Tech: Jayride says revenues are holding up, but flags emerging coronavirus impact
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Travel-tech platform Jayride Group (ASX:JAY) has provided an update on how the global coronavirus outbreak is affecting business.
The company’s core service is a price-comparator website for airport transfer providers. Jayride said trips booked in the month of January continued on a positive growth trajectory, up 65 per cent compared to January 2019.
However, as contagion fears continue to spread the company said that by late-February its operations started to be affected.
Compared to the prior February, growth in new trips booked slowed to 50 per cent.
With a business model directly tied to airline travel, Jayride has been left in the firing line as the COVID-19 virus disrupts travel routes globally.
Since mid-February, JAY shares have fallen from above 30 cents to 15 cents. But the shares ticked +23 per cent higher following today’s announcement:
Despite the fall in volume, Jayride said revenue growth had held steady in February. Net revenue per trip rose to $10.28 which “may be related to an emerging trend of travellers choosing private rides, rather than shared rides, for their travel”, the company said.
Looking ahead, Jayride warned that COVID-19 will also have an impact on March trading results.
“The board and management are closely monitoring the impact of COVID-19, responding as required, and will keep the market informed including with March trading information to be released during April,” Jayride said.
Smart-lighting company Buddy Technologies (ASX:BUD) said its US subsidiary, LIFX, is planning a new product rollout in the June quarter. The price point will be $US9.99 and will have functionality with Amazon cloud products. Based on retail order forecasts, the company said it has made an initial manufacturing order of 500,000 to meet demand. Shares in BUD were up eight per cent at 2.6 cents.