Shares of Alternet Systems, Inc. (OTCPK:ALYI) are trading ahead on Wednesday afternoon, continuing to hold the majority of gains after a spike last week. The diversified energy solutions company has recently been riding higher on news of a potential $20 million order from Kenya for its new ReVolt electric motorcycles.
To that end, management is currently visiting Kenya, meeting with potential partners and exploring facilities as part of its due diligence and plans to open an assembly plant for manufacturing the motorcycles for sales in the East African country and across the continent. Alternet previously disclosed a confirmed $1.5 million order from Kenya for its lithium battery-powered ReVolt motorcycles in addition to the $20 million order it is aiming to finalize.
The electric motorcycles will include a sidecar and be used as motorcycle taxis, or “boda boda” taxis as they’re called locally. Considering many of today’s boda boda taxis don’t have a sidecar and are little more than piling a few people on a motorcycle, the ReVolt solution greatly improves on safety to commuters.
Ride-hailing behemoth Uber already offers a boda boda option in Kenya. Last April, Uber hopped into bike-sharing space by acquiring start-up JUMP for reportedly for close to $200 million. The car-hailing business in Kenya’s capital of Nairobi has gotten fierce, with companies like Uber, Taxify and Little Cab fighting to dominate the market. Uber has slashed its prices in recent years, earning the ire of its drivers that make a threadbare living as it is and causing some to default on loans for their “Uber Chap Chap” vehicles.
If Alternet secures the $20 million contract, it immediately becomes a player in the country. Importantly, it positions Alternet as a valuable supplier whose products should give its customers the opportunity to be competitive due to lower operating costs for electric motorcycles compared to cars.
All the aforementioned companies are vying for a piece of a global ride-sharing industry that research firm Markets and Markets forecasts to grow at a compound annual growth rate of 19.9% from $61.3 billion in 2018 to reach $218.0 billion in 2025.
ALYI investors will be looking ahead to the company’s scheduled release of an out-brief presentation this Friday, April 12. The report will summarize the trip to Kenya and provide the latest regarding the status of the $20 million order.
As the day winds towards a close, shares of ALYI are ahead 4.2% at 3.96 cents. After trading near half a penny in January, shares have galloped ahead as high at 6.95 cents in February before retracing and subsequently starting a new climb.