Viewed as an alternative to conventional public and private transportation options, Transportation as a Service (TaaS) involves getting around or accessing services using a vehicle that’s not your own. As the popularity of TaaS increases, there is growing interest in TaaS stock, but what is TaaS stock, and is it a good idea to get involved?
In this guide, we’ll answer these key questions and tell you everything you need to know before you put money into one of these businesses.
What Is a TaaS Company?
A TaaS company provides transportation services to customers. Rather than taking the bus, riding the subway, or buying a car, consumers can now get from A to B comfortably, booking a vehicle for private use through one of these platforms.
The fact is that most people don’t use a vehicle frequently enough to justify the cost of buying a car — spending thousands of dollars on a vehicle that will statistically remain parked 95% of the time does sound a bit ludicrous — which is why TaaS companies have become so popular. They offer the most convenient solution for those who either don’t have a car or simply aren’t inclined to drive it.
That said, the TaaS industry goes beyond vehicle rentals or ridesharing services. It encompasses delivery services (bulk goods, food, grocery, etc.), self-driving tech, electric vehicles, and navigation software.
So, we’re talking about companies like Uber, Lyft, DoorDash, Avis Budget Group, FedEx, Tesla, Waymo, etc.
What Is TaaS Stock?
TaaS stocks are financial assets that are sold by public Transportation-as-a-Service companies. They work just like any other: If you buy shares and the price increases, you make a profit on your investment. If the share price falls before you sell, you lose money.
TaaS companies are often the subject of intrigue and speculation among investors, as they are a relative newcomer to the stock market. Package delivery services have existed for decades, but ridesharing and food delivery services have seen a dramatic increase in demand in the last few years. Uber alone, for example, has more than 95 million downloads, and it keeps on gaining popularity.
Although share prices dropped in 2020/2021 due to the pandemic, TaaS companies are showing signs of rapid recovery and growth. The latest TaaS stock prediction suggests that share prices will rise in 2022. So, this sector may be an appealing option if you’re looking to invest in the stock market.
How Can I Invest in TaaS Stock?
When buying TaaS stocks, you have two options — setting up a brokerage account or investing through a brokerage company.
If you’re a beginner or if you’ve never invested in TaaS stock before, you may want to work with a brokerage company and seek expert advice. Or you could also create a personal account and buy stocks on a trading platform online, like MooMoo, M1 Finance, or Stash.
Some investing apps are great for beginners, they offer plenty of guidance and insights so you can quickly learn the ropes of the stock-trading business. We recommend you explore your options and see which platform is the best fit for you.
Tips for Finding the Best TaaS Stocks
Before buying TaaS stocks, it’s always best to do your research. This will help you identify the best opportunities and ensure that you time your investment wisely.
Look into various companies’ stock histories, check out their current share price, figure out what the market trends are, see if you can find out what the company is planning for the future — e.g., is it investing in new tech? Acquiring other companies? Trying to break into a new market? Undergoing changes in leadership? — and try to contemplate whether these factors are likely to increase or decrease the shares’ value in the near future.
There are several exchange platforms where to buy TaaS stock. So, once you’ve made your decision regarding which shares you want to buy, make sure you check what each platform has to offer — some sites may let you buy fractional shares, others may have a high minimum, etc.
Think about how much you want to invest and what type of stock order you wish to buy. For example, you can choose between limit and market orders. Market orders provide instant access to stocks, but they do not guarantee a set price. Limit orders, on the other hand, provide greater control over stock price by offering you the opportunity to buy or sell at a set price.
Keep in mind, though, that the key to a successful investment lies not only in choosing the right stocks, but in trading them at the right time, too. Try to keep abreast of financial news before deciding whether or not to invest.
Is TaaS a Good Investment?
Every investment carries risks, but TaaS stock has recently become more appealing to investors. TaaS responds to changes in consumer habits and preferences, providing solutions for a growing number of people who don’t have nor want to own their own cars. Furthermore, the sector is growing quickly, and there’s still scope for it to develop and diversify, which is a great sign of things to come.
The technology that underpins the projected growth of TaaS include driverless, electric, and eco-friendly vehicles. With the industry growing and new technology becoming more accessible by the day, investing in TaaS stock seems like a sound move.
What Are the Best TaaS Stocks Now?
The stock market can be unpredictable at best, but there’s data that suggests some firms might have better chances than others in returning good profits for their investors.
Now that you know how to invest in TaaS, here are some examples of companies that look promising in terms of investment.
It’s one of the leading names in the TaaS industry. Uber offers customers the opportunity to get from A to B safely, conveniently, and comfortably, providing a door-to-door service that’s often cheaper than conventional taxis. Uber has a 65% market share in the US and operates in 70 different countries.
The coronavirus stock market crash in early 2020 caused Uber’s market cap to plummet down to $48.3 billion, but the company has made headway since then. Currently, Uber’s stock price is at $37.05 per share (06/02/2022).
Like Uber, Lyft offers a rideshare service for customers in the US and Canada. Lyft has more than one million drivers and takes up a 32% market share in the US. Estimates suggest that the ride-hailing company will post quarterly earnings of $0.09 per share in its upcoming report, which represents a +115.5% change year-on-year.
The TaaS stock price today for Lyft is $37.68 per share (06/02/2022) — which is quite accessible, especially when compared to the share prices of the stocks with the greatest value.
Home deliveries have become more commonplace since the start of the pandemic, and this trend is set to continue as more people work from home or adopt hybrid working models. DoorDash Inc. is one of the largest and most popular food delivery services operating across the US, boasting a 56% market share
As of today, DoorDash boasts a $33.8 billion market cap and a $98.49 share price (06/02/2022).
As TaaS companies become more popular, so does TaaS stock. Investing in this industry is likely to be a lucrative endeavor, as long as you get your timing right. So, do your research into these companies and see which one is a better fit for you and your money.
Can I buy TaaS stock?
Yes, you can buy TaaS stock. Many people choose to trade online now. You can set up a personal account or use a brokerage. Before you buy, though, it’s a good idea to carry out extensive research into the stock price and history, evaluate the market and set a budget. Also, make sure to share all your options where trading platforms are concerned. There are some that are quite beginner-friendly.
Which TaaS stock is Whitney Tilson talking about?
Whitney Tilson, an influential US investor and the CEO of Empire Financial Research, speaks about TaaS investment frequently. On recent webinars, Tilson shared that he believes now is a good time to invest, given the growing popularity of TaaS and the scope to use modern technology, like eco-friendly and driverless vehicles. He’s recently mentioned stocks from companies such as Uber, Lyft, and Tesla.
What is TaaS technology stock?
In other words, what is TaaS stock? They are financial assets that are sold by public companies operating within the TaaS (Transportation as a Service) industry, like Uber or FedEx. This sector benefits greatly from technology such as navigation software, self-driving vehicles, electric cars, etc., which means that companies like Tesla, Waymo, Cruise, and Waze belong to the TaaS industry, too. So, investing in TaaS technology stock would mean putting money into one of these businesses.