AYRO was a sponsor of the Benzinga Global Small Cap Conference held on December 8-9, 2020. The information contained in this article in no way represents investment advice or opinion on the part of Benzinga or its writers and is intended for informational purposes only.
As we close in on a full year of the COVID-19 pandemic impact, restaurant delivery platforms such as Uber Eats (NYSE: UBER), DoorDash (NYSE: DASH), and Grubhub (NYSE: GRUB) have become the greatest allies of the restaurant industry in its quest to serve customers. People are just not dining out nearly as often as before, which has caused a shift in restaurants' ability to maintain profitability. These third-party delivery platforms have certainly helped restaurants bring food to their customers. However, the services often cost nearly 30% of the customer's final bill, significantly impacting the restaurant’s profit margin.
While the new "delivery boom" accelerated the restaurant industry’s digital transformation, many business owners cannot continue or afford to pay for these services in the long run. Moreover, outsourcing the delivery element removes the restaurant’s control of its customer’s experience which can potentially harm its reputation. Therefore, the question remains — are there any other convenient and safe options apart from partnering with these restaurant delivery companies?
AYRO Inc. (NASDAQ: AYRO) has developed a solution to help aid restaurant and service businesses with a more sustainable and cost-effective delivery fleet of vehicles. The company designs and manufactures compact, purpose-built, automotive-grade electric vehicles (EVs) to allow restaurants to have their food delivery services in-house. The company’s AYRO 311X is a 3-wheeled EV designed for quick service delivery and last-mile services that offers businesses a more economical solution compared to outsourcing such services.
The Advantages Of In-House Delivery Solutions Through AYRO
Food delivery apps have become an essential part of the consumer’s behavior. Before the COVID-19 pandemic, delivery platform sales were roughly 10% of a restaurant’s business, but with the current health crisis, this number for many restaurants has risen to 50%. Additionally, a recent survey showed that 52% of people would avoid restaurants and bars even after reopening.
The World Economic Forum anticipates that the global demand for last-mile delivery will grow by 78% by 2030, leading to 36% more delivery vehicles in the world’s top 100 cities. This increase in vehicular traffic may lead to a rise in CO2 emissions, indicating the need for more environmentally sustainable solutions.
AYRO EVs can help restaurants reach their customers directly by reducing the expenses incurred from delivery app services while helping meet environmental sustainability goals. In fact, they can reduce delivery costs by up to 50% and are more efficient than their gas and diesel counterparts.
Moreover, these vehicles eliminate volatile fuel storage and CO2 emissions and also reduce noise signatures by up to 75%. They are designed to traverse streets, narrow passages, and campus walkways safely and use automotive controls for familiarity and ease of operation.
Purpose-Built, Versatile, All-Electric Vehicle
According to a recent research report, the Global EV market expects to register a CAGR of 41% from 2020 to 2027. And thanks to companies like Tesla Inc (Nasdaq: TSLA), Ford Motor Company (NYSE: F), Daimler AG (OTCPK: DDAIF), General Motors Company (NYSE: GM), and Toyota Motor Corporation (NYSE: TM), this trend will likely continue to gain traction.
However, it is crucial to understand that AYRO’s EVs are targeted for the commercial fleet market instead of the end-consumer market like Tesla’s EVs.
AYRO’s EVs are designed for the low-speed electric vehicle (LSEV) market projected to reach more than $23.9 billion by 2026. Its EVs are designed for last-mile delivery and micro-distribution applications in low-speed logistics, cargo services, and food delivery, such as those found on higher education and corporate campuses and in stadiums and arenas.
A great example is the Club Car 411 incorporated into the Penn State South Housing team’s fleet. The 411 has the power to handle any job, the maneuverability to drive on the campus access roads, and enough battery capacity to last two to three days on a single charge. Switching to an electric truck has helped tackle daily jobs servicing the dormitories, reducing operating expenses, and contributing to Penn State’s push for more sustainable transportation modes to reduce greenhouse gas emissions.
AYRO In A Nutshell
AYRO, Inc. is a U.S-based designer and manufacturer of purpose-built, automotive-grade, all-electric vehicles. AYRO delivers industry-leading value to a rapidly expanding market where the need for high-quality, cost-effective, zero-emissions vehicles and technology platforms is becoming increasingly important.
The company recently established a strategic manufacturing, engineering, and design partnership with Karma Automotive’s Innovation and Customization Center to deliver over 20,000 light-duty trucks and electric delivery vehicles (valued at $300+ million) over the next three years.
In addition, AYRO announced a $10 million strategic investment led by Carnegie Hudson Resources, an investment arm of Wanxiang America, itself a subsidiary of Wanxiang Group, a large Chinese conglomerate and owner of Karma Automotive and A123 Systems, that will further align Karma Automotive and AYRO and allow AYRO access to Wanxiang’s global supply chain and A123’s leadership in battery technology.
AYRO intends to build an entire ecosystem of support and services around its EV offerings to provide its commercial fleet customers with a comprehensive product and service offering.
For more information, please visit the company’s website.
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