The Drivers Cooperative

A ridehailing platform owned by workers, not the billionaires

New York, NY

Technology B2C Mobile Apps Service Transportation

Financials

We have financial statements ending December 31, 2022. Our cash in hand is $66,765, as of October 2023. Over the three months prior, revenues averaged $548,455/month, cost of goods sold has averaged $502,982/month, and operational expenses have averaged $91,466/month.

At a Glance

Jan 1 – Dec 31, 2022

$6,109,126

+10X

Revenue

$125,912

Net Profit

$139,956

-8%

Short-Term Debt

$1,875,191

Raised in 2022

$66,765

+10X

Cash on Hand

Net Margin:

Gross Margin:

Return on Assets:

Earnings per Share:

$65.48

Revenue per Employee:

$1,018,187.67

Cash to Assets:

19%

Revenue to Receivables:

677%

Debt Ratio:

103%

TDC Financial Statements FINAL v.5.pdf

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.

Risks

Key Personnel. The Cooperative’s success substantially depends on the efforts of its Founding Member Erik Forman, Board of Directors, and other Key Personnel Cynette Wilson (Finance Manager), Lee Garcia (Operations Manager), David Alexis (Driver Engagement Manager) and contractors. Investors must rely upon the judgment and skills of this Founding Member, Board of Directors, and Key Personnel. The Cooperative’s success also depends upon its drivers, both members and non-members, as well as its ability to recruit, train, and retain qualified drivers. The loss of services of any of key personnel, or Cooperative's inability to recruit, train, and retain qualified drivers and staff, may have a material adverse effect on the Cooperative's business and financial condition.

Risks Inherent to Worker Cooperatives. A worker cooperative is defined as a corporation that is owned and controlled by its workers. Although this business form is increasing in popularity, it is still a relatively new concept for many consumers. As a worker cooperative, the Cooperative has a democratic governance structure amongst its membership whereby each driver- and worker-member is entitled to one vote per member (rather than the more common, one vote per share). Given its democratic structure, the Cooperative’s strategic direction is not at the sole discretion of the Board of Directors, Officers, or Management Team. While major strategic and financial decisions are made by the Board of Directors, the Board is elected by driver-members and certain staff, as outlined in the bylaws and policies of the Cooperative. Decisions that most directly impact the everyday lives of driver-members, such as potential disciplinary actions, are in the hands of a Driver Board elected by the driver-members. The Cooperative has adopted this democratic structure in order to align incentives between stakeholders, which the Management Team believes will create a stronger Cooperative and a more unique value proposition for both driver-members and consumer-riders. However, because decisions are made democratically, and due to the community-centered nature of cooperatives, the driver-members and staff of the Cooperative may consider values other than the maximization of short-term profits in their operational decisions, such as devoting resources to social benefits, including social safety nets for driver-members, or to campaigns designed to shape public policy that benefit ride-share drivers and their consumer riders, or to other values and perspectives that emerge from the democratic process. Currently, the Cooperative is pursuing a policy agenda to elevate job quality in the gig economy and bring about a just, green transition of the industry through electric and wheelchair-accessible vehicles. Activities such as the above contribute to and enhance the central value proposition of the Cooperative, but they could affect the profits of the Cooperative, and make the Cooperative a target of unusual and unpredictable retaliatory action from competitors and other hostile parties. This could result in the Investor losing all or substantially all of their investment in the Cooperative.

Risks Inherent to Business-to-Government (B2G) and Business-to-Government-to-Consumer (B2G2C) sales. The growth of the Cooperative has been driven substantially by contracts and subcontracts for paratransit, medical transportation, and other staff transportation. This creates a risk of losing contracts and subcontracts or losing revenue through disputes with vendors. There is a risk that vendor disputes will result in a significant loss of revenue for the Cooperative and therefore, possibly a major loss of investment for investors.

Other Disclosures

The Board of Directors

Director	Occupation	Joined
Erik Forman	Consultant @ Self-Employed	2020
Mariam Ouedraogo	Secretary @ Self-Employed	2021
Steve Sleigh	Consultant @ Self-Employed	2021
Mohammad Hossen	Director @ Self-Employed	2021
Shaun Beckles	Management Director @ Self-Employed	2023
Michael Ugwu	Director @ Self-Employed	2023

Officers

Officer	Title	Joined
Erik Forman	Treasurer	2020
Mariam Ouedraogo	Vice President and Secretary	2021
Mohammad Hossen	President	2021
Shaun Beckles	General Manager 2023-present	2023

Voting Power

No one has over 20% voting power.

Past Fundraises

Date	Security	Amount
	Revenue Share	$0
7/2023	Loan	$200,000
6/2023	Loan	$340,000
4/2023	Loan	$200,000
11/2022	Loan	$50,000
10/2022	Loan	$200,000
4/2022	Custom	$1,624,841
3/2021	Loan	$10,000
2/2021	Loan	$200,000
2/2021	Convertible Note	$20,000
2/2021	Loan	$40,000

Convertible Notes Outstanding

Issued	Amount	Valuation Cap	Maturity
2/12/21	$20,000	$0	2/1/31

Outstanding Debts

Issued	Lender	Outstanding	Maturity
11/23/22	Impact Assets	$50,000	12/31/32
6/20/23	The Working World	$218,148

Related Party Transactions

None.

Use of Funds

$50,000	30% to software development, 30% to operations, 33.5% to driver onboarding (three months of outreach), 6.5% to Wefunder fees
$1,000,000	30% toward software development30% to operations30% to marketing3.5% to SG&A6.5% to Wefunder fees
$2,600,000	30% toward software development (extending our system to additional cities and countries) 30% to operations (two years of dispatch support)30% to marketing to riders and drivers3.5% toward rent or a down payment on a larger driver power center6.5% to Wefunder fees

Capital Structure

Class of Security	Securities (or Amount) Authorized	Securities (or Amount) Outstanding	Voting Rights
Member Shares	1,000,000	1,923	Yes

Form C Filing on EDGAR

The Securities and Exchange Commission hosts the official Form C on their EDGAR web site.

$1,677,363