Jayride’s Bookings Drop 37% as API Pilot Hits 29% of Volume

Quarterly Performance and Operational Challenges

Jayride Group Limited (ASX: JAY), the global online marketplace for airport transfers, released its December quarter results revealing a significant drop in trips booked to 79,500, down from 125,300 in the prior quarter. Despite a resilient demand signal measured by quote requests, cancellations and supplier constraints have weighed heavily on contribution per trip, which declined to $2.96 from $4.79 in Q1 FY25.

The company’s booked revenue per trip increased modestly to $10.91, but this was offset by rising cancellations and variable costs, leading to a contribution margin contraction from 54% to 36%. Jayride attributes these operational headwinds primarily to capital constraints impacting supplier payment terms and inventory availability.

API Integration Pilot Shows Promise Amid Supply Strains

Jayride’s strategic pivot towards automation and API integrations continues to gain traction. A pilot program involving just three suppliers accounted for up to 29% of total booked volume during a peak week, spanning 74 countries. The company plans to expand this initiative aggressively, targeting 25 new API-connected supply partners to handle 50% of bookings by the end of FY25 and 85% by calendar year-end.

This technology-driven approach aims to lower costs, improve price competitiveness, and unlock “anywhere-to-anywhere” booking capabilities, positioning Jayride to better compete with larger travel platforms seeking integrated transfer solutions.

Capital Preservation and Financing Efforts

Jayride’s cautious cash management has limited net cash outflow to $199,000 in Q2, an improvement over the previous quarter’s $238,000. However, this has come at the expense of a worsening net current asset deficit, which grew to $5.1 million from $3.8 million. The extended payment terms have strained supplier relationships, reducing the average number of suppliers per quote from 11.7 to 7.9.

To address these challenges, Jayride is preparing an entitlement offer backed by discussions with potential lead underwriters. The proceeds are intended to fund a $2 million operational cash burn reduction program, including headcount cuts and further automation, as well as to restore supplier payment terms and inventory levels.

Outlook and Strategic Priorities

Executive Chairman Rod Cuthbert emphasised the company’s focus on stabilising supplier networks, scaling API integrations, and pursuing strategic financing and M&A opportunities. He highlighted the strong underlying demand and the significant market opportunity as major travel players seek partners to deliver comprehensive airport transfer solutions without building their own networks.

While the current quarter’s results reflect seasonality and supply-side disruptions, Jayride remains optimistic that improved liquidity and technology investments will drive a recovery in booking volumes and profitability.