Why Lime Scooter Stock Is Stock You Should Buy

Why Lime Scooter Stock Is Stock You Should Buy

Electric scooters are starting to become very trendy in certain cities across the US, and now the question is whether or not they’re going to raise your portfolio value by a huge margin. Some investors and advisors are quite excited about them, while others feel the market is a bit overvalued. But there are some great benefits to the current electric scooter and alternative transportation industry that are reasons to consider investing in it.

The Basics Of The New Electric Scooter Industry

Instead of buying electric scooters and having to invest in extra batteries, the current hot companies like Lime Scooters and Bird are using the Uber business model. For small dollar amounts, the users usually rent the scooter for one-time use, and others get paid to collect the scooters and charge them up, or place them in their starting location. The overall idea is to make getting through busy inner city areas quickly but with less effort than bike riding. Coincidentally, the founders of Lime began that company as a bike rental based company but have seen increased demand for electric scooters. The company is also growing due to their easy-to-use app.

Other Reasons Electric Scooter Investors Are Optimistic

The electric scooters offered by Lime and Bird are quite popular among millennials in part because of the technology integration and mobile apps that come with them, and their overall feel. More and more young people care about the environmental impact of transportation, and electric scooters are completely green. Also, the convenience of quickly renting one and not having to worry about returning it to a rental agency makes for an even better customer experience.

How To Invest In Electric Scooter Stocks

Right now you’re probably wondering where Lime is on the major stock exchanges. They have not officially gone public just yet, though there are plans to launch an IPO soon. They have been valued at over $1 billion before, although one report showed them below that amount. But one way you could effectively own Lime Scooter stock even without technically owning their shares is to buy shares of companies that have some ownership stakes in the company. The main company that has a large equity in Lime is Alphabet, the parent company of Google. Uber and Bain Capital Ventures have also acquired shares of Lime, so buying stocks in any one of those companies could effectively give you an early slice of the pie. There are some experts who predict a successful IPO with Lime could boost Alphabet stock by 20%. According to the experts at Money Morning, “...and owning GOOGL could give you a 20% profit in the next year to roll over into the Lime IPO.” The bottom line is you don’t have to just wait for the IPO to start getting in on the fun.

In conclusion, there are definitely great upsides to investing in companies like Lime and Bird, but also a few risks. For example, some experts wonder if some cities have already hit their peak with Scooter revenue, and others wonder about the long-term sustainability of the current industry given constant technology changes. But if you’re intrigued by what they offer and want to look into investing, you might consider buying shares of the companies that have ownership stakes in Lime.

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