Renting vehicles to gig economy drivers is a total addressable market that is currently estimated at between 300,000 and 500,000 vehicles, EVmo CEO Stephen Sanchez said Thursday (March 31) during the company’s quarterly earnings call.
EVmo serves this market by providing rental vehicles to both rideshare and last-mile delivery drivers and delivery companies in the gig economy. The company is active in seven metropolitan areas across the U.S. and has a fleet of 600 vehicles.
“2021 was definitely a foundation-building year,” Sanchez said. “We wanted to make sure that we put provisions in place for capital, people — we have that in place, we have the equipment commitments, we have the marketing processes in place, so we are looking for an accelerated growth of our fleet and markets that we serve here in 2022 and beyond.”
Providing Exclusive Access to Delivery Demand
To service these customers, the company maintains an online rideshare vehicle booking platform that includes both its owned and maintained passenger and cargo delivery fleet and third-party fleets.
In January, EVmo launched a partnership with the University of Southern California, where the company provided on-campus access to its rental vehicle fleet through one of the university’s parking garages.
Dedicated staff work on site to keep the electric vehicles charged and ready for use, while the company’s app handles the rental process, providing employment opportunities for students.
In November, EVmo launched a crowdsourced delivery application that provides renters on the EVmo platform with exclusive access to delivery opportunities. The app also provides drivers with turn-by-turn directions and provides retailers and delivery recipients with real-time updates at the completion of each delivery.
Offering Employment Opportunities
During fiscal year 2021, EVmo saw active rentals per day rise 15% year-over-year, and average rental days per driver rise 8% year-over-year.
“We’re providing employment opportunities for those in the gig economy that typically could not buy a car on their own and typically could not lease a car on their own,” EVmo Executive Chairman Terren Peizer said during the call. “So, that’s why we get favorable characteristics — because it’s a living for these drivers and, as a result, they take better care of the car and we minimize our cost associated with the driver.”
Peizer said the company will further enhance its technology platform, grow its fleet and continue its business development activity with industry partners, universities and cities.
Gaining Competitive Differentiation with Electric Vehicles
During the call, Sanchez said EVmo expects to expand its fleet by 400 vehicles each quarter in 2022, reaching a total of more than 2,000 vehicles by the end of the year. The company expects to then add 2,000 vehicles each quarter in 2023.
Today, electric vehicles and hybrids account for 34% of the fleet. The company aims to have a fleet that is predominantly electric vehicles.
“As we continue our transition to all electric vehicles, we believe we’re in the vanguard of a new era in commercial transportation and that our early presence in this industry will further distinguish us from a competitive standpoint,” Sanchez said.
Beyond the seven metropolitan areas in which it is now active, EVmo plans to expand to 21 more areas over the next two years.
“We expect the rideshare industry metrics related to end customer and driver of vehicle demand to continue to improve,” Sanchez said.