UBER - Why HyreCar Stock Is Plunging 46% Today
Shares of HyreCar Inc. (NASDAQ: HYRE) are falling off a cliff this morning and are down 46.6% as of 12:55 p.m. EDT. Demand and revenues are growing faster than expected, but so are HyreCar's losses, and that's something the market and analysts don't like to see in growth stocks .
HyreCar started off as a car-sharing marketplace as it spotted an opportunity within the huge addressable market for ride-hailing service providers, Uber (NYSE: UBER) and Lyft . Individuals who rent their cars on HyreCar's platform can then use them to make money by driving for Uber or Lyft. By using this business model, HyreCar is trying to plug the gap between demand and supply of drivers, which is indeed a big growth hurdle for the two ride-sharing providers .
HyreCar has also expanded its services into delivery of food, groceries, and packages. For example, during HyreCar's second-quarter earnings conference call, CEO Joe Furnari mentioned Uber Eats as a strong growth channel. Uber reported 50% organic growth for Uber Eats in Q2 and said nearly three million customers in the U.S. order groceries, alcohol, and convenience items on Uber's app every month.
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Why HyreCar Stock Is Plunging 46% Today