Transportation as a service, or TaaS, is a burgeoning industry that has 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 fascinating for the TaaS industry.
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.
Here are our picks for the best TaaS stocks on the market right now.
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 has seen great success and is now in several countries around the world.
In subsequent years, the company also launched UberPool and UberEats.
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 fluctuated this year. Concerns over the independent contractor status of drivers have caused share prices to dip somewhat throughout the summer months.
However, the ridesharing stock started to recover in September. This is because of exciting financial news from the company.
In the second quarter of 2021, the company beat analysts’ expectations for both revenue and earnings per share.
They also adjusted their guidance for the rest of the year, which has investors particularly excited. They expect to turn profitable later this year.
Ridesharing companies will likely see some ups and downs over the next few years. They will need to adjust their business models to address changes in consumer behavior.
However, Uber has consistently proven their ability to pivot into new markets.
Lyft Inc. (NASDAQ: LYFT)
Lyft is another successful rideshare company and is a direct competitor to Uber.
The two companies launched within a year of each other and provide very similar services.
The company initially planned to provide rideshares for longer distances but changed its focus to accommodate customers.
They offer priority pickup and any vehicle from large vans to scooters and bikes.
Lyft has seen demand for its 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 to stay afloat, affecting their revenue numbers over the next few quarters.
Lyft’s shares have increased over 64% from last year, showing an upward trend.
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.
Ready to build your portfolio? With Public.com you can follow other investors, discover companies that are inline with your beliefs, and invest into stocks and crypto with very little money! What are you waiting for? Check out Public Now!
It doesn’t matter if you have $500 or $5 million.
Here’s what I recommend you do with your money right now.
ATTENTION: The following video is a serious financial warning from one of America’s richest men. He believes this event will make the rich even richer while financially affecting countless others and fan the flames of social protest.
It’s free to watch and by doing so I believe you’ll be ahead of everyone else struggling to understand what is really going on. I hope you take advantage of this opportunity!
TaaS Stocks To Buy
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 other food delivery services on the market right now, DoorDash currently has the largest market share.
In addition to working with restaurants, they have expanded into working with convenience stores to provide essentials for their customers.
They’ve also recently started partnering with grocery stores, pet stores, and other popular stores that offer home essentials.
DoorDash has also managed to build a very impressive fleet of over 3 million independent contractors. They allow workers to deliver food via car or bike and offer flexible scheduling, which has made it very appealing to workers looking to make extra money.
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.
DoorDash’s share price climbed steadily throughout the summer months, but has since dropped slightly. This presents an opportunity for investors to buy in at a discounted price.
TaaS Penny Stocks
Hertz Global Holdings (OTC: HTZZ)
As global car ownership rates have been decreasing, demand for car rentals has 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.
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 come out of bankruptcy and restructuring in July and are hoping to resume growth shortly.
This has been exciting for investors who want to see the company succeed financially moving forward.
While Hertz stock has been going out of penny stock range, 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 looks closer and closer to becoming a reality.
Virgin Galactic has been testing satellites as well as vehicles for future space travel since 2004.
The company recently took its first passengers into space, with plans to send paying customers beyond the atmosphere in 2022.
Right now, Virgin Galactic is a high-risk, high-reward stock.
No one is sure yet how space tourism will 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 this is to be expected given that they are in the early stages of launching their technology.
If commercial space flights begin sometime in the next year, it could skyrocket their share price (no pun intended)!
EHang Holdings Ltd. (NASDAQ: EH)
Rideshare services are evolving very quickly with the advent of new technology. Over the next decade, we can expect to see air taxis hit the market in many of the world’s biggest cities.
One company that is currently developing air taxis is EHang. EHang is based in China and is already conducting trial flights for their air taxis.
These air taxis are autonomous and use similar technology to drones.
There are many potential applications for this new technology, which is what makes it so exciting.
The main purpose of these air taxis would be for passenger transport, especially in areas with heavy car traffic.
However, they could also be used for medical transport or to make deliveries.
EHang Holdings stock has a lot of potential, but their share price is down from its peak earlier this year.
It will take time for EHang to become profitable, so it is a high-risk, high-reward stock.
However, this is an excellent choice for investors who want to take a chance on an exciting new technology.Stock Advice That Beats The Market! Stock Advisor's recommendations have beaten the market over the past 19 years. Tired of picking losers? Stock Dork readers can join for only $99 a year! Check out Stock Advisor today!
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 costly to purchase and maintain.
As a result, many people are opting not to have them 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 ridesharing 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.
- Motley Fool Issues: Rare "All In" Buy Alert! All In Stock Buy Signal Has Beaten The Market By 6X
- URGENT BUY: 4 Hypergrowth Cryptos for 2021: Urgent video just released detailing a rare setup in the crypto markets that could send four cryptos soaring
- The Smartest Way to Invest $500 Right Now: It doesn’t matter if you have $500 in savings or $5 million. See what one of America's richest men says you need to do right now.
- 25-Year-Old Prodigy Is America’s #1 Stock Picker: Brand-New Pick, Ticker Symbol and All -- FOR FREE