The increasing demand for online on-demand transportation services has been a major factor in the market's expansion. However, adherence to legal requirements could impede market expansion. The existence of numerous providers has led to the fragmentation of the worldwide ride-hailing services market.
Covid-19 Impact & Market Status
The market for ride-hailing services has been severely damaged by the COVID-19 outbreak. The number of people using these services has decreased as a result of the lockdown that has been enforced by many governments throughout the world. This is because people are choosing private vehicles over public transportation to limit their exposure to the virus. The demand for these services has also decreased as a result of the slowdown in economic activity. However, the market is anticipated to rebound in the upcoming months, thanks to the gradual lowering of limitations and the gradual return of individuals to work.
Economy Type to Emerge as the Most Lucrative Segment
Within the vehicle type segment from 2019 to 2029, the economical category had the biggest market share. This was because more vehicles are operating in this category than in the executive and luxury categories. Due to the high number of consumers who pick ride-hailing services for short- to medium-distance travel, economy cars are the preferred low-cost option.
The daily/weekly category Field to Remain Atop
In the ride-hailing market's commuting pattern segment, the daily/weekly category will grow at the greatest CAGR from 2019 to 2029. This is attributable to the numerous partnerships that ride-hailing companies have established with commercial enterprises to offer shared mobility to the latter's personnel.
Personal category to Ensure Revenue Maximization
In the past, the personal category of the end user segment held a bigger market share because these services are primarily used for personal errands. Personal usage typically involves going to work, doing groceries, and going to specified places like airports and train stations.
Asia Pacific Region to Render Ample Investment Avenues
Due to its fast urbanisation and significant automotive sector dominance, Asia Pacific currently controls the majority of the worldwide ride-hailing business. During the projection period, the number of automobile manufacturing industries is expected to rise in growing nations like China and India. The existence of companies that offer ride-hailing services contributes to the market's expansion in this area. Additionally, the market is projected to be driven by the region's high passenger car production rate and the automotive industry's swift global expansion in nations like South Korea, China, and India. The market in this region is expected to be driven by rising per capita income, increasing internet penetration, and expanding smartphone usage.
A significant market trend is the growing use of electric cars (EVs) in ride-hailing services. Governments all over the world are enacting laws and policies to promote the use of these cars in service providers' fleets. The adoption of EV fleets for ride-hailing services is another priority for automakers.
Utilizing online services like Grab, Lyft, Uber, and Ola, passengers can request a ride using these services. . Additionally, information about the passenger and the driver is communicated when a ride is requested, making this service safer than conventional taxi services.
The surge in demand for on-demand transportation services, the emergence of job opportunities, and millennials' low percentage of automobile ownership are driving factors in the expansion of the worldwide ride-hailing service market. Additionally, technological developments in connected and autonomous vehicles that cut CO2 emissions and a significant uptick in sales of these vehicles for use with ride-hailing services drive the expansion of the global industry.
By 2029, the industry for ride-hailing services is anticipated to be worth USD 211.3 billion. During the anticipated period, the market is anticipated to expand at a CAGR of 10.8%. The rise in urbanisation and the desire for on-demand transportation are both factors contributing to the market's expansion. Additionally, the availability of reasonably priced ride-hailing services and the expanding use of smartphones and mobile applications are anticipated to fuel market expansion.
The development of on-demand transportation services, the creation of job possibilities, and the declining percentage of automobile ownership among millennials are the main drivers of the growth of the worldwide ride-hailing service sector. However, one of the main restraints on this industry is the low rate of internet penetration in emerging countries and the strict government regulations for ride-hailing services. On the other hand, due to the growing trend of mobility-as-a-service and the rise in users for ride-sharing around the world, the market is anticipated to experience considerable growth shortly. During the projection period, it is expected that each of these variables would significantly affect the market for ride-hailing services worldwide
The leading companies in the world's ride-hailing services market are Beijing Xiaoju Technology Ltd, BMW, Carshare Australia Pty, Cityhop, Communauto, Grab Holdings, Lyft Inc, Orix Corp, Uber Technologies, and Zipcar Inc. The ride-hailing services business is a quickly expanding sector, and it is known to be dominated by both aggressive new competitors and long-established worldwide behemoths in local and regional marketplaces. Amidst the effects of Covid-19, recognised industry companies are also revealing new product portfolios and technological developments for market fortification.
Recent Development in the Global Ride-Hailing Services Market
- In December 2021, Uber unveiled a new ride-booking technology. With this functionality, customers may use the WhatsApp chatbot to plan an Uber ride. For managing user registration, arranging a ride, and receiving a trip receipt, the WhatsApp chat interface will be helpful.
- Argo and Ford decided to introduce self-driving cars to Lyft's ride-hailing service in July 2021. Almost 1,000 self-driving cars will be introduced to Lyft's ride-hailing network over the course of the next five years by Argo AI, an autonomous vehicle technology startup, Ford, the company's sponsor, and a variety of other sites. On the Lyft app in Miami, Ford's first driverless vehicle incorporating Argo's autonomous vehicle technology will be easily accessible.
Ride Hailing Services Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2029||USD 211.3 billion.|
|Growth Rate||CAGR of 10.8% during 2021-2029|
|Segment Covered||Vehicle Type, Commuting Pattern, End-user, Regions|
|Regions Covered||North America, Europe, Asia Pacific, Middle East and Africa, South America|
|Key Players Profiled||Beijing Xiaoju Technology Ltd, BMW, Carshare Australia Pty, Cityhop, Communauto, Grab Holdings, Lyft Inc, Orix Corp, Uber Technologies, and Zipcar Inc.|
Key Segments of the Global Ride-Hailing Services Market
Vehicle Type Overview, 2019-2029 (USD Billion)
Commuting Pattern Overview, 2019-2029 (USD Billion)
End User Overview, 2019-2029 (USD Billion)
Regional Overview, 2019-2029 (USD Billion)
- Rest of Europe
- Rest of Asia Pacific
- Rest of South America
Middle East and South Africa