Finally some recognition...
Tourism stocks look to travel well after navigating trying conditions
TIM BOREHAM
12:00AM FEBRUARY 23, 2019
Jayride (JAY) 36c
Having jostled with a corpulent fellow passenger for a fair share of the armrest for most of the flight, the last thing a weary long-haul traveller wants to do is to deal with shuttle bus touts at the airport or face a long queue for the taxi.
Once in the cab, there’s a huge risk of being taken for a ride in more ways than one.
There’s nothing like being met by a uniformed fellow with a peaked cap and being whisked through the melee. Of course, it’s always possible to pre-book a service in any number of ways, but there’s been no way of comparing services on the one platform and then booking them online, a la bookings.com for flights and hotels. With its homegrown technology based on a geospatial database, the Sydney-based Jayride is addressing the market gap with its platform that has now been rolled out in 31 countries.
Jayride reported $960,000 of revenue in the second (December) quarter, up 93 per cent year-on-year on total transaction value (TTV, the value of the fares) of $3.6m. Jayride also lost $1.83m, holding end of quarter cash of $2.28m. Given expected cash outflows of $1.98m for the current quarter, the ASX politely inquired as to the company’s solvency, to which management replied the forecast outflows did not take into account an expected $876,000 of cash receipts.
On management’s “aspirational economics”, the company breaks even when annual TTV reaches $50m — four times the current run rate of $12.6m.
Jayride raised $13m in pre-IPO funding and then a further $1.5m on listing in January 2018 (at 50c a share). The company raised a further $1.75m in a placement in December, at 43c a share.
The company looks to be well placed with a first-mover advantage; management’s job is to build critical scale from its current 0.13 per cent global market share before any putative rivals wake up to the opportunity.
Tim Boreham edits The New Criterion
(20min delay)