What is a TaaS Stock?

TaaS is an acronym for “Transportation as a Service”. The “as a service” term has been used as a suffix to denote an operational model which involves a service provider delivering a service with the use of various technological tools, products, and solutions to a problem or business that is usually carried out using traditional means.

As a service term indicates that technological developments such as cloud computing/internet are being used to partially or completely to automate a process or to simply make it operate more efficiently than the world is traditionally used to.

“As a service” Model Types

Infrastructure as a Service refers to the use of computing infrastructure which are managed over the internet to aid the product offerings of a business enterprise. They help to provide back-end or underlying network infrastructure like location, server, data partitioning, data storage, security etc.

Platform as a Service is a application platform or a service that provides a platform for customers or users to interact, run or manage data without the complexities of physical infrastructure.

Software as a service model employs the use of computer software by customers on a licensing or subscription basis. In this model, users typically have to pay a fee to gain access to a particular data. These software can be web-hosted or built for installation in various devices.

In literal terms, as a service can be interpreted as technologically infused and rendered for automation or efficiency.

Examples of traditional sectors now rendered as a service.

Shopping as a Service

Many of us shop online these days. Brick and Mortar malls and stores are recording fewer walking customers. This has led to many of these stores jumping on the “as a service bandwagon”.

On the shopping scene, we have seen computer software deployed to enable us place orders for items from the comfort of out rooms and have them delivered almost instantly.

Artificial intelligence has also been used in by some platforms to identify and analyze spending habits, income status, and demography of users to predict or suggest suitable items to them.

Some of the major shopping as a service outlets include, Amazon, Boohoo, Asos etc.

Entertainment as a Service

Entertainment services such as theatre, live bands, circus service, motion pictures and distribution services have all experienced sharp decline in recent times.

Most notably Cinema attendance in relation current population of the world today is down by about 85% compared to its peak in the late 1990’s.

This is clearly due to the advent of Entertainment as a service”.

Companies such as Netflix, Youtube, Veevo, Apple Music, Tiktok have all devised several means to offer entertainment to the world using complex technological solutions in form of software, cloud or streaming services.

Transportation as a Service (TaaS)

Similarly, transportation today has not been left out the technological revolution that has gripped the world over the last few decades. Many companies have come up with computer-based solutions to solve inefficiencies in various areas of the transportation sector.

Transportation as a service is sometimes called Mobility as a service.

Today, we now have ride sharing, ride hailing, vehicle hire, location tracking, mapping, ticketing solutions etc. All of which are tailored towards improving the efficiency of the way we move people and commodities from one location to another.

We are now able to shift transportation from a supply based sector into an on-demand service.

What is a TaaS Company?

A Transportation as a Service (TaaS) or Mobility as a Service (MaaS) Company is any organization whose main service or product offering involves improving the efficiency of the transportation through the use of computer infrastructure, platform or software.
(TAAS Stock) Transportation as a Service Stock.

This refers to the stock of companies that are involved in offering technology-based services in all areas of the transportation industry.

Notable TAAS Companies

The TAAS industry today is said to be worth over $5trillion. Some of the foremost TaaS companies today are: Uber, Lyft, Waze, Didi,Drivy, Mobike, Scoot, GETT, Blablacar, TESLA.

With a market capitalization of $800 Billion, TESLA is currently one of the largest companies in the world. The rapid rise of Uber also played a key role in attracting capital to the TAAS market.

Why you should invest in TaaS Stock

1) Growth Prospects

Efficient transportation is a global need. Many cities around the world are suffering from the drawbacks for traffic congestion. TaaS offers a viable solution to this. Hence there is a prospect for more growth in the sector as these problems are currently far from solved.

2) Artificial Intelligence

there has been giant leaps of improvement in the TAAS sectors due to artificial intelligence such as self-driving autonomous vehicles and accident prevention systems.

As more people begin to buy into these ideas, the profitability and value of TAAS stock is bound to keep rising in the near future. These days, even Vehicle Insurance companies in Canada are using different technology to try to predict incidence of losses and calculate appropriate premiums.

3) Clean Energy & Sustainability

A huge aspect of TAAS companies is their commitment towards high tech alternatives to fossil fuel burning. Many TAAS companies lean towards clean energy in their operations. Companies like Tesla are focused on building Electric Vehicles.

4) Industry Revolution

If you invest now in TAAS stock. You get to be one of the pioneers for massive changes in the way that the world operates as we know it. Major changes that TAAS companies can achieve include, Urbanization, clean energy, and decongestion.

What Could Possibly Go Wrong?

1) Capital crunch

TAAS companies involve huge capital outlay at the beginning of their operation. Companies often make huge losses in their first years before achieving stable stream of income. Liquidity crunch at a crucial period may lead to the demise of such company.

For example TESLA almost ran out of cash at several times during its early days. This makes it quite a risky venture to invest in the stock of a TAAS company that is not yet well established.

2) Competition

Many TAAS companies are simply offering products and services that are very similar or close substitutes to one another. While competition can be good for product improvement and innovation, it can lead to a classic state of Antitrust, which creates a very dangerous scene for the players. If a company fails to keep up, it could effectively spell doom for all of it shareholders.

3) Privacy Piracy

TAAS companies, as with any digital-age platform, are heavily reliant on collecting large amounts of data about their users. Data such as, where users visits, their names, credit card details, phone call data etc. This leave a big question mark on the integrity of TAAS Companies to keep these data private. Failure to do these could expose them government sanctions and damaging law suits.

How to Trade TaaS Stock

TaaS stocks are available on all the notable stock exchanges globally. You can also trade TAAS stock with the aid of a dealer or intermediary platforms such as Questrade. You might have to pay brokerage and other stock trading related fees.

TaaS Stock Prediction/ Market Watch

The fortunes of TaaS companies is affected by many factors. Some of the factors expected to have significant effect in the industry over the next few years are outlined below.

Research &Development

More investment in R&D expenditure is expected in the TAAS circle. This is expected to yield solid long-term results and drastically improve efficiency. Due to competition, companies keep making large investments in Research and Development to find new ways to stay ahead of their peers in the market.

Mergers & Acquisition

Future mergers and acquisitions in the TaaS industry. This will reduce completion, and gains from Economies of scale will enable companies operate more efficiently to increase stock value.

Mergers can serve as way to solidify backward & forward linkages between companies offering complimenting products. Creating a vehicle for them to come under a single management team.

This can yield many gains such as quicker decision making and larger scale of operation.

Acquisition of a firm by a bigger or more successful one can save the firm from bankruptcy and keep it’s vision going, albeit, under a new management.

Favorable Government Policy

Due to the many gains that the industry poses for humanity, most notably clean energy, it is expected that governments across the world will offer favorable policies and tax breaks for TAAS companies which will ease the operations, increase profitability and boost stock value.

Developing countries with relatively under developed transportation networks may also decide to enact friendly policies to entice TAAS companies to set up shop in their countries, in a bid solve some of their transport challenges.

Fall of the Traditional Players

The fortunes of traditional players in the transportation industry is expected to take a negative turn in the nearest future, as TAAS companies march on to prominence.

Many cities are eyeing clean energy and road de-congestion. Hence Oil & Gas companies and traditional vehicle retail firms are expected to see their patronage drop drastically over the next few years.

Transport as a Service is both now and the future. The overwhelming verdict is that the best time to invest in TAAS Stock was yesterday.

Recommedation

Ready to start trading TAAS stocks? We recommend the Questrade. Questrade is an online independent discount broker, with low minimum investment requirement, commission, and trading fee, that has been servicing Canadians since 1999.

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