Ride-Hailing Market To Reach $248.3 Billion by 2030

The ride-hailing market was worth $153.3 billion in 2023 and it is expected to reach $248.3 billion by 2030, representing a CAGR of 6.1% from 2024–2030. Population growth has led to problems such as increased traffic congestion, lack of adequate public transport, and long waiting times for public transport. As a result, the demand for ride-hailing services is attracting more travelers by offering faster, on-demand services.

Moreover, rising fuel prices, increasing vehicle maintenance costs, and the introduction of stricter emissions standards have made ride-hailing services more cost-effective than renting a vehicle.

Surging Adoption of Economy Category

• The number of cars offered in the economy category is much higher than in other categories, including executive and luxury classes. Since most customers choose ride-hailing services to cover short or medium distances, they prefer to choose cheap cars without investing much.
• Additionally, many drivers in developing countries are price-conscious, so a car with good fuel efficiency is the best choice.
• Increasing adoption of electric vehicles in public vehicles is a major trend observed in this market. Governments in several countries are working on introducing various policies and regulations to encourage the use of these vehicles in this business.
• Also, various companies are working to incorporate electric vehicles into their ride-hailing services.
• For example, Beijing Xiaoju Science and Technology Co. Ltd. and Didi Chuxing announced a partnership in June 2019, to provide comprehensive electric vehicle service solutions, including the expansion of electric vehicle charging infrastructure and leasing and sales activities in Hainan Province, China.
• Ride-hailing services allow users to enjoy the benefits of owning a vehicle without actually owning the vehicle, as users pay based on their actual usage.
• Additionally, ride-hailing services are very convenient for the general public, especially daily commuters, as they can enjoy a ride to their desired destination without having to worry about owning or maintaining their vehicles.

Business Category To Grow at a Higher Rate

The casual commuter category held the largest share of the ride-hailing market in 2023. Ride-hailing is primarily provided in and around areas and is a relatively sporadic activity for most customers. Commuters may use this service while moving around the city.

Whereas, the business commuter category is projected to achieve faster growth during the forecast period. This can be primarily due to the opportunities that ride-hailing service providers offer to businesses, such as driving services for office workers. Employees may use company-approved travel methods for official business travel.

APAC Is the Largest Market

• APAC has the largest ride-hailing market. This is mainly due to the increasing consumer demand for ride-hailing services, high population density, and rapid industrialization and urbanization.
• Some countries in the region, such as Taiwan and India, have severe air pollution, an alarming situation, which is prompting governments to take various steps to reduce vehicle emissions. This boosts the demand for ride-hailing services in the region.

The key ride-hailing market players include DiDi Global Inc., Uber Technologies Inc., Grab Holdings Inc., OLA Cabs, Yandex Taxi B.V., Gett Inc., FREE NOW, inDrive, RideCekk Inc., Bolt Technology OÜ, VOXTUR SAS, Addison Lee Ltd., Aptiv PLC, Be Group JSC, BlaBlaCar, Lyft Inc., Ridecell Inc., and TomTom N.V.