DropCar moves into Washington DC, San Francisco and Los Angeles amid 4Q results

DropCar Inc (NASDAQ:DCAR) noted Wednesday that it is pushing into Washington DC, San Francisco, Los Angeles, New Jersey and Baltimore as the provider of app-based mobility services and logistics software for cars posted fourth-quarter results.

The New York company’s move into these markets stems primarily from its partnership with General Motors’ (NYSE:GM) Maven brand car sharing program.

In a statement, CEO Spencer Richardson also pointed out that the company is reaping the benefits of shifting its business from a valet parking model to a ‘self-park’ model.

READ: DropCar stock rips higher as it mulls strategic alternatives, potential sale

“The fourth quarter of 2018 was a transformational period for our business, with benefits that have continued to proliferate into the first quarter of 2019,” Richardson said. “The transition of our consumer business in August 2018 from a valet parking focused “Steve” subscription offering, to the significantly less labor intensive “Self-Park” model turned a major generator of losses into a gross margin accretive business for us in Q4.”

Over the past few months, the company has also improved its liquidity by orchestrating the sale of its WPCS operations for $3.5 million in cash as well as raising $2 million in gross proceeds from a secondary offering.

Founded in New York City in 2015, DropCar offers valet parking and other services that reduce the cost and hassle of owning cars in cities. DropCar’s Enterprise Vehicle Assistance and Logistics (VAL) technology platform can be used to automate the pick-up and delivery of customer vehicles for service and maintenance.

DropCar provides a series of app-based subscription services, including garage parking, ride sharing technology, vehicle maintenance and other services in several major cities, including Los Angeles and San Francisco

The firm has seen increasing demand for its technology in the New York City area, with various Lexus, Mercedes Benz and Toyota dealerships adopting its VAL platform.

In the fourth quarter, the company’s net revenue came to $1.12 million, down from $1.49 million in the year-ago quarter. Its net loss, meanwhile, amounted to $6.63 million, or $4.09 per share, compared to a loss of $2.5 million, or $6.82 per share, in the year-ago quarter.

DropCar shares slipped $0.32 to $2.36 before the opening bell Wednesday.

Contact Ellen Kelleher at [email protected]

Story by ProactiveInvestors