The $8 Trillion Megatrend Taking Over Wall Street
FN Media Group Presents Oilprice.com Market Commentary
LONDON, May 26, 2020 /PRNewswire/ -- Two megatrends are converging to create an investment opportunity that could ramp up like the smartphone revolution. Total annual sales for one could eventually be worth $8 trillion. The other already topped $30 trillion last year. Mentioned in today's commentary includes: Domino's Pizza, Inc. (NYSE: DPZ), Yandex N.V. (NASDAQ: YNDX), Grubhub Inc. (NYSE: GRUB), Uber Technologies, Inc. (NYSE: UBER), Lyft, Inc. (NASDAQ: LYFT)
And a company such as Facedrive--which innovatively straddles these two megatrends with a carbon-neutral 2.0 version of shared mobility-- is becoming an exciting opportunity. And it's all going down in the transportation industry. Right now.
A seismic shift is occurring in the global transportation sector, and the implications of this change are going to be profound for consumers and businesses everywhere. Back in 2016, when Mary Barra, CEO of General Motors, said she believed "the auto industry will change more in the next five to 10 years than it has in the last 50", it was the same year that Facedrive (FD.V,FDVRF), Canada's answer to sustainable ride-hailing, grabbed on to this megatrend.
They saw where the winds were blowing--and where big capital was shifting its money--and they launched in 2019 with a company that fixes things Uber got wrong by offering a carbon-neutral and a carbon-offsetting form of ride-sharing that taps into the $30-billion sustainable investing trend in the transportation sector.
Now they're expanding, and it's not just about catching a lift--it's about an eco-system of revenue based on the company-rider relationship of convenience.
Last week, Facedrive Foods provided a glimpse as to how serious the company is in targeting the Canadian food delivery industry. To kick-off its aggressive expansion drive in the segment, Facedrive Foods entered into a binding term sheet to acquire assets of Foodora Canada. This move is especially significant because Foodora Canada is a subsidiary of Delivery Hero, a $20 Billion European multi-national food delivery service that operates in over 40 countries internationally and services more than 500,000 restaurants.
And while this deal hit the scene explosively, another Facedrive deal this week grabbed even more attention amid the coronavirus pandemic. Over 650,000 members strong across North America, LiUNA - The Labourers' International Union of North America announced it would adopt Facedrive's TraceSCAN digital COVID-19 contract-tracing app to protect the health and safety of its Canadian 130,000 members.
That's a huge boost for a brand new, high-tech app developed in a joint initiative by Facedrive Health and the University of Waterloo. The TraceSCAN app and wearables provide contact tracing to help mitigate the spread of the COVID-19 virus. Using Bluetooth technology, TraceSCAN alerts users with a notification if they have come in contact with an individual who has tested positive for the COVID-19 virus.
Times Have Changed Dramatically
Fifty years ago, buying and owning a car was considered the quintessential sign of adulthood; the badge of your independence and your ticket around town. But following rapid urbanization, our increasingly gridlocked roads, ever-rising CO2 levels and the fact that we use our cars only 4% of the time, this mindset is rapidly disappearing.
Transportation-as-a-Service (TaaS) aka Mobility-as-a-Service (MaaS) has emerged as the biggest shift in mobility since the rise of automation, and could be about to turn the $5 trillion global transportation industry on its head.
TaaS is a radical shift away from a transport model that involves ownership of vehicles towards mobility solutions that are consumed as a services like Uber (UBER), Lyft (LYFT), Grubhub (GRUB), Yandex (YNDX) and even Dominoes (DPZ).
Uber is one of the most diversified companies in the new transportation-as-a-service industry. Not only is it the most popular ride-sharing application in the United States, but it has also branched out into on-demand scooters and bicycles. But nothing is doing as well in this crisis as its Uber Eats brand. The company's food delivery platform has been booming as stay-at-home orders across the globe close down restaurants. It's worth noting, however, Uber's market share dominance has come at a price. The company's finance strength is suffering, and its profitability rating is abysmal.
Lyft is another one of the United States' biggest ride-share giants. And this year, it launched its own delivery service. Not only will Lyft allow you to order food from your favorite restaurants, you can even place grocery orders. The "Essential Deliveries" program aims to not only help the community stay safely indoors, but it also helps support its some-120,000 drivers in the United States.
"As communities shelter in place, the need for items to be delivered to the doorstep is at an all-time high," said Lisa Boyd, Director of Social Impact at Lyft. drivers is ready to help meet the needs of our communities while earning additional income."
GrubHub was America's dominant food delivery force for some time, but like Uber, it spent a lot to get its market share to that point. Not only that, it's received a lot of criticism for the layers of fees it places in every order. While customers don't see most of what restaurants are being charged, restaurant owners find the service difficult to work with, as the fees cut significantly into their own profits.
Natt Garun in an article for The Verge wrote, "Though Grubhub is upfront with businesses about the terms, the move is being criticized as an attempt to profiteer from business partners that are struggling under the nationwide measures to limit the spread of the novel coronavirus."
Yandex is essentially Russia's Google. It's a multi-national internet giant, but it also has its hands in the TaaS pie. And it might even be a better play than Uber or Lyft based on its year-to-year growth. Due to regional legislations, Yandex was able to secure a deal with Uber in which it controls nearly 60% of a joint venture in Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, and Russia. It even offers its own food delivery service, Yandex Eats.
Not only is Yandex exploding in the TaaS field, though, it is also diversified well beyond that niche. It's an internet giant, after all. A search engine, advertising provider, eCommerce giant, tech developer, and much much more.
Dominoes has seen some rough times in the past, but it's worked hard to get to where it is now. After a major makeover, Dominoes burst back onto America's pizza delivery scene and has made major waves ever since. The company has worked hard to secure its own deals with the other delivery giants to ensure its own market share was able to survive, and even added a number of little tricks to improve the customer experience and encourage its fans to order directly instead of via a third-party application.
The likes of Uber, Grubhub, Lyft, Yandex, and Dominoes have been leading TaaS 1.0, but Facedrive (FD.V,FDVRF) is moving to lead TaaS 2.0 by offering riders something they can't get from Uber or Lyft: A carbon-offset way to share a ride and deliver goods.
Facedrive is Canada's first peer-to-peer, eco-friendly and socially responsible TaaS network. Facedrive's business model puts the "people and planet first", and that means planting trees and offsetting CO2 for every ride hailed. The company's innovative, state-of-the-art, in-app algorithm calculates estimated CO2 emissions for each car journey and allocates a monetary value to the local organizations to plant trees. Last year alone, in partnership with Forest Ontario, they planted over 3,500 trees in their soft launch phase.
The TaaS industry
TaaS is about to hit a tipping point, and when it does, it's going to change us. From the way we eat, shop, work, and travel… to the value of our homes and even where you live. It will radically change the price we pay for everything from airline and train tickets to a tank of gas, and even household goods.
TaaS is sitting at the intersection of four macro trends: Electrified vehicles (EVs), connectivity, the sharing 'gig' economy and ESG investing. The TaaS market is projected to eventually hit $8 trillion encompassing ride sharing in personal transport, freight, food and drone delivery and distribution.
This is clearly happening as we speak, with global car sales contracting 4% in 2019 for the first time in a decade. TaaS will likely take the world by storm and become mainstream much more rapidly than many people are guessing...
Uber started in an apartment in 2009, and within just seven years, was booking more rides than the entire U.S. taxi industry! And it all happened for one simple reason… the same reason TaaS fleets could soon rule our streets…Economics.
TaaS will be 10 times cheaper than buying and operating your own, gas-powered vehicle, and will completely eliminate the need to hunt around for a parking spot when you reach your destination. Estimates are that TaaS will lower the total costs of transportation by 10-times for many car owners, compared to owning your own vehicle.
2020 could be the point at which car ownership will begin its long descent into oblivion. Back in 1985, AT&T hired the world's leading consulting firm, McKinsey, to predict the adoption rate of cellphones.
McKinsey's "experts" predicted the cell phone market would total 900,000 customers by the year 2000. But they were off by more than 100-fold… because the actual number turned out to be 109 million.
TaaS could soon drive down our costs of transportation to just a fraction of owning a car per mile! Today, it costs about 80 cents per mile in our gas-powered cars, according to AAA.
In a couple of years, it will most likely be the norm to hail an electric vehicle via an app on your phone, just like you hail a Lyft and Uber ride today. And instead of paying $50,000 for a new car… plus $3,000 a year to fill up your tank… and $1,000 to $4,000 a year for insurance, you'll instead spend something like $150 a month for a set number of rides with a TaaS subscription.
Facedrive fully recognizes the implications of the powerful TaaS megatrend and encourages its customers to use its readily available fleet of EVs.The future of transportation is already upon us, and Facedrive (FD.V,FDVRF) is fixing its flaws.
**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 TaaS and ride sharing services will grow, and TaaS reach $8 trillion; that the demand for environmentally conscientious ride sharing services companies in particular will grow quickly and take a much larger share of the market; that Facedrive's marketplace will offer many more sustainable goods and services, and grow revenues outside of ride-sharing;that new products co-branded by Bel Air and Facedrive are ready to launch, with pre-orders coming soon on the Facedrive website; that Facedrive can achieve its environmental goals without sacrificing profit; that Facedrive Eats will expand to other regions outside southern Ontario soon and will close its purchase of Foodora; 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 markets justify 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; that the products co-branded by Facedrive may not be as merchantable as expected;that Facedrive does not close the purchase of Foodora and even if it does, the purchase does not bring the customers, partnerships or revenues expected; 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.
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