Ride-share stocks to Lyft your portfolio

The ridesharing market is projected to be around US$500 billion by 2023, growing at 24% annually from 2018, and all these stocks are currently trading at significant discounts to our fair value estimates

Vikram Barhat 22 May, 2019 | 5:00PM

The ridesharing market is exploding as disrupters continue to upend the automobile and transportation industries. Two of this year’s high-profile IPOs - Lyft and Uber - have come from the ridesharing market. The industry’s growth is predicated on the notion that ridesharing offers the autonomy of having your own ride on tap without the cost of ownership.

While Uber and Lyft were the first out of the gates, they now have Asian giants Didi, Grab, Ola and legacy automakers joining the fray as they compete to corner a greater share of the burgeoning ridesharing market, which is projected to be around US$500 billion by 2023, growing at 24% annually from 2018.

Investors looking to park their capital in the ridesharing marketplace may want to consider the following companies pioneering the disruption of the wider mobility market. Not only do they have a self-fulfilling and self-replicating business model that grows exponentially, they’re also looking to take the autonomous route to margin expansion. Moreover, they are boldly following growth in other niches such as food transportation, logistics, as well as micromobility (shared bikes and scooters), unlocking multiple revenue streams, according to Morningstar equity research.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
General Motors Co34.65 USD-1.81
Lyft Inc Class A44.70 USD-1.69
Uber Technologies Inc40.72 USD-0.49

About Author

Vikram Barhat

Vikram Barhat  Vikram Barhat is a Toronto-based financial writer specializing in investing, stock markets, personal finance and other areas of the financial services industry. He also writes for CNBC, BBC, The Globe and Mail, and Toronto Star.