HyreCar, Inc. engages in the operation of a peer-to-peer car-sharing marketplace. Its services allow car owners to rent their idle cars to ridesharing service drivers. The company was founded by Anshu Bansal and Abhishek Arora in July 2014 and is headquartered in Los Angeles, CA.
Revenues and Gross Profit. Gross profit of $4,645,000, or approximately 47.5%, was realized on revenues totaling $9,777,079 for the year ended December 31, 2018 as compared to gross profit of $311,326, or approximately 9.7%, realized on revenues totaling $3,223,874 for the year ended December 31, 2017. The increase in revenues of $6,553,205, or approximately 203.3%, was due to the growth of our business, which resulted from the expansion of our sales team, increased marketing spend and brand awareness.
Operating Expenses. Operating expenses, consisting of general and administrative, sales and marketing, and research and development expenses, increased by $9,425,387 to $13,803,663 for the year ended December 31, 2018, as compared to operating expenses of $4,378,276 for the year ended December 31, 2017. The increase in operating expenses was related to the scaling of our business across all functional areas. Our general and administrative expenses increased by $5,781,147 to $7,600,735, primarily as a result of our new headquarters office space in downtown Los Angeles where all our operations are currently housed, salaries, legal, operations and support functions. Our sales and marketing expenses increased by $2,916,552 to $4,788,201 which is primarily attributable to an increase in digital advertising, a dramatic increase to the sales team and addition of customer relationship management systems. The remaining difference is attributable to growth in the technology team by $727,688 to $1,414,727 related to the enhancement and maintenance of our digital marketplace technology platform.
Loss from Operations. Our loss from operations for the year ended December 31, 2018 was $9,158,663 as compared to a loss from operations of $4,066,950 for the year ended December 31, 2017. The increased operating loss during 2018 is a direct result of the increased operating costs due to a higher scale of business levels noted above.