Shares of HyreCar Inc. (HYRE), a car-sharing marketplace that allows car owners to rent their idle vehicles to ridesharing drivers, jumped nearly 15% higher Monday morning after the company announced it would join the broad-market Russell 3000 Index.
The plan is for HyreCar to join the index at the conclusion of the 2021 Russell Indexes annual reconstitution, which takes place after market open on June 28. "I'm proud of the tremendous progress we have made this year, both operationally and driving top line growth that should continue as we execute on our strategic plans in 2021," said CEO Joe Furnari in a press release.
While HyreCar's addition to the Russell 3000 Index is a positive move for the company and will attract broader interest from institutional investors as well as investment funds, the long-term success of the stock will be based on its growth. The company needs to continue increasing revenue, bring new drivers to its platform, increase rental days, and cut down on cost per booking. HyreCar stock is up nearly 600% over the past year, but its potential long-term growth makes the company an intriguing stock within the automotive industry.