1. CAR OWNERSHIP DECLINING
The percentage of US households that do not own a car has increased from 8.7% to 9.2% in the past 10 years. This number doesn’t sound like a massive change. But when you compare that with the fact that the ride sharing market is expected to grow at a compound annual growth rate of 19.87% from 2018 to 2025, it shows promise for where our country is heading. In Europe, where public transportation is a focus, new car purchases have decreased by 25% since 2007. The United States has been heavily shifting towards this in its big cities and that’s the market YCOD is targeting.
2. INDUSTRY REVENUES SHIFTING TO SERVICES
PWC projects that nearly 20% of industry revenues and 36% of profits will shift from Auto Sales to services by 2030. This further generates the idea that the automotive industry will see a decline at the hands of the car service business. Less and less people are buying cars, but that’s because there are so many different avenues to practice as a means of getting from Point A to Point B.
3. RIDE HAILING’S SUCCESSFUL PAST
Ride-Hailing companies have garnered the most attention with funding totaling $23BN 2015-2016. These businesses have a history of being a strong industry to invest in. There has been a number of successful businesses that work in this space, but YCOD has a very unique target consumer market. They also have a very in depth hiring process that the most popular Ride-Hailing businesses Lyft and Uber lack at the moment. It’s laughable how easy it is to become employed by these businesses and they lose individual oversight.
4. YCOD COULD BE THE NEXT UNICORN
A lot of the numbers above are a result of cities rapidly adopting these ride sharing services, and a large number would be lower income to mid-level income consumers who don’t have the money to purchase a car or share one car per household. YCOD is aiming towards a high income market, who can afford their own cars, but when considering services like this, it comes down to convenience. A transportation as a service industry to look at is the food delivery services such as GrubHub or Postmates. The demand for these services come from the want for convenience. Consumers would rather spend a few extra bucks to have food delivered to them rather than have to drive and get it themselves. That’s what these services are meant for; to make life more convenient.
5. PERK-ORIENTED INVESTMENTS
YCOD has instituted a perk-oriented investment system that varies on the amount you invest. The levels deliver perks of varying number of discounts that last anywhere from 1-18 months of reservations. The larger investors even get the chance to meet the founder Josef Wojtkow, and have dinner with him. The chance to be able to speak with an Entrepreneur of his stature is something you can’t put a price tag on.
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