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Sydney transport marketplace startup Jayride lists on the ASX

- January 29, 2018 2 MIN READ
Jayride

Following an initial public offering (IPO) that raised $1.5 million in December, Australian marketplace platform Jayride has today listed on the Australian Stock Exchange.

Founded by Rod Bishop and Ross Lin in 2012, Jayride allows users to compare prices from airport transfer companies and book their transport. From its beginnings in Sydney, the company now works with over 2000 ground transport companies at more than 500 airports worldwide, with the US its biggest market.

Having raised $8 million in equity funding in September, Jayride launched its IPO in mid-December, offering three million shares priced at 50 cents each. Along with facilitating the listing, the funds will go towards extending the company’s international expansion, developing new partnerships, and further development of the company’s technology.

According to Jayride’s prospectus, the company has approximately $7.2 million to $7.7 million in free cash after issue costs, and “expects to generate strong cash flows from expanded operations”. The company services 200,000 passengers a year, with its biggest airports by revenue LAX, Sydney, and New York’s JFK.

However, Jayride has yet to turn an operating profit, incurring net losses since its founding. Jayride’s total income to the year ending June 30, combining its commissions and other income, came to just over $1.1 million, with total losses of almost $2.3 million.

Bishop, managing director of Jayride, said, “We’re excited to have such strong investor support for Jayride in pursuit of the company’s next stage of growth. We look forward to delivering on our milestones in line with our objective to be a world-leading transport marketplace that provides seamless transport for travellers, and growth the company to benefit all of our stakeholders.

“The market opportunity for Jayride is enormous; with over 3.7 billion passenger trips going to and from airports every year, there is great potential in assisting each traveller and the travel industry to compare and book on the ground transport legs of their journey.”

Along with the listing, former Qantas CIO Jamila Gordon was appointed to the board.

The appointment follows Gordon’s departure from logistics company GetSwift in December; she had joined the company as global CIO in early 2017.

Also an ASX-listed company, GetSwift is facing questions from the ASX around announcements it made to the market around various clients and contracts.

The company last Wednesday requested voluntary suspension in trading as it prepared responses to a report published in the Australian Financial Review the previous weekend that questioned details around contracts and revenue figures announced by the company. It had been in a trading halt since Monday, with its shares last valued at $2.92.

GetSwift submitted its responses on Thursday, however the ASX was unconvinced, requesting further clarification. The company’s shares remain suspended.

Image: the Jayride team.