DropCar, Inc. (NASDAQ: DCAR) shares rose Wednesday, after the company issued a preliminary Q1 update on its enterprise automotive business. The company disclosed that Q1 B2B automotive volumes rose 163% year-over-year.
The New York-based DropCar, which just went public a matter of weeks ago, brands itself, “a provider of app-based automotive logistics and mobility services for consumers and the automotive industry”.
DropCar added it will soon schedule the release of its Q1 results and associated conference call, which will take place by mid-May, and will cover both its automotive and low-voltage contracting businesses.
DropCar's enterprise automotive segment (excludes the consumer auto and low-voltage contracting units) delivered strong results in Q1, driven by organic growth of existing customers and the onboarding of new B2B partners.
Mercedes Benz, which is the first of DropCar’s four Tier-One corporate customers, increased its volume by 46% year-over-year (YoY) during the first quarter of 2018.
DropCar’s addition of multiple car dealerships over the last few quarters drove ~240% year over year growth in dealer-related B2B job volumes (~2,500 in Q1).
Meanwhile, during the second-half of Q1, DropCar began generating revenues from its third and fourth Tier-One corporate B2B customers.
"As car companies scramble to address disruptive car ownership and usage models," Wednesday morning’s press release affirmed, "DropCar’s concierge services and robust logistics platform offer compelling solutions for automotive enterprises."
It concludes, "Major automotive brands and car sharing companies are increasingly looking to outsource logistics (e.g. car movements) to companies like DropCar, which offer high-quality and efficient services to help them reduce costs and streamline vehicle logistics.”
The company’s stock skyrocketed 22 cents, or 11.2%, to $2.14.
