The $7 Trillion Mobility Market Is Ripe for Disruption
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LONDON, Oct. 28, 2019 /PRNewswire/ -- There's a new kind of transportation. It's not electric cars or electric trucks, it's not public transportation like buses or trains, and it's not Uber or Lyft. In fact, it's busy taking market share away from all of those. Mentioned in today's commentary includes: Apple Inc. (NASDAQ: AAPL), Microsoft Inc. (NASDAQ: MSFT), Advanced Micro Devices Inc (NASDAQ: AMD), Nvidia (NASADQ: NVDA), Tesla (NASDAQ: TSLA).
They're on every street corner, but most people probably haven't considered how lucrative this $177-billion electric scooter industry actually is. And OjO Electric (OJO.V) is trying to transform it.
Investors are already going all in on this sector. Bird has shot up 12,800%... Lime is now up 5,700%... and Tier Mobility is up 2,000%. These seemingly small companies are now getting multi-billion-dollar valuations. But the proverbial train has well and truly left the station for investors hoping to get in on those industry giants.
Instead, it's time to focus on OjO (OJO.V) - a small scooter company worth only $38 million currently - which could soon rise significantly.
$38 MILLION COMPANY WITH AN INCREDIBLE PATENT PORTFOLIO
In the startup industry, a strong patent portfolio is the ultimate war chest that can ensure massive returns for investors, and that's exactly what OjO has going for it. Inventions that are patented instantly become investible assets.
Because there is a direct relationship between patent value and market demand, patented inventions tend to attract strong investments that help the startup compete with entrenched incumbents.
Startups with powerful patents are at a distinct advantage because they are protected from undue competition, giving them room to grow organically while also making them attractive M&A targets.
That's why there is a long line of companies that started off with just sweat equity but went on to become multi-billion-dollar unicorns. Their secret sauce? Strong products backed by strong patent portfolios.
American-Dutch sports and clothing company Head started with $6,000 and a ski built in a garage. Howard Head was savvy enough to get patents to protect his inventions right away and that translated into astounding 6,700,000% growth.
Microsoft Inc. (NASDAQ: MSFT) founders Bill Gates and Paul Allen bet that personal computing would one day become huge, despite the prevailing skepticism. The first coup here was when they bought the license for the code for MS-DOS in 1986 for $925,000 and refused to grant IBM an exclusive licensing agreement. It was a huge risk for Microsoft, but one that paid off massively in the end. They spent only $925,000 and grew a staggering 194,000% as soon as the PC revolution caught fire.
Then, of course, there's Apple Inc. (NASDAQ: AAPL) and Steve Jobs, widely considered as one of the greatest inventors of the last century. Job's name appears as the author of 346 patents in the US registry, including the original Macintosh in 1984 and the iPhone in 2007.
Job's patent-securing genius has propelled Apple shares 8,700% since the launch of the iPhone and 14,500% since the Mac made its debut.
Now, OjO Electric Corp. (OJO.V) is seeking to revolutionize the next multi-billion-dollar industry with its own remarkable patent portfolio.
PATENTS AND PERMITS
OjO Electric Corp. has a mission to change the future of micro-mobility for good by providing safe and sustainable first- and last-mile mobility.
The OjO scooter is a patented custom-engineered bike that's fully-electric and produces zero emissions. It's powered by two swappable 48-volt Li-ion batteries that allows it to travel an industry-best 50 miles on full charge at a bike-lane-legal top speed of 20mph.
The OjO scooter also features unique integrated GPS technology that allows for geofencing and automated speed throttling whenever the user exceeds the speed limit for a particular jurisdiction or zone.
OjO's approach to first- and last-mile mobility is different from its competitors because it emphasizes close collaboration with municipal and local authorities. The company is already in the process of rolling out a grand total of 1,250 scooters, which will include 500 in Austin, 500 in Dallas and 250 in Memphis, Tennessee. All that is left to get the ball truly rolling is to deploy thousands of scooters to these areas.
A $7 TRILLION TREND
Micro-mobility is an unstoppable and powerful secular trend that is just taking off and seeing explosive growth. The total mobility market is currently valued at $7 trillion…and growing.
According to projections by industry pundit Goldman Sachs, the ride-hailing sector was valued at $36.4 billion in 2017 and is expected to reach $126.5 billion by 2025 and up to $492 billion by 2030. That represents an impressive 22.1% CAGR over the period.
A big reason why this particular service is expected to experience robust growth is due to its sheer versatility. For instance, e-scooters can be readily deployed as a more practical and convenient last-mile delivery tool for companies like Amazon than, say, drones. Good case in point is a leading food delivery company already uses OjO (OJO.V) scooters for food delivery in a pilot program.
Further, tech-based mobility solutions and city infrastructure improvements such as public transit and added bike lanes are emerging and helping improve commuting times and also lower congestion and GHG emissions. All these trends are helping open up the e-scooter micro-mobility sector.
OjO (OJO.V) is a design-first company that was founded by a group of successful inventors, designers and consumer goods entrepreneurs.
Just like Musk, the CEO is a rare quintessential combination of wit, intelligence, fortitude, sarcasm and judiciousness. In a nutshell, a brilliant visionary.
While Elon is shooting for the stars with his electric cars and dreams of colonizing Mars... this guy is looking at the smallest travel segment with the same laser-focus on clean-energy and industry-defining premium products.
HOW THEY MAKE MONEY
This company boasts an attractive and profitable business model with superior economics compared to its rivals. The OjO scooter costs $1,240 vs. $551 average by competitors. While it costs more, the Ojo scooter is expected to last years instead of months and therefore, recoup and generate positive cash returns.
A big reason why OjO's scooters have much better economics is because they are designed to be used for ride-sharing. These scooters are built with heavy-gauge aluminum under chassis for optimal strength, cushioned seat for comfort and powered by a robust rear hub motor capable of climbing an 18% grade.
They can also do 40-50 miles on a single charge allowing them to go well beyond the usual limits of their less robust brethren. Indeed, while the average kick scooter ride is about 0.6 miles, OjO scooters average close to 2 miles and they even have rides in cities that are 10-15 miles long, comparable to the range by Uber and Lyft cars. In other words, OjO is already competing in Uber and Lyft's back yard.
It's early innings for OjO (OJO.V), yet all the revenue and profit metrics are already tracking positive.
2019 Trends in Key Rideshare Metrics
OjO (OJO.V) has already deployed 250 scooters and expects to hit 2,500 by year-end and 10,000-15,000 by the end of 2020.
The rideshare market is so big, in fact, that even tech giants like Nvidia and AMD are getting involved. Nvidia (NASADQ:NVDA) is one of the hottest technology stocks on the market. As a pioneer in new chipmaking techniques, Nvidia has carved out its position across multiple industries. From gaming to artificial intelligence and even self-driving cars, it's a well-established company that's not likely to go anywhere any time soon. And as the ride-sharing revolution kicks into high gear, the next step will be fueled by autonomous driving solutions, like those from Nvidia. Advanced Micro Devices Inc (NASDAQ: AMD) is Nvidia's biggest competitor, and it's not letting the self-driving boom pass by. AMD's groundbreaking technology not only rivals that of Nvidia, some even argue that it outperforms it. In fact, it's even teamed up with Tesla (NASDAQ: TSLA). As one of the most renowned companies in the field, Tesla hasn't accomplished this feat all by itself. AMD has played a major role in Tesla's dive into autonomous vehicles. And with Tesla planning to roll out a fleet of fully automated robotaxis in 2020, it's safe to say that AMD is likely to remain a key element in Tesla's self-driving success.
Planned scooter deployments and revenue run-rate projections
OjO is where Bird and Lime were two years ago (they both launched in 2017). Remember, it took them a matter of months to reach unicorn status (i.e., achieve valuations of a billion dollars or more and little more than a year to double that). This could be history repeating itself right in front of our eyes.
Rich pickings for early-in investors
Bird, Lime and OjO's own experience has proved just how quickly the e-scooter business can ramp. Things happen so fast it's like a Lamborghini… 0-60mph in less than three seconds.
This is the lowest-hanging fruit in the micro-mobility industry right now, a rare opportunity to get in early. Yet those off-the-charts number might only be enjoyed by investors who waste little time buying OjO (OJO.V) shares.
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