Ride-hailing and food delivery are two popular investment themes that have gained significant attention in recent years, and key players are generally involved in both themes.
The ride-sharing industry has experienced significant growth (compound annual growth rate of around 18% from 2016 to 2022) and is expected to continue to see accelerating growth in the years ahead.
According to a research report by Zion Market Research estimates that the global ride-hailing market was valued at $36.8 billion in 2020 and is expected to reach $218.8 billion by 2028, at a CAGR of 25.1% during the forecast period 2021 to 2028.
Factors such as the increasing use of smartphones, the convenience and cost-effectiveness of ride-sharing services, and a growing preference for on-demand services are all contributing to the industry’s growth. Additionally, the COVID-19 pandemic has accelerated the shift towards contactless transportation options, which has further boosted the demand for ride-sharing services.
The delivery market is also growing at a rapid pace. The on-demand delivery market is also expected to grow at a fast pace, with a CAGR of over 25% from 2020 to 2025, driven by the increasing adoption of smartphones and the growing preference for on-demand services.
Both ride-hailing and food delivery have become popular investment themes due to their high growth potential and the potential for high returns.
With risk assets starting to shrug off bad news and the Fed looking to pause its tightening campaign, investors ready to put new money to work for the next market cycle should take a closer look at stocks tied to this strong growth theme.
With that in mind, we take a closer look below at some of the interesting opportunities in the personal transportation services marketplace.
Uber Technologies Inc. (NYSE:UBER) is a transportation technology company that offers a mobile app that connects riders with drivers for transportation services.
The app allows users to request rides, track the location of their driver, and pay for the ride directly through the app. Uber also offers other transportation services such as Uber Eats for food delivery and Uber for Business for corporate transportation solutions.
Uber Technologies Inc. (NYSE:UBER) recently announced an integration with CDK Global, a leading automotive retail software provider. The integration allows dealerships to request rides with Uber on behalf of guests and customers directly within CDK Hailer, including rides for customers returning home or to the office after dropping their car off for service at a dealership. With Uber for Business, CDK’s clients can create a seamless experience for customers, business guests, or whoever is on the move.
“At Uber for Business, we are redefining the automotive dealership experience for staff and customers,” said Susan Anderson, Global Head of Uber for Business. “We know dealers care about receiving high customer satisfaction index scores, saving time and resources, and increasing profitability. With Uber, it’s all possible. Plus, when you request a ride, you’re delivering an exceptional experience to your customers—one they won’t forget.”
The context for this announcement is a bit of a bid, with shares acting well over the past five days, up about 5% in that timeframe.
Uber Technologies Inc. (NYSE:UBER) managed to rope in revenues totaling $8.3B in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 72.2%, as compared to year-ago data in comparable terms. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($5.5B against $9B, respectively).
Warpspeed Taxi Inc (OTCMKTS: WRPT) has developed a ride-hailing and food delivery computer and mobile device application known as “WarpSpeedTaxi USA” that will provide consumers with convenient door-to-door transport that leverages smart mobility platforms to connect drivers with passengers and lets drivers use their personal vehicles. This pits WRPT as the upstart disruptor trying to take on Uber and Lyft.
But Uber and Lyft face a critical headwind: to grow further, they need to tap into non-English-speaking markets with diverse cultural factors and an inherent distrust of multinational western corporate models. English is the primary language in 8 of the world’s 205 countries, and it is the secondary language in another 64. The other 133 countries have their own language, where English is neither primary nor secondary. Put another way, 94% of the world’s population does not speak English as their first language. 75% doesn’t speak English at all. This is where WRPT has a critical advantage given its model of local diversification across the world.
Warpspeed Taxi Inc (OTCMKTS: WRPT) just put out a big update yesterday noting that it has completed the development and beta testing of its WarpSpeed Taxi software and is ready to launch the app in the United States. In order to fund the application launch, the Company intends to complete an offering of its common stock in reliance on Regulation A.
The Company is pleased to announce that it is also going to commence the development of commercial software that it will employ in order to establish distribution centers in rural areas around the world. According to its release, a large percentage of the world population lives in rural areas in non-Western countries where most consumers purchase goods through local shops. Local shop owners have traditionally purchased their inventory from wholesalers located in the nearby major city. Using an automated inventory and product delivery system that it develops in-house, WarpSpeed intends to provide rural businesses with an alternative means of accessing consumer goods that it hopes will be more efficient and cost-effective than existing supply chain options.
This new project, which WarpSpeed intends to brand as Pinnacle DSB (pinnacledsb.com), will include the creation of a large distribution center in a major city. The local shop owners will be provided with a locked tablet in order to access real-time inventory data to place purchase orders at competitive prices. Logistics will be implemented for a weekly delivery system to deliver ordered products. WarpSpeed Taxi has commissioned a detailed business plan, which it expects to post online within two weeks.
Warpspeed Taxi Inc (OTCMKTS: WRPT) President and CEO, Daniel Okelo, noted, “while we raise the necessary funds to launch WarpSpeed Taxi in the USA, we can start the Pinnacle DSB project that is a unique business model with a very significant potential to provide product distribution to a large market that has been ignored.”
DoorDash Inc. (NYSE:DASH) is a food delivery company that allows customers to order food from local restaurants and have it delivered to their home or office.
The company partners with local restaurants and independent contractors (known as “Dashers”) to pick up and deliver orders. Customers can place orders through the DoorDash app or website, and track the progress of their delivery in real-time. DoorDash also offers a subscription service called DashPass that gives customers discounts on eligible orders and waived delivery fees.
DoorDash Inc. (NYSE:DASH) recently announced a partnership with Toronto restaurateur and owner of Chinese-Jamaican fusion restaurant Patois, Craig Wong to celebrate Lunar New Year. As part of the partnership, DoorDash customers will be able to order Soft Shell Crab Long Life Noodle from January 18 until January 30 to ring in the new year.
“Canada is known for having some of the greatest culinary experiences, with varying cuisines, flavours and chefs, including Craig Wong,” says Shilpa Arora, General Manager, DoorDash Canada. “We are extremely excited to partner with Craig and Patois around Lunar New Year and beyond, to celebrate and raise awareness of the outstanding Asian culinary scene across Canada.”
If you’re long this stock, then you’re liking how the stock has responded to the announcement. DASH shares have been moving higher over the past week overall, pushing about 8% to the upside on above average trading volume.
DoorDash Inc. (NYSE:DASH) managed to rope in revenues totaling $1.7B in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 33.4%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels exceeding current liabilities ($3.8B against $2.2B).
Other key players in the space include Delivery Hero SE ADR (OTC US:DELHY), Lyft Inc. (Nasdaq:LYFT), and Amazon.com Inc. (Nasdaq:AMZN).
For consideration of being featured on WallstreetPR, contact: Editor@Wallstreetpr.com