10 Best TAAS (Transportation as a Service) Stocks To Buy in 2022

TAAS or Transportation as a Service lets you travel without the hassle of owning a car, bike, or even scooter. You can get to anywhere you need to go without having to buy and finance the vehicle. With the ride-hailing apps, you outsource the driving too. TAAS is more environmentally sustainable, especially if you share or ride in an electric car. Learn how to invest in TAAS.

Ben Carson   Updated February 1st, 2022

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What is TAAS (Transportation as a Service)?

TAAS or Transportation as a Service lets you get to your destination without the cost of owning a car, bike, or scooter. You no longer need a car to travel, at least in the city, which may be good for your wallet and the environment. You don’t even need to know how to drive. (According to RethinkX, only a quarter of U.S. 16-year-olds have a driver’s license, down from over 50% in 1983.)

The TAAS ecosystem includes ride-hailing services Uber and Lyft in the U.S. and Didi in China, car-sharing companies like Zipcar, and bike and scooter share companies like Bird.

TAAS is cheaper

A car costs about $9,000 a year to maintain, yet it sits unused about 95% of the time. According to a RethinkX report, TAAS can help an average American family save $5,600 per year, which is like raising their wages by 10%.

TAAS is better for the environment

Although not all TAAS companies are “green,” TAAS is generally better for the environment. Car-sharing, ride-hailing, and car rental businesses are investing in electric fleets. For example, Hertz committed to adding 100,000 Teslas to its fleet in 2022. E-bike and scooter sharing services are environmentally friendly. And carpooling, offered by Uber and Lyft, is both cheaper and better for the environment.

What companies do TAAS?

TAAS companies include ride-sharing services like Uber, Lyft, Didi, and Yandex Taxi, car rental companies like Zipcar (owned by Avis), and even delivery services like DoorDash, Grubhub, and Uber Eats. If you are a more speculative investor, you can even back air taxi concepts.

TAAS stock list

  • Uber Technologies Inc (UBER)
  • Lyft Inc (LYFT)
  • Yandex NV (YNDX)
  • Hertz Global Holdings (HTZ)
  • Avis Budget Group (CAR)
  • Bird Global Inc (BRDS)
  • DoorDash Inc (DASH)
  • Just Eat Takeaway.com (GRUB)
  • Joby Aviation Inc (JOBY)
  • Blade Air Mobility Inc (BLDE)

Read more about each company:

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1. Uber Technologies Inc (UBER)

  • Market capitalization: $72.5 billion
  • 1-year performance: -32%

Ride-hailing businesses like Uber, Lyft, and Didi enjoy huge network effects. Although ridership suffered during the pandemic, and the apps still struggle with finding and retaining drivers, things seem to be going back to normal. The challenge is that riders are returning faster than drivers, and wage inflation isn’t helping.

Uber is the best-known and largest ride-hailing company in the U.S. Though it has a greater than 65% market share in ride-hailing, its services now include food delivery, freight, and electric bike and scooter rental (in partnership with Lime). Uber, which was founded in 2009, reported its first profitable quarter in the third quarter of 2021.

Although the company’s ridership was destroyed by Covid, in Q3 2021, monthly active users increased by 40% from a year ago to 109 million. And bookings actually exceeded pre-Covid levels in cities like New York, London, and Paris.

Delivery (Uber Eats) is now an even larger business than ride-sharing globally. Unsurprisingly, food delivery thrived during the pandemic, though it’s not yet profitable. Besides, Uber owns shares in other TAAS companies, including the Chinese ride-hailing giant Didi and Grab, which represent a source of hidden value.

2. Lyft Inc (LYFT)

  • Market capitalization: $13.1 billion
  • 1-year performance: -17%

Lyft is Uber’s sole U.S. ride-sharing competitor. Although it’s smaller and less diversified than Uber, the company became profitable sooner, in the second quarter of 2021. Like Uber, Lyft also offers scooter and electric bike-sharing and restaurant delivery.

The company noted that drivers are returning, and ridership is now closer to pre-pandemic levels. For example, in Q3 2021, Lyft reported 18.9 million active riders, down only slightly from 21.2 million in Q1 2020. The company has also successfully reduced its spending during the pandemic, offloading the loss-making autonomous driving division to Toyota.

3. Yandex NV (YNDX)

  • Market capitalization: $17.4 billion
  • 1-year performance: -26%

Originally launched as a Russian search engine in 1997, Yandex has many divisions, including Yandex Taxi, which provides ride-hailing services in Russia and other countries. Yandex also has media, marketplace, and several other businesses. Yandex has a roughly 60% market share in search in its markets, and it has been consistently profitable.

Although search is still the largest segment, the ride-sharing business has grown to over one-third of the company’s revenues. Yandex Taxi, which includes the Uber brand in Russia, a car-sharing business, and food delivery, has already surpassed its pre-pandemic revenues, even turning a profit. Yandex is incorporated in the Netherlands and publicly listed on the NASDAQ stock exchange.

4. Hertz Global Holdings (HTZ)

  • Market capitalization: $9.4 billion
  • 1-year performance: -26%

An old-school TAAS business, Hertz is best known for providing rental cars through Hertz, Dollar, and Thrifty brands globally.

Being the world’s best-recognized car rental brand did not prevent highly-leveraged Hertz from filing for bankruptcy during Covid. But Hertz exited bankruptcy in November 2021, and the car rental market is better than ever.

Cars are in short supply due to chip shortages and other supply chain challenges, and car rental and used car prices are higher than ever. Car rental companies like Hertz can sell off their old fleets at much better prices. Besides, many people prefer taking road trips to flying or taking a cruise while Covid remains a risk.

The company has even disclosed a plan to buy back up to $2 billion of its stock, quite a big number when its market capitalization is only $9 billion.

Although Hertz’s car fleet relies on gasoline-powered cars, it plans to buy 100,000 Teslas in 2022 to be greener. So the stock isn’t off the map for climate-conscious investors.

5. Avis Budget Group (CAR)

  • Market capitalization: $9.9 billion
  • 1-year performance: 340%

Another old-school TAAS stock, Avis is the car rental company behind brands like Avis, Budget, and Payless. Back in 2013, Avis acquired Zipcar, which provides car-sharing to a network of over 1 million members.

During the pandemic, the company cut its car fleet by a third, removing $2.5 billion in costs. And rental pricing is high because more Americans want to go on road trips, while car supply is low due to chip shortages. As a result, in Q3 2021, revenue and profitability were up 9% and 124% from pre-pandemic levels.

Like Hertz, Avis plans to add electric vehicles to its global rental fleet. It has also promised to reduce its carbon emissions by 30% over the next decade.

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6. Bird Global Inc (BRDS)

  • Market capitalization: $968 million
  • 1-year performance: -56%

Bird is an electric scooter rental company that operates in over 350 cities globally. E-scooters are environmentally friendly and convenient for short distances in cities. In fact, over 50% of trips taken globally are less than 5 miles in length, which creates an opportunity for e-mobility providers like Bird.

The company recorded 15 million rides in Q3 2021 and over 100 million rides since its launch. Covid even helped Bird by spurring favorable regulatory changes in cities.

Bird reported $65 million in revenue in Q3 2021, its best sales quarter ever. Although Bird is not yet profitable, losses have steadily decreased, and breakeven may be in sight. The company continues to innovate, getting into e-bike sharing and retail sales.

7. DoorDash Inc (DASH)

  • Market capitalization: $39 billion
  • 1-year performance: -37%

DoorDash is the largest U.S. food delivery company with over 50% market share thanks to its wide selection of restaurants and operational efficiency. In November 2021, DASH made headlines after it bought the Finnish startup Wolt for $8 billion. Wolt will help DASH enter the European food market, potentially delivering to over 700 million customers. The deal may also help DASH maintain the strong growth seen during the pandemic and even after restaurants reopened.

DoorDash is about more than just restaurant food, expanding into groceries, alcohol, and household supplies. It’s easy to order everything from the app, and combining several orders in one delivery improves margins for DoorDash. And the DashPass subscription service introduces a welcome recurring revenue component.

8. Just Eat Takeaway.com (GRUB)

  • Market capitalization: $10.5 billion
  • 1-year performance: -45%

Just Eat is a giant global food delivery company that owns brands like Grubhub in the U.S., Just Eat in the U.K., SkipTheDishes in Canada, and Takeaway.com in Europe. Unlike rival food delivery apps DoorDash and Uber Eats, Just Eat doesn’t provide drivers or cyclists to restaurants for most deliveries.

Drivers can be expensive to hire and challenging to manage. Instead, GRUB relies on restaurants to deliver and takes a cut for advertising and taking orders. This model doesn’t require spending much on fleets and drivers; Just Eat likes to spend on acquisitions instead. (They acquired U.S.-based Grubhub in the first half of 2021.)

9. Joby Aviation Inc (JOBY)

  • Market capitalization: $2.5 billion
  • 1-year performance: -68%

Air taxis are yet to take off, but you can already bet on air taxi stocks like Joby Aviation. Electric vehicle takeoff and landing (eVTOL) aircraft are smaller, helicopter-like vehicles that could be used for ride-hailing. They are less noisy than helicopters, and rides could be relatively affordable, say, around $50 per flight.

The Uber for helicopters, Joby Aviation is the best-known publicly-traded eVTOL company, with over $2.5 billion in market cap.

eVTOL will be disruptive, though challenges like certification by the Federal Aviation Administration and on-the-ground infrastructure remain. Although Joby has conducted test flights, it doesn’t yet generate any revenue and continues to burn cash. The air taxi space is also getting crowded with entrants like Wisk, Lilium, Archer Aviation, and more.

10. Blade Air Mobility Inc (BLDE)

  • Market capitalization: $432 million
  • 1-year performance: -59%

Unlike Joby and other eVTOL startups, New York City-based Blade operates an aircraft-sharing service. Like Uber, Blade has an asset-light business model; it doesn’t own or operate any aircraft. Instead, it’s a network that lets users book seats on flights.

The company started with airport service and short-distance helicopter flights to leisure destinations (e.g., from New York City to the Hamptons). Today, most business comes from medical mobility services, such as organ transport, and jet charter services.

Although Blade relies on conventional helicopters and jets today, it intends to transition to electric aircraft when possible.

It is true that Blade is a relatively small, still unprofitable company with around $50 million in annual sales. Still, it may be better to invest in an asset-light business that doesn’t have to spend billions developing flying taxis.

NOT INVESTMENT ADVICE. The content is for informational purposes only; you should not construe any such information as investment advice.

🔔 Looking for other e-mobility investments? Check out eVTOL stocks, e-bike stocks and self-driving car investments.

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Frequently Asked Questions

Is there a TAAS ETF?

There is no ETF that only invests in TAAS stocks, but ETFs like the SPDR S&P Kensho Smart Mobility ETF (HAIL) include some TAAS stocks. HAIL holdings count Lyft and Uber, among others. Learn more about EV ETFs.