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Ride-Hailing Market to Generated Revenue Worth $120.2 Billion by 2024

Published Date:   October 2019

The ride-hailing market was valued at $50.4 billion in 2018, and is projected to reach $120.2 billion by 2024, witnessing a CAGR of 13.0% during 2019–2024. Based on vehicle type, the economy category generated largest revenue in the market in 2018.

The number of cars offered under economy category is much more as compared to other categories, which includes executive and luxury class. Most of the customers choose ride-hailing services to travel shorter or medium distances, and hence do not prefer to invest much and select economy cars. Furthermore, in developing countries, economy cars are best suitable as there are more budget riders.

Increasing Adoption of Electric Vehicles in Public Fleets is a Key Trend Observed in the Ride-Hailing Market

Growing adoption of electric vehicles in public fleets is a rising trend in the ride-hailing market. Governments of several countries are taking initiatives to introduce different policies and regulations, in order to encourage deployment of these vehicles in companies’ fleet. Different companies are also taking initiatives in the introduction of electric vehicle fleets for their ride-hailing services. For instance, in June 2019, Beijing Xiaoju Technology Co. Ltd. (Didi Chuxing) announced partnership with China Southern Power Grid (CSPG) and the government of Hainan Province. The collaboration intends to provide exhaustive electric vehicle service solutions, including the expansion of electric vehicle charging infrastructure and leasing and selling operations in Hainan, China.

Convenient and Economically Efficient Mobility Option

Owning a private vehicle demands high investment, which mainly comprises vehicle cost, fuel cost, parking expense, maintenance charge, and insurance cost. In this regard, ride-hailing services allow users to enjoy the facilities of owning personal vehicles, without having the need to actually own them. The users make payments on the basis of their actual usage. Besides, additional expenses such as costs related to fuel, maintenance, insurance, and parking, are taken care by the service providers. Moreover, ride-hailing services are extremely convenient for general public, primarily the daily commuters, as they can enjoy driving to their required destination without having the hassles of owning and maintaining their own vehicles. Thus, the convenience and economic efficiency acts as a major driving factor for the growth of the global ride-hailing market.

Segmentation Analysis of Ride-Hailing Market

Ride-Hailing Market

Occasional commuter category held the largest share in the ride-hailing market during the historical period. Ride-hailing services are primarily offered in and around urban areas and for most of the customers, it is a relatively sporadic activity. Majority of the users indicate that they utilize these services less often. Occasional commuters use the services during their intracity travel.

The business commuter category is projected to attain faster growth in the market during the forecast period. This is majorly due to the facility offered by ride-hailing service providers to corporates, such as ride-hailing services to companies’ employees. Employees can choose to avail the ride types as permitted by their companies for taking official rides.

Geographical Analysis of Ride-Hailing Market

APAC was the largest ride-hailing market during the historical period. This is majorly due to the rising consumer demand for ride-hailing services, high population density, and rapid industrialization and urbanization. Some countries in the APAC region, like Taiwan and India, are highly polluted, thus alarming conditions are instigating governments of these countries to take different initiatives to reduce vehicle exhaust. This boosts the demand for ride-hailing in the region. Some of the major players operating in the APAC ride-hailing market are Uber Technologies Inc., Lyft Inc., ANI Technologies Private Ltd., and Beijing Xiaoju Technology Co. Ltd. (Didi Chuxing).

In recent years, the ride-hailing market in Rest of the World (RoW) region has witnessed a rapid growth, owing to the need to develop a mobility solution to combat the environmental concern as well as to ensure customer-friendly solution. For instance, in Mexico, the average resident spends about 50 minutes daily for commuting to work. Some people even travel as long as three hours each day to reach their workplace. Also, many Mexican residents are not financially stable to travel a long distance with their own cars. This makes the country a potential market for the growth and adoption of ride-hailing services, due to their economical effectiveness.

Browse report overview with detailed TOC on "Ride-Hailing Market Research Report: By Vehicle Type (Economy, Executive, Luxury), Commuting Pattern (Daily/Weekly, Monthly, Occasionally), End User (Personal, Business), Geographical Outlook (U.S., Canada, U.K., France, Spain, Germany, Poland, Italy, Netherlands, Portugal, China, India, Japan, Australia, Singapore, Mexico, Brazil, U.A.E., Russia) – Global Opportunity Analysis and Growth Forecast to 2024" at:https://www.psmarketresearch.com/market-analysis/ride-hailing-market

Competitive Landscape of Ride-Hailing Market

The global ride-hailing market is consolidated in nature, with Beijing Xiaoju Technology Co. Ltd. (Didi Chuxing), and Uber Technologies Inc. being the major players. Besides, Grab Holdings Inc., ANI Technologies Pvt. Ltd. (Ola), Yandex.Taxi B.V., Gett Inc., FREE NOW, inDriver, RideCell Inc., Bolt Technology OÜ, VOXTUR SAS, and Addison Lee Ltd. are the other players operating in the ride-hailing market.

In recent years, the market players have been involved in service launches and expansions. For instance, in July 2019, Beijing Xiaoju Technology Co. Ltd. (Didi Chuxing) announced major product upgradation, including new safety features, first AI-based hands-free driver application interface, and financial tools for customers and drivers, across Latin America, Japan, and Australia. The new update is intended to enhance the safety, efficiency, and user experience of services.

Also, in July 2019, Lyft Inc. announced to launch a wheelchair-accessible vehicle program for people with disabilities. The program will be launched in Los Angeles and San Francisco in California, and will deploy Toyota Siennas, which will be operated by certified drivers, when a customer enables "Access Mode" in the application.

Market Segmentation by Vehicle Type

  • Economy
  • Executive
  • Luxury

Market Segmentation by Commuting Pattern

  • Daily/Weekly
  • Monthly
  • Occasionally

Market Segmentation by End User

  • Personal
  • Business

Market Segmentation by Geography

  • North America Ride-Hailing Market
    • By vehicle type
    • By commuting pattern
    • By end user
    • By country – U.S. and Canada
  • Europe Ride-Hailing Market
    • By vehicle type
    • By commuting pattern
    • By end user
    • By country – U.K., France, Spain, Germany, Poland, Italy, Netherlands, Portugal, and Rest of Europe
  • Asia-Pacific (APAC) Ride-Hailing Market
    • By vehicle type
    • By commuting pattern
    • By end user
    • By country – China, India, Japan, Australia, Singapore, and Rest of APAC
  • Rest of the World (RoW) Ride-Hailing Market
    • By vehicle type
    • By commuting pattern
    • By end user
    • By country – Mexico, Brazil, U.A.E., Russia, and Others