I have been holding this stock for awhile and it is now my third largest position. I am not selling a single share.
I think it has the potential to be a hundred bagger.
Why do I think this:
A) At 20c per delivery, the software allows business customers to reduce their costs significantly, by:
1) Reducing their logistics departments & call centre support staff (i.e. reduce headcount)
2) Making a fixed cost variable (headcount in the legacy scenario vs pay per delivery) and thereby reducing the working capital requirements of businesses.
3) Routing delivery to save more than 20c in fuel for the trip (i.e intelligent planning to save fuel bills)
4) Increasing customer response and loyalty (repeat purchases, intangible benefits of customer retention - what a great end user service to know where your delivery is and when it will arrive.)
5) Possibly increasing capacity in delivery trucks - i.e both routing currently empty "return trips" more effectively with goods and increasing the fleet of trucks with white label operators.
This is a no brainer and an expense that business will spend all day long, every day (i.e. spend 20c to save 20+c and increase customer engagement as well).
B) We are only in a handful of verticals. Wherever delivery is key, we can play. I would say there is an "Albert" type arrangement in each vertical and in each major city. Further, every contract we sign will snowball our appeal. The biggest execution risk is the lack of credibility in dealing with multi billion dollar businesses. It was right for these to ask how we can execute - and if we do, we will attract others. Mind boggling growth, very very difficult to value. (So for example, yesterday Motley Fool called the SP 'a bit rich', today, great value)
C) We are building a repository of data. All the planning, routing, tracking will not only increase the capability of the algorithm over time (thereby creating a moat / network effect for the business), but this data is valuable from a town planning / road planning perspective to governments. Getswift can monetise this at some stage and these revenues are not reflected in the price.
Thank you Joel for listing this as a startup.
Good luck!
GSW Price at posting:
$2.12 Sentiment: Buy Disclosure: Held
