Transportation is a business that no one can live without. The industry delivers our favorite consumer products and gets millions of people to work and school each day.
Transportation startups have taken on the challenge of adapting to the increased demand of delivery speed and consumer control. You can get in at the beginning. Learn how to invest in transportation startups now.
Why You Should Invest in Transportation Startups
Five years ago, Flock Freight was a startup with a mission to disrupt the shipping business by offering more efficient routes, reducing the environmental impact associated with shipping and offering shared shipping for multiple suppliers with goods heading in the same direction. Today it’s worth nearly $400 million. By some estimates, the U.S. trucking industry alone is worth over $700 billion.
The industry is being forced to take on new challenges with climate change and workforce and border issues that come along with the pandemic. Transportation companies must answer questions kike:
- How can we limit environmental impact while delivering the same amount of goods?
- How effectively can we incorporate new technology like blockchains?
- How can we deliver more people on public transit without leaving a larger carbon footprint?
- Is there a way to move more products for less money?
With at least $700 billion worth of goods and $60 billion worth of people moving every year, there are startups working on the answers to these questions. It’s worth a second look at transportation startups to invest in the next big solution.
Where to Find Transportation Startups to Invest In
You can certainly look to Wall Street and buy stock in transportation companies after they go public, but taking this approach will probably entail higher buy-ins than finding companies in the startup stage.
If you really want to make money on a startup, you need to be involved before the IPO. Right now, the best place to find those kinds of opportunities is on equity crowdfunding platforms like StartEngine.
These crowdfunding investment options feature companies like Jetopera, a flying car startup, that offers short-range, private air travel. It offers options to turn the 2-hour drive from LAX to Orange County at rush hour into a 25-minute flight.
If traveling the friendly skies in a flying car seems a little far-fetched for you, perhaps your own pre-programmed, automated mini-car that does the driving while you relax is more your speed. This is exactly what Next Future, a current StartEngine offering, seeks to provide.
These are just a few examples of the kinds of exciting transportation startups you can invest in right now on equity crowdfunding platforms.
How to Choose Which Transportation Startup to Invest In
Investing is never easy and always carries risk of loss. You can minimize your risk by looking at transportation startups that provide support for the transportation industry. These might include artificial intelligence (AI) that enhances smart transportation like blockchains or tracking companies.
The other key here is diversification. Startup companies of any kind are too risky to place a single investment. The advantage of some of the equity crowdfunding offerings is that they have manageable buy-ins that will allow you to place a number of different bets on several startups.
Choosing to invest in a venture capital or private equity fund that focuses on transportation, or has transportation startups as part of its portfolio, is another approach you can take to investing in startups. If you’re an accredited investor, this route may be a bit easier for you to take.
Invest in Transportation Today
Our need for transportation will always exist. But how we, or the goods we desire, get from place to place will evolve.
As the global economy expands, so will opportunities in transportation startups. Get in early with a solid investment to grow along with the industry.
Frequently Asked Questions
Is transport a good investment?
Transportation is a good investment for people who are okay with cyclical returns. That’s because transportation is good during good times and falls during challenging economic times.
How can I invest in transportation?
You can invest in transportation by purchasing stocks or exchange-traded funds (EFTs).
What stock sector is transportation?
According to the Global Industry Classification Standard, transportation is part of the industrials sector.
About Eric McConnell
Eric McConnell is an alternative investment writer interested in rare collectibles, fine wines, art and sports memorabilia. He developed his love for sports during his childhood, where in addition to being an aspiring professional baseball player, he was an avid baseball card collector and reader of the Robb Report.
As is the case for many aspiring young sluggers, Eric’s baseball career came to an end the first time he encountered a pitcher capable of throwing 90 mph and a wicked curveball. However, his delight in the finer things of life never waned, and after a career in real estate, Eric branched out into writing, where he joined Benzinga as an alternative investment writer in 2021.
Although he covers breaking news in all areas of alternative investments, Eric’s favorite subjects harken back to his childhood days of reading the Robb Report and collecting baseball cards. He has a passion for writing about fine art sales, whiskey auctions and sports memorabilia.