its fleet operations under Florence to add inventory rapidly and sustainably while maintaining high utilization.
  • In the next 18 months, AmeriDrive expects to open 40 new warehouse locations across the country with a footprint in markets across the country.
  • After refining its processes and technology for the last two years, AmericanDrive plans to expand its fleet and geographical footprint over the next 18 months
  • As a result of this strategic partnership, both companies can reach meaningful and rapid scale.

Previous efforts by HYRE

Medalist Partners and a premier global investment bank have recently entered into a $100 million warehousing line of credit agreement with HYRE. Primary financing will be provided by the global investment bank, while additional funding will be provided by Medalist Partners. AmeriDrive, HyreCar’s fleet operator partner, will use the facility through a bankruptcy-remote joint venture to purchase vehicles for exclusive listing on HYRE’s platform.

Is HYRE going to benefit from this?

In the next 12 to 18 months, HyreCar (HYRE) expects AmeriDrive to add 6,000 to 7,000 vehicles to its platform through this initial warehousing line. As previously stated, these vehicle assets will serve as collateral under the facility. As part of this facility expansion, HYRE expects this line to lead to the expansion of white-label vehicle financing to fleet operators.

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