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May 26, 2020, 8:01 a.m. EDT

The $8 Trillion Megatrend Taking Over Wall Street

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May 26, 2020 (Financial News Media via COMTEX) -- FN Media Group Presents Oilprice.com Market Commentary

London - May 26, 2020 – Two megatrends are converging to create an investment opportunity that could ramp up like the smartphone revolution. Total annual sales for one could eventually be worth $8 trillion. The other already topped $30 trillion last year. Mentioned in today's commentary includes: Domino’s Pizza, Inc. /zigman2/quotes/201587798/composite DPZ +0.02% , Yandex N.V. /zigman2/quotes/204821865/composite YNDX -0.15% , Grubhub Inc. /zigman2/quotes/210404212/composite GRUB +1.12% , Uber Technologies, Inc. /zigman2/quotes/211348248/composite UBER +2.50% , Lyft, Inc. /zigman2/quotes/208999293/composite LYFT +2.75%

And a company such as Facedrive–which innovatively straddles these two megatrends with a carbon-neutral 2.0 version of shared mobility– is becoming an exciting opportunity. And it's all going down in the transportation industry. Right now.

A seismic shift is occurring in the global transportation sector, and the implications of this change are going to be profound for consumers and businesses everywhere. Back in 2016, when Mary Barra, CEO of General Motors, said she believed "the auto industry will change more in the next five to 10 years than it has in the last 50", it was the same year that Facedrive (FD.V,FDVRF), Canada's answer to sustainable ride-hailing, grabbed on to this megatrend.

They saw where the winds were blowing–and where big capital was shifting its money–and they launched in 2019 with a company that fixes things Uber got wrong by offering a carbon-neutral and a carbon-offsetting form of ride-sharing that taps into the $30-billion sustainable investing trend in the transportation sector.

Now they're expanding, and it's not just about catching a lift–it's about an eco-system of revenue based on the company-rider relationship of convenience.

Last week, Facedrive Foods provided a glimpse as to how serious the company is in targeting the Canadian food delivery industry. To kick-off its aggressive expansion drive in the segment, Facedrive Foods entered into a binding term sheet to acquire assets of Foodora Canada. This move is especially significant because Foodora Canada is a subsidiary of Delivery Hero, a $20 Billion European multi-national food delivery service that operates in over 40 countries internationally and services more than 500,000 restaurants.

And while this deal hit the scene explosively, another Facedrive deal this week grabbed even more attention amid the coronavirus pandemic. Over 650,000 members strong across North America, LiUNA – The Labourers' International Union of North America announced it would adopt Facedrive's TraceSCAN digital COVID-19 contract-tracing app to protect the health and safety of its Canadian 130,000 members.

That's a huge boost for a brand new, high-tech app developed in a joint initiative by Facedrive Health and the University of Waterloo. The TraceSCAN app and wearables provide contact tracing to help mitigate the spread of the COVID-19 virus. Using Bluetooth technology, TraceSCAN alerts users with a notification if they have come in contact with an individual who has tested positive for the COVID-19 virus.

Times Have Changed Dramatically

Fifty years ago, buying and owning a car was considered the quintessential sign of adulthood; the badge of your independence and your ticket around town. But following rapid urbanization, our increasingly gridlocked roads, ever-rising CO2 levels and the fact that we use our cars only 4% of the time, this mindset is rapidly disappearing.

Transportation-as-a-Service (TaaS) aka Mobility-as-a-Service (MaaS) has emerged as the biggest shift in mobility since the rise of automation, and could be about to turn the $5 trillion global transportation industry on its head.

TaaS is a radical shift away from a transport model that involves ownership of vehicles towards mobility solutions that are consumed as a services like Uber (UBER), Lyft (LYFT), Grubhub (GRUB), Yandex (YNDX) and even Dominoes (DPZ).

Uber is one of the most diversified companies in the new transportation-as-a-service industry. Not only is it the most popular ride-sharing application in the United States, but it has also branched out into on-demand scooters and bicycles. But nothing is doing as well in this crisis as its Uber Eats brand. The company's food delivery platform has been booming as stay-at-home orders across the globe close down restaurants. It's worth noting, however, Uber's market share dominance has come at a price. The company's finance strength is suffering, and its profitability rating is abysmal.

Lyft is another one of the United States' biggest ride-share giants. And this year, it launched its own delivery service. Not only will Lyft allow you to order food from your favorite restaurants, you can even place grocery orders. The "Essential Deliveries" program aims to not only help the community stay safely indoors, but it also helps support its some-120,000 drivers in the United States.

"As communities shelter in place, the need for items to be delivered to the doorstep is at an all-time high," said Lisa Boyd, Director of Social Impact at Lyft. drivers is ready to help meet the needs of our communities while earning additional income."

GrubHub was America's dominant food delivery force for some time, but like Uber, it spent a lot to get its market share to that point. Not only that, it's received a lot of criticism for the layers of fees it places in every order. While customers don't see most of what restaurants are being charged, restaurant owners find the service difficult to work with, as the fees cut significantly into their own profits.

Natt Garun in an article for The Verge wrote, "Though Grubhub is upfront with businesses about the terms, the move is being criticized as an attempt to profiteer from business partners that are struggling under the nationwide measures to limit the spread of the novel coronavirus."

Yandex is essentially Russia's Google. It's a multi-national internet giant, but it also has its hands in the TaaS pie. And it might even be a better play than Uber or Lyft based on its year-to-year growth. Due to regional legislations, Yandex was able to secure a deal with Uber in which it controls nearly 60% of a joint venture in Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, and Russia. It even offers its own food delivery service, Yandex Eats.

Not only is Yandex exploding in the TaaS field, though, it is also diversified well beyond that niche. It's an internet giant, after all. A search engine, advertising provider, eCommerce giant, tech developer, and much much more.

Dominoes has seen some rough times in the past, but it's worked hard to get to where it is now. After a major makeover, Dominoes burst back onto America's pizza delivery scene and has made major waves ever since. The company has worked hard to secure its own deals with the other delivery giants to ensure its own market share was able to survive, and even added a number of little tricks to improve the customer experience and encourage its fans to order directly instead of via a third-party application.

The likes of Uber, Grubhub, Lyft, Yandex, and Dominoes have been leading TaaS 1.0, but Facedrive (FD.V,FDVRF) is moving to lead TaaS 2.0 by offering riders something they can’t get from Uber or Lyft: A carbon-offset way to share a ride and deliver goods.

Facedrive is Canada's first peer-to-peer, eco-friendly and socially responsible TaaS network. Facedrive’s business model puts the “people and planet first”, and that means planting trees and offsetting 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.

The TaaS industry

/zigman2/quotes/201587798/composite
US : U.S.: NYSE
$ 393.53
+0.09 +0.02%
Volume: 86,104
Aug. 6, 2020 11:25a
P/E Ratio
35.05
Dividend Yield
0.79%
Market Cap
$15.48 billion
Rev. per Employee
$236,749
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/zigman2/quotes/204821865/composite
US : U.S.: Nasdaq
$ 59.71
-0.09 -0.15%
Volume: 549,056
Aug. 6, 2020 11:25a
P/E Ratio
157.88
Dividend Yield
N/A
Market Cap
$20.93 billion
Rev. per Employee
$272,937
loading...
/zigman2/quotes/210404212/composite
US : U.S.: NYSE
$ 75.21
+0.83 +1.12%
Volume: 142,006
Aug. 6, 2020 11:25a
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$6.86 billion
Rev. per Employee
$370,043
loading...
/zigman2/quotes/211348248/composite
US : U.S.: NYSE
$ 34.03
+0.83 +2.50%
Volume: 9.06M
Aug. 6, 2020 11:26a
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$57.97 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/208999293/composite
US : U.S.: Nasdaq
$ 31.74
+0.85 +2.75%
Volume: 2.12M
Aug. 6, 2020 11:26a
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$9.48 billion
Rev. per Employee
$450,139
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