The $7 Trillion Mobility Market Is Ripe For Disruption

November 01, 2019 - OilPrice.com


There is a new mode of transportation out there and it’s rapidly changing how people navigate the urban space... it’s probably not what you think it is though.

It’s not electric cars, electric trucks or self-driving vehicles.

Nor is it public transportation; like buses, trains, taxis or even Uber and Lyft.

In fact, it is gobbling up market share from all of the above at an unprecedented rate.

We’re of course talking about the electric scooter.

They are popping up everywhere as companies from Bird to Lime and OjO (TSX.V:OJOOTC:AZNVF) race to dominate the market…

If you live in a gated community, you may have seen your neighbor take one of these down to the pool or tennis court.

If you live in or near a big city you are probably starting to see them on every corner.

What you probably haven’t considered though, is how big this emerging industry actually is. An industry that could grow to become a $42 billion global market by 2030 (as even the most conservative estimates predict).

Most likely it hasn’t crossed your mind just how lucrative an investment in the small companies behind this micro-mobility trend could be either.

From Startup To Billion Dollar Unicorn In Record Time!

The simple fact is that some of these small companies are achieving unicorn status and multi-billion-dollar valuations in record time.

Take for example Bird, launched in September 2017 with an initial seed investment of just $18 million, they became the fastest ever company to reach unicorn status, hitting the $1 billion valuation marker in under a year. Having raised $548 million in capital, Bird is now valued at over $2.75 billion

Lime was launched in July 2017 with a seed investment of $42 million. Exactly one year later, in July 2018, they too hit the billion-dollar valuation mark. With $867 million raised in capital, Lime is currently valued at $2.4 billion.

And now OjO (TSX.V:OJOOTC:AZNVF) is hoping to follow this trend.


There is absolutely no doubt that the electric scooter market is booming! 

It’s fueled by desperate cities fighting traffic congestion and air pollution; by a population that is increasingly worried about the environment and looking for convenient and affordable low emission alternatives… and not least by the huge baby boomer generation entering retirement, not being content with being holed up in a home. They want an active lifestyle with the freedom and opportunities that come with the mobility these new scooters offer.

It’s no wonder that the venture capital division of Google’s parent company, Alphabet Inc. led the charge in the recent $335 million investment round for Lime.

Or that Abu Dhabi’s sovereign wealth backed Mubadala Capital helped raise $60 million for Tier Mobility, the biggest European player in the electric scooter market.

… and these early investors are experiencing incredible returns.

Of course, the catch is that companies like Lime and Bird are all private, funded by venture capital with no way for the private retail investor to get in on the ground floor.

Until now...

The “Next Tesla” Is Going Public Right Now!

OjO Electric (TSX.V:OJOOTC:AZNVF), is a small electric scooter company with gigantic ambitions. They want to “disrupt the disruptors” by doing things differently and a whole lot smarter. The first step in this plan is to raise more capital by going public rather than solely relying on venture capital like the private companies.

With a market cap of $30 million, OjO is in place very similar to where both Bird and Lime were 2 years ago. There’s no reason to believe their valuation won’t rapidly shoot upwards like the other two, putting OjO into unicorn territory too… especially considering that they have a couple of huge advantages over everyone else in the marketplace.

A $38 Million Company Holds Patents That Could Change An Entire Industry!

There are 3 main ways a company can benefit immensely by holding good patents.

They can generate stupendous revenue and profit. Like Pfizer did between 1996 and 2011 with their patented statin drug Lipitor, used to treat heart disease and high cholesterol. Lipitor became the world's best-selling drug of all time, with more than $125 billion in sales over approximately 14.5 years. On the back of the Lipitor patent, Pfizer stocks rose from $4.38 in 1991 when the patent was submitted, to $46.69 in 1999 - that’s a 996% gain!

While the patent is active, they can sell so much that their brand becomes synonymous with the product and they retain their market lead, even after the patent expires. This is exactly what happened to 3M and their wildly successful Post-it notes. The patent has long since expired, but with billions sold all over the world, the Post-It brand has become synonymous with sticky notes and that has played a big part in 3M retaining a 77.40% leading market share in this $2.2 billion global market.

They can be acquired by one of the biggest companies in the world. This happened to the Super Soaker. The pressurized toy water gun was launched by Larami and quickly became the No. 1 selling toy in the world. Between 1992 and 1995 it topped $1 billion in sales and due to the success of the Super Soaker, Hasbro, the biggest toy manufacturer in the world measured on revenue, bought Larami.

In all 3 scenarios the clear winners were of course the shareholders and investors, who went on to cash in big on both dividends and astronomical gains.

OjO Electric is holding patents that could make it a target for acquisition and potentially set it up to dominate the global electric scooter market for years to come.

Profitable Patents That Go Far Beyond Electric Scooters

OjO has patented the soon to be iconic J-shape of their scooter chassis. This design is actually very reminiscent of Tesla’s unibody casting and it ensures that the OjO scooter is both very sturdy and durable.

And these are the first scooters that have two swappable 48-volt lithium-ion batteries…an absolute game-changer for the industry.

OJO (TSX.V:OJOOTC:AZNVF) has taken the giant growing pains of hyper-valued companies like Bird and Lime and turned them into the biggest potential in the segment. 

And they seem poised to beat out the biggest players in the market on safety, sustainability, distance and comfort. 

Change Is Definitely Needed

Even though the electric scooter promises to be a great solution to environmental and traffic concerns, their introduction into the urban environment has not been painless.

It’s becoming increasingly clear that the “blitzscaling” model deployed by the likes of Bird and Lime is broken.

Rapidly throwing thousands of scooters into cities is actually causing a lot of problems, public safety being the biggest concern. Scooters sharing space with both pedestrians and cars have so far been a recipe for disaster. The CDC states that at present 20 out of every 100,000 scooter rides result in serious injuries an alarming number that is turning public opinion and has resulted in several cities outright banning the use of scooters, Nashville being the latest.


It’s clear that there is a huge demand but that a new approach is needed and this is where OjO is hoping to shine. With their focus on public safety and early track record, they may be poised to take over markets where other companies have been banned.

Here are 3 reasons why the OjO is a superior scooter, both for the consumer and when it comes to public safety and opinion...

Safety Always Comes First

The majority of electric scooters are not much more than your old childhood kick scooter with a powerful motor strapped to it. Imagine going 20mph per hour down a busy street dodging cars and pedestrians. As you can imagine you have virtually no control and it’s no wonder that we see so many accidents.

The OjO is the first electric scooter with a seat and the sturdy uniframe build along with low center of gravity, which means you have much more control over the vehicle.

The patented J-shape is designed to help the scooter handle extremely well and unlike other scooters, the OjO comes with big wheels with motorcycle grade tires so it can traverse potholes, cracks and uneven surfaces without problems.

In other words...  the OjO (TSX.V:OJOOTC:AZNVF) scooter is not a dangerous “toy” for hip kids… it’s a proper vehicle built with consumer safety as a top priority. This is emphasized by the fact that unlike almost all other scooters, it has integrated front and rear lights making it safe to drive at night.

Turning Public Opinion

However, safety does not end with the driver. The OjO scooter has some key features that help make it a popular choice with both drivers and local authorities.

It has an inbuilt GPS system that allows a city to deploy so-called geo-fencing...

For example, if a city does not wish for electric scooters to enter a public park, the OjO can use its Bluetooth speakers to issue a warning to the driver and if he proceeds anyway, the scooter can simply be automatically powered down.

The same system can also be used to warn a driver about speed limits and to remotely and automatically enforce a max speed on a scooter.

These features are unique to the OjO and help the company be flexible when negotiating with cities and may enable them to enter markets where other providers have been banned.


Changing Habits Requires Comfort & Convenience

Standup scooters are not only unsafe, they also have a market. Ask yourself this, would you really use a scooter for your daily commute if you had to stand up all the time? How would you even bring back your groceries if you took your scooter to the stores?

For the electrical scooter to become more than a fad it needs to offer both convenience and comfort, two things the OjO has embraced.

The seat and design ensure maximum comfort even for long rides and with its 50-mile range on a single charge, the OjO (TSX.V:OJOOTC:AZNVF) outperforms all competition on range alone.

An unstoppable $7 Trillion Dollar Trend

The global mobility market is worth a total of $7 trillion… and growing.

Consider these facts:

- 59% of all private vehicle trips are under 6 miles

- A boom in metro area populations has negatively impacted traffic congestion, air pollution, energy usage, mobility, and more

- Tech-based mobility solutions and city infrastructure improvements (e.g., public transit and added bike lanes) are emerging to improve commuting times and reduce congestion and greenhouse gas emissions

- Parking costs are escalating, and precious city space is wasted on car storage

- North Americans are driving less, especially in cities with ride- hailing services and an expanding array of mobility options

… and it becomes clear that “Micro-mobility” solutions - personal individual electric vehicles, such as e-bikes and e-scooters, rentable by-the-minute through a smartphone app - can and should effectively replace most personal car and ride-hailing trips, as well as deliver first- and last-mile solutions for public transit.

That’s why Goldman Sachs predicts that ride-hailing revenue will increase to between $177billion and $492 billion by 2030.

The adoption of the e-scooter rideshare services is moving at an unprecedented pace compared with the incumbents.

The electric scooter also has great potential in the last mile delivery space, e.g., for food delivery or Amazon deliveries. OjO Electric is already running a promising pilot program with leading food delivery service using the OjO to make their deliveries in a major US city. This pilot has recently been extended and with possible expansion into other markets.

The King Of Micro-Mobility

The OjO Electric CEO Max Smith has successfully raised capital and driven business growth through eight profitable exits. In a dream team with OjO co-founder Don Ratner, who brought $1 billion worth of toys to the worldwide market, Max is on a mission to change how we get around. Max is a maverick with a remarkable track record who is looking to dominate the smallest travel segment on earth.

A Billion Dollars - One Ride-Share At A Time

When OjO first approached Max Smith back in 2017 he told them they needed to change their model, they had an amazing product, but if you keep it as a rich person’s toy, you don’t solve any problems. The OjO has so much potential it needs to be available to everyone!

The solution was ride-share and since then the company has begun an ambitious and successful roll out of ride-sharing in several cities across the US, amongst them Austin, Dallas, and Memphis.

The comfort and convenience of the OjO means that people take longer rides, increasing the revenue per unit per day. The durability gives the average OjO a much longer lifespan ensuring that OjOs recoup and generate cash, while the competition struggles to break even on their average unit lifespan.

The plan is to have 2,500 ride-sharing OjO scooters on the streets by the end of 2019 and with an average revenue of $15 per unit per day or $5,475 per year - that would mean a total of $13.7 million in yearly revenue.

Scooter Deployments Ramp Up


Of course that is just the beginning and based on 3US cities alone... With a solid product, the OjO appears poised for expansion into more cities and they are also looking at the European market where ride-sharing and electric scooters are an even bigger deal.

Their stated goal is up to 15,000 active ride-sharing units by the end of 2020 which equals an annual revenue of $82.1 million. 15,000 scooters are incidentally what is available for hire on the streets of Paris alone, so it’s easy to see how OjO given their superior economy of scale can quickly and easily scale up their business. In fact, it’s easy to envision a billion-dollar valuation for OjO when a billion-dollar revenue is simply a matter of putting OjO in Paris and 9 other big cities around the world.

The Time For Investing Is Right Now - It’s About To Take Off!

We’re confident that OjO Electric (TSX.V:OJOOTC:AZNVF) is on the verge of true greatness and that it’s worth following this innovative startup. Based on everything we’ve seen and the explosive growth in the market we will be keeping a close eye on the company.

Other companies rethinking what we know about transportation:

Pure Technologies LTD: Pure technologies is all about critical infrastructure including water and wastewater pipelines, oil and gas pipelines, and bridges and structures. One of Pure Tech’s biggest achievements in this space is its SoundPrint acoustic monitoring technology, which is set to revolutionize the industry.

Investors are watching Pure Technologies closely and the company is sure to be a valuable addition to numerous portfolios going forward

EXFO Inc (TSX:EXF) isn’t new to the Canadian tech sector. The company was founded in 1985 in Quebec City, and its original products were portable testing products for optical networks. Since then, the company has acquired and build 3G, LTE, protocol, copper/xDSL, IMS, and VoIP test and service assurance products. 

Recent developments from EXFO are promising for long term growth potential. The new baseband unit emulation technology which is sure to be adopted on a large scale, as the tech offers operators a reduction of costs and a faster revenue stream.

Mogo Finance Technology Inc. (TSX:MOGO): This is a new spin on unsecured credit, which is a burgeoning sub-segment of FinTech. Providing loan management, the ability to track spending, stress-free mortgages, and even credit score tracking, Mogo is at the forefront of an online movement to assist users with their financial needs.

Mogo’s software analyzes borrowers instantly and greatly reduces the traditionally cumbersome underwriting process for loans. It’s online only, so there’s very low overhead and a ton of cash to spend on marketing.  Labeled as “the Uber of finance” by CNBC, Mogo is definitely turning heads.

With increasing membership growth and revenue lines continuing to improve, and a platform which many banks have failed to offer, Mogo could well become an acquisition target in the near future.

Redline Communications Group Inc. (TSX:RDL):  Redline is not a giant, but it does operate in more of a niche environment—in hard-to-access places, providing wireless for critical industries, including oil and gas, and anywhere from the rainforests of South America to the slopes of Alaska and the deserts of the Middle East.

While the company has struggled in the past, we expect it to improve its operations results. The company’s main challenge remains to expand and attract new customers for its new products.

Shaw Communications Inc (TSX:SJR.B): Shaw Communications, a giant in the Canadian telecoms sector, saw a drop in its share price following its disappointing forecasted earnings growth in 2017. In a sector that is set to see growth, undervalued and experienced companies such as this can make for a great hold play.

Shaw owns a ton of infrastructure throughout Canada and its cloud services and open-source projects look to address some of the biggest issues that its customers might face before the customers even face them. 

By. Philip Drew

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