The coronavirus pandemic has created an unexpected interruption of our daily life. It and also created a whole new economy, with a new trend in investing in the so-called stay-at-home stocks. Some stocks in this category, such as Zoom (NASDAQ:ZM) and Amazon (NASDAQ:AMZN), have performed well in the past few months. But if you believe that the coronavirus economy will offer investment opportunities in the future there is an alternative stock you may consider. Invest in Deuce Drone stock, and profit from the growth of the drone delivery and logistics business.
Deuce Drone is a technology company and a drone shipping service in the United States. It offers a solution for retailers that struggle to compete with well-known and established e-commerce companies. Drone delivery of orders and shipments is not only cost-effective, it can also increase same-day delivery. That can give its customers a competitive advantage compared to companies that dominate last-mile delivery.
So in short, its automated drones offer cost savings and increased same-day delivery driven by advances in technology.
What is Last-Mile Delivery and its Challenges?
An article on ShipHero about last-mile delivery explains that the “last mile delivery is the movement of goods from a transportation hub or warehouse to its final delivery destination. In most cases, that final destination is a personal residence. The goal of last-mile delivery is to deliver items to the customer as quickly as possible while minimizing company costs.”
It’s all in the name. While well-known carriers often deliver their own packages, sometimes they turn to independent companies to cover the final stretch. These companies take packages from warehouses or other storage locations and takes them to the recipient. Some of the factors are (as taken directly from the article):
- The size of the company or third-party logistics provider.
- The number of orders picked and packed each day.
- The frequency with which orders are picked up by the carrier.
- The proximity of delivery points to the warehouse or distribution center.
- The location of the warehouse (ex: rural or urban).
- The number of deliveries along the route and number of routes.
The main problem associated with last-mile delivery is inefficiency, and that this the solution Deuce Drone offers.
An Experienced Team
The Deuce Drone team has a lot of experience in many industries ranging from logistics and aerospace to construction, technology and real estate. Blaine Holt was previously the president of Million Air Inc. Rhett Ross has “30 years of aerospace and engineering management experience.” Philip Burtonis president and CEO of Burton Property Group (BPG), a real estate development firm. the team has a lot to recommend it.
This vast experience is certainly an advantage to business activities and solving potential problems … such as those that may arise with the Federal Aviation Administration, as an example.
Flying a drone, even for personal fun, may be subject to strict regulations for safety reasons, and a license to fly the drone may be needed. So flying drones for business purposes and e-commerce activities is not an easy task to fully comply with all the required regulations.
The Market Opportunity for Deuce Drone Stock
The market opportunity for Deuce Drone is both significant and promising. On Netcapital it is reported that “PwC estimates the emerging global market for drone-related business services could reach $127B” and that “According to MarketWatch, the global drone delivery and Logistics market is expected to grow at a CAGR of 60% to reach over $1.6B by 2027.”
Deuce Drone is planning to have several sources of revenue, supportive of its stock. Some of these include consulting and design; building a “brick and mortar” infrastructure service for drone pickup and delivery; and resale of drones and charging fees for operating the drone delivery systems.
The company claims to have competitive advantages in various sectors such as logistics, aerospace, construction, technology and engineering.
The technology sector has outperformed in this coronavirus era in the U.S. stock market, so if you believe that this trend could be continued then investing in Deuce Drone stock could be an alternative to high-growth stocks.
How to Invest in Deuce Drone Stock
You can invest in Deuce Drone stock on Netcapital with only a $1 minimum investment, and the total raised as of Aug. 10 is $220,106 has an estimated valuation of $11,685,429.
In conclusion, there is a high risk of investing in private companies, and these risks are not suitable for all investors. The Deuce Drone company can offer exposure to the high growth of drone business, e-commerce business, and the technology sector. The market opportunity is big and competitive pricing for the services of drone delivery could work well for gaining a market share in the highly competitive market of last-mile delivery. Considering all risks about private investing first, Deuce Drone seems an interesting investment to consider seeking alternative startups and high growth companies.
As of this writing, Stavros Georgiadis, CFA did not hold a position in any of the aforementioned securities.
Investing through equity and real estate crowdfunding or asset tokenization requires a high degree of risk tolerance. Despite what individual companies may promise, there’s always the chance of losing a portion, or the entirety, of your investment. These risks include:
1) Greater chance of failure
2) Risk of fraudulent activity
3) Lack of liquidity
4) Economic downturns
5) Dearth of investor education
Read more: Private Investing Risks
