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Ford (F) Includes Mobility Service Company to Its Portfolio

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Ford Motor Company’s (F - Free Report) subsidiary Ford Smart Mobility LLC announced that it acquired an electric-scooter-sharing company, Spin. Based in San Francisco, CA, the acquired company is a two-year old start-up that offers alternative first and last-mile transportation solutions to its customers.

Per Ford’s management, the acquisition will aid the company to improve its portfolio of mobility services. Ford is trying to adjust itself with the changing needs of markets, which is complemented with the addition of electric-scooter (e-scooters).

Currently, Spin has presence in 13 cities apart from campuses across the United States. Per a source mentioned in Reuters, Ford will invest approximately $200 million in Spin. Further, Ford plans to expand Spin’s services to more than 100 markets in North America within a span of one and a half years.

Ford Motor Company Price and Consensus

 

Among a number of mobility options available to customers, e-scooter has become fairly popular, which is suitable for short distances. Apart from Spin, two other companies namely Lime and Bird also offer similar services. The companies offer services through an application that allows users to rent e-scooters within the rate of 15 cents to $1 a minute. The two major players, Lime and Bird attracted huge investments from big companies, valuing at $4 billion and $2 billion, respectively.

In the first week of November, General Motors Company (GM - Free Report) announced its plan to launch electric bicycle in 2019. However, it has not yet mentioned any plan to foray into the e-scooter business.

Price Performance

In the past six months, Ford’s stock has lost 16.1%, underperforming 0.8% increase recorded by the industry it belongs to.

 



Zacks Rank & Key Picks

Ford currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space include General Motors and O’Reilly Automotive, Inc. (ORLY - Free Report) , with a Zacks Rank #2 (Buy), and Tesla, Inc. (TSLA - Free Report) with a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

General Motors has an expected long-term growth rate of 8.5%. Shares of the company have increased 11.1% over the past month.

O’Reilly has an expected long-term growth rate of 15.7%. Over the past six months, shares of the company have gained 30%.

Tesla has an expected long-term growth rate of 10%. Shares of the company have rallied 20% over the past six months.

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