Rideshare Rental reports record double-digit increase in 3Q revenue

Rideshare Rental Inc (OTCMKTS:YAYO) on Thursday reported third-quarter results showing a double-digit increase in revenue. In a statement, the leading provider of vehicles to the rideshare and delivery gig economy industry through its wholly-owned subsidiary Rideshare Car Rentals LLC said quarterly revenue was up 21% year-over-year and 31% versus its 2Q of 2020, hitting the highest quarterly revenue in the company’s history. Gross margins grew to 42% in the quarter ended September 30, up from 38% in the year-ago period. That made the company’s core rental operations profitable before taking into account corporate overhead and one-time costs. READ: YayYo says corporate name change to Rideshare Rental took effect from September 11, 2020 "We are very pleased with our performance in Q3 2020," said CEO Ramy El-Batrawi. "Although the COVID-19 shutdowns caused our quarterly revenue to decrease in the beginning of the second quarter of 2020 compared to the same period in 2019, we saw a positive upward movement in revenue by the end of the second quarter.” El-Batrawi said the significant increase in revenue is a result of Rideshare Rental’s immediate pivot in marketing to the delivery gig industry, a sector which was active throughout the COVID-19 shutdown.  “With Proposition 22 passing that established workers as independent contractors, superseding a California law that aimed to make gig workers, including ride-hailing and food delivery drivers, employees with full benefits, will create more demand as drivers make more money,” he said.  “This is important because the majority of our fleet are in California. We anticipate seeing continued growth in revenue as we add more cars, demand is strong not only in California but also in all cities we service. We are running at a 95% utilization rate on available cars to rent in all areas.” Rideshare Rental, a Delaware corporation, is a holding company operating through its subsidiaries Distinct Cars, LLC and Rideshare Car Rentals. Each subsidiary is a Delaware limited liability company.  The group is an online rideshare vehicle booking platform to service the ridesharing and delivery gig economy which includes both our owned-fleet and third-party fleets. Contact the author: patrick@proactiveinvestors.com Follow him on Twitter @PatrickMGraham