DropCar (NASDAQ:DCAR) a provider of app-based automotive logistics
and mobility services for consumers and the automotive industry, is
providing a business update following its recent (January 30, 2018)
merger with WPCS International Incorporated. On January 31, 2018,
DropCar began trading on the NASDAQ Capital Market under the symbol
“DCAR”.
DropCar Delivers Robust Growth in 2017DropCar's
consumer and enterprise automotive segments (excluding WPCS’
contracting unit) delivered strong results in 2017, while growth
prospects continue to expand. Overall consumer automotive movements
exceeded 28,000 during the fourth quarter of 2017, up from
approximately 10,700 in the fourth quarter of 2016. Quarterly
enterprise movements have eclipsed 5,700 versus approximately 2,000
a year ago.
DropCar's consumer subscription services, such as STEVE (monthly
parking subscription service) and Premier (higher-end parking and
service subscription package) almost tripled its base to more than
1,400 monthly subscribers, up from approximately 500 at the end of
2016. DropCar’s consumer subscriptions provide Manhattan and
Brooklyn-based car owners with outer-borough parking and concierge
services (drop-off and pick-up in Manhattan and Brooklyn) for as
low as $379 per month (STEVE).
This segment, which successfully increased STEVE pricing (from
$349 to $379) and added a Premier Plan ($499 per month) in January
2018, continues to experience excellent and sticky (i.e. low churn)
demand, due to its compelling value proposition. Local parking
rates, particularly in Manhattan, are increasingly expensive, as
supply trends tighten in response to elevated real estate
valuations.
DropCar’s captive consumer base of approximately 1,400 continues
to generate incremental opportunities in adjacent markets, ranging
from auto repair (e.g. a qualified network of mechanic/repair
servicing with volume discounted pricing) to luxury real estate.
Along these lines, DropCar is working with upscale apartment
management groups, who are looking to incorporate DropCar offerings
into luxury bundles.
DropCar Adds Premier Dealerships to its B2B
Base Over the last few months, DropCar added Manhattan
Motors (Porsche) and Toyota of Manhattan to its premier automotive
roster, which already includes Mercedes of Manhattan, Lexus of
Manhattan, and Jaguar and Land Rover of Manhattan.
Moreover, DropCar has added two unnamed top-tier auto OEMs to
its customer base and is currently in discussions with additional
automotive manufacturers and rental conglomerates.
DropCar’s Vehicle Assistance & Logistics (VAL) platform
enables the maintenance and sales teams at dealers to provide an
entirely new level of service to customers by automating the
pickup and delivery of vehicles for service and maintenance.
In addition to extending the auto OEM and dealer relationship
with consumers well beyond the point-of-sale, DropCar’s
price-per-movement and volume-flex structures enable automotive
enterprises to efficiently, predictably and most-economically
manage car movements.
Growth Prospects Continue to BrightenManagement
believes DropCar’s consumer and enterprise segments will continue
to grow in tandem with DropCar's ability to efficiently expand and
deploy its team of seasoned valets. DropCar currently employs
approximately 250 valets, up from 84 at the end of 2016.
In anticipation of a substantial enterprise expansion, DropCar
recently converted a large portion of its seasoned valets into
field management roles. While this transition momentarily tempered
valet-base expansion, it enables DropCar to efficiently absorb the
anticipated demand surge in 2018 from Tier-One automotive OEMs,
dealerships and concierge service subscribers.
DropCar’s highly-scalable logistics platform is dynamic,
self-improving (increasingly incorporating artificial intelligence)
and big-data driven. Not only does it harvest an increasingly
valuable trove of big data (e.g. consumer auto-related data), but
it proactively benefits from best-of-breed sources such as Google
and Waze. Along these lines, DropCar management eventually plans to
monetize its software/middleware platforms and big data harvests
through licensing agreements.
DropCar: A Unique & Newly Accessible Auto-Tech Pure
PlayDropCar is at the nexus of the urban mobility
revolution and the auto-industry evolution. The company is
reinventing the traditional models for car ownership, parking, and
maintenance all while enabling auto dealers to better connect with
customers, mobility companies to better manage fleets, and car OEMs
to launch new revenue vectors, such as vehicle subscriptions.
With access to the public markets and a currency that can help
attract and retain talent, DropCar is a unique pure-play within the
burgeoning auto tech and driver mobility sector. This dynamic
segment, which includes heralded “disruptors” such as Lyft and
Uber, is rapidly changing the automotive experience, and has
therefore attracted substantial investments from the likes of
General Motors, Ford, Toyota, BMW iVentures and others over the
last two years.
About DropCarFounded and launched in New York
City in 2015, DropCar (NASDAQ:DCAR) offers its Vehicle Support
Platform (VSP), a cloud-based platform and mobile app that help
consumers and automotive-related companies reduce the cost, hassles
and inefficiencies of owning a car, or fleet of cars, in urban
centers. Its technology platform blends the efficiency and scale of
cloud computing, machine learning and connected cars with the
high-touch of highly trained drivers to move cars to/from fully
staffed, secure garages to/from the people (or businesses) who own
them. Consumers use DropCar’s mobile app to ease the cost and
stress of owning a car in the city. Dealerships, leasing companies,
OEMs and shared mobility companies use DropCar’s enterprise
platform to reduce costs, streamline logistics and deepen
relationships with customers. More information is available at
www.dropcar.com.
Forward-Looking Statements
This press release contains “forward-looking
statements” that involve substantial risks and uncertainties for
purposes of the safe harbor provided by the Private Securities
Litigation Reform Act of 1995. All statements, other than
statements of historical facts, included in this press release
regarding strategy, future operations, future financial position,
future revenue, projected expenses, prospects, plans and objectives
of management are forward-looking statements. Such statements are
based on management’s current expectations and involve risks and
uncertainties. Actual results and performance could differ
materially from those projected in the forward-looking statements
as a result of many factors, including, without limitation, the
ability to project future cash utilization and reserves needed for
contingent future liabilities and business operations, the
availability of sufficient resources of the combined company to
meet its business objectives and operational requirements and the
impact of competitive products and services and technological
changes. The foregoing review of important factors that could cause
actual events to differ from expectations should not be construed
as exhaustive and should be read in conjunction with statements
that are included herein and elsewhere, including the risk factors
under the heading “Risk Factors” in DropCar’s filings with
the Securities and Exchange Commission. Except as required by
applicable law, DropCar undertakes no obligation to revise or
update any forward-looking statement, or to make any other
forward-looking statements, whether as a result of new information,
future events or otherwise.
Investor Relations Contact
Daniel Gelbtuch, VP of Corporate Finance for DropCar
daniel@dropcar.com
(917) 509-9582
Media Contact
John Williams, Scoville PR for DropCar
jwilliams@scovillepr.com
(206) 625-0075