LOS ANGELES--(BUSINESS WIRE)--HyreCar Inc. (Nasdaq: HYRE), the carsharing marketplace for ridesharing drivers, today announced that it has renewed its partnership with Y-Risk, LLC, a brand of The Hartford, to provide a comprehensive, multi-faceted liability insurance program. The renewed insurance program, which was previously underwritten by Y-Risk on behalf of AIG, now resides with The Hartford. This move was enabled by the acquisition of Y-Risk, which became part of The Hartford in December 2018, and has partnered with HyreCar since 2017.
Working closely with Y-Risk to maximize efficiencies in its insurance program, HyreCar significantly reduced its costs, secured increased capacity and enhanced insurance features which allow two new service tiers that better address the needs of customers. HyreCar’s insurance fills a coverage gap during the time the vehicles are rented on the HyreCar platform but are not yet in service for Transportation Network Companies (TNC) like Lyft, Uber and food or package delivery services such as Postmates, Grubhub and other similar delivery platforms.
“Achieving a profitable business model in this new world of Mobility as a Service is a key milestone,” said Joe Furnari, CEO of HyreCar. “The dual impact of a higher contribution margin from these new tiers, plus a lower contribution to cost of goods sold from insurance premiums, will dramatically enhance our net revenue margin and gross profit margin going forward; this is in conjunction with continued strong revenue growth that will move us toward being cash flow positive in Q2.”
“We’re excited to renew the partnership with HyreCar and leverage Y-Risk’s enhanced data analytics and underwriting capabilities,” said Bernie Horovitz, CEO of Y-Risk. “HyreCar and Y-Risk are operating on the leading edge of the insurance industry, combining our deep underwriting expertise with a strong understanding of the fast-paced world of the tech-enabled economy.”
About Y-Risk
Y-Risk is a brand of The Hartford specializing in providing insurance solutions to the sharing and on-demand economy. Offering its products through wholesale brokers and select retail agents, Y-Risk offers tailored coverage and usage-based pricing for commercial auto, general liability, property, inland marine, cyber and professional liability products. Based in Connecticut, Y-Risk’s customer mix includes transportation network companies, carsharing platforms, on-demand services and space sharing platforms. For more information, please visit www.yrisk.com.
About HyreCar
HyreCar Inc. (Nasdaq: HYRE) is a nationwide leader operating a carsharing marketplace for ridesharing in all 50 States and Washington D.C. via its proprietary technology platform. The Company has established a leading presence in Mobility as a Service (MaaS) through individual vehicle owners, dealers and OEM’s, who have been disrupted by automotive asset sharing. By providing a unique opportunity through our safe, secure, and reliable marketplace, HyreCar is transforming the industry by empowering all to profit from Mobility as a Service. For more information please visit https://hyrecar.com.
Forward Looking Statements
Statements in this release concerning HyreCar’s future expectations and plans, including without limitation, HyreCar’s expectations regarding its future results, performance, prospects and opportunities, may constitute forward looking statements for the purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995 and other federal securities laws and are subject to substantial risks, uncertainties and assumptions. You should not place reliance on these forward-looking statements, which include words such as “believe,” “intend,” “may,” “potential” or similar terms, variations of such terms or the negative of those terms. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, the Company cannot guarantee such outcomes. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors, as well as those risks more fully discussed in the section entitled “Risk Factors” in HyreCar’s prospectus, dated June 26, 2018, that was filed with the U.S. Securities and Exchange Commission under File No. 333-225157, as well as discussions of potential risks, uncertainties, and other important factors in HyreCar’s subsequent filings with the U.S. Securities and Exchange Commission. All such statements speak only as of the date made, and the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.