Travel agency Jayride hopes for post-pandemic improvement
Sydney travel market Jayride remains hopeful its pandemic growth strategies will put it in a good position as travelers flock to airports.
It’s now been four years since the startup landed on the ASX and its price chart looks like what one would expect from a small-cap travel tech company during a pandemic.
In March 2020, Jayride’s stock price plunged, wiping out most of its value before hitting a low of around seven cents. Jayride was far from its IPO price of 50 cents per share and the situation was dire.
When the government’s JobKeeper program was announced, Jayride accepted the offer and helped pay staff $171,000 by the end of the 2019-20 fiscal year.
In the 2020-2021 fiscal year, he received $478,500 from the government program and began to stabilize.
The ongoing uncertainty around travel has understandably made the past two years extremely difficult for the company focused on providing airport transfers, but co-founder and chief executive Rod Bishop remains optimistic.
“We are well positioned to benefit as travel volumes continue to recover in the US, UK, Asian and Australian markets,” he told shareholders this week.
“We remain focused on executing our growth strategies to capture re-openings and increase market share, and are selectively deploying proceeds from our capital raise.”
Last July, Jayride completed the second tranche of a $10 million placement, but funds raised from investors continue to flow freely from the company, which has only earned $380,000 from clients over the course of the year. last trimestre.
Jayride recorded an operating loss of $647,000 from September to December. But his financial statements note that a combined loss of $679,000 on his balance stems from staff payments and administration costs that were previously incurred during the pandemic and have only just been reimbursed after the fundraiser. .
Bishop said he would continue with the company’s expansion strategy in hopes his customers would start traveling in droves again before the remaining $5.5 million from investors ran out.
“We have been successful in recruiting key talent in sales, marketing, product and technology,” he told shareholders. “These new team members will be transformative for us.
“In particular, we are increasing investment in our expanded traveler offering of new vehicles, classes of service and more, including rolling them out on Booking.com and other channels.
“[We are] also introducing new operational improvements and automation for higher margins and a fundamentally improved traveler experience.