Joshua Rodriguez Blog | HyreCar Inc. (HYRE) Stock: Selling Shovels In A Gold Rush | Talkmarkets

HyreCar Inc. (HYRE) Stock: Selling Shovels In A Gold Rush

Date: Thursday, July 12, 2018 7:02 AM EDT

When I say names like Uber and Lyft, chances are that not only do you know these names, but they elicit a sort of emotional response. After all, when we see or hear things that we’re familiar with, we tend to get excited, and Uber and Lyft are the pioneers that changed the way we view the taxi business. In fact, if you live in a big city, chances are that you’ve used one of these services at least once. Nonetheless, another transformative change is taking place in the industry and soon, the name HyreCar Inc. (NASDAQ: HYRE) may elicit the same type of response as names like Uber and Lyft.

Recently, I had the opportunity to sit down with Joe Furnari, Chief Executive Officer and Chief Financial Officer at HyreCar, and I have to say, these guys are onto something. Before we get too deep into the details, I wanted to share an analogy that Joe shared with me that outlines the potential opportunity. Here’s the analogy:

It started with Joe asking: “During the gold rush, who made all the money?”

Remembering what I know about the gold rush, I said no one. After all, the gold rush was fueled by fool’s gold, essentially bankrupting just about everyone that took part. However, as Mr. Furnari pointed out, I was wrong. There was someone making money? So, who was it? As Mr. Furnari said to me:

“It was the guys selling the picks and shovels. The people selling the tools were the ones making the big bucks while the miners were losing their shirts.”

Then, Joe tied it all together, explaining where HYRE fits in all of this, saying:

“That’s what we are! With the ride-share business booming and Uber and Lyft exploding with popularity, we’re the guys selling the tools that make this all possible.”

What Exactly Is HyreCar?

HyreCar is in the business of connecting Uber, Lyft and drivers for other services with the vehicles that they use in order to make their money every day. The company has built an overwhelmingly intuitive platform designed to connect drivers with cars, giving them the opportunity to earn an income, while everyone in the circle, from the driver to the car owner and HYRE themselves makes money.

The platform is essentially a match-maker that matches those with the tools to those that need them. However, it goes a bit deeper than that. While HYRE takes what they call a “haircut” from the fees paid by the driver and charges the car owner a small fee, the real money for the company comes from the insurance.

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Bruce Powers 1 year ago Member's comment

Never heard of $HYRE. Interesting model, but if successful I suspect #Uber will either buy them or simply replicate their offering.