CAB Thread, page-7

I'd just be careful investing pete11. Population growth is the only real driver for growth in the transport market. Lets take however what's happening NOW... population is growing and they are losing market share and 'real' revenues. So what makes you think they will suddenly become profitable and show growth in the future? It is a real risk if this is a reason to buy this company.

As per the graph above (Google Trends search), this is not a good sign that even if driver numbers 'should' increase, they will be choosing a taxi. With all the overheads that go with getting a cab license + insurances, etc, it would be a stretch to assume the choice would be a traditional cab for new drivers.

The reasons below put this company in a tough position...

- Rapid adoption of self driving cars by companies like Uber to take market share and further reduce Uber fares due to the efficiency gain (ie. no driver to pay).
- A2B (CAB) will not adopt this tech as quickly as Uber will (or other new entrant). For one, they have an entire fleet of drivers to consider and the balance between introducing a self driving car and ticking off the existing taxi drivers will be less than smooth. Not to mention A2B will be trying to reduce fares from the savings self-driving gives them. They are essentially doing the proverbial in their own nest and drivers will not be happy and will likely be the last straw for a lot of them (they are already on the bread line). The risk for A2B is just huge. They will likely have to just keep fares the same for self driving to keep drivers in a job and continue to lose market share as fare prices for self driving cars come down.
- Once self driving is legislated and on the roads, you will likely get a new company starting to compete with Uber who only do self driving as Uber have a similar problem to deal with as they have human drivers and their incomes to satisfy.

If you can't find a better company on the market out there to invest, there is something really wrong. A2B has a long struggle ahead. My predication being they will eventually be phased out as technology progresses even further.

Buy companies with increasing dividends, long growth runways and a macro picture that makes sense. Don't buy on hope or a seeming cheap financial ratio, you will get burnt.

Ryan