- Getaround has agreed to buy HyreCar for $9.45 million.
- Getaround stock soared 70% at Friday’s open.
- Ride-sharing company says acquisition may be path to profitability.
- HyreCar is a vehicle rental company that works with gig economy drivers.
Getaround (GETR) stock has exploded on Friday after the ride-sharing app announced its intention to buy HyreCar’s assets for a cool $9.45 million. The penny stock shot up from Thursday’s close at $0.353 to above $0.56 on Friday – a rally of more than 70%.
Getaround Stock News: HyreCar acquisition could pave way to profits
Since February, management at Getaround has been announcing its intentions to reach profitability as soon as possible. Most of that strategy involves reducing costs at the company, but it appears they view this acquisition as another means of making their way in that direction.
“HyreCar created the gig economy car-sharing category with an asset-light model, extensive user data and strong risk management solutions,” said Getaround founder and CEO Sam Zaid in a statement.
“The assets not only offer solid fundamentals that contribute to both the top and bottom lines, but fits well symbiotically with Getaround, our technology, key partnerships, and future growth plans. Getaround’s DNA in connected, digital (keyless) carsharing and its global reach enables HyreCar hosts to grow their businesses and unlock more earnings potential,” he said.
Drivers who are interested in working for companies like DoorDash (DASH) or Uber (UBER) can rent a vehicle from HyreCar if they don’t already have one that fits those companies’ requirements.
Getaround is an app company based in San Francisco that allows users to rent vehicles from each other as well as offer ride-sharing options. It was founded in 2009, and its car-sharing marketplace provides 72,000 vehicles in eight different countries at last check.
The company was valued at $1.2 billion one year ago when it agreed to merge with the InterPrivate II SPAC, which had raised $259 million ahead of the agreement. Once the GETR stock began trading last December, however, its $10 initial share price quickly cratered in a matter of days to trade below $1.
It might remind some of another popular automotive penny stock – Mullen Automotive (MULN). Mullen stock is drifting in the other direction on Friday though with MULN down 7.8% at $1.29.
Getaround stock forecast
News of the acquisition has pushed GETR stock well above its short-term moving averages, which were already in a downtrend prior to the announcement. This rally could be short-lived, however, if GETR cannot close above the $0.81 swing high from April 16. Conquering that resistance point would allow bulls to take a crack at closing the December 13 gap at $1.36. In the meantime, support sits at $0.25.
GETR daily chart
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