India Shared Mobility Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024-2030)

India Shared Mobility Market Trends & Drivers

Ongoing Technological Development

• Technological progression has been a catalyst for the growth of the shared mobility market in India. All the shared mobility services, such as ride hailing, shuttle, , ride sharing, , and two-wheeler sharing, are based on mobile applications, where providers and users connect with each other for the purpose of booking rides and making related payments.
• In other word, shared mobility is a wholly technology-dependent platform that offers mobility services round the clock, at the time of need. Constant innovations in technologies have led to the launches of various solutions that provide simplified access to the services. One such innovation is cloud sharing that provide computing services related to software, network, storage, analytics and database to the consumer at a minimum cost.
• The shared mobility market is also significantly benefitted from cloud computing models like platform-as-a-service (PaaS) and software-as-a-service (SaaS). Through PaaS, companies can develop their own mobile applications that enable them to run their services online. Whereas, SaaS helps the service providers to adopt software to carry out their business activities.
• Additionally, the usage of IoT in fleet management offers a plethora of advantages to mobility service companies. IoT device helps in optimization process by enabling efficient process of tracing and monitoring vehicles, handling routes, and identify potential problems from a remote location.

Government Initiatives Smooth the Way for the Adoption of Shared Mobility Services

• The government of India is playing an active role in emphasizing adoption of shared mobility model over vehicle ownership to minimize traffic congestion and environmental pollution. Increasing concern toward environmental protection, primarily due to the accelerated rate of environmental degradation caused by increasing amount of exhaust fumes from vehicles, is compelling the government to formulate regulatory policies as well as offer financial benefits, in order to encourage the adoption of shared mobility services.
• For instance, under the FAME II scheme, the Government of India designated incentive plans for the purchase of electric vehicles for commercial usage. This will result in a rapid boost of electric vehicles adoption by shared mobility service providers, which in turn, will drive the growth of the shared mobility market.
• Moreover, other than the national government, various city and state authorities are also taking initiatives to accelerate the adoption of these services locally.

Improper Infrastructure for Deployment of Shared Mobility

• In order to gain traction nationally, shared mobility services need to be backed by a strong infrastructural support. Many cities lack an integrated transportation system and adequate infrastructure, which are pivotal for these services to take a functional form. Also, in order to introduce emission-free electric vehicles in public sharing fleets, there is a need to first establish charging stations for re-charging of the vehicles.
• Additionally, public mobility services require specific areas designated for parking of vehicles; hence, it is necessary to dedicate enough parking space to ensure smooth operations. Many cities do not have excess area required for parking, which restrains the development of shared mobility in those cities to some extent.
• Furthermore, insufficient internet penetration can affect the market because shared mobility services are completely dependent on the internet, where all activities, from booking a vehicle to making payment, are done over mobile applications.
• However, around 55% of the Indian population is still deprived of the internet. This acts as a major factor restraining the growth of the Indian shared mobility market. Additionally, the potential for this market in rural areas is quite low, considering the lack of internet access to the people. Most of the rural areas in India, do not have adequate broadband infrastructure, which further reduces the possibility of introducing shared mobility services in those areas.

India Shared Mobility Industry Outlook

Service Type Insights

• Based on service type, the ride hailing category held the largest share in 2023 in the Indian shared mobility market. It is also expected to progress with the highest CAGR during the forecast period. This can be attributed to the shift in preference of millennials toward ride hailing services from conventional mobility solutions. The innovation, such as cloud sharing that delivers computing services related to network, software, storage, database, and analytics to users at low cost, is attracting new customer base, which, in turn, is benefitting the market in this category.

Services Type covered in the report include:

• Two-Wheeler Sharing
• Ride Sharing
• Ride Hailing (Largest and Fastest-Growing Category)
• Car Rental
• Carsharing
• Bus/Shuttle Service

Vehicle Type Insights

• Based on vehicle type, cars category held the largest share in the market during the historical period. The early introduction of car rental and hailing services is the primary factor for the market domination of this category. In addition, factors such as developed value chain and regulatory support have supported the market growth in this category.
• During the forecast period, the market is expected to witness the fastest growth in the buses/vans category. The category has reported double-digit growth (albeit on a smaller base) in recent years, on account of the expanding operations of market players in cities and the increasing acceptance of bike taxis in the national capital region (NCR) and Hyderabad. Further, two-wheeler is gaining attention in view of the fact that two-wheelers are more affordable, available, and convenient.

The following vehicle type are included in the report:

• Two-Wheelers
• Cars (Largest Category)
• Buses/Vans (Fastest-Growing Category)

Commuting Pattern Insights

• By commuting pattern, occasional commuting held the largest share in the market in 2023 and daily commuting is expected to be the fastest-growing category during the forecast period. The market growth in the daily commuting category can be mainly attributed to the increasing demand for shared mobility services among the young population in the country, such as students and young professionals, for meeting daily commutation needs.
• Additionally, several initiatives aimed at reducing the usage of private vehicles on roads are expected to encourage the use of shared mobility transport among people in the country.

Commuting pattern covered in the report are:

• Daily Commuting (Fastest-Growing Category)
• Last-Mile Connectivity
• Occasional Commuting (Largest Category)
• Others

End Use Insights

• Under this segment, shared mobility services utilized for personal use account for the larger share in the market. It is due to majority of the customers in India use these services for personal work, which may include going to the workplace, running errands such as grocery shopping, and undertaking short trips such as escorting someone to the airport.
• During the forecast period, the market is expected to witness faster growth in the business category, with 65.5% CAGR. Business firms are increasingly tying-up with ride hailing service providers to offer transportation services to their employees, which, in turn, is boosting the market growth in this category.

It is further classified as:

• Personal (Largest Category)
• Business (Fastest-Growing Category)

Geographical Analysis

• Geographically, the south region dominates the regional market, contributed around 40% share to the market in 2023. Moreover, the market in this region is expected to advance with a CAGR of 65.6% during the forecast period, primarily driven by the fact that the majority of shared mobility providers are exist in region of south India, including Bengaluru, Hyderabad, Chennai and Visakhapatnam. In addition, the increasing demand for rental services and car hailing is propelling the growth of market in the region.
• The north region is the second largest revenue generator in the Indian shared mobility market in 2023. This can be attributed to the high demand for shared mobility services among people in the north region, primarily for meeting daily commuting and outstation travel needs.
• Furthermore, during the forecast period, the market is expected to witness the fastest growth in the east region, with 65.8% CAGR. This can be ascribed to the fact that shared mobility service providers are now exploring the market potential in the east region on account of the growing demand for these services in states such as West Bengal, Assam, and Odisha.

Further, regions analyzed for this report include:

• East
• West
• North (Fastest-Growing Region)
• South (Largest Region)

Competitive Analysis

The shared mobility market in India is highly consolidated in nature and majorly dominated by ride hailing service providers. The market is characterized by numerous strategic developments implemented by different market players, majorly for investment. strategic developments undertaken by the market players comprise over investment-related developments, product launch, partnerships and collaborations, service launches, and remaining related to other developments.

India Shared Mobility Companies News

• In January 2024, Ola, a ride-hailing platform, launched its e-Bike service in Delhi and Hyderabad, with the aim to deploy more than 10,000 electric vehicles over the next 2 months across these cities.
• In December 2023, Uber Technologies Inc., announced a partnership with the Indian Coast Guard, as it provides mobility solution for daily commute. The aim of this collaboration is to provide dependable, efficient and secure transportation solutions for staff of Indian Coast Guard.