HYRE - HyreCar rallies after announcing fleet order

HyreCar Inc. ( NASDAQ: HYRE ) broke higher on Tuesday after the carshare marketplace company announced that AmeriDrive Holdings, purchased an initial tranche of vehicles and has reached an agreement to purchase 1,500 more vehicles over the next six months from one of the top three rental car companies in the United States.

The vehicles will be purchased by AmeriDrive using a portion of the recently announced $100M warehousing line of credit. AmeriDrive expects to add 800 to 1,000 cars in current and new markets by the end of 2022. Those cars are expected to be available for rent on the HyreCar platform by November 1.

HyreCar ( HYRE ) said the purchase agreement serves as a channel for vehicle acquisition as AmeriDrive plans to increase its fleet by 6K to 7K cars over the next 18 months for exclusive listing on the HyreCar platform.

"This initial purchase demonstrates the potential for growth that the warehousing line and future financing opportunities unlock for HyreCar," noted CEO Joe Furnari.

"We have spent the last year building capabilities and infrastructure to allow us to significantly scale our business and strengthen our position as the clear leader in carsharing platforms for the gig economy," he added.

Shares of HYRE moved up 7.15% to $0.97 in premarket trading on Tuesday.

Read Seeking Alpha author Henrik Alex's breakdown on HYRE.

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