After more than a month in the red, YayYo Inc (NASDAQ: YAYO) bounced back in Wednesday’s trading session. The stock rallied in high volatility and closed the day with gains of 30.16%. This came after it announced that it was expanding its operations into Texas, by opening an office in San Diego.
The company’s expansion was driven by a new fleet of cars that it got from a partnership with LMP Automotive Holdings. The partnership includes the sourcing of cars that is being done under a $2.5 million program. The program has seen the company grow its fleet, and it expects more deliveries in January 2020. The company continues to grow its nationwide reach, and continues to serve major ride-sharing companies such as Lyft, Uber, Grubhub, and Postmates. The company listings make approximately 40% in gross margins per vehicle.
The company CEO, Jon Rosen stated that, the demand for full-service vehicles continues to grow amongst ride-sharing drivers. This he stated, was a major driver to the company’s growth. On top of that, Rosen stated that, the company was proud to be associated with LMP automotive, as it gave them the ability to source a wide variety of vehicles across geographical locations.
Commenting on their partnership, LMP Holdings General Manager, Gabriel Peer-Drake Sr stated that, his company was well-positioned to provide vehicles to fleet owners like YayYo under their current arrangement.
In the recent past, YayYo has announced a number of other expansion drives across different geographies. On the 4th of December, 2019, the company announced that it was expanding its presence in New Jersey. The company CEO termed this market as one of the most critical, given that it has more than 8.9 million residents.
Looking at the charts, the stock opened the day at $1.61 and traded between $1.41 and $2.15 before closing the day at $1.64. Volumes in the day stood at 15.52 million.
About YayYo Inc
YayYo is in the ride-sharing business and operates an online peer-to-peer booking platform. It is headquartered in Beverly Hills, California.