The Global Ride-Hailing Market is estimated to account for US$ 151,600.0Mn in terms of value by the end of 2021. Ride hailing services are similar to taxi services in many ways. However, they also differ in other aspects. For example, ride hailing services have been associated with a spike in taxi driver suicides in New York City. Similarly, ride hailing has been blamed for reducing the number of available fares. This has also been blamed for the loss of parking spaces, which leads to increased traffic congestion. However, ride hailing services claim that the independent contractor relationship is the key to their commercial viability.
Global Ride-Hailing Market: Drivers
Rising cost of vehicle ownership is expected to boost growth of the global ride-hailing market over the forecast period. Owing a vehicle cumulates several factors such as fuel, finance, taxes/registration, maintenance, depreciation, maintenance and repair. The cost of vehicle ownerships continues to increase each year. As per the American Automobile Association, the cost of depreciation accounts for nearly 43% of the ownership price and other costs such as fuel and maintenance costs account for 25% together. Thus, these factors are expected to boost the demand for ride-hailing, which in turn is expected to augment growth of the market.
Global Ride-Hailing Market: Opportunities
Growing development in IT and smartphones is creating multiple growth opportunities in the global ride-hailing market. Increase in the development of information technology and smartphones has changed the travel and transportation industries significantly. Ride-hailing services need three parties for operation, which are service provider, driver, and passenger. It requires apps and online platforms for booking the ride, which helps the passenger to connect to the driver. Thus, this factor is likely to create a lucrative environment for growth opportunities in the global ride-hailing market over the forecast period.
Global Ride-Hailing Market: Restraints
Differing policies of transportation in various countries along with resistance from conventional transport services is also expected to limit growth of the global ride-hailing market during the forecast period. Several countries have not regulated a legal authority to app-based mobility services. Thus, their operations do not come under government regulations. As the taxi services need separate registration and licenses, the difficulties for app-based taxi services have increased. This is due to many of the companies do not own the vehicles. Thus, these factors are also hampering growth of the global ride-hailing market.
Global Ride-Hailing Market - Impact of Coronavirus (Covid-19) Pandemic:
The epidemic of Covid-19 negatively impacted the global ride-hailing market. The pandemic spread across several countries around the world, due to which many countries announced preventative measures. In many of the countries traveling was banned during the pandemic, in order to control spread of the coronavirus. Moreover, automotive industry was also disrupted during the pandemic. Due to all these reasons, the global ride-hailing market was negatively impacted by the pandemic.
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Key Takeaways:
The global ride-hailing market was valued at US$ 151,600.0 Mn in 2021 and is forecast to reach a value of US$ 703,819.7 Mn by 2030 at a CAGR of 19.0% between 2021 and 2030.
Among the vehicle type car segment held dominant position in the global ride-hailing market in 2021, accounting for 73.0% share in terms of value, increasing approval and launch of new products is expected to propel growth of the segment during the forecast period.
Global Ride-Hailing Market Trends:
Major players in ride-haling are focused on reducing the carbon emissions and eliminating tailpipe emissions by converting traditional ride-hailing vehicles to electric vehicles. This trend is expected to augment the global ride-hailing market over the forecast period. For instance, in June 2020, Lyft entered into collaboration with Environmental Defense Fund to reach 100% EVs on the platform of the company by 2030. Thus, this will continue in the market over the forecast period
Moreover, market players are adopting new technologies such as intelligent transportation, which is projected to fuel growth of the global ride-hailing market over the forecast period. For instance, in April 2020, Shouqi Limousine and Chauffeur and Alibaba Cloud cooperated to leverage innovation advantages for building a new industry ecosystem of 5G Internet of Vehicle. This project between the two companies has begun the exploration of edge computing and 5G for online mobile services of ride-hailing.
Global Ride-Hailing Market: Competitive Landscape
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
Global Ride-Hailing Market: Recent Developments
In January 2020, Ola announced the launch of its services in London. The company revealed that it has nearly 25,000 drivers registered on its platform. Moreover, Ola and DriveTEch, Mercer and Pearson entered into partnership for ensuring the high standards of driving skills, communications and driver customer services of the Ola riders.
In January 2021, Uber Technologies Inc. and EVgo announced partnership for providing EV charging discount to the drivers for nearly 800+ cities in the U.S.
