RIDE-HAILING MARKET ANALYSIS

The global ride-hailing market size was valued at USD 151,600.0 million in 2021 and is anticipated to witness a compound annual growth rate (CAGR) of 19.0% from 2022 to 2030. Increasing urban population growth and increased traffic congestion are driving ride-hailing service demand. Ride hailing services are expected to continue gaining traction worldwide. However, ride-hailing companies are also working to reduce their overall carbon emissions. Ride-hailing services are expected to grow at a fast pace in North America.  Increasing numbers of travel network companies in North America are expected to propel ride-hailing service growth. The presence of information technology and early adoption of cab services are also accelerating ride-hailing service growth in this region.

Global Ride-Hailing Market: Regional Insights

The global ride-hailing market is regionally segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

North America among regions is expected to dominate the global ride-hailing market over the forecast period. This is owing to strong presence of major ride-hailing companies in the United States. Companies such as Lyft, Uber, and Curb among several others are based in the U.S. and are the reason of disrupted mobility in the country. The number of individuals with primary job of a taxi driver or chauffeur, which includes driving for ride-hailing companies such as Lyft and Uber has increased significantly in the last decade. Thus, the region is expected to witness substantial growth in the market in the coming future.

Moreover, Asia Pacific is also anticipated to witness significant growth in the global ride-hailing market over the forecast period. India is likely to dominate the market in the region, as the country is one of the highest population countries in the world. Most of the people in this country use auto-rickshaws (local three-wheeler taxis) and cabs for short distance commute. Thus, the increasing population in cities such as Beijing, Bangalore, Delhi, Shanghai, Tokyo, and Mumbai in Asia Pacific region is boosting the need for ride-hailing services. This in turn is driving growth of the market across the region.

Figure 1. Global Ride-Hailing Market Share (%), by Region, 2021

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Global Ride-Hailing Market Drivers:

Increasing growth of internet economy is expected to propel growth of the global ride-hailing market during the forecast period. After the Covid-19 outbreak, digitalization accelerated globally. Access to mobile internet has also increased in recent times. Moreover, the demand from e-commerce industry for internet economy has increased significantly. For instance, according to the Coherent Market Insights, in 2019, the ride-hailing market accounted for US$ 1 billion in the internet economy of Vietnam. Thus, growing internet economy is expected to boost the market growth in the coming future.

Rise in demand for ride-hailing services is anticipated to augment growth of the global ride-hailing market over the forecast period. Ride-hailing service are likely to replace traditional taxi services in the near future. As per some surveys, the number of ride-hailing trips occurring every day is 15 million and this number is expected to grow to 100 million by 2030. Moreover, in December 2020, the top court of EU ruled that ride-hailing apps putting passengers directly in touch with taxi drivers without providing an important part of the transport service are online platform. This can further create great opportunities for ride-hailing platforms. And thus, the market will witness significant growth in the upcoming years.

Global Ride-Hailing Market Opportunities:

Convenience and user-friendliness of these services leading to increasing demand is creating several growth opportunities in the global ride-hailing market over the forecast period. Ride hailing and car-sharing that are enabled digitally are capable of efficiently managing demands of transportation and also can offer environmentally-friendly and convenient rides. All this can be handled via a smartphone application. This in turn is expected to create growth opportunities in the global ride-hailing market in the near future.

Moreover, increasing government initiatives around the world towards ride-hailing services is expected to offer several growth opportunities in the global ride-hailing market over the forecast period. the ride-hailing services need large workforce of drivers who are trained and due to this, governments several emerging countries including India and China are supporting the industry through various initiatives. Thus, the market is likely to witness various growth opportunities in the forecast future.

Global Ride-Hailing Market Trends:

Increasing emergence of electric vehicles in ride-hailing is a growing trend in the global ride-hailing market over the forecast period. As per the European Federation for Transport and Environment, the replacement of a conventional ride-hailing vehicle with an EV can offer three times more environmental benefits along with reduction of emission. The study from the same source exhibited that EVs are less expensive to run for Uber drivers in several cities across Europe. Medium-sized battery EVs are cheaper to run by 14% than traditional diesel cars in cities various cities in the region. Thus, this trend is likely to grow in the market.

Furthermore, demand for on-demand transport services is a growing trend in the global ride-hailing market. The on-demand transport services include passenger vehicles and taxies that offer a complete real-time feedback of the vehicle and the driver. Moreover, this service also offers advanced features such as accurate tracking of the location and SOS/panic buttons that gives safety to the passengers. Thus, rise in demand for such on-demand transport services will continue to grow in the future, which is expected to fuel the market growth.

Global Ride-Hailing Market Restraints:

Growing issues of traffic are projected to obstruct growth of the global ride-hailing market over the forecast period. The rise in technological developments has been revolutionizing transportation all over the world. However, with increasing number of cars on the road due to ride-hailing services, traffic problems are growing in countries such as Kenya and Egypt. This has highlighted the disruption occurring due to ride-hailing in emerging markets and has created the need for alternative solutions. Thus, this factor is expected to hinder the market growth in the future.

Moreover, unfavorable conditions arising due to the coronavirus outbreak is expected to obstruct growth of the global ride-hailing market over the forecast period. The virus outbreak had disrupted several industries including transportation and travel. Governments of several countries imposed countrywide lockdowns and under these lockdown regulations transportation and traveling was suspended in many regions. Thus, demand for ride-hailing was significantly impacted by the pandemic, which in turn hindered growth of the market.

Figure 2. Global Ride-Hailing Market Share (%), by Segment Type, 2021

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Global Ride-Hailing Market Segmentation:

The global ride-hailing market report is segmented into Vehicle Type and Region.

Based on Vehicle Type, the market is segmented into Motorcycle and Cars. Out of which, Motorcycle is expected to dominate the global market over the forecast period and this is attributed to the increasing popularity of motorcycles in several regions across the world. The popularity of motorcycles along with electric motorcycles is growing all over the world due to various benefits offered by these vehicles. This is further supporting growth of the segment in the ride-hailing market.

Car segment is also expected to witness significant growth in the near future and this is owing to the increasing demand for car rental in public transportation that use taxi apps through phone. Moreover, presence of great number of car operators with availability of taxi cum car services around the globe is also driving growth of the segment in the ride-hailing market.

Global Ride-Hailing Market: Key Developments

In January 2020, (Didi Chuxing), Beiging Xiaoju Technology Co. Ltd. announced the launch of first ever shared electric vehicle fleet in Latin America through the company’s app in Mexico, as the company will be investing in sustainable transportation innovations in Latin America.

In October 2020, Grab Holdings Inc. collaborated with Marriott international in several segments of loyalty, food delivery, transportation, and payment services.

Global Ride-Hailing Market: Key Companies Insights

The global ride-hailing market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis.

Some of the key players in the global ride-hailing market are Yandex.Taxi LLC, Didi Chuxing Technology Co., Be Group JSC, Uber Technologies Inc., ZuumViet, Lyft Inc., FastGo Vietnam JSC, Grab Holdings Inc., ANI Technologies Pvt. Ltd., Free now (Daimler), and BlaBla Car.

*Definition:

Ride hailing is an alternative to taxi services. Riders do not pay the driver for a ride however rather are charged a fee by the ride hailing service. Riders can book rides online or on the road. The ride hailing service sends the driver a message with the rider's location. The driver then decides whether to accept the ride or not. When the ride is booked, the rider's payment is automatically charged to their credit card.