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DropCar Reports Second Quarter 2018 Financial
|●||Completes 250,000th vehicle movement|
|●||Reports combined B2B & B2C revenue growth of 133% year over year for first six months|
|●||Binding term sheet to sell low-voltage contracting unit for $3.5 million|
|●||Announces changes to consumer offerings designed to increase margins towards profitability|
NEW YORK, August 14, 2018 (GLOBE NEWSWIRE) -- DropCar Inc. (Nasdaq: DCAR), a provider of app-based mobility services and logistics software-as-a-service (SaaS) for automotive consumers and enterprises, today announced its financial results for the quarter ended June 30, 2018. In addition, DropCar is announcing that on August 9th, it entered into a binding term sheet for the sale of its low voltage contracting unit, and has made changes to its consumer offerings, all designed to increase margins and accelerate the path to profitability.
DropCar's enterprise (B2B) segment grew its revenues 135%, from $206,000 to $485,000, year-over-year for the first six months, driven by organic growth of existing enterprise customers and the onboarding of new top-tier automotive partners, particularly in the car sharing segment.
During the second quarter, DropCar’s corporate B2B platform experienced increasing Tier One demand, both in terms of scale and scope. As a result, DropCar has shifted the B2B segment’s focus toward higher-margin and scalable platform sales, with an increasing focus on SaaS and high-margin managed services.
DropCar's consumer (B2C) segment grew its revenues 133%, from $1.32 million to $3.08 million, for the first six months year-over-year in the second quarter, driven by increasing demand for by-the-hour personal driver services and consumer subscriptions. However, gross margins in the consumer subscriptions in their current form have not realized the same benefits of scale seen in the B2B segment.
As such, it is anticipated that on September 1, 2018, DropCar will be converting its existing “STEVE” service from an all-inclusive monthly parking and valet service bundle, in which DropCar valets pick up and drop off customer vehicles at locations outside of the downtown core, to an owner self-park model with access to a la carte on-demand valet services. DropCar intends to leverage its deep relationships with parking providers to offer discounted parking in prime areas, and then charge an additional per-pickup/drop off fee when customers desire the additional convenience of front door service.
DropCar believes that this change offers benefits to both consumers and DropCar: it moves the vehicles closer to where the owners live and gives them greater flexibility to retrieve their car when they need it (with or without a valet); in many cases reduces the cost of parking for owners; and it enables DropCar to utilize valet resources exclusively for income generating activities including higher margin B2B services. Management and the Board of Directors (“Board”) will continue to evaluate the performance of DropCar’s B2C business in its newly configured form and may make further adjustments as it sees fit.
The following information was filed by Dropcar, Inc. (DCAR) on Tuesday, August 14, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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