What Is TaaS Stock?
A TaaS (Transportation as a Service) stock is a security representing ownership of a fraction of a corporation operating in the TaaS industry. Examples of TaaS companies include car-sharing programs like Zipcar and ride-hailing services like Uber and Lyft; these companies are forcing us to rethink our daily commute.
Many people are opting for car-sharing services such as Uber and Lyft. By 2022, it is predicted that 50% of all trips worldwide will be done through a ride-hailing service. The primary reason that people are opting to use these services instead of owning a vehicle is that they’re cheaper in terms of both fuel and cost. In addition, you don’t have to buy or maintain a car which means you have more financial freedom.
Transportation as a service movement is constantly increasing as time goes by. It has become more mainstream in the past couple of years, and it’s no surprise why. The most obvious example of how transportation as a service is changing urban spaces is altering the transportation industry.
In addition to the services that people are using, several new technologies are being developed, and those technologies will have a significant impact on the transportation industry as a whole. Two prominent examples of these technologies are driverless cars and the recent advancements in autonomous vehicles.
Is the TaaS industry on the rise?
Sharing is on the rise. Not only are we sharing clothes, cars, and homes, but more people are starting to share rides. As a result, transportation as a service (TaaS) is quickly becoming one of the most popular ways to get around in large cities. As a result of this new trend, there are pros and cons to be considered. For example, with TaaS, you’ll save money on car ownership by getting rid of monthly payments and insurance costs. However, we need to say that your vehicle is a risk of getting stolen or damaged while riding someone else.
One of the most significant impacts of TaaS on our environment is the number of vehicles on the road. To further reduce pollution, people are advocating for the TaaS model. An expansion of the TaaS industry would mean reducing cars and developing smaller vehicles and driverless cars. Vehicles for Hire are one of the fastest-growing segments of the transportation industry. According to analysts the environmental impact of these services could be a great booster for TaaS stocks, particularly for stocks under $2.
Drivers can save money by choosing to use TaaS. With the rise in driverless technology, autonomous vehicles are also becoming more commonplace. Once driverless cars become the norm in certain cities, companies like Uber and Lyft will quickly offer these services. While this will help take away the necessity of owning a car, some people will continue to drive because they won’t give up the joy of driving.
Best TaaS stocks: ridesharing
Uber (NYSE: UBER)
Business model
Uber is the world’s leading online transportation network company, connecting riders to drivers with a tap of their smartphone. The company has been in business since 2009 and operates in 634 cities in more than 84 countries. Uber’s business model is changing the way people think about transportation, making it simple to get around at the tap of a button. The company is not only transforming the way urbanites get around town locally, but it is also changing how people think about getting from point A to point B when they’re traveling overseas.
With the app, you can hail a ride (no matter what type of vehicle) with just a few taps on your phone. But this convenience comes at a price. Uber prices are typically higher than other taxi fares for similar trips.
Stock
Uber is one of the few stocks that have seen a decrease in share price over the past year. Indeed, Uber faces a ton of competition from other companies like Lyft, as well as scooters. This year, after crashing at around $39.01 per share, it is now trading at $44.11, losing 10.18% in the YTD chart.
According to the latest round of funding, Uber’s net worth is now $69 billion. Although Uber faces a ton of competition in its main ride-hailing business, analysts expect its value to continue to rise.
Uber and Lyft are competing to be the ride-hailing service that has the most valuable technology. They’re fighting it out to gain as much mindshare and as many driver-partners as possible.
Lyft (NASDAQ: LYFT)
Source: Getty Images
Business Model
Lyft was founded in 2012 by Logan Green and John Zimmer. Their goal was to create an easy way for people to share their car with someone who needs it without the hassle of car ownership or car rental. Since then, Lyft has become one of the fastest-growing startups in the world.
With Lyft, you can make some extra cash by sharing your vehicle with neighbors, get a more reliable ride at the touch of a button on your phone, and treat your friends to a safe ride home. This blog post will teach you everything you need to know about how Lyft works and how it can benefit you.
Lyft is an on-demand transportation company that is changing the way people get around their cities. Lyft’s mission is to ensure that no one should ever have to be alone, stuck, or bored in a city again. Lyft provides friendly and affordable rides with the touch of a button and in seconds. You can request a ride from your phone or on our website, and Lyft will pick you up within minutes.
Stock
Lyft stock has recently risen after the company reported excellent financial results in Q3 2021. Lyft was traded at $45.32 on November 2nd, reaching $56.26 on November 9th, and now trading at up to $49.71. “On a current valuation, we estimate Lyft’s enterprise value to be around $18 billion, a steep multiple premium to competitors but in line with its peer group,” Gene Munster, managing partner at Loup Ventures, reported earlier this year. “In the short term, we think Lyft could struggle with valuation and execution,” Munster added.
The company’s growth has slowed since it went public in January 2017. Revenue rose 30% in 2020 and 18% in the first half of 2021, before slumping 10% in the third quarter. For Lyft, slowing revenue growth is because the company is reaching a saturation point in the US. For the first nine months of 2018, more than 30% of rides were paid for using the company’s in-app point-of-sale platform, as opposed to the 25% in the same period a year prior, according to the company’s regulatory filings.
Best TaaS stocks: space flight
Virgin Galactic Holdings (NYSE: SPCE)
Business Model
Virgin Galactic Holdings, LLC is a spaceflight company within the Virgin Group. Virgin Galactic’s goal is to provide affordable commercial space travel. In recent years, the company has also increased its efforts to become an orbital human spaceflight provider to low Earth orbit. They are developing systems to take tourists into suborbital space where they will be able to view the Earth from above and return safely–an experience many people have dreamed about.
The company was founded in 2004 by Sir Richard Branson, British entrepreneur and founder of the Virgin Group, to provide space tourism for passengers who are willing to pay the price for a ticket. Since then, it has grown into one of the world’s most recognized brands in aerospace technology development, design. Sir Richard Branson, the billionaire founder of the Virgin Group, is on a mission to provide low-cost access to space. Richard has been investing in aerospace companies for more than three decades. Additionally, he has garnered a lot of attention due to these investments, so it’s essential to stay up-to-date with his work. With Sir Richard’s dedication and vision, we can only anticipate that Virgin Galactic Holdings will continue to do well.
Stock
Virgin Galactic stock has recently sunk, losing 9.18% in the last 30 days. According to analysts, this is a short-term hiccup; they expect this to reverse with a vengeance in the future. As reported, that happens with most small-caps like Virgin Galactic. Investors are ruthless on the way down. Or perhaps the stock’s plunge is a testament to Virgin Galactic’s recent issues, as other spaceflight companies like Blue Origin prepare to take their businesses public.
Whatever the cause, we know that Virgin Galactic just raised $252 million through a public stock offering to bolster its finances and allow the company to bring its SpaceShipTwo to commercial service at Spaceport America in New Mexico.
Virgin Galactic’s plan isn’t simply to demonstrate a safe and viable commercial transportation option but also to convince investors that they’ll soon be able to earn fat profits from rocket-launch tourism and other commercial ventures.
CEO George Whitesides has previously said Virgin Galactic targets a fleet of six spacecraft that will eventually be available to people who pay about $250,000 to visit Earth’s atmosphere at more than 55,000 feet. In addition, the plan is to finally offer suborbital spaceflights that reach altitudes above 62 miles — which is well within the altitudes that can be economically viable for launching rockets into space.
In contrast, SpaceX has only just now been certified by the Federal Aviation Administration (FAA) as a “reusable” launch vehicle — which essentially means that the company has demonstrated the ability to land and reuse a rocket safely.
Boeing Co (NYSE: BA)
Business Model
We’ve seen the future of flying in recent years, with commercial space flights taking off and making their way to outer space. Now, Boeing is getting into the game with its commercial space taxis. These new spacecraft will take astronauts to the International Space Station. The Boeing Company received a contract worth $4.2 billion to build commercial spacecraft transporting astronauts to the International Space Station.
Boeing is working on two different designs for these spacecraft. The CST-100 Starliner is designed to carry seven people, whereas the Crew Dragon has a crew capacity of four people. Both are expected to be ready for flight tests in 2017, but Boeing has not announced any definite launch dates for either design. Spacesuits designed by Boeing may also be available as early as 2022 for those who wish to explore deep space.
The Starliner was first announced by Boeing back in 2011 with an estimated development cost of $2 billion. Recently Boeing has announced the development of a space taxi to take NASA astronauts to the International Space Station. The aerospace company announced that it had been selected by NASA to develop the commercial crew transportation system.
The new spacecraft, which will follow Boeing’s successful CST-100 Starliner capsule design, will hold up to seven people at once and can be reused for ten missions. This story explores the journey Boeing took in designing its new spacecraft.
Stock
Overall, Boeing’s stock has been a steady performer over the last year and beyond. The company’s meteoric rise over the previous few weeks can be attributed to the strong outlook for the aerospace industry. Boeing stock has also made new highs since the 2020 election but remains undervalued and a good long-term investment.
Further, Boeing’s strong operating metrics and long history of paying dividends have already attracted high levels of institutional investors to the stock. Given the upward trend in Boeing’s share price, I would not be surprised if analysts raised the price target again in the next few weeks.
Boeing stock is up more than 4.44% in the last 30 days, closing on November 18th at $226.62. Boeing has steadily grown in value over the last five weeks, with dips below $220 per share on October 27th.
Boeing’s market capitalization is currently at USD 104 billion, higher than companies such as Ford or McDonald’s. In addition, the company has had a strong history of paying dividends, raised its dividend payout by 2% to $1.57 per share in October, and has a healthy profit margin of nearly 10%.
The benefits of investing in Boeing outweigh potential risks for investors who can tolerate short-term fluctuations. While smaller companies like ATSM and Bombardier typically have a high variable cost of production (in terms of aircraft size and demand), Boeing is a massive corporation that can leverage its considerable buying power to lower production costs and pass on savings to customers.
Best TaaS stocks: on-demand food delivery
Doordash stock (NYSE: DASH)
Business Model
DoorDash is a technology company that offers on-demand food delivery. It is among the fastest-growing companies in Silicon Valley. DoorDash allows customers to order food from local restaurants for delivery, with no minimum order. The company is a delivery service that connects people with local restaurants in their area. The app will then send out a driver to pick up the food and deliver it to you.
It costs $2.99 per delivery, but there’s no charge until after your first ten deliveries if you sign up for an account.
There are two types of accounts: personal and business; both have the same features but differ in cost. For example, a personal account is free, while a business one costs $299/year.
Doordash is the only food delivery service that offers this many options for places to order from. You can find anything from pizza to sushi on the app. Plus, you don’t have to wait in line at your favorite restaurant with Doordash’s On-Demand Pickups. Now you can place your order and come back to your car for it later.
When you need food, DoorDash is there to deliver it right to your door. With the help of DoorDash, you can order anything from pizza to sushi or even ice cream with just a few clicks. DoorDash is the easiest way to order food for delivery. You just need to enter your address or take a look at our interactive map of local restaurants, find what you’re craving, and place your order.
Stock
DoorDash presented excellent revenue estimates for the third quarter of 2021, reporting $1.28B compared to analysts’ expectations of $1.18B. Wall Street was very pleased with its performance since it delivered 8% more orders than it did in the third quarter of 2020, along with a 20% boost in average revenue per order.
The company highlighted some of the key drivers of that growth:
1) “Completing nearly 2,700 new restaurants in over 70 cities in the U.S. and Canada, with the majority from current partners and over 80% being daily, main-dish deliveries.”
2) Its mix of total orders as a percentage of U.S. orders in the third quarter: 60%, versus 47% in the year-ago quarter.
3) The number of active DoorDash customers now stands at 17.3 million, up 13.4% year over year.
4) More than 100,000 DoorDash drivers, a 150% year-over-year increase.
“The momentum that we saw this summer has continued,” said DoorDash CEO Tony Xu in a press release.
The higher stock prices at Wingstop and Yum Brands show that the company stock could be up for the long term. As the market continues to heat up and competitors seem to be busy buying out their competitors to enter the market, the risk-reward ratio for Wingstop should remain attractive.
