Major players in the ride-hailing market are Uber Technologies Inc., Grab, ANI Technologies Pvt. Ltd., Gett Inc., Lyft Inc., DiDi Chuxing, Delphi Automotive, Daimler AG., BlaBlaCar, and Didi Chuxing Technology Co.
The global ride-hailing market is expected to decline from USD 60.5 billion in 2019 and to USD 52.07 billion in 2020 at a compound annual growth rate (CAGR) of -13.88%. The decline is mainly due to the COVID-19 outbreak, extending lockdown across countries, and the measures to contain it. The market is then expected to recover and reach USD 85.48 billion in 2023 at a CAGR of 17.97%.
The ride-hailing market consists of revenue generated by ride-hailing used for passenger transportation service in which the passengers are connected with the vehicle drivers through a smartphone-based app. The industry comprises establishments primarily engaged in providing passenger transportation by automobile or van, not operated over regular routes and on regular schedules. Establishments of taxicab owners/operators, taxicab fleet operators, or taxicab organizations are included in this industry.
North America was the largest region in the Ride-hailing market in 2019. Asia Pacific is expected to be the fastest-growing region in the forecast period.
Ride-hailing services have been advancing in the past few years by delivering innovative facilities to riders all over the world. Using a ride-hailing app on an Android device has now become very common. For instance, Uber is a ride-hailing app from which we can request a women driver. This feature is mainly implemented to focus on the safety of a woman which helps to stay protected with a verified profile of a woman driver before committing the journey. A major initiative is promoted by Safr, which permits the female passengers to select the gender of the driver, offers complete details about the driver’s training. Similarly, HopSkipDrive is another ride-hailing app that gives safe and smarter transportation solutions to children by employing professional care drivers who have a minimum of 5year experience in caregiving.
The ride-hailing market covered in this report is segmented by vehicle type into two-wheeler, three-wheeler, four-wheeler, others. It is also segmented by end-user into commercial, personal, and by service type into e-hailing, car sharing, station-based mobility, car rental.
Ride-hailing service providers need to follow several state and central laws for uninterrupted services. For instance, in the U.S, driver-related regulations include requirements for background checks, driver’s licenses, vehicle registrations, special licenses such as business licenses, and external vehicle displays. While, the company-related regulations include requirements for the number of ride-hailing vehicles operating in a metropolitan area, providing a list of drivers to the city, and sharing trip data with the city. In some countries, fingerprint-based background checks are mandatory. This is because of the reported incidents of sexual assault and violence. In February 2020, a report from the Union of Concerned Scientists shows that the average U.S. ride-hailing trip results in 69% more pollution than the transportation choices it displaces, based on federal vehicle efficiency statistics. The environmental concern has enforced certain regulations on pollution control. Therefore, more restrict regulations are coming into force, and compliance with these government regulations may act as a restraining factor to the ride-hailing service market growth.
In March 2019, Uber is an American multinational ride-hailing company that acquired Careem for USD 3.1 billion amount. This provides an opportunity for both companies to rapidly expand and capitalize on the region’s underpenetrated mobility opportunity and the growing digital economy. The transaction would be the largest-ever technology industry transaction in the greater Middle East region. Careem is the internet platform for the greater Middle East region. A pioneer of the region’s ride-hailing economy, Careem is expanding services across its platform to include mass transportation, delivery, and payments.
On-demand transportation services and a lower rate of car ownership among millennials are driving the growth of the ride-hailing market. On-demand transportation services are characterized by flexible routing and ad-hoc scheduling of private vehicles offering personal transport experience to the general public by picking or dropping at locations of passenger’s choice. On-demand ride-hailing services ensure that customers can accurately locate the vehicles, track their journey, and offer safety to the occupants, and this factor is expected to significantly drive the market growth. Additionally, a lower rate of car ownership among millennials due to the high maintenance cost of personal cars is resulting in the rise in demand for ride-hailing services. The millennials are choosing practical, smartphone accessible transport options that are simple, flexible, and inexpensive over car ownership. Also, buying a new car and maintaining it is costlier than renting a vehicle every year. Thus, gradual penetration of such car ownership (car rentals) is estimated to fuel its demand across the globe in the coming years. Hence, on-demand transportation services and a lower rate of car ownership among millennials drive the growth of the ride-hailing market.
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