Apr 07, 2020 (Financial News Media via COMTEX) -- FN Media Group Presents Oilprice.com Market Commentary
London - April 7, 2020 – As the global economy faces $1 trillion in damages within five years because of climate change, the explosive ride-sharing business is facing heightened scrutiny as one of the transportation sector's biggest new polluters. Mentioned in today's commentary includes: General Motors Company /zigman2/quotes/205226835/composite GM -3.99% , Ford Motor Company /zigman2/quotes/208911460/composite F -2.99% , Baidu, Inc. /zigman2/quotes/209050136/composite BIDU -1.76% , Apple Inc. /zigman2/quotes/202934861/composite AAPL +0.04% , Alphabet Inc. /zigman2/quotes/202490156/composite GOOGL -0.14% .
So, when a group of tech innovators with a vision of environmental and social responsibility from Ontario's 'Silicon Valley' unleashed the next generation of CO2-reduced ride-sharing, Wall Street is likely to pay attention.
Ride-sharing 2.0 is being redefined by Facedrive (FD.V), which now offers riders something they can't get from Uber or Lyft: A carbon-offset way to share a ride.
Facedrive's business model puts the "people and planet first", and that means planting trees and offsetting the CO2 for every ride hailed. The company's innovative, state-of-the-art, in-app algorithm calculates estimated CO2 emissions for each car journey and allocates a monetary value to the local organizations to plant trees. Last year alone, in partnership with Forest Ontario, they planted over 3,500 trees in their soft launch phase.
For the first time in ride-sharing history, a company allows its riders to choose between EVs, hybrids and traditional cars. It's a choice no one's ever given to consumers–all without customers having to pay a premium.
Trees and the New Investing Mega-Trend
There are three realities that have come together to position Facedrive to change ride-sharing forever.
First, ESG (environmental, social and governance) investing isn't just a fad anymore–it's minting millionaires and billionaires. It's in high demand, and it's pressuring companies to make major changes. It's the ethical squeeze of the century. From Jeff Bezos' $10-billion commitment to a Global Earth Fund to BlackRock CEO Larry Fink, we're now seeing major ESG assets under management. BlackRock will increase its ESG assets from $90 billion to $1 trillion within a decade.
The second reality is that ride-sharing is already huge and set for explosive growth in our "sharing" economy. The global market is already worth $235 billion, according to Canada's commercial banking giant, Scotiabank, which has jumped on the Facedrive bandwagon as it embraces ride-sharing 2.0.
The third reality is that this same explosive growth is also having a huge negative impact on the environment. A recent study by the Union of Concerned Scientists estimates that the average (U.S.) ride-hailing trip results in 69% more pollution than whatever transportation option it displaced.
Facedrive (FD.V) is positioned to solve this critical environmental problem by changing the footprint of ride-sharing, forever–and their goal is, without sacrificing profit.
According to researchers, it would require $300 billion to plant that many trees, working out to less than USD$1.50 per tonne of CO2 removed. In contrast, the best carbon capture technologies boast a breakeven point of ~$50/tonne of CO2 removed, or about 33x the cost of planting trees.
Each year, plants remove about 25% of the carbon emissions produced by human activities such as burning fossil fuels while a similar amount ends up in the oceans. So, Facedrive is getting back to Mother Nature, and millennials love that.
This next-gen ride-share company also offers customers a choice for every ride; whether they want an EV, a hybrid, or a conventional car and then offsets the CO2 for ALL types of rides.
While Uber and Lyft were busy spending billions of dollars bringing ride-sharing into the mainstream, Facedrive was already getting ahead of the game, pinpointing the major problems the ride-hailing explosion was going to create for the environment at a time when investors are squeezing companies over ethics.
Facedrive doesn't have to spend big on bringing ride-sharing into the mainstream, which is exactly why the giants in this space aren't seeing any profit. There's a lot of money to recoup.
What Next for Ride-Share 2.0?
It only gets greener from here–in more ways than one. Facedrive's ride count has gone from 200 a day just 4 months ago to 1,000+ rides per day right now–and counting. In Ontario, Facedrive has been planting trees even before it went public in September 2019 and plans to move to over 15 cities over the next 24 months.
Its vision is to become #1 recognized eco-friendly and socially responsible TaaS (Transportation as a Service) platform and to benefit every community it enters. It's already partnered with Canadian mobile giant to build a ride-sharing ecosystem with a unique ethos and revenue model, and even celebrities such as Will Smith and Jada Pinket Smith are on board with the first company in ride-sharing history to offset carbon in the best way possible, and for real.
Now, it's planning to take its ride-sharing plus tree-planting global. The next stop is the United States and Europe, where the launch is already being prepared.
With ESG investing the hottest mega-trend in investing right now, and with ride-sharing going even beyond the mainstream, the company that plants trees while you ride and fixes all the mistakes that the giants of ride-sharing 1.0 made is positioned at that lucrative intersection of people, planet and profit.
Tech Giants Join the ESG Push
Google's parent company Alphabet (GOOGL) is a shining star in the tech world. Despite being one of the largest companies on the planet, in many ways it has lived up to its original "Don't Be Evil" slogan.