HyreCar Inc., the carsharing marketplace for ridesharing and food and package delivery services, announced in a statement an agreement with a premier global investment bank and Medalist Partners for a $100 million warehousing line of credit. The global investment bank will provide primary financing with Medalist Partners providing $20 million of additional financing. Under the agreement, HyreCar’s fleet operator partner, AmeriDrive Holdings, LLC, will use this facility to purchase vehicles for exclusive listing on the HyreCar platform through a bankruptcy-remote joint venture.
Through this initial warehousing line, HyreCar expects AmeriDrive to add an additional 6,000 to 7,000 vehicles over the next 12 to 18 months to the HyreCar platform. According to the statement, these vehicle assets will serve as collateral under the facility. As previously indicated, the company expects this line to begin a broader facility expansion into white-labeling vehicle financing for HyreCar’s fleet operators.
“While the HyreCar platform has consistently generated upwards of 30,000 driver leads every month, our bottleneck to growth has always been constrained by car supply," said Joe Furnari, CEO of HyreCar in the statement. "This partnership with Medalist, in conjunction with a premier investment bank, is the start of the next chapter for HyreCar’s growth as we seek to address the chronic shortage of drivers and cars for rideshare and delivery companies in North America. We continue to expect to be profitable at the 6,500 to 7,000 daily car rental threshold, and we believe this deal will allow us to exceed that number. As a reminder, every 10,000 active rented cars on the HyreCar platform represents approximately $100 million in run rate revenue.”
“We are excited to provide asset-backed financing solutions to innovative companies in the EV and alternative transportation space,” added John Slonieski, director of private credit and partner at Medalist Partners. “We view the space as a multibillion-dollar opportunity and believe that HyreCar is uniquely positioned to deliver on continued growth in enabling drivers in this space.”
HyreCar is expanding into new markets and aligning geographically with rideshare and delivery partners in the U.S. The initial warehousing line strengthens the company’s partnership with AmeriDrive. This partnership includes exclusivity of AmeriDrive vehicles on the HyreCar platform.