The past two years of international travel bans have been a hell of a ride for Jayride (ASX: JAY), especially due to their niche business nature as an airport transfer marketplace. Fortunately, as most countries have given the green light to travel, Jayride is now on a smooth ride to recoup profitability, even outperforming pre-pandemic level operations.
Jayride hit a record high of 141k passenger trips booked in the September quarter, rising 117% compared to the previous corresponding quarter (pcp). This translated into 157% growth in net revenue to $1.25m over the pcp, contributing $654k in profits.
Jayride, operates an airport transfer marketplace that allows travellers to compare and book rides from over 3,700 ride-sharing companies in 1600 airports across 110+ countries. Jayride now boasts access to 85% of an estimated 7.7 billion annual airport trips globally, be it ride-hail cars, limo and chauffeur services, or shuttle buses. It operates both B2C and B2B models with an API that distributes rides through partners such as Flight Centre, Expedia, Skyscanner and Rome2rio.
Being able to put more money into their coffers does not make Jayride improvident. Starting with $3.6m cash on hand, Jayride reported an increase of $273k in cash flow by keeping their operational cost stand-still at $607k after spending $581k last quarter. However, these figures are interim as Jayride then announced that they have also invested $1.2m towards new technology and partnerships with travel brands that will hopefully yield future scale. Taking into account the investment cost, Jayride ended the quarter with $2.7m in their bank account.
Co-founder and Managing Director Rod Bishop, said: “Our outlook is positive. With more scale we have greater buying and pricing power, and operating leverage. In FY23 we expect further growth and market share gains. We are committed to achieving new major milestones to take advantage of this once-in-a-generation opportunity to build a much larger and more profitable Jayride.”
Bishop’s upscaling strategy can be seen through the increase in market share as Jayride continues to outpace the travel recovery. Market share continued to increase during the quarter and observed a rise of 238% over the last 24 months. Jayride’s net revenue per trip was at $8.89 as refunds fell to 20% which is an improvement compared to the previous quarter where Jayride only acquired $8.02 net revenue per trip with a refund rate of 25%.
Moving forward, Jayride aims to book more than 10 million trips annually, improve its refund rate to their pre-pandemic level of 17%, as well as increasing average net revenue per trip to $10.00. This will not be too far off in the future since we are approaching the Australasian holiday season and Jayride’s biggest market, the Asian destination market, has since reopened. Bali has become Jayride’s top destination, followed by other recent reopenings of the Japan, Hong Kong, and Taiwan borders. Overall Jayride is currently booking more trips in Asian destinations than ever before, with the latest weeks trading above pre-pandemic all-time highs for the region.
Clara is a Business Reporter for The Sentiment.
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