The micro-mobility market is creating a $1.4 trillion opportunity in the United States alone.
Electric scooters and electric bikes are revolutionizing the movement of people, goods and services through urban environments. They already provide pollution-free travel to hundreds of millions of users each year.
Globally, firms in this space have attracted over $6 billion in start-up investment.
Yet while the sector is growing at an immense 24.7% a year, many of its biggest players have been unable to develop business models that actually work and make money.
In their rush to scale up as quickly as possible, the likes of Bird and Lime have blazed a trail in transforming inner-city journeys but are now struggling to defend their brand new market against hungry, nimble competitors.
One ambitious firm looking to exploit this gap is LOOPShare (CVE:LOOP, OTC:LPPPF), a micro-mobility play with an electrifying plan.
In its quest to monetize Loop’s range of products and technology, the company’s entrepreneurial team has put together a compelling sales strategy, combining high value product sales with lucrative repeat revenue services.
With a clear and united vision, Loop’s leaders vigorously set about their task and have made outstanding progress over recent months.
They are convinced they can multiply Loop’s sales by 2022, making a MUCH bigger business than it is today.
It might sound a little too straightforward, but when you learn more about what this team has already achieved and the size of sales pipeline it has already built, you will quickly understand why Loop could be one of THE stock picks of the year.
2020 could now see Loop deliver SPECTACULAR results.
PERFECT market timing by LOOPShare (CVE:LOOP, OTC:LPPPF)
Two vehicles spearhead Loop’s charge to riches – the Loop E-Scooter and the Scoot-E-Bike.
Thanks to the billions spent by its much larger peers, creating such a rapidly expanding market over such a short period, Loop’s timing is perfect.
It can take full advantage of the field that has opened up, selectively choosing optimal locations around the world on which to focus its sales efforts.
Pursuing this line should yield dividends for a company of Loop’s size, especially with the quality of products it has to offer.
Let’s start with the Loop E-Scooter, a fully integrated, sit-down, zero-emissions electric scooter that allows riders to travel for up to 55 kilometers between charges. The Loop E-Scooter offers a much safer alternative to stand-up scooters and its range makes it a highly attractive rival to existing ride share operators.
Better yet, the Loop E-Scooter’s 25-liter storage unit opens up an immense variety of commercial opportunities in the urban delivery space. The possibilities are endless, but what makes this model so special is that it is environmentally clean.
Known as a “LoopZone”, fleets of Loop E-Scooters can quickly and efficiently deliver everything from prescription medications and food to medicinal cannabis.
This is all made possible by Loop’s proprietary, advanced mobile technology platform – LOOPShare Telematics.
Applying the LOOPShare Telematics software into a fleet of Loop E-Scooters enables a fleet operator to have complete centralized remote control over all of its vehicles, providing real-time updates on scooter usage and maintenance needs. It also gives users a GPS and safety system and the means to reserve and locate vehicles, by way of a seven-inch touchscreen and smartphone app.
When you consider the thousands of dollars delivery companies can spend on handheld devices alone, the potential for Loop’s technology to transform metropolitan deliveries is immense.
This “Transport-as-a-Service” model is one of the keys to Loop’s future success and is set to become a huge revenue stream for the firm.
Direct product sales to DRIVE substantial short-term revenue
The Scoot-E-Bike, Loop’s second product line, is a cutting-edge, self-folding, sit-down electric bicycle that is already attracting a great deal of sales interest.
A growing number of well-known celebrities, including P Diddy, Snoop Dog, Brandi, Steph Curry, and Justin Bieber, have all endorsed the Scoot-E-Bike, helping to raise its profile nationally.
The Scoot-E-Bike allows Loop to start generating immediate and significant sales revenues, either directly to consumers or via wholesale through big-box retailers and e-commerce sites.
Developed by Raytroniks, which is owned by successful TV personality and musician Ray J, the Scoot-E-Bike has a 270-pound payload capacity and can travel up to 40 kilometers on a single charge. It boasts an LCD screen, a Bluetooth speaker, a headlight for night riding, and an audible horn.
Two versions of the Scoot-E-Bike have been created for the US and Canadian markets, retailing at $1,475 and $1,299 respectively. Importantly, each model has been tailored to meet the regulatory requirements for travelling in bike lanes in their relevant country, meaning neither carries any license or insurance requirements.
This is ideal for using the Scoot-E-Bike in a ride share or rental model, which Loop will focus on rolling out through partnerships with resorts, hotels, cruise ships, and other tourist businesses.
This could prove to be EXTREMELY profitable for Loop, enabling the company both to increase sales significantly and boost unit economics for each vehicle built.
In the first deal of this kind, Loop recently completed a successful ride sharing pilot program with Harbour Air in Vancouver, Canada, using Loop E-Scooters. Harbour Air is North America’s largest seaplane airline, operating 300 flights a day.
The plan now is to roll out several hundred Loop E-Scooters in the first half of 2020 to create the world’s first ride share LoopZones in Vancouver, Richmond, Victoria, Tofino, SaltSpring Island and the world-famous Whistler Mountain, home of the 2010 Olympic Games. Given the popularity of the scooters, the revenue potential is enormous.
Delivering REAL transportation needs
For Matthew Clayton, Loop’s CEO, the essence of his company’s model is that there is no need to pigeonhole its versatile, environmentally-friendly technology and products into a single market:
“We looked at our peers and thought ‘Surely there is a better way of doing this’. The key is that these products can be used for real transportation needs– we can continue with the ride share, but why do we not look at putting our E-Scooters and Scoot-E-Bikes into resort or hotels?
Why can they not be used by the millions of companies out there looking for the most economic and environmentally-friendly way of delivering their products to end-consumers?
Why can we not offer a product that users can actually buy and own for themselves?
Every city and country has different needs when it comes to electric transportation, and our approach is to figure out those needs and ensure they are met.”
If Clayton is right in adopting such a flexible stance, and by carefully selecting specific highly profitable markets to enter, then this could deliver stunning growth for Loop over the coming years.
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