Ride Hailing Services Market (2022 - 2030)

Ride Hailing Services Market Summary

These providers' major aims are to lower emissions, automobile journeys, and congestion. The market suffered greatly during the COVID-19 pandemic due to the worldwide lockdowns that were imposed to curb the virus' spread. The ridesharing sector was restored by using measures including creating barriers between the driver and passenger, stocking the car with sanitizers, and installing digital thermometers to gauge passengers' body temperatures in order to reduce the risk of virus infection.

The prospect of self-driving cars, which are anticipated to dramatically lower the cost of ride-hailing services, has led to the rise in the concept of mobility-as-a-service (MaaS). Furthermore, banks and lenders have lowered their interest rates to make it simpler and less expensive to finance the purchase of an automobile. Employing fleets of automated vehicles help businesses to innovate their services by enhancing passenger comfort and safety.

The rising population has led to problems such as increased traffic congestion, lack of appropriate public transportation modes, and longer wait times for public transportation services. As a result, the demand for ride hailing services is attracting more travelers as it provides faster services and offers on-demand services. Increased fuel prices, increased vehicle maintenance, and the adoption of strict emission norms effectively make ride hailing less expensive than owning a vehicle. This is expected to drive market growth during the forecast period.

The growth is attributed to the user-friendliness and convenience these services offer. Digitally enabled car-sharing and ride hailing efficiently manage transport demands as well as provide convenient and environmentally friendly rides. This is handled through a single smartphone application, which is anticipated to generate a lucrative opportunity for the market during the forecast period.

As the ride hailing services require a huge workforce of trained drivers, the industry is getting support from the governments of developing nations including China and India. Further, the companies coming up with service innovation for maximum comfort of commuters is expected to boost the market.

Offering Insights

The E-hailing market segment dominated the ride hailing services market with a share of 58.3% in 2021. The rapid adoption of smart phone devices such as smartphone, smart wearables, and the increasing use of the internet has attributed to the growth of E-hailing services. Increasing popularity of the transportation model and increasing use of app-based travel catapulted by the increasing affordability of the smartphone and internet services are driving the segmental growth over the forecast period.

The car rental market segment is predicted to have a CAGR of 16.6% over the forecast period. The growth is attributed to car rental plays important role in the public transportation which can be booked via phone as well as the taxi app. Additionally, large number of car operators coupled with the widespread availability of the taxi cum car services across the world is credited for the higher market share in the global ride-hailing and taxi market.

Regional Insights

North America dominated the ride hailing services market with a share of 35.5% in 2021. In U.S., the ride hailing service providers generate the lion share of their gross income from trip bookings in large metropolitan areas, including trips to and from airports. Uber, a global market leader in ride-hailing service, complete 14 million individual trips per day in the US (65% of the total market share).

Asia Pacific is expected to witness a CAGR of 16.7% from 2022 to 2030. The growing population of cities such as Delhi, Bangalore, Mumbai, Beijing, Shanghai, and Tokyo among others is driving the need for these services. Moreover, companies in these regions are finding immense support from the regional or provincial governments of the countries including India, Bangladesh, China, Japan, and Sri Lanka. The developing economy, increasing need for job opportunities, and efforts toward creating business-friendly environment have led to this kind of support in the region.

Key Companies & Market Share Insights

The market is characterized by the presence of a few established players and new entrants. Many big players are increasing their focus towards growing trend of ride hailing services. Players in the market are diversifying their service offering in order to maintain market share.

• For instance, in April 2021, Gett signed a partnership with Curb to increase post-pandemic business travel. The partnership between the two firms will enable it to offer corporate clients on its platform limousine, local taxi, and ride-hailing services such as Lyft

• For instance, in June 2021, Hyundai Motor Group and Grab Holdings Inc. (Grab) entered into a strategic partnership in mobility services. The collaboration's first phase will accelerate the Adoption of electric vehicles in Southeast Asia. The Group and the delivery partners will collaborate to develop new pilots and initiatives that will lower the barriers to entry for partner organizations by reducing the total cost of ownership and reducing range anxiety

Some of the prominent players operating in the global ride hailing services market are :

• Uber

• Lyft

• Via

• Juno

• Xoox

• Wheely

• ViaVan

• My Taxi

• Gett

• Addison Lee

Recent Developments

• In December 2022, Lyft announced that the company will be providing incentives to drivers switching to electric vehicles in California, along with an educational website and further plans to expand its car rental program.

• In November 2022, Lyft and Motional launched their robotaxis in Los Angeles. The 'robotaxi' is a self-driven electric vehicle with no requirement for a human driver.

Ride Hailing Services Market