FN Media Group Presents OilPrice.com Market Commentary
London – October 30, 2019 – The next multi-billion-dollar Uber might have only 2 wheels. Scootermania is turning micro-mobility startups into multi-billion-dollar unicorns. This industry segment has been attracting cash and customers like no other. That’s because micro-mobility has the potential to compete with cars and ride-hailing. It is also part of the answer to ailing public transportation because it will get people there. Mentioned in today’s commentary includes: Baidu, Inc. (NASDAQ: BIDU), Ford Motor Company (NYSE:F), General Motors Company (NYSE:GM), The Boeing Company (NYSE:BA), Niu Technologies (NASDAQ:NIU).
That’s revolutionary talk. And that’s why investors are pouring money into it. They’ve pumped more than $5.7 billion into micro-mobility startups since 2015.
Scooter startup Bird is only two years old, but it’s already worth $2.75 billion. Just this month, it raised $275 million in fresh funding. In February, giant Lime raised another $310 million to push its valuation to $2.4 billion.
It’s a crowded space, but that doesn’t seem to bother venture capitalists who keep throwing down cash for what they seem sure is the next revolution in urban transport. But one little-known upstart is seeking to turn that chaos into order and transform the micro-mobility industry. And their potential to disrupt the multi-billion-dollar ride-share market cornered by Uber and Lyft is clear.
When you add a seat for the first time, and Bluetooth capabilities, the OjO is a scooter like no other.
#1 The Best Moment in the Micro-Mobility Craze
The total mobility market is now worth $7 trillion. We’ve ditched ‘gigantism’, and the new global obsession is micro-mobility. It’s a craze of global proportions:
The global micro-mobility market is expected to reach nearly $32 billion by 2029. By 2050, it’s likely to be two-thirds of the world’s population. And it’s the first mile and last mile of getting people to mass public transportation that’s the biggest problem.
Micro-mobility is the definitive answer. It can effectively replace many personal car and ride-hailing trips as well as deliver first- and last-mile solutions for public transit. And OJO Electric knows this too well.
In China alone, micro-mobility has nearly doubled accessibility to jobs, education and health care.
That’s why even tech giants like BAIDU (NASDAQ:BIDU) are on board. Back in 2014, the internet megalith launched its own wildly popular smart e-bike, called DuBike., and it hasn’t stopped innovating since.
Now, it’s even taking on the automated car market. With more miles under its belt than any of its competitors in Beijing, it’s an easy choice for a number of investors.
Niu (NASDAQ:NIU) is another Chinese company taking the micro-mobility market by storm. it’s already become one of the country’s most exciting new micro-mobility firms.
Founded in 2014, Niu has quickly climbed the ranks to become the world’s top provider of urban mobility solutions, essentially creating the market for these types of vehicles.
Since listing on Nasdaq just last year, it has performed significantly better than some of the other super-hyped IPOs in the sector, and it’s showing no signs of slowing.
#2 Any Resistance Ends Here
The early e-scooter entrants, despite all the VC cash poured into them and huge valuations, have been met with a fair amount of backlash and growing pains. They can’t travel far. They irritate pedestrians in crowded places. Cities hate them. They don’t feel safe, and they’re definitely not comfortable.
This is where a seat can make a billion-dollar difference. It’s where some innovative technology and engineering can turn city officials into a business’ best friends.
OJO (OJO.V-AZNVF) has taken the giant growing pains of hyper-valued companies like Bird and Lime and turned them into the biggest potential in the segment. And they seem poised to beat out the biggest players in the market on safety, sustainability, distance and comfort.
OJO is already partnering with bike operators and docking stations in cities around the U.S. They’re working directly with city officials to turn chaos into order.
What cities might like most when it comes to order versus chaos is this: The innovators at OJO one of the few scooter companies to have added Bluetooth speakers with audio alerts and ability to make a scooter automatically slow down in school zones or on campuses.
It’s a winning combination from a safety perspective–so cities are definitely on board.
#3 The Scooter that Could Disrupt Uber and Lyft
Uber and Lyft should be worried. The average Uber or Lyft ride is about 5-15 miles.
That blows the average scooter out of the water, and even threatens Uber and Lyft. The average scooter ride is about 0.6 miles. OJO’s average is closer to 2 miles. And at the upper end of 10-15 miles, there are no scooters out there that can compete. And the economics are trail-blazing.
Right now, OJO is looking at about $15 per day, per scooter. Right now, they’ve got 200 on the road, but a big push is underway which should ramp up revenue in Q4.
They will be increasing total deployment to 1,250 in November and by the end of the year OJO anticipates having 2,500 scooters deployed. That’s nearly $14 million revenue run rate.
Next year, they’ll come out with an even newer 2020 model, and plan to have up to 15,000 on the ground. That’s over $80 million revenue run rate.
And they’re about to go public after just completing a $6 million raise. That raise will get them through the production and deployment of 2,500 new scooters. What will the venture capitalists like most here? The differentiated economics. As we’ve said, they’re already throwing tons of money at this segment, despite all the drawbacks.
Bird and Lime have been criticized for moving too quickly and blowing through VC money in a heartbeat. OJO is methodical. It’s putting out a model that will scale, recoup and last a long time.
#4 The Mojo Behind the OJO
It’s not sustainable to just throw a ton of scooters on the street and see what happens. OJO (OJO.V, AZNVF) watched and determined where the competition was failing, badly. OJO is a design-first company founded by a group of wildly successful inventors, designers and consumer goods entrepreneurs.
They include Don Ratner, OJO director, who has brought over $1 billion in famous toys and licensed goods to market for everyone from Disney and Nintendo to Coca-Cola and Mars. OJO plans to disrupt the disruptors, and they’re disciplined enough to do it. For one, they’re ready to capitalize on the scooter blitz chaos that Bird and Lime helped create. The executive management includes CEO and Director Max Smith, who has successfully raised capital and driven business growth through eight major exits, including for World Color Press, LinkShare, blip, Gartner’s Tech Republic and JASH, among others.
They’re partnering with Fiore Group, the pre-eminent merchant banking group behind market successes like Lithium X Energy and Lionsgate Entertainment, to go public this quarter, filling a gap in the equities markets with a pure-play offering of access to the massive growth of the micro-mobility sector.
#5 Massive Upside Potential
The mobility market is constantly evolving, and even giant companies like General Motors, Ford, and Boeing are getting involved.
General Motors (NYSE:GM) has created its own brand of electric bikes, called Ariv. The bikes were just launched this year, but have already captured the attention of the European market. While they err on the side of pricey, coming in at $3,800 per unit, they do boast a high top speed and can travel a modest distance on a single charge. The kicker for many, however, is that they can fold into an easily carriable pack, making them the perfect choice for a lot of commuters. Especially in big cities like London or Berlin.
Ford (NYSE:F) is taking a different approach. It’s swooped right into the scooter market, buying Spin for a clean $100 million. Initially deployed in San Francisco back in 2017, Spin is widely considered to be a part of the Big Three of the scooter world, along with Lime and Bird. While Ford’s buyout of Spin made headlines, it’s certainly not the first urban transportation alternative Ford’s sunk its teeth into.
And Boeing (NYSE:BA) is looking to take it to the next level, literally. Recently, it signed a deal with Porsche to create an automated flying taxi. This is significant because both companies are leaders in their respective fields. And while other flying taxis have been conceptualized in the past…none have the market presence – or experience – that Porsche and Boeing have.
While still in the early stages, Boeing and Porsche hope to identify a market, define the use cases, and create a product that will solidify their places as royalty in this new market.
OJO is going head to head with these giants. And it has significant promise. Where Bird and Lime were two years ago, OJO is now. They’ve already launched in Austin, Dallas and completed a pilot in Hoboken, New Jersey. Ojo launched in Memphis, TN this week and are also in discussions with San Antonio, Portland, Washington, DC, Nashville, Atlanta, Seattle and more.
Bird’s wings have been clipped a bit, and while that hasn’t stopped it from hitting a $2.75 billion valuation, there’s no upside left.
OJO (OJO.V, AZNVF) is a better beast all around, and when you have startups in this space turning into unicorns in a matter of months, the upside for a scooter company ticking all the right boxes is incredible.
By the end of the year, their scooter deployment may be 10x current levels, and voracious venture capital may have already grabbed a big chunk of the upside. And by 2020, if they reach their goal of 15,000 scooters across the US, that upside might be gone entirely.
This is where Tesla meets Vespa and eats a Razor for lunch. In a segment that’s minting unicorns at record speed, the startup with a phenomenally more innovative product could hit unicorn status even faster.
By. Ian Jenkins
IMPORTANT NOTICE AND DISCLAIMER
This communication was paid for by OJO. Oilprice.com, Advanced Media Solutions Ltd, and their owners, managers, employees, and assigns (collectively “the Publisher”) is often paid by one or more of the profiled companies or a third party to disseminate these types of communications. In this case, the Publisher has been compensated by OJO Electric to conduct public awareness communication and marketing. OJO Electric paid the Publisher fifty thousand US dollars to produce and disseminate this and other similar articles and certain banner ads. This compensation should be viewed as a major conflict with our ability to be unbiased.
Readers should be aware that third parties, profiled companies, and/or their affiliates may liquidate shares of the profiled companies at any time, including at or near the time you receive this communication, which has the potential to hurt share prices. Frequently companies profiled in our articles experience a large increase in volume during the course of public awareness marketing, which subsides as the investor awareness marketing subsides.
This communication is not, and should not be construed to be, an offer to sell or a solicitation of an offer to buy any security. Neither this communication nor the Publisher purport to provide a complete analysis of any company or its financial position. The Publisher is not, and does not purport to be, a broker-dealer or registered investment adviser. This communication is not, and should not be construed to be, personalized investment advice directed to or appropriate for any particular investor. Any investment should be made only after consulting a professional investment advisor and only after reviewing the financial statements and other pertinent corporate information about the company. Further, readers are advised to read and carefully consider the Risk Factors identified and discussed in the advertised company’s SEC, and/or other government filings. Investing in securities, particularly microcap securities, is speculative and carries a high degree of risk. Past performance does not guarantee future results. This communication is based on information generally available to the public and on an interview conducted with the company’s CEO, and does not contain any material, non-public information. The information on which it is based is believed to be reliable. Nevertheless, the Publisher cannot guarantee the accuracy or completeness of the information.
SHARE OWNERSHIP. The owner of Oilprice.com owns shares and/or stock options of the featured companies and therefore has an additional incentive to see the featured companies’ stock perform well. The owner of Oilprice.com has no present intention to sell any of the issuer’s securities in the near future but does not undertake any obligation to notify the market when it decides to buy or sell shares of the issuer in the market. The owner of Oilprice.com will be buying and selling shares of the featured company for its own profit. This is why we stress that you conduct extensive due diligence as well as seek the advice of your financial advisor or a registered broker-dealer before investing in any securities.
FORWARD LOOKING STATEMENTS. This publication contains forward-looking statements, including statements regarding expected continual growth of the featured companies and/or industry. The Publisher notes that statements contained herein that look forward in time, which include everything other than historical information, involve risks and uncertainties that may affect the companies’ actual results of operations. Factors that could cause actual results to differ include, but are not limited to, changing governmental laws and policies concerning, among other things, ride-sharing and scooter-sharing companies, the size and growth of the market for the companies’ products and services, the companies’ ability to fund its capital requirements in the near term and long term, pricing pressures, etc.
INDEMNIFICATION/RELEASE OF LIABILITY. By reading this communication, you acknowledge that you have read and understand this disclaimer, and further that to the greatest extent permitted under law, you release the Publisher, its affiliates, assigns and successors from any and all liability, damages, and injury from this communication. You further warrant that you are solely responsible for any financial outcome that may come from your investment decisions.
INTELLECTUAL PROPERTY. Oilprice.com is the Publisher’s trademark. All other trademarks used in this communication are the property of their respective trademark holders. The Publisher is not affiliated, connected, or associated with, and is not sponsored, approved, or originated by, the trademark holders unless otherwise stated. No claim is made by the Publisher to any rights in any third-party trademarks.
DISCLAIMER: OilPrice.com is Source of all content listed above. FN Media Group, LLC (FNM), is a third party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. FNM is NOT affiliated in any manner with OilPrice.com or any company mentioned herein. The commentary, views and opinions expressed in this release by OilPrice.com are solely those of OilPrice.com and are not shared by and do not reflect in any manner the views or opinions of FNM. FNM is not liable for any investment decisions by its readers or subscribers. FNM and its affiliated companies are a news dissemination and financial marketing solutions provider and are NOT a registered broker/dealer/analyst/adviser, holds no investment licenses and may NOT sell, offer to sell or offer to buy any security. FNM was not compensated by any public company mentioned herein to disseminate this press release.
FNM HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.
This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected,” “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and FNM undertakes no obligation to update such statements.
Media Contact e-mail: firstname.lastname@example.org U.S. Phone: +1(954)345-0611