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If you live in San Francisco, Baltimore, or Austin, you've already seen them popping up all over town.
Shareable scooters are popping up all over major American cities as this new transportation sector disrupts everything from buses to Uber. But it might be an even bigger deal for investors…
The global electric scooter industry will be worth $22 billion by 2024, and that has investors salivating over the prospects of getting in early on scooter startups like Bird and Lime.
While these companies are still private, we've uncovered a "backdoor" investment play in the booming market: Alphabet Inc. (Nasdaq: GOOGL).
On July 9, GV, Alphabet's venture capital division, led a $335 million funding round for Lime.
Google's parent company is always looking for the next big thing, with investments in everything from companies trying to "cure death," to drone delivery services.
Now, I know what you're thinking…
GOOGL stock seems "expensive" at $1,245 per share.
But investments in startups like Lime means the Alphabet stock price is actually on sale compared to where it could be trading in the next few years.
Why Electric Scooters Will Send the GOOGL Stock Price Higher
If it seems like electric scooters came out of nowhere, it's because they did. Bird and Lime were both founded in 2017.
But each company is now valued at $1 billion.
Users can rent the scooters through an app, and they can leave the scooters at their destinations for the next user to find. During the night, individuals are paid to pick up the scooters and leave them in highly trafficked areas for the morning.
And early-stage investments like this can send the GOOGL stock price higher.
Yes, electric scooters themselves could make Alphabet money, but the bigger picture is they could lead to billions in revenue thanks to the data that can be collected from Lime.
Alphabet can utilize Lime's data for its mapping systems and alternative transportation startups. Thanks to Lime, Google will know how long people use electric scooters, where they take them, and the daily, weekly, and monthly usage of customers.
And gathering data is how Google was able to make nearly $100 billion in advertising revenue last year.
The data from Lime could provide vital information for Sidewalk Labs, which is part of Alphabet's investment portfolio. The New York–based company wants to reinvent cities through technology to improve quality of life.
A major focus is mobility, with the goal to improve the convenience of transportation, reduce costs, and enhance safety.
Sidewalk's website says that could be through self-driving technology, but it could also include electric scooters now that Alphabet is invested in Lime.
And this isn't just a far-fetched plan to build a super city…
The city of Toronto is currently working with Sidewalk to bring innovations to a new neighborhood called Quayside. From there, executives will use what they learned to work on an 800-acre area in Canada.
Meet Sidewalk Toronto
It's hard to estimate how much revenue this could generate for Alphabet, but the U.S. federal government spends nearly $500 billion on contracts for goods and services each year. With U.S. President Donald Trump promising to upgrade infrastructure across the country, Google could start winning more of that $500 billion federal contract pool with the knowledge it gains.
Billions Are Now in Play: Millions of Americans could collect "Federal Rent Checks" – to learn how to claim your portion of an $11.1 billion money pool using this backdoor investment, click here now…
"Google will be gaining insights about urban life – including energy use, transit effectiveness, climate mitigation strategies, and social service delivery patterns – that it will then be able to resell to cities around the world," Wired.com said in a January report.
While shareholders wait to see investments like Lime pay off for the long term, they can also make a profit in the next 12 months.
Susquehanna Financial Group projects the GOOGL stock price will trade for $1,500 in the next year, a 20.47% climb from today's (July 30) price of $1,245.05.
But that might be too conservative of a prediction for an innovator like Google.
"Alphabet is well on its way to yielding quadruple-digit profits – the kind of investment you can use to put a down payment on a sailboat or the European vacation you've always wanted to take," Money Morning Defense and Tech Specialist Michael Robinson said in 2017.
Investing in GOOGL is a great long-term play, but it isn't the only way to make enough money to live the life of your dreams.
We also wanted to share how to access all the details about how millions of Americans are now entitled to collect "Federal Rent Checks."