Transportation as a service, or TaaS, is a burgeoning industry that has really taken off in the past few years.
TaaS allows people to get around and enjoy the benefits of cars without having to own one.
There are many excellent examples of TaaS that have become very popular over the last few years.
Rideshare services like Uber and Lyft are great examples of TaaS, because they allow people to access affordable rides on demand without having to own a car.
Other examples of TaaS include delivery services, car rental services, and car subscription services.
The development of autonomous vehicles is also very exciting for the TaaS industry.
It’s possible that these new technologies could offer even more forms of transportation as a service than are on the market today.
Since TaaS is an industry that is growing so quickly, now is a great time to invest in these companies.
Transportation is always going to be essential, but these companies are changing the way people get around by offering affordability and convenience.
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Best TaaS Stocks
Uber Technologies Inc. (NYSE: UBER)
Uber was the first rideshare company to become popular in the United States.
They initially launched in San Francisco in 2011 as a high-end alternative to taxicabs, but eventually pivoted to focus on more affordable services.
Not only did Uber give consumers an easy way to get around, but it also quickly became a popular way for people to make money part-time using their cars.
The company also launched their UberPool and UberEats features.
UberEats provides local food delivery options in many cities around the world. Uber has indicated that they are planning on expanding their food delivery services in the future.
They have recently acquired both Postmates and Drizly, which are food and alcohol delivery services.
Uber has been the subject of much scrutiny since it launched. In particular, many people have been concerned about the way the company treats their independent contractor drivers.
Laws in some countries have changed to require Uber to treat their drivers as workers.
Uber stock has been trading sideways since November 2020. Concerns over the independent contractor status of drivers has caused share prices to dip slightly in May and June.
Given the ubiquity of Uber and other ridesharing services, this could be a good time to buy the dip.
Although the rideshare model may evolve over time, Uber has proven their ability to pivot into new markets and stay afloat.
It’s important to note that rideshare companies will need to make adjustments to their services as we emerge from the pandemic.
This could cause fluctuations in earnings numbers and share prices in the short term, so investors may want to focus on long-term potential instead.
Lyft Inc. (NASDAQ: LYFT)
Lyft is another successful rideshare company and is a direct competitor to Uber.
The two companies launched around the same time and provide very similar services.
The difference between Lyft and Uber is that Lyft only provides ridesharing services, while Uber also offers food delivery and other services.
This means Lyft’s market share is smaller, but they do offer some advantages for customers and investors.
Like Uber, Lyft has seen demand for their products and services go up over the past few months.
As consumers are getting their vaccinations, they’ve been taking rides more often.
While Uber has been mired in controversy for several years now, Lyft has managed to stay relatively unscathed.
This could make them more appealing to ethically conscious consumers.
Many users have noticed price increases on both Lyft and Uber over the past few months.
These companies have needed to adjust their business models in order to stay afloat, which may affect their revenue numbers over the next few quarters.
Lyft’s shares dipped in May after peaking in March and April.
However, their share prices have since recovered and they have been on an upward trajectory since then.
While Lyft currently only focuses on rideshare services, they could potentially expand into delivery services the way that Uber has.
This gives them plenty of room to grow in the future.
TaaS Stocks To Buy
Amazon Inc. (NASDAQ: AMZN)
Amazon is known as an e-commerce company, but over the last decade they’ve expanded into many other industries.
They currently have one of the largest delivery operations in the world through their Amazon Prime subscription service.
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Amazon Prime has been particularly helpful to consumers throughout the pandemic.
Instead of having to take the risk of going to local shops, they turned to delivery services to get the products they need.
The company has also begun exploring drone delivery services for the future.
Drone delivery services could help consumers get the items they want in a quick and fuel-efficient way.
Delivery is a very important part of transportation as a service.
While delivery services may not provide transportation directly to consumers, they still minimize the amount of time consumers spend in personal vehicles.
Amazon is a very expensive stock due to its popularity, so it may not be the best choice for every investor.
However, those that can afford to add this stock to their portfolio will likely reap the benefits.
Despite the challenges of the pandemic, Amazon stock has continued to push higher due to strong demand for their services.
Because Amazon’s operations are so diverse, they’re able to pivot easily during challenging economic times.
DoorDash Inc. (NYSE: DASH)
DoorDash is an on-demand food delivery service based in San Francisco.
Food delivery services have become particularly popular over the last year as customers have wanted to enjoy meals from their favorite restaurants at home.
While there are many food delivery services on the market right now, DoorDash currently has the largest market share.
In addition to working with restaurants, they have also expanded into working with convenience stores to provide essentials for their customers.
DoorDash stock has been up and down over the past year. However, their most recent earnings report was extremely promising.
Their revenue grew significantly from the same period of time last year.
Some investors were initially worried that DoorDash would lose traction after the pandemic, as restaurants started opening up for in-person dining.
However, this hasn’t been the case – demand for food delivery has remained high this year.
Although DoorDash has only been public since the end of 2020, they’ve already established themselves as an important part of the TaaS industry.
This could be a very lucrative stock moving forward if the food delivery market continues to grow.Looking for more stock picks? Get a new trade every week for free with Trade Ideas. Trade Ideas sends you a new pick every single week along with the reasoning on why it could be ready to break out. Sign up for free right here.
TaaS Penny Stocks
Hertz Global Holdings (OTC: HTZGO)
As global car ownership rates have been decreasing, demand for car rentals have been increasing.
Hertz is one of the largest car rental companies in the United States.
They provide most of their car rentals through major airports and cater to short-term travelers.
Hertz stock struggled throughout the pandemic as customers couldn’t travel and therefore weren’t renting cars.
However, their share price has gone up significantly in the past few months as global vaccination rates have gone up.
Many people are finally traveling again after over a year away, and they are excited to rent cars.
Hertz has also struggled financially over the past few years, and has recently opted to restructure the company.
They’ve just been approved to declare bankruptcy and reorganize.
This has been exciting for investors, who want to see the company succeed financially in the future.
While Hertz stock has been going up in price, it is still very affordable.
This makes them a good choice for investors who want to buy into TaaS trends, but don’t want to spend too much money.
TaaS Technology Stocks
Virgin Galactic Holdings Inc. (NYSE: SPCE)
Virgin Galactic is part of Richard Branson’s Virgin Group and is working to develop the technology for space tourism.
They were public through a SPAC instead of an IPO in 2019.
For many years, space tourism seemed impossible, but as technology has improved, it seems closer and closer to becoming a reality.
Virgin Galactic has been testing satellites as well as vehicles for future space travel since 2004.
They have stated that they want to launch their first passenger test flight sometime in 2021 and 2022.
Right now, Virgin Galactic is a high-risk, high-reward stock.
We’re not sure yet how space tourism is going to work and how the company will make money in the long term.
However, their position as a leader in this industry makes them a particularly intriguing pick.
In addition to space tourism, Virgin Galactic is also interested in developing supersonic aircraft.
Not only would supersonic travel be more environmentally friendly, but it could also cut long-haul flight times down as much as 75 percent.
This means customers could get from New York to Paris or Los Angeles to Tokyo in just a few hours.
Virgin Galactic stock has been volatile over the past year, but it has been on an upward trajectory in May and June 2021.
If commercial flights begin sometime in the next year, it could send their share price skyrocketing (no pun intended)!
Should You Buy TaaS Stocks?
There are plenty of great reasons to invest in transportation as a service right now. TaaS has gained plenty of traction over the last few years, but it’s an industry with real long-term potential.
The way that consumers want to get around is changing, and TaaS companies are taking steps to address these needs.
Many people in the Millennial and Gen Z generations are choosing not to have cars.
They opt instead to rely on things like public transportation and small vehicles like bicycles and electric scooters.
Transportation as a service allows them to enjoy some of the benefits of cars without actually owning one.
Cars can be very expensive to purchase and maintain.
As a result, many people are opting not to have them in order to maintain a frugal budget.
Concern about climate change and vehicle emissions have also prompted many consumers to limit their car use or even give it up altogether.
These changing attitudes may create an increase in demand for TaaS in the future.
We’ve already seen many people start to rely heavily on ride sharing services, and there’s plenty of room for even more growth in the industry.
TaaS Stocks: Final Thoughts
TaaS is a growing industry that could completely change the way we get from place to place. The looming threat of climate change has necessitated the development of new transit options.
TaaS service gives consumers the convenience of having a car without harming the environment. Investing in this industry now could come with strong returns in the future.
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