Last Updated: July 14, 2021
In this article, we provide facts and forecasts about the future of transportation by addressing such questions as What is TaaS stock, and should I invest in it? How can I buy such stocks? How has the COVID-19 pandemic affected the TaaS industry?
What Is TaaS?
TaaS (Transportation as a Service)—also known as MaaS (Mobility as a Service)—represents the rising trend of people who enjoy all the advantages of comfortable transportation without investing in their own vehicles.
It’s a new mindset focused on lowering carbon levels and traffic jams, as well as providing more freedom, convenience, and less obligation for consumers.
TaaS companies provide the following services:
- Renting vehicles
- Shared rides
- Food delivery
- Scheduling vehicles, with or without a driver.
The near future of transportation foresees the possibility of using self-driving cars, as well as aircraft for transport in big cities. The lack of personal vehicle usage, globally, points to the decline of the need for car ownership, especially with the emerging optional modes of transportation.
What Is TaaS Stock?
A TaaS stock is a financial asset sold by a public company within the TaaS industry, such as Uber (NYSE: UBER), Lift (NYSE: LYFT), Yandex (NYSE: YNDX), or Dominos Pizza (NYSE: DPZ).
Stocks are an investment. But is investing a good idea? When you invest in any stock, and its value increases, your investment is worth more. So when investing, it’s essential to know how to evaluate a stock.
How and Where to Buy TaaS Stock
You can purchase TaaS stocks in the same way as any other stock. We’ve provided seven common-sense steps you can follow when considering purchasing stocks:
Open an Investment or Brokerage Account
This is a simple step that requires you to provide some basic ID information, and then choose the way you want to fund your account.
Invest by Yourself or Through a Brokerage Company
Perhaps the simplest way to buy or sell stocks is through an online stockbroker. You could use a full-service stockbroker or buy your stocks directly from the chosen company.
Do your research before choosing which of the TaaS companies to invest in. Besides the stock price, make sure to go through their reports and stock history to have a clearer picture of what TaaS stocks to buy.
Decide How Much You Want to Invest
Set the amount you have available for investment and move forward.
Invest in Individual or Mutual Fund Stocks
An individual stock represents a portion of a single company, while mutual funds have multiple companies’ stock in a single investment. Both options have their advantages and disadvantages.
Decide on Stock Order Type
Depending on how you plan to make your TaaS investment, choose between a market or limit order. If you want to immediately buy stocks, go with a market order. These types of orders do not guarantee a stock price, but your transactions will be executed immediately.
Limit orders give you control over the stock price. It’s an order to buy or sell a security at a specific price or better. But sometimes the transaction cannot be executed, which usually happens if the conditions you set were not met.
Monitor Your Investment
If you own a part of a TaaS market, make sure to stay abreast with your investment. Keep an eye on a TaaS ticker and follow the changes in the stock market.
|TaaS provides a new way of commuting and traveling at less cost than owning a car, less parking trouble, allowing more time and convenience for the user.|
|Companies providing TaaS services mainly focus on shared rides and renting vehicles but also provide delivery services.|
|In the near future, some companies will introduce more self-driving cars, as well as aircraft to improve their service.|
|You can purchase TaaS stocks as you do with any other stock.|
NOTE: A TaaS technology stock price is prone to fluctuations, just like any other stock. There’s no guarantee that your investment will turn out to be profitable.
The TaaS Industry
The TaaS industry comprises many companies in the competitive and leading market of the car rental and car-sharing services. We’ve included four of the most popular companies:
Yandex (NYSE: YNDX)
Yandex is an international IT company, often referred to as the Russian Google. Among a variety of services, it holds a large portion of the TaaS market across Russia, Eastern Europe, the Middle East, and Africa. In 2018, Yandex. Taxi merged with Uber in Russia, Azerbaijan, Georgia, Kazakhstan, Armenia, and Belarus.
The company is one of the leading TaaS technology companies in the development of self-driving cars. In 2020, Yandex recorded annual revenue of $2,955.6 million, a 24% increase from 2019.
Facedrive (NYSE: FDVRF)
Facedrive, based in Canada, primarily focuses on the reduction of CO2 emissions. It offers a choice to ride in electric, hybrid, or gas-powered vehicles. The company recorded a $3,934,354 revenue in 2020 and expanded its services to include health-tech services, food delivery, and an e-commerce platform.
Uber (NYSE: UBER) and Lyft (NYSE: LYFT)
Uber and Lyft are the leading ride-sharing companies in the US.
Besides knowing how to buy TaaS stock, if you’re thinking of investing in one of these two companies, note the comparisons:
|Market share in the US||Where they operate||Number of vehicles||Number of bookings||Average price per service||Annual revenue for 2020||Loss in 2020|
|Uber||68%||Approximately 70 countries and 900 cities||Around five million drivers||4.58 billion in 2020||$26.00||$11.1 billion||$6.7 billion|
|Lyft||32%||US, Canada||One million active drivers||12.5 million riders, quarterly||$25.00||$2.4 billion||$1.8 billion|
Joby Aviation plans to launch its electric Vertical Takeoff and Landing (eVTOL) air taxi in 2024. The company projects that such aircraft should bring $2.2 million in annual revenue in 2026 when the company is expected to generate profit.
COVID-19 and the TaaS Industry
The COVID-19 pandemic led to significant setbacks for the Transportation as a Service industry. But companies have found various ways to cope with this situation.
Some of the companies, including Uber, shifted their focus on delivery services. Uber experienced a major leap in this area and plans to continue its direction with the purchase of Drizly (an alcohol delivery service).
Lyft—a significantly smaller company—has attempted to decrease its losses by limiting access to new drivers to their platform, as well as reducing spending on marketing.
NOTE: As a part of their response to the pandemic, Uber implemented a financial assistance program for its drivers, as well as 10 million free food deliveries and rides to seniors, healthcare workers, and others in need.
TaaS industry and TaaS Stock Predictions for 2021
New methods of transportation have proven to be more affordable and convenient than traditional car ownership.
Despite challenges presented by COVID-19, the TaaS industry has shown signs of full recovery.
In Q1 2021, Yandex reported a $966.1 million revenue. Its Ride-Hailing service reported a 24% increase in the number of rides compared to Q1 2020.
Lyft managed to surpass its revenue projected for Q1 2021. Instead of its anticipated $558.7 million, it reported a $609 million revenue. You can see the influence of the company’s results through the TaaS stock price history. Lyft was expected to reach profitability on earnings before taxes, interest, depreciation, and amortization (EBITDA) basis by Q3 2021. The company also announced a plan to reach a goal of 100% electrical vehicles on their platform by 2030.
Uber registered a Q1 2021 revenue of $2.90 billion instead of the $3.29 billion expected per Refinitive. The company, however, had drastically lowered its loss to $108 million compared to Q4 2020, when it lost $968 million. The loss was attributed to the $1.6 billion gain from the sale of the company’s self-driving unit.
More recent reports from the aforementioned companies also influence the TaaS stock price.
|Company||Stock Price Fluctuation
1/1/ 2021 – 5/27/2021
|Uber||$43.17 – $64.05|
|Lyft||$42.94 – $68.28|
|Yandex||$58.91 – $74.32|
|Facedrive||$10.37 – $47.46|
NOTE: Transportation companies are adapting to new trends and shifting their focus towards food delivery. In the past five years, the number of food delivery users across the US had increased from 66 million in 2015 to 111 million in 2020.
Is TaaS Stock a Good Buy?
Based on numerous expert projections regarding movement on the stock market, as well as hopes brought by the COVID-19 vaccine, the TaaS industry looks forward to reaching its full potential, as it has continued to evolve. It has been estimated that using TaaS costs approximately 10 times less than owning a car.
A good indication of TaaS’s future—and whether to invest in the industry or not—is to look at planned innovations and developments demonstrated in such events as the 4th annual TaaS Technology venue in October 202—a one-day, virtual event focusing on new transport and growth in micro-mobility, seamless travel, and smart energy systems.
What is TaaS stock? We’ve noted some main projections regarding the TaaS industry, as well as various aspects of its services, including car-sharing, renting vehicles, and other forms of mobility as a service. Investing in the future of transportation is changing the way we live and travel.
Like any other stock, you can purchase TaaS stock using an online stockbroker, a full-service stockbroker, or directly from the company you’re interested in investing in. You’ll be required to open and fund your investment account.
TaaS provides transportation on demand through such services as ride-sharing and vehicle rentals. Compared to car ownership, it’s a new way of traveling and commuting that costs less and provides more convenience for the user. It also has a positive impact on CO2 emissions, as well as traffic jams.
It’s a company providing transportation services to its users, most frequently in the form of ride-sharing, renting vehicles, and delivery of food. Because it is a developing area, many ask the question: What is TaaS stock? How can I include it in my investment plans?
This technology shifts from car ownership to new travel solutions, as well as new experiences. New technologies that are being developed include self-driving cars and all-electric aircraft that will shape the further development of transportation.