Luxury Ride-Share & Commercial Vehicle Leasing Business

Luxury Ride-Share & Commercial Vehicle Leasing Business
$1,725,000

The Company was launched 36 years ago by its current owner as a traditional Limousine business. The old business model changed dramatically when the owner became an early adaptor of disruptive rideshare technology. In 2011 he became one of Southern California’s earliest and largest partners with UBER Black, the luxury-side of the rideshare business. The Company wisely built a dual revenue model centered on luxury transportation. Currently, the Company enjoys a special status as the largest licensed Southern California partner with both Uber Black, Lyft Black and a host of other rideshare app driven companies.

The Black label is a special designation within the ride-share community of companies indicating luxury vehicles and certified drivers. Additionally, each Black designated driver must maintain a minimum customer 4.85-star rating. The Company provides insurance, commercial livery vehicles licenses as required and vehicle maintenance that exceeds manufacturer recommendations. Uber Black & other Black designated ride-share businesses and drivers are distinguished from standard Uber/Lyft apps drivers who typically use their own non-luxury vehicles and are often part-time and lack commercial insurance and commercial licenses.
The Company currently owns a fleet of 18 luxury late model “Black” eligible vehicles (all included in the purchase price). It then leases those vehicles to drivers engaged in the Ride-Share business versus drivers involved in the traditional Limo business. The Company has drivers solely committed to accepting fares drawn from a variety of the ride-share app Companies, primarily from UBER Black. Each of the Company’s vehicles are leased to drivers at rates varying from $700 to $850 per week depending on the make and model year of the vehicle. Those drivers are responsible for the cost of fuel, while the Company provides both full insurance coverage and vehicle maintenance. The Company has TCP Permits that cover passenger carriers and LAX Airport Permits that are required for pick-up & drop-off privileges at the airport.

In addition to the rideshare leasing business, the Company also derives significant revenue by servicing the Companies own private client base of roughly 1,000 long standing clients. The Company has only 3 full-time administrative employees: the Owner, an Office manager, and a maintenance manager. The Company receives regular weekly payments from both Uber & Lyft. The drivers are then paid by the Company, after subtracting for their lease payments. Consequently, there is virtually no accounts receivable beyond 7 days.

Given the high existing customer demand, new growth capital for additional vehicles would provide a new owner with a high Return-on Capital (ROI) for any newly invested funds. The current owners’ health status has discouraged him from pursuing that growth. Poor health and a desire to retire are his motivation for the sale.

2023 EBITDA = $860,000