The Drivers Cooperative

Management’s Discussion and Analysis of Financial Condition and Results of Operations

You should read the following discussion and analysis of our financial condition and results of operations together with our financial statements and the related notes and other financial information included elsewhere in this offering. Some of the information contained in this discussion and analysis, including information regarding the strategy and plans for our business, includes forward-looking statements that involve risks and uncertainties. You should review the "Risk Factors" section for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.

Overview

The Drivers Cooperative, Inc. is a driver-owned cooperative in New York City specializing in paratransit and Non-Emergency Medical Transportation where the Company earns revenue through driver-owned ride-hailing services.

The Drivers Cooperative’s purpose is to have drivers make more on each trip, profits go back to drivers, and drivers have democratic control over the decisions that affect their lives.

The mission of the Drivers Cooperative is to bring about system change in the rides-sharing economy through worker ownership and a just green transition. We build technology to upgrade job equality for drivers and enhance service quality for people with disabilities. We create social mobility for those who need it most.

Milestones

The Drivers Cooperative, Inc. was incorporated in the State of New York in April 2020.

Since then, we have:

• 12x growth to over $6.1 million in revenue in 2022
• Newly-built custom rideshare app with partnership with Google, Inc. for back-end APIs: https://drivers.coop/download
• $30/hr living wage guarantee for drivers on paratransit contracts
• Over 10,000 drivers signed up so far
• NEW direct contracts with the MTA, largest transit agency in North America
• 100% worker-owned
• Three loans paid off in full- over $250,000 paid back to investors/lenders
• Over 300,000 successful trips.

Historical Results of Operations

Our company was organized in April 2020 and has limited operations upon which prospective investors may base an evaluation of its performance.

• Revenues & Gross Margin. For the period ended December 31, 2022, the Company had revenues of $6,109,126 compared to the year ended December 31, 2021, when the Company had revenues of $535,318. Our gross margin was 9.11% in fiscal year 2022, compared to 11.12% in 2021.
• Assets. As of December 31, 2022, the Company had total assets of $1,891,024, including $356,781 in cash. As of December 31, 2021, the Company had $1,234,303 in total assets, including $1,033,424 in cash.
• Net Income. The Company has had net income of $125,912 and net losses of $182,710 for the fiscal years ended December 31, 2022 and December 31, 2021, respectively.
• Liabilities. The Company's liabilities totaled $1,940,169 for the fiscal year ended December 31, 2022 and $1,409,360 for the fiscal year ended December 31, 2021.

Liquidity & Capital Resources

To-date, the company has been financed with $500,000 in debt, $20,000 in convertibles, $1,624,841 in prior regulation crowdfunding offering, and $1,160,000 in grants.

After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 6 months before we need to raise further capital.

We plan to use the proceeds as set forth in this Form C under "Use of Funds". We don’t have any other sources of capital in the immediate future.

We will likely require additional financing in excess of the proceeds from the Offering in order to perform operations over the lifetime of the Company. We plan to raise capital in 18 months. Except as otherwise described in this Form C, we do not have additional sources of capital other than the proceeds from the offering. Because of the complexities and uncertainties in establishing a new business strategy, it is not possible to adequately project whether the proceeds of this offering will be sufficient to enable us to implement our strategy. This complexity and uncertainty will be increased if less than the maximum amount of securities offered in this offering is sold. The Company intends to raise additional capital in the future from investors. Although capital may be available for early-stage companies, there is no guarantee that the Company will receive any investments from investors.

Runway & Short/Mid Term Expenses

The Drivers Cooperative, Inc. cash in hand is $66,765.16 as of 10/20/23. Over the last three months, revenues have averaged $548,455.80/month, cost of goods sold has averaged $502,982.26/month, and operational expenses have averaged $91,466.26/month, for an average burn rate of $45,992.72 per month. Our intent is to be profitable in 2 months.

Since the close of 2022, The Drivers Cooperative launched its new custom-built platform, secured new major contracts, and has reduced expenses to get closer to break-even, but continues to operate at a loss. Presently the Cooperative is raising additional capital, launching new contracts to increase revenue, and finding efficiencies in operations to extend runway and achieve profitability.

Over the next six months, the Cooperative expects revenue of $5,421,387 costs of goods sold of $4,583,265 and expenses of $1,055,574.

The Cooperative is not profitable and expects to make losses of $520,994 over the next six months as we invest in growth. The Cooperative needs $600,000 in capital to execute on a growth plan with the expectation of becoming profitable in July 2024.

The Cooperative can cut expenses to become profitable sooner, but this will come at the expense of growth. Other short-term sources of capital includes lines of credit and operating revenue.

All projections in the above narrative are forward-looking and not guaranteed.