Transportation as a Service, or TaaS, is a rapidly expanding industry as more people rely on transportation services for their daily commute. TaaS providers offer a variety of transportation services such as food delivery, vehicle sharing, and vehicle rental.
Understanding these services can help you choose the best TaaS stocks to invest in. In this article, we answer questions like “What is TaaS stock, and should I invest in it?” and provide facts and forecasts about the future of transportation. and, of course, where to buy TaaS Stocks.
What Is TaaS?
TaaS (Transportation as a Service), also known as MaaS (Mobility as a Service) represents a growing trend in which people enjoy the benefits of comfortable transportation without investing in their own vehicles.
It’s a new way of thinking about reducing carbon emissions and traffic congestion while also giving consumers more freedom, convenience, and less obligation. But what exactly falls under the purview of a TaaS company?
TaaS providers offer the following services:
- Vehicle rental
- Food distribution
- Vehicle scheduling, with or without a driver.
The near future of transportation envisions the use of self-driving cars as well as aircraft for transportation in major cities. Globally, the lack of personal vehicle usage indicates a decline in the need for car ownership, particularly among emerging markets.
What Is TaaS Stock?
A TaaS stock is a financial asset issued by a publicly-traded company in the TaaS industry, such as Uber (NYSE: UBER), Lift (NYSE: LYFT), and Yandex (NYSE: YNDX), or Dominos Pizza (NYSE: DPZ). Stocks are a type of investment. Is it, however, a good idea to invest? When you invest in a stock and its value rises, your investment grows in value. As a result, knowing how to evaluate a stock is critical when investing.
Many companies in the competitive and leading market of car rental and car-sharing services are part of the TaaS industry. On where to buy TaaS stocks for any of these companies, all you need is a good stockbroker. The most popular TaaS stocks you can invest in are-
Yandex (NYSE: YNDX)
Yandex is a multinational information technology company that is commonly referred to as the Russian Google. It controls a sizable portion of the TaaS market in Russia, Eastern Europe, the Middle East, and Africa, among other services. Yandex. Taxi and Uber merged in Russia, Azerbaijan, Georgia, Kazakhstan, Armenia, and Belarus in 2018.
The company is a pioneer in the development of self-driving cars through the use of TaaS technology. Yandex reported annual revenue of $2,955.6 million in 2020, a 24 percent increase over 2019.
Facedrive (NYSE: FDVRF)
Facedrive, based in Canada, is primarily concerned with lowering CO2 emissions. It provides the option of riding in electric, hybrid, or gas-powered vehicles. In 2020, the company earned $3,934,354 in revenue and expanded its offerings to include health-tech services, food delivery, and an e-commerce platform.
Lyft (NYSE: LYFT) and Uber (NYSE: UBER)
In the United States, the leading ride-sharing companies are Uber and Lyft. Aside from knowing where to buy TaaS stock, consider the following comparisons if you’re considering investing in one of these two companies.
How and Where to Buy TaaS Stock
TaaS stocks can be purchased in the same way as any other stock. Where to buy TaaS Stocks should not be much of a problem because all you need to do is to find a stockbroker and see if they have any of the TaaS stocks you are willing to buy.
Where to buy TaaS stocks is not a problem at all, as many online stockbrokers have them. When considering stock purchases, we’ve provided seven common-sense steps you can take:
- Open a brokerage or investment account. This is a simple step in which you must provide some basic ID information and then select how you want to fund your account.
- Invest on your own or through a brokerage firm. An online stock broker is perhaps the simplest way to buy or sell stocks. You could use a full-service stockbroker or buy your stocks directly from the company you want to invest in.
- Research. Do your homework before deciding which TaaS companies to invest in. Aside from the stock price, review their reports and stock history to get a better idea of which TaaS stocks to invest in.
- Determine the amount you wish to invest. Set the amount of money you have available for investment and proceed.
- Invest in individual stocks or mutual funds. Individual stocks represent a portion of a single company, whereas mutual funds invest in the stock of multiple companies in a single transaction. Both alternatives have advantages and disadvantages.
- Choose a stock order type. Choose between a market and a limit order depending on how you intend to make your TaaS investment. If you want to buy stocks right away, use a market order. These orders do not guarantee a stock price, but your transactions will be carried out right away.
- Limit orders allow you to influence the stock price. It is a purchase or sale order for a security at a specific price or better. However, sometimes the transaction cannot be completed, which usually occurs when the conditions you set are not met.
- Keep track of your investment. If you own a piece of a TaaS market, make sure to keep up with your investment (this is good advice for any investment, whether it’s a good IRA or a good robo advisor). Keep an eye on a TaaS ticker and keep an eye on the stock market.
COVID-19 and the TaaS Industry
The COVID-19 pandemic wreaked havoc on the Transportation as a Service industry. Companies, on the other hand, have devised a variety of strategies to deal with this situation.
Some companies, such as Uber, have shifted their focus to delivery services. Uber has made significant progress in this area and intends to continue on this path with the acquisition of Drizly (an alcohol delivery service).
Lyft, a much smaller company, has attempted to cut losses by limiting new driver access to their platform and cutting marketing spending.
Should You Invest in TaaS Stocks?
TaaS services are available nearly 24 hours a day, 7 days a week, depending on where you live. Every ride-sharing service is available at all hours of the day and night. Furthermore, by 2020, there will be over 111 million food delivery service users in the United States alone.
That’s more than a third of the country’s total population, and it’s only going to get bigger. However, this is not the limit of what TaaS can do; there are numerous other possibilities.
The Rise of Electric Vehicles
Electric vehicles have grown in popularity in recent years due to the promise of being more environmentally friendly than their fossil-fuel-powered counterparts. While there’s no denying that electric vehicles are better for the environment, their main selling point in terms of business is superior technology and convenience.
Electric vehicles, for example, are much easier for a car rental company to monitor and maintain. Because the vehicle does not need to be refueled in the traditional sense, and electric vehicles are packed with sensors to help provide information about their health and status, a company can manage an entire fleet of rentable electric vehicles from a single dashboard.
Driverless Vehicle Technology
TaaS also has ties to driverless vehicle technology. Driverless vehicles have been hailed as the next big thing in transportation technology, promising benefits such as reduced traffic volume, fewer accidents, and greater accessibility for people who do not drive.
Driverless vehicle technology is still a very futuristic concept that will take years to fully realize, but there is no doubt that it is the direction the industry is heading in. There are additional implications for this type of technology: it could be expanded to driverless freight trucks and even automated drone deliveries.
TaaS industry and TaaS Stock Predictions for 2022
These developments are all set to be incorporated into the TaaS industry. While no investment is guaranteed, it is clear that TaaS companies are on the rise, and there is still a lot of untapped potential waiting to be discovered.
With the advent of ride-sharing services, people have begun to wonder whether it is necessary to own a vehicle these days. Given the shifts in lifestyles and priorities, it’s no surprise that an increasing number of people are turning to ride-sharing as a means of transportation.
New modes of transportation have proven to be more cost-effective and convenient than traditional automobile ownership. Despite the challenges posed by COVID-19, the TaaS industry appears to be fully recovered.
Yandex reported $966.1 million in revenue in the first quarter of 2021. Its Ride-Hailing service reported a 24% increase in rides compared to the first quarter of 2020.
Lyft managed to outperform its revenue projections for the first quarter of 2021. Instead of the expected $558.7 million, it reported a revenue of $609 million. The TaaS stock price history shows the impact of the company’s results. By the third quarter of 2021, Lyft was expected to be profitable on earnings before taxes, interest, depreciation, and amortization (EBITDA) basis.
In addition, the company announced a plan to achieve a goal of 100 percent electric vehicles on their platform by 2030.
According to Refinitive, Uber’s revenue in the first quarter of 2021 was $2.90 billion, rather than the $3.29 billion expected. The company, on the other hand, had drastically reduced its loss to $108 million from $968 million in Q4 2020. The $1.6 billion gain from the sale of the company’s self-driving unit was attributed to the loss.
Recent reports from the aforementioned companies also have an impact on the TaaS stock price.
Is TaaS Stock a Good Buy?
Based on numerous expert projections regarding stock market movement, as well as hopes brought by the COVID-19 vaccine, the TaaS industry looks forward to reaching its full potential as it has evolved. It is estimated that using TaaS costs about ten times less than owning a car.
Looking 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—can provide a good indication of TaaS’s future—and whether to invest in the industry or not.
Frequently Asked Questions
Where to buy TaaS stock?
TaaS stock, like any other stock, can be purchased through an online stockbroker, a full-service stockbroker, or directly from the company you want to invest in. You’ll need to open and fund an investment account.
What is the purpose of TaaS?
TaaS provides on-demand transportation via services such as ride-sharing and vehicle rentals. In comparison to car ownership, it is a new way of traveling and commuting that is less expensive and more convenient for the user. It also has a positive impact on CO2 emissions and traffic congestion.
What exactly is a TaaS company?
It is a company that provides transportation services to its customers, most commonly in the form of ride-sharing, vehicle rentals, and food delivery.
What exactly is TaaS technology?
This technology shifts away from car ownership and toward new travel solutions and experiences. Self-driving cars and all-electric aircraft are among the new technologies being developed, which will shape the future of transportation.
Is purchasing Taas stock the same as investing in the Taas company?
A transportation as a service (TaaS) company is any company that provides transportation as a service. This could be a ride-sharing service or something more complex, like a software company that creates frameworks for platforms that connect drivers and their vehicles to customers.
TaaS stocks are widely available today, and all of the major players, including Uber, Lyft, and DoorDash, are publicly traded. On where to buy TaaS stock, all you have to do is download an investment app or open a brokerage account to begin investing in any of these TaaS behemoths.
Logistics companies, such as FedEx, are also beginning to invest in future developments in order to improve their supply chain capabilities through the use of TaaS. Companies like Tesla are aiming for a future in which driverless vehicle technology is widely available and abundant.
Again, there is no such thing as a sure investment with a 100 percent guarantee, but TaaS stocks show a lot of promise. We will most likely see massive growth in the TaaS industry as long as the industry continues to innovate.
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