Is P2P Transport Share Price One to Watch?

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P2P Transport Ltd’s [ASX:P2P] share price has fallen more than 40% since listing on the ASX on 13 December 2017.

The fleet management company was trekking steady until early June this year, when it went on to lose more than 36% of its value in four months.

Though P2P haven’t let the sharp downturn deter them. In the past four months the company has released some major news, including a strategic partnership with Telstra, the successful acquisition of Black and White Cabs and its expansion into major cities.

What is P2P Transport up to?

This morning P2P Transport announced that it will be extending Black and White Cabs services to its operations in Sydney, Melbourne and the Gold Coast. It currently provides this service to 1,400 third party and P2P owned taxis in both Queensland and Western Australia.

P2P is expecting to extend its primary network services to 150 P2P owned vehicles and secondary network services to 550. The company is expecting to save $7,000 per annum per company owned vehicle that joins P2P’s primary network.

P2P is aiming to have operations up and running on the Gold Coast by December, and in Sydney and Melbourne by 1 January, 2019.

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The total investment needed to extend the network is approximately $1.26 million. However, following the launch the company is expecting cost savings from the primary network mentioned above of $90,000 per month.

In addition to the recent announcement, P2P announced a strategic partnership with Telstra a few weeks back.

The three-year partnership, worth $17 million, is expected to deliver one of the world’s leading digital taxi top advertising solutions to Australia.

300 screens are currently being installed which are expected to be completed and generating revenue by the end of December 2018.

John Ieraci, Chief Customer Officer Australia, Telstra, said:

It’s getting more difficult for organisations to cut through the noise in the market today and P2P Transport’s solution is a fantastic example of forward-thinking that capitalises on technology to create a smarter, more targeted way of reaching potential customers. We’re really excited to work with P2P Transport to support this next generation mobile advertising solution using our comprehensive IoT offering and businessgrade mobile network.

Should you keep an eye on P2P shares?

Along with expanding, the taxi fleet management company is setting up a secondary revenue stream, which is rather clever of them.

Despite the falling share price, the company has plenty of momentum, investors can only hope that the share price follows. It might be worth your while to keep an eye on P2P over the next few months.

Matt Hibbard

For Money Morning

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About Matt Hibbard