RideShare Rental enters into the last mile logistics space by supplying customers with transit high top cargo vans

RideShare Rental, Inc. (OTCMKTS:YAYO), said that its wholly-owned subsidiary, Rideshare Car Rentals has entered into the last mile logistics space by supplying customers with transit high top cargo vans.

The leading provider of vehicles to the rideshare and delivery gig economy industry, formerly known as YayYo, Inc, said Rideshare Rental’s acquisition of the vans will be financed through an increase of $1 million in its existing line of credit with ACME Auto Leasing LLC.

READ: RideShare Rental says it is getting into the electric vehicle space with a model that will generate revenues and profits upon its launch

In a statement, Ramy El-Batrawi, CEO of Rideshare Rental said: “With the explosion of Amazon’s business this year, and the resulting competition, the last mile delivery of small parcel market has grown at a torrid pace during 2020, with expectations of double-digit growth to continue into 2023. Vehicles for parcel delivery are in high demand, especially during the Covid-19 crisis.

“The expansion of Rideshare Rental into this space is expected to help fill some of the current demand, and will further our strategy to diversify the company, which includes our electric vehicles (EV) strategy we announced earlier this year. This diversification should help in making the company less vulnerable to shutdowns.”

El-Batrawi also noted that he is seeing a greater need for additional delivery capacity from local and regional carriers. He said: “Rideshare Rental will soon be positioned to rent thousands of vehicles as national and regional carriers demand for rental vans continue to increase. We believe that high-margin van rentals can surpass passenger vehicle rentals within a very short time.”

Rideshare Rental has entered into a leasing arrangement for the new vans with PDQ Logistics, LLC, a limited liability company whose managing member is the CEO of Rideshare Rental. In addition, El-Batrawi has provided ACME Auto Leasing with a personal guarantee on any borrowings on the expanded line of credit being used to finance the acquisition of the vehicles. These relationships constitute “related party transactions” under current SEC rules and regulations.

Rideshare Car Rentals is an online rideshare vehicle booking platform created to service the ridesharing, delivery gig economy and the logistics market place, which includes both its owned-fleet vehicles and third party fleet vehicles. Distinct Cars, the group’s other wholly-owned subsidiary, maintains a fleet of vehicles that are commercially available for rent by gig-economy drivers and the logistics market place.

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Story by ProactiveInvestors