Canada's Silicon Valley is Leading a Tech Revolution
LONDON, April 30, 2020 /PRNewswire/ -- High-tech mobility isn't just about a ride. It's about an experience, and the emerging poster-child in this space offers everything from a smooth, green ride and the most advanced technology to a tie-in to many things you need or want in life--that includes the best restaurants, fulfillment of your healthcare needs and even an exclusive line of merch co-branded by celebrities. Mentioned in today's commentary includes: Lyft, Inc. (NASDAQ: LYFT), Grubhub Inc. (NYSE: GRUB), General Motors Company (NYSE: GM), Ford Motor Company (F), Baidu, Inc. (NASDAQ: BIDU).
It's the ride of a lifetime, and it's not from Uber. Nor is it from Lyft. It's from the hottest new startup to come out of Canada's 'Silicon Valley'--Facedrive (FD.V).
Ride-sharing may be one of the fastest growing trends on the planet, but consider this: Uber, the hottest IPO of 2019, is now losing more money than ever and its growth has slowed to record lows.
Ride-sharing 2.0 is an entirely different beast. It's aiming both at turning a profit and giving the consumers what they want. It's all about monetization. If you can't monetize it, then your $100 billion valuation dreams will never be realized.
Yes, Uber changed transportation and completely disrupted the taxi industry. It also opened up a Pandora's Box of other issues, and in defiance, it took on regulators, making just as many enemies as friends along the way.
What it didn't do is make money. The cash burn has been enormous, and a decade into it, Uber is still only just hoping to achieve profitability in the fourth quarter of 2020 - also a year in which it will lose more than $1 billion.
Along the way, it earned a reputation for being the "avatar" of everything that went wrong with tech. That's Uber. Facedrive is the next generation of ride-sharing, and it's where the narrative changes.
If Uber is the "avatar" of everything that went wrong, Facedrive aims to be the "avatar" of everything that's about to go right: That means an entire ecosystem of revenue grounded on the rider relationship.
Ask Will Smith, whose Bel Air Athletics clothing brand is betting that Facedrive is the ride of the future. That's why he's co-branding an entire line of merch with Facedrive.
It's also why WestBrook Inc., the company he shares with his wife Jada Pinkett Smith, is partnering with this stunning startup that is about to expand internationally to start challenging Uber for the throne.
Why Ride-Sharing Isn't Just About Transportation
Facedrive is a "people-and-planet first" ride-sharing platform - two things that have been desperately missing from ride-sharing 1.0. What everyone got wrong the first time around with the novel idea of ride-sharing is this: It's not just a new transportation service - it's a high-tech industry. That means there are countless avenues for profitability beyond a simple ride. Take the food delivery business, for example.
GrubHub (GRUB) was an innovator in this scene. Though it was founded in 2004, it wasn't until 2014 when business really started picking up for the food delivery pioneer. And consequently, its stock price as well. While business flourished for some time, its stock peaked in 2018, reaching an impressive $144 per share. Since then, however, with the emergence of more apps, many of which haven't faced the same share of controversy, GrubHub has fallen out of favor. Despite the tough times, however, GrubHub is still alive and kicking, eying even bigger goals and new partnerships in the future.
Facedrive, too, is working on monetizing every angle of this high-tech sharing experience right out of the blocks with its Facedrive Eats delivery platform. The key difference, though, is that it did it all without butting heads with regulators or making enemies out of local officials. Instead, it worked with them directly to ensure that every program on its platform was a benefit to the community at large.
In the process, it caught the eye of major celebrities, big commercial banks, and the authorities who appreciate its attempts to offset carbon emissions.
Will Smith and Jada Pinkett Smith have thrown in with Facedrive and mutually benefitting partners through WestBrook Inc. And now, in Facedrive's ongoing efforts to rapidly monetize its ride-sharing platform well beyond the rides, they're launching an exclusive line of clothing branded by Will Smith's Bel Air collection and Facedrive.
Some 1,000 new products co-branded by Bel Air and Facedrive are ready to launch, with pre-orders coming soon on the Facedrive website.
The company is also rolling out a comprehensive health initiative, timed for rapid deployment to the frontlines of the coronavirus pandemic. Facedrive Healthcare includes everything from discounted rides for healthcare workers and specialized vehicles for anyone with additional needs to contactless delivery of essential over-the-counter medicines and medical supplies, including high-tech management of automatic refills.
Facedrive Eats, which is now piloting in six cities in Ontario and will expand to other regions soon. And the monetization of ride-sharing 2.0 will also get another boost amid the widely emerging trend of sustainable or impact investing, also known as ESG (environmental, social and governance) investing.
FaceDrive is betting that's a more significant aspect of profitability than you would think. It's also where Uber failed miserably. Today's big money is navigating toward risk mitigation, and it has nothing to do with the pressure from the right or the left. It's pure market sentiment.
Big capital is on the greedy hunt for innovative new companies that have latched on to the $30-trillion-plus mega trend of sustainable investing, which has outperformed the overall market.
Ride-Share 2.0 Is Already Here
There's a laundry list of things that went wrong with the first-generation of ride-sharing, even if giants like Uber and Lyft managed to burn tons of cash to pave the way for what comes next. All of those things have to do with sustainability and responsibility. And all of them, for connected reasons, have to do with the failure to fully monetize.
They've sidelined rather than worked in coordination with public transportation, causing big problems for cities, instead of seeking to patch transportation gaps where they're really needed.
A recent study by the Union of Concerned Scientists estimates that the average (U.S.) ride-hailing trip results in 69 percent more pollution than whatever transportation option it displaced. And a number of big name companies are rushing to get on board.
Lyft (LYFT) was the first of the major ride-sharing companies to commit to carbon neutrality. "We get up every day thinking about how we can continue to have a positive impact on the communities we serve. As we grow, so does the opportunity to increase this impact" John Zimmer, the cofounder and president of Lyft, said on the subject.
Not only is Lyft working on expanding the number of electric vehicles on the road, it's also looking to other innovative alternatives like bike and scooter sharing. Lyft even offers two types of bikes; the classic easy-riding urban city bikes, and new sleek electric bikes to help users get to where they need to go even faster.
General Motors (GM) is another well-known brand dipping its toes into the bicycle game. It has created its own brand of electric bikes, called Ariv. The bikes were just launched this year, but have already captured the attention of the European market. While they are on the side of pricey, coming in at $3,800 per unit, they do boast a high top speed and can travel a modest distance on a single charge.
The kicker for many, however, is that they can fold into an easily carriable pack, making them the perfect choice for a lot of commuters. Especially in big cities like London or Berlin.
Ford (NYSE:F) is taking a different approach. The car manufacturer recently dove head-first into the scooter market, buying Spin for a clean $100 million.
Initially deployed in San Francisco back in 2017, Spin is widely considered to be a part of the Big Three of the scooter world, along with Lime and Bird. While Ford's buyout of Spin made headlines, it's certainly not the first urban transportation alternative Ford's sunk its teeth into.
In recent years, Ford also bought commuter shuttle service Chariot, Autonomic and TransLoc, aiming to ensure that it does not miss the boat as this new movement accelerates.
On the other side of the world, tech giant, BAIDU (BIDU), is also making moves to revolutionize transportation. BAIDU, for its part, is taking on the automated car market. With more miles under its belt than any of its competitors in Beijing, it's an easy choice for a number of investors. Likewise, it has an equally large portfolio of innovative new technology…at a lower entry point than its competitors.
As the 'Chinese Google,' Baidu is following a similar path to its American counterpart. It began as a search engine but is quickly expanding into almost all things tech related. From artificial intelligence to television and finance, Baidu's ever-expanding reach is a not to be ignored. Especially for investors looking to stay on top of the new tech trends.
And now Facedrive has entered the playing field, looking to turn everything we knew about the sharing economy on its head. That's because they approach the industry as a tech transformation that has massive monetization potential because it's all about relationships with riders.
By. Cliff Johnson
**IMPORTANT! BY READING OUR CONTENT YOU EXPLICITLY AGREE TO THE FOLLOWING. PLEASE READ CAREFULLY**
This publication contains forward-looking information which is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ from those projected in the forward-looking statements. Forward looking statements in this publication include that the demand for ride sharing services will grow; that the demand for environmentally conscientious ride sharing services companies in particular will grow; that FaceDrive's marketplace will offer many more goods and services; that Facedrive can achieve its environmental goals without sacrificing profit; that FaceDrive Eats will expand to other regions outside southern Ontario soon; that Facedrive plans to move to over 15 cities over the next 24 months; that Facedrive will be able to fund its capital requirements in the near term and long term; and that Facedrive will be able to carry out its business plan. These forward-looking statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Risks that could change or prevent these statements from coming to fruition include changing governmental laws and policies; the company's ability to obtain and retain necessary licensing in each geographical area in which it operates; the success of the company's expansion activities and whether it justifies additional expansion; the ability of the company to attract a sufficient number of drivers to meet the demands of customer riders; the ability of the company to attract drivers who have electric vehicles and hybrid cars; the ability of FaceDrive to attract providers of good and services for partnerships on terms acceptable to both parties, and on profitable terms for FaceDrive; the ability of the company to keep operating costs and customer charges competitive with other ride-hailing companies; and the company's ability to continue agreements on affordable terms with existing or new tree planting enterprises in order to retain profits. The forward-looking information contained herein is given as of the date hereof and we assume no responsibility to update or revise such information to reflect new events or circumstances, except as required by law.
ADVERTISEMENT. This communication is not a recommendation to buy or sell securities. An affiliated company of Oilprice.com, Advanced Media Solutions Ltd, and their owners, managers, employees, and assigns (collectively "the Company") has signed an agreement to be paid in shares to provide services to expand ridership and attract drivers in certain jurisdictions outside Canada and the United States. In addition, the owner of Oilprice.com has acquired additional shares of FaceDrive (FD.V) for personal investment. This compensation and share acquisition resulting in the beneficial owner of the Company having a major share position in FD.V is a major conflict with our ability to be unbiased, more specifically:
This communication is for entertainment purposes only. Never invest purely based on our communication. Therefore, this communication should be viewed as a commercial advertisement only. We have not investigated the background of the featured company. Frequently companies profiled in our alerts experience a large increase in volume and share price during the course of investor awareness marketing, which often end as soon as the investor awareness marketing ceases. The information in our communications and on our website has not been independently verified and is not guaranteed to be correct.
SHARE OWNERSHIP. The owner of Oilprice.com owns shares of this featured company and therefore has a substantial incentive to see the featured company's stock perform well. The owner of Oilprice.com will not notify the market when it decides to buy more or sell shares of this issuer in the market. The owner of Oilprice.com will be buying and selling shares of this issuer for its own profit. This is why we stress that you conduct extensive due diligence as well as seek the advice of your financial advisor or a registered broker-dealer before investing in any securities.
NOT AN INVESTMENT ADVISOR. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. ALWAYS DO YOUR OWN RESEARCH and consult with a licensed investment professional before making an investment. This communication should not be used as a basis for making any investment.
RISK OF INVESTING. Investing is inherently risky. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell securities. No representation is being made that any stock acquisition will or is likely to achieve profits.
DISCLAIMER: OilPrice.com is Source of all content listed above. FN Media Group, LLC (FNM), is a third party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. FNM is NOT affiliated in any manner with OilPrice.com or any company mentioned herein. The commentary, views and opinions expressed in this release by OilPrice.com are solely those of OilPrice.com and are not shared by and do not reflect in any manner the views or opinions of FNM. FNM is not liable for any investment decisions by its readers or subscribers. FNM and its affiliated companies are a news dissemination and financial marketing solutions provider and are NOT a registered broker/dealer/analyst/adviser, holds no investment licenses and may NOT sell, offer to sell or offer to buy any security. FNM was not compensated by any public company mentioned herein to disseminate this press release.
FNM HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.
This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may", "future", "plan" or "planned", "will" or "should", "expected," "anticipates", "draft", "eventually" or "projected". You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company's annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and FNM undertakes no obligation to update such statements.
e-mail: [email protected]
U.S. Phone: +1(954)345-0611