JAY 0.00% 0.6¢ jayride group limited

The reason building out the network is more important is you...

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  1. 10,813 Posts.
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    The reason building out the network is more important is you want customer to know that they can book a airport shuttle anywhere they happen to want to go. You don't want to spend all the costs required to attract a new customer and then tell them "sorry we don't service that airport". If you read through the online complaints this is one of the most common complaints that is directed at JAY and not the transport company. Once JAY has full coverage of all the major airports then that is when they will want to try to market.

    I think you might be misinterpreting the growth speed graphs. What this is showing is JAY is getting better at growing the market once they go into a new airport. When the first started out the growth was much slower than it is now. They are learning to grow the business better which is exactly what we want to see.

    The hope is we will see a true network effect with the JAY market. Once customers know they can get a quality ride to and from any airport then it should become the default for people - why go to the hassle of finding a transport customer yourself when you can just go through JAY.

    One thing we should keep in mind is the transport market that are going after (airport limos) is the least price sensitive. Uber and Lyft are competing for the cheapskate market while Jay is going after the business class market where quality is key. Long term this market is smaller, but the margins are going to be much better.
 
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