[What The Financials] Bounce Stumbles On Losses As It Revs Up Growth

Till date, the company has raised $207.7Mn from investors such as B Capital Group, Falcon Edge Capital, Accel Partners India, Accel Partners USA, …

In the decade from 2010-2019, cab-hailing grew from being a luxury choice to everyday experience. In the 2020 decade, it seems like the same trajectory awaits bike-rentals.

The solutions in the mobility space have tackled distance issues one-by-one. While cab-hailing solved for larger distances, many industry observers believe upcoming mobility disruption is in the last-mile connectivity space. In the space, though we have seen a lack of market adoption and the exit of several international players, there are also players who have taken the slow walk and now are sprinting towards expansion and adoption.

One such player in last-mile mobility space is Bengaluru-based bike rental company Bounce. Founded as Wicked Rides in 2014 by Vivekananda HR, Varun Agni and Anil G, the company offers premium motorcycles for rent under the Wicked Rides banner and commuter bikes under the Bounce brand.

The company aims to solve the last-mile connectivity problem in India’s biggest cities. It allows users to pick up scooters from locations closest to them and drop them at end-trip spots, priced by the hour and distance. In the second quarter of FY20, Bounce recorded over 2 Mn rides and planned to introduce over 50K vehicles to its fleet.

The company has become a favourite among investors as well, having raised over $100 Mn in 2020 itself. Till date, the company has raised $207.7Mn from investors such as B Capital Group, Falcon Edge Capital, Accel Partners India, Accel Partners USA, Chiratae Ventures, Maverick Ventures, Omidyar Network India, Sequoia Capital India and Qualcomm Ventures among others.

But this sudden interest was not there in FY19. The company had a mere $20 Mn in funding in FY19 and the financial performance of the time is astounding. The filings accessed by Inc42 for the financial year ending March 31, 2019, show that Wicked Ride, the parent company of Bounce, increased its operational revenue by 1.85X.

On a consolidated level, the company’s results include the performance of its electric vehicle subsidiary but since it had marginal performance, we are considering the results here on a standalone basis.

The company on a standalone basis has reported revenue growth of 2X reaching INR 16.31 Cr with a 5.97X increase in expenses reaching INR 86.9 Cr for FY19. This has led to a 9.05X increase in Bounce’s losses reaching INR 70.6 Cr for the year.

[What The Financials] Bounce Stumbles On Losses As It Revs Up Growth [What The Financials] Bounce Stumbles On Losses As It Revs Up Growth

Parking And Bikes: Primary Sources Of Income

Wicked Ride was one of the early entrants in the bike mobility space and have transitioned to other categories. It was first launched as a premium motorcycle rental but then shifted to a bike rental model under Metro Bikes.

So, in terms of revenues, bike rentals have worked out well for Bounce. The filings show that rentals of motor vehicles have grown in revenue from INR 4 Cr in FY17 to INR 12.31 Cr in FY19. Further, in FY19, the company earned INR 23.7 Lakh from rentals of bicycles and INR 1.52 Cr from parking revenues.

In its methodology, the company explained its revenue recognition saying that revenue from renting bikes and bicycles are recognised on completion of trips. While the income from services like parking is recognised as per the terms of agreement with its customers on completion of the duration of the parking services.

Bounce Bleeds Cash On Rentals

In the face of capital-intensive businesses, the successful mobility companies today have identified how to reduce capital expenditure yet provide better services. While cab-hailing companies have made cabs the onus of their driver-partners, Bounce leases its bikes and helmets to riders. Hence, the company’s leasing and rental costs are fairly high.

The filings show that Bounce’s rental costs which include lease rentals were INR 11.6 Cr in FY19, as against INR 2.12 Cr in FY18. Further, its cost of helmets increased to INR 1.7 Cr in FY19 from INR 6.89 Lakh in FY18.

[What The Financials] Bounce Stumbles On Losses As It Revs Up Growth [What The Financials] Bounce Stumbles On Losses As It Revs Up Growth

Further, Bounce saw 5.68X increase in its advertising and promotional expenses with employee benefit expenses jumping 7X in FY19.

Overall, Bounce saw a good performance in FY19. But a lot has changed since then. The company has raised capital, strengthened its team, identified focus areas and hence, FY20 would be the real show when the heavily-funded Bounce shares its financial performance.

Bounce is yet to respond to Inc42 queries on its FY19 performance.

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Ridesharing company Lyft opens 35000-square-foot driver center in Mission Valley

SAN DIEGO (KUSI) – Lyft opened a 35,000-square-foot “Driver Center” Tuesday in a former Toys “R” Us store in Bay Park to provide a one-stop …
February 11, 2020
Posted: February 11, 2020

Kacey McKinnon

SAN DIEGO (KUSI) – Lyft opened a 35,000-square-foot “Driver Center” Tuesday in a former Toys “R” Us store in Bay Park to provide a one-stop location for its drivers to go for vehicle repairs, maintenance and other support services.

“We’re proud to open one of Lyft’s first Driver Centers in San Diego to further meet our drivers’ needs directly,” said Lyft Southern California General Manager Hao Meng. “We know that maintaining a vehicle can add up and our goal is to service drivers’ vehicles in a timely and affordable way so they can get back on the road.”

The facility at 1240 W. Morena Blvd. will be staffed by 20 vehicle service specialists, driver support and onboarding staff.

Mayor Kevin Faulconer, San Diego Regional Chamber of Commerce President and CEO Jerry Sanders and other community leaders were on hand for an opening ceremony.

The Driver Center is designed like a race car pit stop, according to the ride-hailing company, with technicians working in teams to quickly get repairs completed and drivers back on the road.

Available vehicle services include oil changes, tire rotation, and replacement of tires, brake pads, wiper blades, spark plugs, filters and batteries, along with free diagnostic assessments. While the cost of services may vary based on a vehicle’s make and model, Lyft officials said the company is working to ensure pricing is below the market average.

Lyft drivers can schedule an appointment by visiting Lyft.com/drivercenter, tapping on “Service” in their Driver app or simply walking in to the center, which will also serve as a driver hub with places to relax in between rides, access to bathrooms, Wi-Fi, coffee, lounge and work spaces.

Drivers can connect in-person with Lyft community representatives for assistance, including vehicle inspections and app support.

Lyft’s Express Drive program will also operate out of the San Diego center, connecting Lyft drivers to rental vehicles with standard maintenance and insurance coverage through rental partner Flexdrive.

Lyft recently opened similar facilities in Austin, Texas, Denver, Phoenix and San Francisco.

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Lyft turns former Toys “R” Us into repair, support center for San Diego drivers

SAN DIEGO (CNS) – Lyft opened a 35,000-square-foot “Driver Center” Tuesday in a former Toys “R” Us store in Bay Park to provide a one-stop …

SAN DIEGO (CNS) – Lyft opened a 35,000-square-foot “Driver Center” Tuesday in a former Toys “R” Us store in Bay Park to provide a one-stop location for its drivers to go for vehicle repairs, maintenance and other support services.

“We’re proud to open one of Lyft’s first Driver Centers in San Diego to further meet our drivers’ needs directly,” said Lyft Southern California General Manager Hao Meng. “We know that maintaining a vehicle can add up and our goal is to service drivers’ vehicles in a timely and affordable way so they can get back on the road.”

The facility at 1240 W. Morena Blvd. will be staffed by 20 vehicle service specialists, driver support and onboarding staff.

Mayor Kevin Faulconer, San Diego Regional Chamber of Commerce President and CEO Jerry Sanders and other community leaders were on hand for an opening ceremony.

The Driver Center is designed like a race car pit stop, according to the ride-hailing company, with technicians working in teams to quickly get repairs completed and drivers back on the road.

Available vehicle services include oil changes, tire rotation, and replacement of tires, brake pads, wiper blades, spark plugs, filters and batteries, along with free diagnostic assessments. While the cost of services may vary based on a vehicle’s make and model, Lyft officials said the company is working to ensure pricing is below the market average.

Lyft drivers can schedule an appointment by visiting Lyft.com/drivercenter, tapping on “Service” in their Driver app or simply walking in to the center, which will also serve as a driver hub with places to relax in between rides, access to bathrooms, Wi-Fi, coffee, lounge and work spaces.

Drivers can connect in-person with Lyft community representatives for assistance, including vehicle inspections and app support.

Lyft’s Express Drive program will also operate out of the San Diego center, connecting Lyft drivers to rental vehicles with standard maintenance and insurance coverage through rental partner Flexdrive.

Lyft recently opened similar facilities in Austin, Texas, Denver, Phoenix and San Francisco.

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Avestar Capital LLC Makes New Investment in Uber Technologies Inc (NYSE:UBER)

Foundation Capital LLC bought a new position in shares of Uber Technologies during the second quarter valued at approximately $34,801,000.

Uber Technologies logoAvestar Capital LLC acquired a new stake in Uber Technologies Inc (NYSE:UBER) during the 2nd quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor acquired 629 shares of the ride-sharing company’s stock, valued at approximately $27,000.

A number of other hedge funds have also modified their holdings of the business. Enlightenment Research LLC purchased a new stake in Uber Technologies during the second quarter valued at about $543,000. Burleson & Company LLC bought a new position in Uber Technologies in the second quarter worth about $289,000. National Asset Management Inc. bought a new position in shares of Uber Technologies during the second quarter valued at approximately $642,000. Foundation Capital LLC bought a new position in shares of Uber Technologies during the second quarter valued at approximately $34,801,000. Finally, State Board of Administration of Florida Retirement System bought a new position in shares of Uber Technologies during the second quarter valued at approximately $864,000. 45.32% of the stock is currently owned by institutional investors and hedge funds.

Uber Technologies stock traded down $0.82 during midday trading on Friday, hitting $33.25. 9,206,427 shares of the stock were exchanged, compared to its average volume of 8,745,539. The stock’s 50-day moving average price is $36.41. The company has a current ratio of 2.57, a quick ratio of 2.57 and a debt-to-equity ratio of 0.36. Uber Technologies Inc has a fifty-two week low of $30.67 and a fifty-two week high of $47.08.

Uber Technologies (NYSE:UBER) last issued its quarterly earnings results on Thursday, August 8th. The ride-sharing company reported ($4.72) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($3.33) by ($1.39). The company had revenue of $3.17 billion for the quarter, compared to the consensus estimate of $3.39 billion. During the same period in the prior year, the company earned ($2.01) EPS. The firm’s revenue was up 14.4% compared to the same quarter last year. As a group, analysts forecast that Uber Technologies Inc will post -7.2 EPS for the current year.

Several equities research analysts recently weighed in on UBER shares. Mizuho initiated coverage on shares of Uber Technologies in a research report on Tuesday, June 4th. They set a “buy” rating and a $50.00 price target for the company. Stifel Nicolaus began coverage on shares of Uber Technologies in a report on Tuesday, July 2nd. They issued a “hold” rating and a $50.00 target price on the stock. Needham & Company LLC set a $52.00 price target on shares of Uber Technologies and gave the stock a “buy” rating in a research note on Thursday, July 11th. Morgan Stanley decreased their price objective on shares of Uber Technologies from $57.00 to $53.00 and set an “overweight” rating on the stock in a research report on Thursday. They noted that the move was a valuation call. Finally, Canaccord Genuity started coverage on shares of Uber Technologies in a report on Tuesday, June 4th. They issued a “buy” rating and a $55.00 target price on the stock. Ten research analysts have rated the stock with a hold rating and twenty-four have given a buy rating to the company’s stock. The stock has an average rating of “Buy” and an average target price of $53.50.

Uber Technologies Profile

Uber Technologies, Inc develops and supports proprietary technology applications that enable independent providers of ridesharing, and meal preparation and delivery services to transact with end-users worldwide. The company operates in two segments, Core Platform and Other Bets. Its driver partners provide ridesharing services through a range of vehicles, such as cars, auto rickshaws, motorbikes, minibuses, or taxis, as well as based on the number of riders under the UberBLACK, UberX, UberPOOL, Express POOL, and Uber Bus names; and restaurant and delivery partners provide meal preparation and delivery services under the Uber Eats name.

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Institutional Ownership by Quarter for Uber Technologies (NYSE:UBER)

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The assault on ‘contract employees’ isn’t about helping workers at all

California’s new law aims to force the likes of Uber, Lyft and Postmates to classify workers as employees, not independent contractors. But the main …

Gov. Andrew Cuomo is talking about “protecting” New Yorkers from employment as independent contractors. He’d be wise to see how it works out in California, first.

“More people should be considered employees because what has been happening is companies have been going out of their way to hire independent contractors to get out” of offering them benefits, the gov said recently. Really?

California’s new law aims to force the likes of Uber, Lyft and Postmates to classify workers as employees, not independent contractors. But the main force pushing for the law is organized labor, because these arrangements make unionizing difficult.

Sure, advocates claim the idea is to make companies to offer benefits like health insurance and end exemptions from minimum-wage and overtime laws. Yet everyone working as an independent contractor knows the deal before they sign up. They take it because they see other benefits, from the ability to work for many different “bosses” to the power to control their own work schedules.

And the California law already has lots of happy workers worried: Travel agents, for example, see their livelihood threatened. Freelance journalists would also be panicking if the law hadn’t specifically exempted them, along with other professions that mobilized in time, such as doctors, securities dealers, insurers and real estate agents.

Uber and Lyft, meanwhile, will fight the law in court — so it may only hit much smaller businesses, with far tighter profit margins.

If Cuomo really means to stand up for workers, rather than do another favor for unions, he’ll at least put this idea on hold until a lot more evidence rolls in.

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