More news! Keeps getting better here boys. I tried to get word out sub $1 lol.
RideShare Rental, Inc., formerly YayYo, Inc., announces $2 million extension of ACME Auto Leasing LLC line of credit
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January 21, 2021 08:45 ET | Source: Rideshare Rental, Inc.
BEVERLY HILLS, Calif., Jan. 21, 2021 (GLOBE NEWSWIRE) -- RideShare Rental, Inc., formerly YayYo, Inc. ("RSR" or the “Company") (Other OTC:YAYO), a leading provider of vehicles to the rideshare and delivery gig economy industry, acting through its wholly-owned subsidiary, Rideshare Car Rentals, LLC, today announced that ACME Auto Leasing LLC has increased their line of credit to the Company by $2 million.
The extension will be used to fund additional passenger vehicles for the rideshare industry, including the purchase of transit high top cargo vans for last -mile logistics. The bulk of the funds will be allocated towards the purchase of electric vehicles (EV) to launch RSR's EV strategy for the rideshare space.
Ramy El-Batrawi, Chief Executive Officer of RSR said, "The higher line of credit will help us to ramp up our fleet and continue to rapidly deploy new vehicles as we strategically build out our expansion. Demand for vehicles continues to outpace supply and we’re excited to be able to meet the demand of rideshare drivers. A supply of new cars and vans is scheduled to be begin delivery this week and continue through the rest of January and February. We already have commitments from PDQ Logistics, LLC for the vans we will use for long-term rentals. In several markets, we are experiencing greater than 95% utilization. We anticipate that most of the vehicles that will be delivered to us will be rented within a short period of time after our receipt, as we continue to supply drivers for Uber, Lyft, Grubhub, Postmates, and other gig economy drivers."
Further, Mr. El-Batrawi stated, “The expansion of Rideshare Rental into electric vehicles not only further diversifies the Company, it takes us into the next generation of rideshare, as demonstrated by the recent announcements by Uber and Lyft that they are significantly expanding their electric vehicle and hybrid ride options and intend to be 100% electric by the end of this decade. Deploying electric vehicles instead of gasoline-powered models for services like Uber and Lyft provides obvious climate benefits. The one detriment of the explosive growth in ride-hailing in recent years is the effect it has had on climate-friendly mass transit. At present, there are a limited number of electric vehicles in the ride-hailing fleets to satisfy the rapidly growing demand. We intend to be in the vanguard of meeting this demand while at the same time helping to realize such important environmental benefits.”
Mr. El-Batrawi continued, “EV entry into ride-sharing is challenging because the vast majority of ride-sharing vehicles are driver-owned and electric vehicles currently have higher costs. With Rideshare Rental purchasing these EVs, we can in turn rent them to drivers at a much lower up-front cost. We are hopeful that entering this market will lead us to a cooperative agreement with ride-hailing companies.”
Rideshare Rental has entered into a leasing arrangement for the new vans with PDQ Logistics, LLC, a limited liability company whose managing member is Mr. El-Batrawi. In addition, Mr. 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.
