RIDE-HAILING MARKET ANALYSIS

Market Size and Trends

Global ride-hailing market is estimated to be valued at USD 160.09 Bn in 2024, and is expected to reach USD 384.56 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 13.3% from 2024 to 2031.

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The demand for ride-hailing services is growing steadily across major cities and urban areas globally. Traditionally dominated by competition between Uber and Lyft, the market saw new players like Ola and Grab capturing significant market share in India and Southeast Asia respectively over the last few years. As more shared mobility options like bikes, scooters and shuttles become integrated within major ride-hailing apps, consumers are gravitating towards multiple mobility services through a single platform for their daily commute and transportation needs. The market trend signifies increased preference for convenient, affordable and sustainable on-demand transportation among urban populations worldwide.

Growing Demand for Convenient Transportation

The rapid urbanization and busier lifestyles of people living in cities has boosted demand for convenient transportation options. As traffic jams get worse and dealing with owning and parking your own car becomes more of a hassle, many people are turning to ride-hailing services as an attractive alternative. Ride-hailing provides the flexibility and ease of having a car available on-demand without the responsibilities and costs associated with ownership. People can hail a ride from their phone in just a few taps and get door-to-door transportation without worrying about traffic or finding parking. This saves users a considerable amount of time and stress compared to other modes of transportation like public transit which often requires transfers or walking long distances.

Especially for short-distance trips within cities, ride-hailing has emerged as a very convenient solution. Users can book a ride for everything from getting to work or social activities to running errands around town. The services are also being used for airport trips instead of more expensive taxi or shuttle options. For folks who want to skip having a designated driver for their night out, ride-hailing offers a safe way to get home. As cities keep getting more crowded and busier, getting to work every day becomes tiring and there's less time to spare. That's why easy and fast transportation options are really attractive. Ride-hailing services are poised to benefit further from addressing this growing pain point of busy urban dwellers seeking convenience and flexibility on-the-go.

Market Concentration and Competitive Landscape

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The ride-hailing industry has benefitted tremendously from innovative new technologies that have helped connect drivers and riders in novel ways. Smartphone proliferation over the last decade has enabled the development of ubiquitous ride-hailing apps that make booking and paying for a ride entirely seamless through a mobile device. Integrated GPS and mapping technologies allow riders to easily track their vehicle en route as well as estimate accurate pickup times. Cashless payment options through digital wallets promote convenience while reducing security risks. Companies utilizes sophisticated algorithms and machine learning to optimize driver coverage across cities in real-time based on demand patterns. Dynamic pricing models also ensure sufficient supply is available at busy times.

New automotive technologies are starting to be leveraged as well. Some companies are piloting autonomous vehicle services for specific use cases to take advantage of recent advancements in self-driving capabilities.

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Increased regulations around driver background checks, vehicle inspections and licensure increases operation costs. Attracting and retaining drivers remain a hurdle as many seek more stable employment. Changing consumer preferences as pandemic restrictions lift also introduces uncertainty.

Market Opportunity: First and last mile connectivity

Rising middle class population  globally boosts demand for affordable mobility options. Furthermore, many cities still face traffic congestion issues, providing opportunities for these services to replace individual car ownership. Penetration remains relatively low in many developing markets, opening doors for players to tap new customer segments. Advancements in autonomous vehicles also present a chance for more efficient operations.

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In terms of offering, e-hailing segment is estimated to contribute the highest share of the market owing 45.3% in 2024 to the convenience and affordability it offers users. E-hailing allows users to book a ride with just a few taps on their smartphone, thus, eliminating the hassle of waiting by the roadside to flag a taxi. This on-demand model provides unprecedented convenience and accessibility to commuters. E-hailing is also relatively affordable as compared to other mobility options like owning a personal vehicle. With flexible payment methods, users can opt for the most cost-effective option based on their ride distances and frequencies. The transparent, upfront pricing without risks of unexpected charges further enhances the value proposition. E-hailing companies also run regular promotions and offer discounts to attract and retain price-sensitive users.

Insights, By Vehicle Type- Shared rides gaining popularity in Four Wheeler segment

In terms of vehicle type, four wheeler segment is estimated to contribute the highest share of the market owing 68.3% in 2024 due to growing acceptability of shared mobility. While solo rides still dominate the segment, shared rides wherein multiple co-travelers board the same vehicle are gaining traction. The option to share rides makes four wheeler transportation more affordable and eco-friendly. It allows better utilization of vehicle capacity. This promotes the concept of collaborative consumption in mobility. Ride-sharing platforms also run campaigns to encourage shared rides, Promising maximum cost-savings, our service ensures users save as much as possible. Plus, you can chat with other passengers through our app, which helps ease worries about privacy and safety during shared rides.

Insights, By End User- Integrations with Corporate Travel driving Business demand

In terms of end user, business segment is estimated to contribute the highest share of the market due to growing integrations between ride-hailing and corporate travel management. Many companies have started allowing employees to book official transportation via the same platforms it use privately. This brings in operational efficiency by streamlining disparate mobility spends onto a single interface. Ride-hailing providers have also integrated specialized solutions to cater to unique needs of businesses including centralized billing, custom-built reporting and analytics. This helps companies to optimize travel costs while ensuring policy compliance. Integrations with corporate booking tools and travel management systems are further boosting adoptions. Business users have emerged as a lucrative customer base driving maximum spends per ride.

Regional Insights

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North America continues to dominate the global ride-hailing market owing 37.4% in 2024, led primarily by the large and developed market in the U.S. The region is home to industry giants Uber and Lyft, who between them control a vast majority of the market share in the U.S. and Canada. Their early mover advantage and first-mover advantage have enabled them to establish a strong market position in North America over the past decade.

Another key factor contributing to North America's dominance is the high rates of smartphone penetration and internet usage. Nearly all citizens in countries like the U.S. and Canada are online and able to access ride-hailing services conveniently through their mobile devices. Moreover, North American customers have readily adopted new technologies and on-demand services, and this has  boosted demand for ride-hailing in the region. Last-mile connectivity is also well-developed here, facilitating reliable and seamless door-to-door services.

Sub-Saharan Africa has emerged as the fastest-growing regional market for ride-hailing. This growth can be attributed to a fast-growing population, rapid urbanization, and rising income levels. Many African cities are experiencing major infrastructure constraints with inadequate public transportation options. This has opened up opportunities for ride-hailing companies to provide alternative mobility solutions.

Ride-hailing companies like Bolt in South Africa and Ghana, and Little in Kenya, are boosting demand even more by adjusting their prices and services to fit local needs. They know what customers want better than big international companies, so they've customized their services to match. For many Africans, ride-hailing is the preferred choice of transportation given affordable rates compared to traditional taxi services. The availability of cash payment options has also helped boost ubiquity.

Market Report Scope

Key Developments

• On July 20, 2023, Grab Holdings Limited and Trans-cab Holdings Ltd acquired Trans-cab agreed that Grab Rentals Pte. Ltd. will buy all of Trans-cab's shares. Trans-cab Holdings Ltd is a taxi company in Singapore that is known for its good reputation and local presence. It has over 2,500 taxis and private-hire vehicles combined and will help Grab make more money.
• On August 16, 2022, Lyft, Inc. and Motional, a company known for driverless technology, launched a new robotaxi called the IONIQ 5 on the Lyft network in Las Vegas. This car drives itself and is designed for Lyft passengers to ride without a driver.
• In November 2023, Uber and the Transport Department of West Bengal, India, teamed up to start a new Uber Bus Shuttle Service in Kolkata from March 2024. This service aims to make public transport better and provide people more options for getting around easily. The shuttle will have 60 air-conditioned buses running on set routes that connect business areas with residential neighborhoods.
• In May 2023, Uber announced plans to bring in 25,000 electric cars with partners like Lithium, Everest, and Moove for India. It also want to introduce 10,000 electric scooters in Delhi by 2024 with Zypp Electric, another electric vehicle company. Uber is working with micro-lender SIDBI to give 10 billion INR (about USD 122.3 million) to help people buy clean cars and set up charging stations.

*Definition: The ride-hailing market consists of transportation network companies that connect passengers to drivers through mobile apps. Passengers can hail rides from their current location using a smartphone application. Drivers use a private vehicle, such as a car, to pick up unscheduled passengers. Prominent companies in this market include Uber, Lyft, and Ola which allow passengers to request a ride, track the driver's arrival in real-time, and pay electronically through the app.

Market Segmentation

• Offering Insights (Revenue, USD BN, 2019 - 2031)
  • E-hailing
  • Car Sharing
  • Rental
•  Vehicle Type Insights (Revenue, USD BN, 2019 - 2031)
  • Four Wheeler
  • Others (Two Wheeler, Three Wheeler)
•  End User Insights (Revenue, USD BN, 2019 - 2031)
  • Personal
  • Business
• Regional Insights (Revenue, USD BN, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East & Africa
    • GCC Countries
    • South Africa
    • Rest of Middle East & Africa
• Key Players
  • Uber
  • Didi Chuxing
  • Grab
  • Bolt
  • Lyft
  • Ola Cabs
  • Taxi
  • Careem
  • Gojek
  • 99
  • Bitaksi
  • Cabify
  • FreeNow
  • Ola Electric
  • InDriver
  • DiDi Mobility
  • Ruta 66
  • Beat
  • ViaVan
  • Swvl