Changes are happening - please bear with us while we update our site.

Changes are happening - please bear with us while we update our site.

What is the Airtasker (ASX:ART) share price growth potential?

Excitement over the Airtasker (ASX: ART) listing has died down. So, how would you go about measuring Airtasker's future growth potential?

The euphoria over the Airtasker Ltd (ASX: ART) listing seems to have dropped off as its share price hovers around the $1.45 mark. So, how would you go about measuring Airtasker’s future growth potential?

One key factor I would dive into is Airtasker’s competitors.

ART share price

Source: Rask Media ART share price chart

Who is Airtasker up against?

It seems like Airtasker is striving to become the Amazon of the online labour marketplace as it services all possible categories. In Australia, Airtasker’s main competitors are Freelancer Ltd (ASX: FLN), Upwork Inc, and Fiverr International Ltd.

These three players have a strong global presence but what makes Airtasker different?

Limitless categories

Airtasker’s categories know no boundaries as users can even request a ‘tasker’ to help remove spiders or plan a romantic evening. That’s right, if you don’t have the time and effort to do something, a ‘tasker’ can help you do it.

The aforementioned three big players are focused on providing remote services; clerical and data entry, creative and multimedia, writing and translation, professionals services, and sales and marketing. On top of remote services, Airtasker also provides local services such as home repair and domestic services etc.

According to a report on digital platform work in Australia prepared by the Victorian Department of Premier and Cabinet in 2019, Airtasker was the most commonly used platform by platform workers in the previous 12 months.

The report notes 34.8% of platform workers had used Airtasker, 11.8% for Freelancer, Upwork accounted for 6.2% and Fiverr came in at 6.0%.

This is an impressive number given that Airtasker’s fellow Aussie listed competitor, Freelancer has been around since 2013.

Revenue model

Airtasker and US-based competitor, TaskRabbit, are the only online labour marketplaces that offer local services through a service fee/commission revenue model. The revenue model and type of service provided for the competitive landscape is shown below.

Source: ART prospectus

As you can see, there are a lot of competitors in the digital platform space but Airtasker’s key differentiators lie in its limitless categories and revenue model for local services.

Airtasker to reach greater heights?

Users tend to gravitate towards marketplaces with the biggest number of providers. So in Airtasker’s case, I think it’s important to monitor the number of ‘taskers’, which will likely drive the number of users.

If Airtasker can continue to attract more platform workers and scale across more global markets, this could enable Airtasker to pass on potential cost savings to users and ‘taskers’.

It seems Aussie platform workers prefer Airtasker’s revenue model and platform, which is encouraging to see. However, replicating this success in overseas markets is a different kettle of fish.

In saying this, Airtasker is capitalising on untapped categories, which could become a key competitive advantage.

Investors should also consider the loophole in Airtasker’s business model outlined by my colleague, Patrick Melville. Also, you can read more about Airtasker’s brand and some data points to monitor in my article last week.

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

At the time of publishing, the author of this article does not have a financial or commercial interest in any of the companies mentioned.
Skip to content