Jayride Group posts solid growth figures as online travel continues swift take off
Jayride allows travellers to compare and book airport transfers from 3,000+ transport companies, across 44 countries.
E-commerce marketplace Jayride Group (ASX: JAY) has announced a new service feature that travellers can now book online travel packages in a total of 44 countries, after adding 13 countries across Asia Pacific, Europe and the Caribbean.
This latest launch includes 86 new airports as well as 119 new transport companies, which will be made available to its customers.
Jayride is able up-scale to all major airports in 44 countries that are servicing 4.6 billion of the world’s total airport passenger trips.
Performance in recent months has placed Jayride as one of the world’s leading airport transport aggregators for travellers, covering 59% of travellers’ destinations.
In total, the company offers customers access to 3,000-plus transport companies, spanning over 30 airports in the Asia Pacific, more than 40 in Europe and 11 airports in the Caribbean.
In a statement to the market, the company said that “going forward in 2019, Jayride will continue international expansion and we expect to continue to launch multiple new countries each month.”
Growing metrics
The Jayride.com platform aggregates airport transfer companies and distributes them to travellers via an online portal, but also, via partnerships with other travel technology platforms, travel agencies and wholesalers.
These partners implement Jayride.com APIs to sell airport transfers and add new incremental ancillary revenue to their travel businesses.
In the past quarter, Jayride has posted amiable performance figures that indicate a strong commercial future, boosted by incremental growth.
Jayride reported that passenger trips booked grew to 85,000 in Q2 2018, up around 21% in the past quarter.
Total transaction value increased to $3.6 million, up around 13% in the same period with revenues from booked passenger trips rising to $960,000 in the second quarter of this financial year.
Capital boost
In order to boost its chances of sustaining its recent growth, Jayride completed a $1.7 million placement to sophisticated investors at $0.43 per share. Currently, its shares are trading at $0.44 per share.
The placement was strongly supported by existing shareholders including institutional investors with Jayride saying that the proceeds will “accelerate growth into further international markets, build new technology, increase marketing, and be used for additional working capital.”
The e-commerce company’s primary performance metric is what’s known as “revenues from commissions and fees booked”.
This figure grew to almost $1 million in the past quarter, therefore registering an 18% quarter-on-quarter growth rate and a 93% growth rate compared to the year previously.
In addition, the December period marked Jayride’s 22nd consecutive quarter of revenue growth, indicating a consistent upward trajectory in terms of its growth and development in online travel bookings.
Jayride has said that its roll-out strategy has been accelerating in how it brings new airports online, which is increasing the company’s addressable market at a faster rate each month.
As new destinations launch, passenger demand is therefore registering consistent increases and delivering growing momentum.
Passenger trips booked for new destinations is becoming a “key driver” of Jayride’s revenue growth with the e-commerce marketplace declaring that “these new destinations are Jayride’s fastest growing segment and are expected to continue to grow for the long-term.”
In terms of country specifics, popular Australian and US tourist destinations performed strongly across the holiday period, including the ever-popular destination of Indonesia and Bali for Jayride’s Australian clientele.
Search optimised growth
One of the key enablers for its recent growth spurt has been search engine optimisation (SEO).
According to Jayride, SEO has now become its top acquisition channel after it launched a major new SEO website late last year, allowing travellers to discover transport on Google Search through organic search results.
For Jayride, organic SEO-sourced traffic is a highly effective customer acquisition channel. The SEO website itself is showing strong initial traction in organic search results for travellers that do internet searches to book their travel.