Background
Have you ever gotten into an Uber and wondered how this driver afforded such a sick ride? Lots of times they are driving as a second job or in retirement. But other times its because of rental companies that will rent their fleets of cars to drivers rather than have them sit idle on a lot.
HyreCar has created the gig-economy service to service the gig-economy services by connecting car owners with ride sharing drivers.
Fundamentals
Technicals
Summary
HyreCar has an interesting business model and is finding growth by moving from individual car owners to companies that have fleets of vehicles not being used. They weathered a tough situation with the COVID pandemic in early 2020 that brought ride sharing demand to a low. Now that we are getting clear of the pandemic, business is starting to pick back up. The large PPP loan incurred to keep paying employees will likely be forgiven as offered by the government for businesses that used it to pay employees.
This is a good one to put on the watch list and potentially buy when it breaks out of the high, tight flag. Or wait for a little more growth in the company and enter in the future.
Have you ever gotten into an Uber and wondered how this driver afforded such a sick ride? Lots of times they are driving as a second job or in retirement. But other times its because of rental companies that will rent their fleets of cars to drivers rather than have them sit idle on a lot.
HyreCar has created the gig-economy service to service the gig-economy services by connecting car owners with ride sharing drivers.
Fundamentals
- Founded in 2014 and listed in 2018
- Offers owners a way to earn passive income from unused vehicles
- Provides drivers a vehicle for earning money with ride-sharing services
- Competitive advantage is the included insurance and automated platform for connecting driver to owner
- Last three quarters revenue YoY of +65%, +47%, +84%
- Last three quarters EPS of -0.25, -0.22, -0.10
- Used a Paycheck Protection Plan Loan in April during COVID impact on business. The $2m PPP loan is likely to be forgiven.
Technicals
- 140% gain since the beginning of November
- Currently extended 45% above the 50d MA
- High, tight flag forming. Over 100% gain in less then 8 weeks with only 10-25% correction.
- ATR is too high for entry. 10d ATR (x2.7) would require a 27% stop and very small position of R3.69
Summary
HyreCar has an interesting business model and is finding growth by moving from individual car owners to companies that have fleets of vehicles not being used. They weathered a tough situation with the COVID pandemic in early 2020 that brought ride sharing demand to a low. Now that we are getting clear of the pandemic, business is starting to pick back up. The large PPP loan incurred to keep paying employees will likely be forgiven as offered by the government for businesses that used it to pay employees.
This is a good one to put on the watch list and potentially buy when it breaks out of the high, tight flag. Or wait for a little more growth in the company and enter in the future.
Comment:
HyreCar got an analyst upgrade from Maxim Group with a price point of $18.
The infrastructure and capital provided by these partnerships will be leveraged to enable HyreCar to enter the next level of growth and scalability. These companies and their partners represent some of the nation’s most successful organizations that serve the mobility and transportation as a service industry.