Nearly 400 years ago, a French businessman may have launched the start of an estimated $5.7 trillion industry, the estimate of value that Uber puts on all passenger vehicle miles and all public transportation miles in all countries globally.
At the time, many elites used his “fiacres” to move around Paris secretly and commit illegal acts without gaining attention
But today, it’s led to a industry that’s revolutionized the way people around the world work and travel every day…
By 2021 giving over 540 million people the ability to catch a ride anywhere they’d like at a moment’s notice, without owning their own vehicle.
That’s why Uber has seen shares jump 149% since earlier this year...
And Lyft shares soared 170% over that time...
All during the biggest pandemic in over a century, which has forced many to stay home and avoid using transportation as a service.
But the industry Uber took over just a decade ago is now set to be changed yet again…
By a $30 trillion mega-trend that’s been slowly building over the last several years.
CNN says, “[It’s] Having A Moment As Millennials Invest More.”
The Wall Street Journal says, “[This Mega-trend] Shines in Market Turmoil.”
And Forbes is touting “The Remarkable Rise of [This Mega-trend.]”
All the biggest names are pouring money into it as well.
Goldman Sachs started a $1.5 billion fund in this area, which is becoming a go-to for major companies like Apple and JetBlue Airways.
Amazon founder, Jeff Bezos, just devoted $10 billion to the mega-trend.
And BlackRock, the largest asset manager in the world, plans to have $1.2 trillion in ESG assets within the next 10 years.
In the coming months and years, it could lead to the biggest revolution in transportation since the invention of the Model T.
This is why shares have soared an incredible 570% over the last year.
But with a market cap of just $1.4 billion, nearly 1/100th the size of Uber…
They still have plenty of room to grow as this major mega-trend could be a huge catalyst for their green plans.
Here are 4 reasons to keep an eye on Facedrive right now:
1 - This $30 Trillion Mega-trend is Taking Over the Markets
ESG investing - the ethical and eco-friendly investing trend - has skyrocketed in popularity in recent years.
Even with the stock market plummeting earlier this year with the start of the pandemic, ESG funds held their own and later continued to soar.
This is why many of the biggest names in Wall Street have started investing so heavily in this mega-trend.
BlackRock has been quick to jump on the trend, already having over $90 billion in ESG assets to date.
But they’re planning to more than 10x that number over time, as they’ve announced they plan to boost that to $1.2 trillion by the year 2030.
They’re not alone though. Many across Wall Street and beyond are touting the massive potential they see for the ESG mega-trend in the days ahead.
Nigel Green, the CEO of the deVere Group, says that the global pandemic has only accelerated this trend and that ESG investing is moving toward a “skyward surge.”
And Financial News recently touted that the pandemic is “fuelling an unprecedented explosion in ESG investing.”
And now, with the surprising effects it’s had on the environment, ridesharing has become a major focus for those rallying behind this mega-trend.
While ridesharing was expected to lower pollution, recent studies show it’s actually produced nearly 70% more pollution.
But the brains behind Facedrive saw this trend coming and, through next-gen technology and partnering with environmental agencies, positioned themselves to lead the pack.
They give riders the choice to hail a ride from an electric, hybrid, or gas-powered vehicle, all without paying an extra premium for the option.
After the ride, their in-app algorithm calculates how much CO2 was created for each journey, and sets aside a portion of the fare to offset the carbon footprint - planting trees to do it.
In other words, you ride, they plant a tree. It’s simple.
That puts Facedrive squarely in the middle of two megatrends.
The estimated $5.7 trillion transportation service industry… and big money’s shift into sustainable investing, already over $30 trillion as of 2018.
2 - Big Names are Helping them Expand Worldwide
With the amount of money behind this growing ESG trend, it’s no surprise Facedrive is already making connections with major players around the world.
That’s why they announced they’re co-branding an entire line of exclusive clothing with Facedrive.
It’s also why WestBrook Inc., the company Smith shares with his wife Jada Pinkett Smith, is partnering with the rideshare startup.
And it’s clear that with this partnership, Facedrive isn’t just focused on delivering a ride from point A to point B.
They’re aiming to become a brand name that spans far beyond that.
This is what led them to develop their popular social app, HiQ - helping people stay connected at a time when “social distancing” has become part of our daily vocabulary.
After more than 2 million downloads worldwide, they’ve now partnered up with Tally Technology Group in a major move into the United States and beyond.
Tally was founded by Super Bowl-winning quarterback Russell Wilson, and this partnership could potentially open a number of new doors for Facedrive.
But with many folks staying home during the health crisis of 2020, Facedrive also had their eyes to other new opportunities.
They’ve taken a creative approach in creating TraceSCAN - a wearable technology used to help slow or stop the spread of the coronavirus through contact tracing.
And it's gained attention across Canada.
The Labourers International Union of North America (LIUNA) already signed on to adopt the technology, putting their trust in Facedrive’s technology to protect 130,000 of their members and their families.
The Government of Ontario also announced they’re endorsing and supporting the deployment of this breakthrough technology.
And, even Air Canada - the largest airline in the country - has started a pilot project with Facedrive to provide their employees with the technology to help curb the spread of the virus.
They’re not stopping there though.
3 - Loads of Different Streams of Revenue
With their commitment to “people and planet first” that goes beyond just ridesharing…
It’s opened the door for plenty of new streams of revenue through partnerships and acquisitions, which they call Facedrive Verticals.
Here is just a glimpse of what they’ve got in their wheelhouse.
- Facedrive Rideshare - The bread and butter of their business, they’ve grown this quickly throughout the year with the acquisition of HiRide.
This move delivered instant opportunities in the university and education markets, with a social network of over 20,000 carpoolers.
- Facedrive Food - They’ve also acquired major pieces in the food delivery space in Canada, including Foodora Canada and Food Hwy.
These acquisitions have led to the addition of over 220,000 active users on their platform, making over 3,000 deliveries on average every day.
- Facedrive Health - Their TraceSCAN wearable technology has seen an explosion of interest over the last year due to the global pandemic.
Thanks to Facedrive filling an unsolved need in contact tracing, they’ve landed major agreements across Canada including with the largest airline in the country.
- Facedrive Social - Their new HiQ social app has been downloaded over 2 million times in less than 6 months.
But after signing a partnership with Tally, started by Super Bowl-winning quarterback Russell Wilson, this could help deliver a new wave of interest and revenue.
- Facedrive Marketplace - With the partnership with Will Smith and Jada Pinkett Smith’s WestBrook Inc., Facedrive now has their hand in sustainable merchandise.
This allows users to show their support in another way, helping drive even more revenue Facedrive’s way.
During a year where many companies are struggling to stay afloat, they’ve managed to find creative opportunities to expand their business worldwide.
And with the addition of several new verticals, Facedrive is bringing in new revenue from all angles.
4 - A Better Solution for Both Drivers and Passengers
Even with a massive $30 trillion trend and A-list celebrities behind your name, your service needs to deliver if you expect drivers and riders to jump on board.
There’s no shortage of stories of upset drivers accusing Uber of price-gouging, even taking over 50% of the cut for themselves at times.
Compare that to Facedrive, who lets their drivers keep 85% of the fare and 100% of their tips.
All it takes is simple math to see why drivers are lining up to join Facedrive.
For riders, they get the choice to hitch a ride in an EV or hybrid vehicle or get the good karma points for helping the environment even if they don’t.
Millennials vote with their wallet, and they show their values with it too. Many say they’re willing to pay 25% more for a service to support a cause that’s important to them.
With Facedrive though, they won’t have to, as they get these benefits without paying a premium for it.
The Bottom Line
Consider this: in just their first year they’ve accomplished all of the following:
- First, in April, it acquired HiRide -- giving them access to the entire user base of a unique long-distance car-pooling solution for students and professionals.
- Over the next two months, without missing a beat, it launched a string of new revenue-generating services from Facedrive Foods and Facedrive Health to COVID-19 TraceScan, and even its own exclusive line of Bel-Air clothing co-branded with Will Smith.
- Then in early May, it landed a deal with the Labourers’ International Union of North America to use TraceScan, later inking deals with Air Canada and the Canadian government.
- Days later, it announced plans to acquire Foodora Canada in a deal that solidifies the launch of Facedrive Foods.
- Then they launched Facedrive Marketplace with Jada Pinkett Smith’s and Will Smith’s WestBrook, Inc.
- In August, they signed an agreement to partner with Tally, founded by Super Bowl winner Russell Wilson, helping grow their app which has already reached 2 million downloads in 6 months.
- Then in September, they acquired the fast-growing electric vehicle company, Steer.
- And in October, they agreed to acquire Food Hwy, a leading ethnic and student-focused food company.
After accomplishing all this and more during a year that has seen many businesses shut their doors…
Here are just a few other companies hopping on the ESG trend:
Amazon (NASDAQ:AMZN) has committed to the ESG push in a big way. And on multiple fronts. In 2019, founder and CEO Jeff Bezos launched a landmark $10 billion climate change fund, but that was only the start of its deep dive into sustainability. In fact, since then, Amazon has even dove into the transportation of the future, leading a $700 million investment round in the groundbreaking EV startup Rivian. Additionally, it just recently unveiled a concept car from its robo-taxi acquisition, Zoox.
But Amazon hasn’t stopped there. Bezos’ e-commerce giant has also pledged to go completely carbon neutral a full decade ahead of the Paris Climate Agreement. And as a part of that pledge, Amazon has committed to powering all of its operations by 100% renewable energy by 2025.
Not only is Amazon looking to power its own operations with renewable energy, it’s also aiming to transform its own supply chain. From sustainable packaging and ethical and responsible sourcing, Amazon is going above and beyond to make sure it is setting a positive example for the entire market.
In a statement on its website Amazon noted, “We believe supply chain transparency is crucial to our approach to human rights due diligence and ensuring worker protections. We publish our supplier list to provide customers and external stakeholders visibility into where we source and to contribute to transparency efforts across industries. When we receive information about potential issues in our supply chain, we investigate and take appropriate action to remediate.”
Its conscious approach to the marketplace, in addition to 2020’s pandemic-fueled e-commerce boom helped Amazon’s stock price jump from $1906 per share to over $3,180 at the time of writing, representing a 66% increase from January last year.
Despite being a bit late to jump on the sustainability train, Uber Technologies (NYSE:UBER) is finally making some changes in its operations. In late 2019, a scathing report about how much the ride-sharing giant was contributing to emissions emerged, suggesting that Uber and Lyft added as much as 70% more to global emissions than traditional alternatives prompting backlash among environmentalists.
In fact, Uber even rolled out a new program to help drivers transition to electric vehicles. The $800 million ‘Green Future’ initiative, with the help of Chevrolet, allows drivers to get a near-$3000 discount on Bolt EV Premiers. Additionally, drivers of low-emission vehicles will also get a small bonus for every ride they complete. They will also get a discount on specific charging platforms to help cut costs during the transition.
“As the largest mobility platform in the world, we know that our impact goes beyond our technology. We want to do our part to build back better and support a green recovery in our cities and communities,” CEO Dara Khosrowshahi noted on the company’s website.
While Uber’s share price stumbled at the beginning of 2020, its food delivery business and its fresh approach to the looming climate crisis have helped the company’s share price jump from a low of just $18 in March of last year to its current price of $50.
Like Uber, Lyft Inc (NASDAQ:LYFT) has also made leaps and bounds in its commitment to a greener tomorrow. In fact, it has even rolled out a massive push to fully-electrify its fleet within the decade. The company is already working closely with its partners and policymakers to make electric vehicles more accessible to its drivers, but the best is yet to come.
John Zimmer, co-founder and president of Lyft explained, “Now more than ever, we need to work together to create cleaner, healthier, and more equitable communities,” adding, "Success breeds success, and if we do this right, it creates a path for others. If other rideshare and delivery companies, automakers and rental car companies make this shift, it can be the catalyst for transforming transportation as a whole."
Lyft isn’t just concerned about the environment, either. It’s going all-in on the global ESG push. In addition to its sustainability goals, Lyft is also focusing its efforts on taking care of its riders and drivers. Recognizing that transportation is one of the greatest factors in social and economic mobility, Lyft has teamed up with over 500 nonprofit partners to offer free rides to those who need them the most.
Lyft’s stock price was a roller-coaster in 2020, primarily due to the major hit its services took as lockdowns across the globe weighed on demand for its services. Despite this impact, however, Lyft’s share price bounced back from a low of around $18 in March to its current price of $46. Though the impact was severe, the company is making all the right moves to remain relevant as the ride-share race kicks into high gear.
It's impossible to mention sustainability without touching on the impact that Big Tech has had. Alphabet Inc. (NASDAQ:GOOG), in particular. It has consistently remained one of the technology industry’s most-sustainable and most admired companies thanks to its committed leadership and groundbreaking innovations. It’s bid to reduce its carbon footprint has been well received by both younger and older investors. And as the need to slow down climate change becomes increasingly dire, it’s easy to see why.
Despite being one of the largest companies on the planet, in many ways Alphabet has lived up to its original “Don’t Be Evil” slogan. Not only is it powering its data centers with renewable energy, it is also on the cutting edge of innovation in the industry, investing in new technology and green solutions to build a more sustainable tomorrow.
Alphabet CEO Sundar Pichai explained, “We are committed to doing our part. Sustainability has been a core value for us since Larry and Sergey founded Google two decades ago. We were the first major company to become carbon neutral in 2007. We were the first major company to match our energy use with 100 percent renewable energy in 2017. We operate the cleanest global cloud in the industry, and we’re the world’s largest corporate purchaser of renewable energy.”
Alphabet’s approach to the world has helped fuel investor confidence across the board. It’s more than doubled its share price over the past five years, and it’s just getting started. In fact, despite its $1.16 trillion valuation, many analysts still see a major potential for growth.
Fueled by millennial money and the multi-trillion-dollar ESG boom, Tesla Inc. (NASDAQ:TSLA) emerged as the stock story of 2020. Throughout the year, the de facto king of electric vehicles dominated headlines and defied expectations. Tesla has continued to defy bearish expectations that low oil prices would put a damper on its core business of selling electric vehicles. Despite this, for the fourth consecutive quarter, the EV maker posted yet another blowout that beat top-and bottom-line expectations. More importantly, it exceeded Wall Street delivery estimates and reported record profits to boot.
Armed with slick cars, game-changing technology and an out of this world CEO, Tesla has a lot going for it. Tesla is now the most valuable car maker “of all time”. It is now worth $684 billion while the top three American automakers--GM, Ford and Chrysler--are only worth a fraction of that. Combined.
The meteoric rise by Tesla stock has seen CEO Elon Musk leapfrog several billionaires including Bill Gates to become the second-richest man on earth with a net worth of $155 billion. And if things keep going the way they’re going, there’s a very good chance that this year, Musk could surpass even Jeff Bezos to become the richest man in the world.
Clearly, its efforts are paying off, as it is without-a-doubt one of the most popular stocks on Wall Street. Even better for Musk, and shareholders, Tesla was just bumped up to the S&P 500. And though the company saw its share price jump by over 600% in 2020 alone, there is still a lot of upside potential for Musk’s electric vehicle giant.
Canada Is Also Seeing An Influx Of ESG Investments
Magna International (TSX:MG) is a fantastic way to get in on the explosive sustainability market without betting big on one of the new hot stocks tearing up among the millennials right now. The 63-year-old Canadian manufacturing giant provides mobility technology for automakers of all types. From GM and Ford to luxury brands like BMW and Tesla, Magna is a master at striking deals. And it’s clear to see why. The company has the experience and reputation that automakers are looking for.
Another way to get some indirect exposure to the booming EV industry is through AutoCanada (TSX:ACQ), a company that operates auto-dealerships through Canada. The company carries a wide variety of new and used vehicles and has all types of financial options available to fit the needs of any consumer. While sales have slumped this year due to the COVID-19 pandemic, AutoCanada will likely see a rebound as both buying power and the demand for electric vehicles increases. As more new exciting EVs hit the market, AutoCanada will surely be able to ride the wave.
Like Magna, Westport Fuel Systems (TSX:WPRT) is another hardware and tech provider in the auto-industry. It builds products to help the transportation industry reduce their carbon footprint. In particular, it provides systems for less impactful fuels, such as natural gas. In North America alone, there are over 225,000 natural gas vehicles. But that shies in comparison to the global 22.5 million natural gas vehicles globally, which means the company still has a ton of room to grow.
Sustainability isn’t all about transportation, either. Maple Leaf Foods (TSX:MFI) is veteran in the Canadian foods realm. Since 1991, Maple Leaf has been making aggressive acquisitions, supplying high-quality foods, and leading in new innovations to ensure the highest quality products for all of its consumers around Canada. And just last year, it announced its plans to dive head first into the plant-based foods industry with a $310 million facility in Shelbyville, Indiana.
More than that, however, Maple Leaf Foods is also committed to slashing its own carbon footprint. In fact, on November 7, 2019, the company announced that it was the first major carbon-neutral food company – a huge claim to fame in a world racing to go green.
The Very Good Food Company Inc. (CSE:VERY) is a Canadian company that is quickly gaining a lot of ground in the market. With the slogan, “we believe in butchering beans, not animals,” they’re looking to tap into the plant-based niche in a hurry. And it’s resonated very well with investors.
Since its IPO in June, the Very Good Food Company has seen its share price grow by over 70%, and it’s showing no signs of slowing. In just a few short months, the company has opened several new facilities, signed a string of deals, and is quickly carving out its place in Canada’s fast-growing plant-based lifestyle scene.
By. Angela Cousins
**IMPORTANT! BY READING OUR CONTENT YOU EXPLICITLY AGREE TO THE FOLLOWING. PLEASE READ CAREFULLY**
This publication contains forward-looking information which is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ from those projected in the forward-looking statements. Forward looking statements in this publication include that the demand for ride sharing services will grow; that Steer can help change car ownership in favor of subscription services; that Tracescan could help the travel and tourism industry deal with COVID and will sign new agreements for use of its alert wearables; that new tech deals will be signed by Facedrive and deals signed already will increase company revenues; that Facedrive will be able to expand to the US and globally; that Facedrive’s merchandise business and sports prediction app will prove popular and successful; that Facedrive will be able to fund its capital requirements in the near term and long term; and that Facedrive will be able to carry out its business plans. These forward-looking statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Risks that could change or prevent these statements from coming to fruition include that riders are not as attracted to EV rides as expected; that competitors may offer better or cheaper alternatives to the Facedrive businesses; TraceScan may not work as expected in commercial settings and customers may not acquire or use it; changing governmental laws and policies; the company’s ability to obtain and retain necessary licensing in each geographical area in which it operates; the success of the company’s expansion activities and whether markets justify additional expansion; the ability of the company to attract drivers who have electric vehicles and hybrid cars; the ability of Facedrive to attract providers of good and services for merchandise partnerships on terms acceptable to both parties, and on profitable terms for Facedrive; and that the products co-branded by Facedrive may not be as merchantable as expected. The forward-looking information contained herein is given as of the date hereof and we assume no responsibility to update or revise such information to reflect new events or circumstances, except as required by law.
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