Ride-Hailing Service Market

Ride-Hailing Service Market Outlook (2023 to 2033)

The global ride-hailing service market is expected to be worth US$ 109.3 billion in the fiscal year 2023, up from US$ 97 billion in the fiscal year 2022. From 2023 to 2033, the market is expected to grow at a 12.7% CAGR, reaching a value of US$ 361.3 billion by the end of 2033.

The emergence of key players in new geographies and rising customer ridership due to ease and convenience are boosting the growth in the ride-hailing services market.

Customer's desire to avoid the high overhead expenses of car ownership and maintenance, combined with increasing road congestion and a shortfall of parking spaces, drives the global market expansion. For a variety of reasons, the native population is considering transitioning to urban areas and metro cities, likely to result in a high population.

Furthermore, burgeoning ride-hailing and taxi-booking applications, along with rising internet service infiltration and mobile phone accessibility, are propelling the global ride-hailing and taxi market.

The automotive industry contributes significantly to greenhouse gas emissions. The government and private organizations in the automotive sector are working together to reduce increased Co2 emissions.

Various organizations, including Canada's International Institute for Sustainable Development, India's Ministry of Environment and Climate Change, and the Paris Agreement on Climate Change, have established ambitious goals and guidelines. These morals and regulatory requirements are likely to encourage the use of these types of sharing services over owning a private vehicle in that area.

Land transportation has become much more convenient and pleasant, thanks to rail-hailing apps. With a few clicks on their mobile phone, the consumer can have the most recent vehicles selected from any location and arrive at their destination stress-free.

Customers get the best professional quality service by employing this system, with very experienced people progressing at their required frequency in pleasant and clean automobiles - no engine trouble at all. More importantly, customers can rate drivers and provide feedback on the service.

This forces the drivers to perform at their highest professional level at all times, providing you with the most satisfying customer experience ever. Similarly, drivers provide reports and reviews about the consumer experience.

Report Attributes	Details
Anticipated Base Year Value (2022)	US$ 97 Billion
Expected Market Value (2023)	US$ 109.3 Billion
Projected Forecast Value (2033)	US$ 361.3 Billion
Global Growth Rate (2023 to 2033)	12.7%
Expected Growth Rate of the US Market (2023 to 2033)	12.3% CAGR
Anticipated Growth Rate of China Market (2023 to 2033)	13.6% CAGR
Prominent Players in The Global Market	Arro; BluSmart.; Capital EV; Curb; Didi Chuxing Technology Co.; EEETaxi.; Gett; GoGreen Cabs; Gojek; Hitch; Indriver; Lyft, Inc.; Meru cabs; Rapido bike taxi; Uber

2018 to 2022 Ride-Hailing Service Market Demand Analysis vs. Forecast 2023 to 2033

The U.S, Spain, Italy, France, Germany, the UK, Russia, Turkey, Brazil, Iran, and China are among the nations most affected by the COVID-19 pandemic, based on the World Health Organization's (WHO) latest monitoring report. The global economy faced significant consequences in 2020, and the effects remained for some time.

The outbreak has had an impact on electronics, semiconductors, and the automotive sectors. Therefore, the expansion of the ride-hailing service market is being stifled by a drastic drop in the development of the aforementioned domains. According to market research and competitive intelligence provider Fact.MR- the market for ride-hailing services reflected a value CAGR of 7.1% during the historical period, 2018 to 2022.

Nevertheless, with the easing of travel restrictions and the resumption of lockdown and vaccination procedures, production and construction enterprises have resumed operations, and the ride-hailing industry has begun to recapture its traction. As a result, the market for ride-hailing services was in high demand in 2021.

Which are Some Prominent Drivers of the Ride-Hailing Service Market?

Augment in Mobility-as-a-Service Trend to Drive Ride-Hailing Service Market Growth

Mobility-as-a-service lowers costs for the consumer by making the most of transportation services such as car-sharing and ride-hailing. According to statistics, cities currently house 55 percent of the world's population, with estimates predicting that by 2050, cities will house 68 percent of the population.

Heavy traffic is already a result of the rapid growth of the urban population. By creating the use of current public and private transportation systems, the Mobility as a Service (MaaS) principle may be a superior option for decreasing traffic congestion.

The emergency need for efficient approaches to handling traffic in smart cities more quickly, cheaply, and conveniently is predicted to propel the MaaS market growth through 2033. As a result, the growing trend of mobility as a Service (MaaS) is predicted to drive the global market for ride-hailing service growth.

Increased Vehicle Ownership Costs to drive market growth

People who cannot afford to buy a car can travel in comfort due to mobility solutions. Capital, fuel, servicing, licensing, maintenance & repair, and depreciation all contribute to the cost of owning a vehicle. Fuel costs and maintenance expenses have risen dramatically in recent years, and a similar trend is expected to continue. According to AAA's most recent research, the average annual expense of owning and operating a new car in 2022 is $10,728, or $894 per month.

Ride-hailing service lowers the user's costs by maximizing the utilization of transportation services such as car-sharing and ride-hailing. It also helps to reduce traffic jams and general automobile exhaust in cities. As a consequence, digitally enabled ride-hailing effectively manages transportation demand while also offering an easy and pocket-friendly friendly substitute to private vehicle ownership. Thus this factor is expected to expand the market growth over the forecast period.

What are the Challenges Projected to be Faced by the Market?

Strict transportation policies to restrict the market growth

The operation of app-based mobility solutions is not governed by a legitimate process in several countries. As a result, their operations are not described or governed by the federal government. Taxi companies must obtain their licenses and registration. This creates app-based cab companies difficult because many app-based enterprises do not own the vehicles.

The percentage of these laws, as well as their regulation, fines, and other penalties, is rising. For instance, the California Consumer Privacy Act (CCPA), which went into effect in January 2020, also governs consumer record-keeping in the ride-sharing industry. Stringent automotive registration and license regulations pose challenges for an app-based taxi fleet that offers ride-sharing facilities. This has hampered the expansion of ride-hailing services in many nations and regions.

Region-Wise Insights

What Makes North America the Largest Market for Ride-Hailing Services?

Significant investment by auto manufacturers to drive the market growth

North America, with significant economies such as the United States, Canada, and Mexico, serves as the most technically sophisticated region. These economies are distinguished by better living conditions, high personal spending power, and rapid innovation in the technology industry.

Furthermore, the regional industry is expanding due to an expansion in the number of transportation network companies providing ride-hailing and car rental facilities in Seattle, New York, San Francisco, Utah, Burlington, Dallas, and Boulder. In 2023, North America is accounting for a significant market share of 28%. The United States market is anticipated to grow at a CAGR of 12.3%.

The growth of the ride-hailing service industry in North America is the consequence of significant investments by auto manufacturers, service providers, and shareholders. The broad support of the US administration for the marketing and acknowledgment of numerous on-demand ride-hailing services drives the industry.

• For instance, in July 2019, International Automotive Components (IAC) invested US$ 250 million in Turo, a car-sharing company. The capital investment will be utilized to enhance the experience for clients. Thus owing to the above-mentioned factors North American ride-hailing services are expected to witness major growth over the upcoming decades.

What can be expected from the East Asia market For Healthcare Consulting Services?

East Asia to lead the market expansion with highest market CAGR

East Asia is predicted to dominate the industry with a market share of 32%. Moreover, the East Asia region market is predicted to grow at the highest CAGR of 13.3% over the forecast period. Ride-hailing Market players in East Asian country China are offering incentives to their drivers to ensure that routine bookings are not disrupted.

For instance, because the National Day Holiday coincides with the Mid-Autumn Festival in September 2020, many Didi Chuxing drivers chose to leave early. To motivate more drivers to accept orders, the platform collaborated with the taxi company unit Kuaidi New Taxi and the new industry ride-sharing service Huaxiaozhu to offer a CNY 100 million driver financial support. Thus this factor is expected to drive market growth.

Furthermore, the region's growing economy, increased demand for employment opportunities, attempts to establish a business-friendly environment, and urban population growth all are anticipated to contribute to regional market growth over the upcoming decades.

Category-Wise Insights

Which Vehicle Type Leads the Market for Ride-Hailing Service?

Four Wheeler Vehicle Type to lead the Ride-Hailing Service market

Due to the highest consumption among workplace commuters, the four-wheeler segment is projected to lead the ride-hailing service market over the coming years. The numerous technological advancements for electronic payments, protection, and convenience for riders and drivers, among other things, have contributed to the expansion of the four-wheeler segment.

This segment is predicted to account for 83% of the market in 2023. As a result, these variables have contributed to the growth of this segment. For instance, TATA Motors was the sole leader in the 4-wheeler electric vehicle sector in India in 2022, with a 4% increment and a market share of 82.79%.

Which End User Segment to Dominate the Market?

Personal ride-hailing service segment account for the highest market share

Over the projected timeframe, the personal end-user segment in the market is anticipated to be fueled by a boost in the daily commute to the workplace in urban areas, in addition to an intense tendency to save fuel by offering a ride to travelers and coworkers commuting the same route. In 2023, the personal segment is expected to have the highest market share (78%), followed by other end-user segments.

Start-up Scenario

Notable start-ups offering ride-haling services are likely to fortify their market footprints by introducing novel and unique product lines, and the aforementioned start-ups have left no stone unturned.

Some concrete examples of significant developments by start-ups are below :

• Shouqi Limousine was established in 2015. Shouqi Limousine and Chauffeur collaborated with Alibaba Cloud in April 2020, integrating development advantages to building an innovative industry ecosystem of 5G Internet of Vehicles.
• Grab Holdings Inc. was established in 2012. Hyundai Motor Group and Grab Holdings Inc. (Grab) announced a mobility services strategic alliance in June 2021. The first phase of the partnership will enhance the introduction of electric vehicles in Southeast Asia.

Competitive Landscape

The global market is identified by the presence of a significant number of international corporations. The majority of these companies rely heavily on alliances, partnerships, and mergers and acquisitions.

Some of the significant innovations by key players are mentioned below :

• Uber Technologies Inc. collaborated with EVgo in January 2021 to offer EV charging special offers to drivers in over 800 cities across the United States.
• Gett and Curb partnered up in April 2021 to boost post-pandemic business trips. The collaboration of the two companies will allow it to offer enterprise customers on its application limousine, local taxi, and ride-hailing services like Lyft.
• Didi Chuxing introduced Latin America's 1st shared electric vehicle (EV) fleet through its application in Mexico in January 2020, as the firm starts to spend on sustainable transportation innovations in the region.

Key Segments Covered in the Ride-Hailing Service Market Report

• By Vehicle Type:

  • Four Wheeler
  • Others (Two Wheeler, Three Wheeler)

• By End User:

  • Personal
  • Business

• By Region:

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • Middle East & Africa