India Shared Mobility Market Research Report: By Service Type (Two-Wheeler Sharing, Ride Sharing, Ride Hailing, Car Rental, Carsharing, Bus/Shuttle Service), Vehicle Type (Two-Wheelers, Cars, Buses/Vans), Commuting Pattern (Daily Commuting, Last-Mile Connectivity, Occasional Commuting), End Use (Personal, Business), Region (East, West, North, South) – Competitive Analysis and Growth Forecast to 2025

  • Published: February 2021
  • Report Code: AT11556
  • Available Format: PDF
  • Pages: 99

India Shared Mobility Market Overview

The Indian shared mobility market was valued at $1,025.8 million in 2019, and is expected to grow at a CAGR of 56.8% during the forecast period (2020–2025). Cost effective and convenient mobility offered by shared mobility service providers is the prime factor supporting to the growth of the market. Moreover, additional expenses, such as fuel, maintenance, insurance, and parking, are taken care by the providers, which reduces the overall burden on consumers.

Before the coronavirus outbreak, many shared mobility start-ups were preparing for new market offerings and planning to expand their services. The sector, especially micro-mobility, had enticed a lot of entrepreneurial and user interests, even in tier 2 and tier 3 cities. Moreover, in recent years, it has received great support from public policies and structures to make its penetration even in towns.

But with the outbreak, the picture has totally changed for all stakeholders. Due to the lockdowns and several regulations imposed by the government that restrict the transportation of goods and people, led to the recession in the mobility industry. Moreover, the apprehension of virus spread, mass casualty, job losses, food security, and others have led a mass exodus of people living in major cities and towns to their villages. This pattern of reverse migration has posed challenges on both demand and supply sides of the Indian shared mobility market.

India Shared Mobility Market Outlook

Introduction of Advanced Technology for Improved Consumer Experience Is Leading to Expansion of Ride Hailing

Based on service type, the ride hailing category held the largest share in 2019 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.

Due to Higher Demand for Rental and Hailing Services, Cars Category Generated Largest Market Share in 2019

Based on vehicle type, the cars category dominated the Indian shared mobility market during the historical period (2014–2019). The early introduction of car rental and hailing services is the primary factor for the domination of this category. In addition, factors such as developed value chain and regulatory provision have supported the market growth in this category.

Rising Youth and Working Population Leads to Highest Growth Rate for Daily Commuting Category

The daily commuting category is expected to observe the fastest growth during the forecast period in the Indian shared mobility market, based on commuting pattern. This 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 their daily commutation needs. Additionally, several initiatives aimed at reducing the number of private vehicles on roads are expected to encourage the use of shared mobility transport among people in the country.

Due to Increasing Number of Tie-Ups Among Major Players, Business Category to Witness Higher CAGR

During the forecast period, the Indian shared mobility market is expected to witness faster growth in the business category, based on end use. 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.

Owing to Increasing Demand for Car Hailing and Rental Services, South India Led the Market in 2019

Geographically, south region generated the largest share in 2019 in the Indian shared mobility market, owing to the increasing demand for car hailing and rental services in cities like Bengaluru, Chennai, Hyderabad, and others. Whereas, the market in east region is expected to witness the highest growth rate during the forecast period, due to the higher demand for shared mobility services, in order to meet its daily commutation.

Furthermore, the north region is expected to lead the Indian shared mobility market in 2025. 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.

India Shared Mobility Market Geographical Insight

Rising Investment from Investors

The growing investment from various investors is a key trend in the Indian shared mobility market, which is offering a boost to the growth of the industry. For instance, in June 2019, scooter rental company Bounce, received an investment of $72.0 million, which was led by B Capital Group and Falcon Edge Capital. The company aims to use this fund to expand its presence in Indian cities and to add 100,000 more scooters in its fleet in next 12–18 months.

Government Initiative Facilitating Adoption of Shared Mobility Services

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 to the electric vehicles adoption by shared mobility service providers, which, in turn, will drive the growth of the Indian shared mobility market.

Growing Urban Road Congestion

Rising population in major cities across the country has led to an increased number of daily commuters, creating significant road congestion, especially in peak hours. Different companies are looking to introduce alternative mobility options in order to combat this problem. This scenario acts as a major driver for the Indian shared mobility market. Most of the urban cities in the country, especially in metro areas, such as Delhi & NCR region, Mumbai, and Bengaluru, are taking initiatives to encourage the daily commuters to avail sharing mobility services, with the intension of reducing the number of vehicles on road. This program has a major contribution in reducing traffic congestion, which serves as a major driver for the growth of the market.

India Shared Mobility Market Report Coverage
Report Attribute Details
Historical Years 2014-2019
Forecast Years 2020-2025
Base Year (2019) Market Size $1,025.8 Million
Forecast Period (2020-2025) CAGR 56.8%
Report Coverage Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional Breakdown, Competitive Analysis, Companies’ Strategic Developments, Impact of COVID-19, Company Profiling, Value Chain Analysis, Regulatory Landscape, Service Usage Analysis, Technology Trends, Share Analysis
Market Size by Segments By Service Type, By Vehicle Type, By Commuting Pattern, By End Use, By Region
Market Size of Geographies East, West, North, and South
Secondary Sources and References (Partial List) All India Cycle Manufacturers' Association (AICMA), All India Transporters Welfare Association (AITWA), Association of State Road Transport Undertakings (ASRTU), Automobile Association of Southern India (AASI), Automobile Society India (ASI), Emission Controls Manufacturers Association (ECMA), Exhibitions India Group (EIG), Federation of Automobile Dealers Associations (FADA), Indian Road Transport & Development Association (IRTDA), International Road Federation (India Chapter), Ministry of Road Transport and Highways (MoRTH)


Market Players Are Focusing on Investing & Funding to Gain Competitive Edge

In recent years, the players in the Indian shared mobility market have been actively involved in investing & funding for launching new services, in order to enhance their presence, improve mobility services, and stay ahead in the competition.

  • In January 2020, Wicked Ride Adventure Services Pvt. Ltd. (Bounce) raised $105 million in its series D funding round, which was led by Accel Partners and B Capital. With this, the company’s total funding is now over $194 million. The company has planned to use this amount in its fleet expansion and in building of its own electric vehicles.
  • In June 2019, scooter rental company, WickedRide Adventure Services Pvt. Ltd. (Bounce), raised $720 million in a fresh funding, which was led by B Capital Group, a Singapore-based group, and Falcon Edge Capital, a New York-based hedge fund. This raised the company’s valuation to a little over $200.0 million. With this fund, the company will expand out of Bengaluru city in the near future. The company has planned to add 100,000 more scooters in its fleet in the next 12-18 months, with a focus on electric scooters.

Some Key Players in India Shared Mobility Industry Include:

  • Uber Technologies Inc.
  • ANI Technologies Pvt. Ltd. (Ola Bike)
  • Comuto SA (BlaBlaCar)
  • Drivezy India Travels Pvt. Ltd.
  • Vogo Automotive Pvt. Ltd. (Vogo)
  • Zoomcar India Pvt. Ltd.
  • WickedRide Adventure Services Pvt. Ltd. (Bounce)
  • Roppen Transportation Services Pvt. Ltd. (Rapido)
  • Meru Mobility Tech Pvt. Ltd. (Meru)
  • Bycyshare Technologies Pvt. Ltd. (Mobycy)
  • Yulu Bikes Pvt. Ltd.
  • Carzonrent India Pvt. Ltd.
  • Bashar Technologies Pvt. Ltd. (Wheelstreet)
  • Royalbison Autorentals India Pvt. Ltd. (Royal Brothers)

India Shared Mobility Market Size Breakdown by Segments

The India shared mobility market report offers comprehensive market segmentation analysis along with market estimation for the period 2014-2025.

Based on Service Type

  • Two-Wheeler Sharing
  • Ride Sharing
  • Ride Hailing
  • Car Rental
  • Carsharing
  • Bus/Shuttle Service

Based on Vehicle Type

  • Two-Wheelers
  • Cars
  • Buses/Vans

Based on Commuting Pattern

  • Daily Commuting
  • Last-Mile Connectivity
  • Occasional Commuting

Based on End Use

  • Personal
  • Business

Geographical Analysis

  • East
  • West
  • North
  • South
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