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The ride hailing services market size is forecast to increase by USD 66.17 billion at a CAGR of 16.1% between 2023 and 2028. The market is experiencing significant growth, driven by the increasing use of online ride hailing services for convenient and efficient transportation. This trend is fueled by the growing number of smartphone users and the increasing penetration of internet connectivity, enabling easy access to ride hailing services. Furthermore, merger and acquisition activities are on the rise in the market as companies seek to expand their presence and enhance their offerings. Compliance with government regulations is also a crucial factor, as ride hailing services must adhere to safety and operational standards to ensure customer trust and satisfaction. These trends and challenges are shaping the future of the market and presenting opportunities for growth and innovation.
The ride-hailing market is experiencing significant changes as companies shift towards electric vehicles (EVs) to reduce emissions and mitigate the impact of automobile journeys on congestion. The EU's Court of Justice ruled in favor of Uber and other ride-hailing services, allowing them to operate under certain conditions, boosting the sector's growth. However, the widespread virus spread and worldwide lockdowns present measures and barriers to this transition. Ride-hailing services are implementing self-driving cars and using sanitizers and digital thermometers to ensure passenger safety during the virus infection. The future of ride sharing lies in the adoption of EVs and innovative solutions to address the challenges of the transportation sector.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The car sharing segment is estimated to witness significant growth during the forecast period. The EU's Court of Justice has recently ruled in favor of fleet conversion in the ride-hailing market, allowing companies such as Uber, Bolt, and Meru Cabs to continue operating with licensed taxi drivers using their platforms. This decision comes as a significant measure to address the barriers posed by public transportation systems in cities, particularly during worldwide lockdowns due to the virus' spread. Companies are increasingly adopting electric vehicle (EV) fleets to reduce emissions and offer passenger comfort and safety. For instance, D1 Capital Partners has invested in BluSmart Mobility, which operates a fleet of XPRES-T EV units. Similarly, Didi Chuxing has partnered with BYD and Renault to expand its EV fleet.
Moreover, as the ride sharing sector continues to evolve, mobility-as-a-service (MaaS) providers like Altimeter Growth Corp are collaborating with banks and lenders to offer attractive interest rates for automobile purchase. Self-driving cars and digital thermometers, sanitizers, and other safety measures are also being implemented to mitigate the risk of virus infection. The rising population and increasing congestion in cities further the need for sustainable and efficient transportation solutions.
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The car sharing segment was valued at USD 22.37 billion in 2018 and showed a gradual increase during the forecast period.
APAC is estimated to contribute 31% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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Ride hailing services have gained significant traction in recent years as a viable alternative to traditional public transportation modes in addressing traffic congestion. These services offer convenience and user-friendliness, allowing passengers to avoid lengthy wait times and unpredictable fuel prices associated with personal vehicle ownership. However, the e-hailing market segment faces challenges such as vehicle maintenance and emission norms. To mitigate these issues, digitally enabled car-sharing platforms are innovating with smartphone applications, internet services, and even integration with smart wearables, ensuring a seamless and efficient experience for users. These advancements not only enhance convenience but also contribute to reducing traffic congestion and promoting sustainable transportation solutions.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Rising use of online ride hailing services is the key driver of the market. The European Union's Court of Justice ruling on the status of Uber drivers as employees rather than self-employed contractors has created uncertainty in the ride-hailing market. However, this has not deterred market leaders such as Uber, Bolt, and Meru Cabs from continuing their expansion plans. Investments from firms like D1 Capital Partners, Altimeter Growth Corp, and Tata Motors have enabled these companies to convert their fleets to electric vehicles (EVs), with XPRES-T EV units from BYD and Renault being popular choices. The shift towards EVs is driven by rising concerns over emissions, congestion, and the impact of worldwide lockdowns and the virus' spread on traditional automobile journeys.
Moreover, the ride sharing companies like BluSmart Mobility and Didi Chuxing are also investing in EV fleets to cater to the growing demand for mobility-as-a-service (MaaS). The rising population and urbanization, especially in APAC, present significant opportunities for growth in the ride-hailing sector. However, measures such as sanitizers, digital thermometers, and self-driving cars are becoming essential barriers to entry due to their high costs. Banks and lenders are offering attractive interest rates for automobile purchases to cater to the growing demand for passenger comfort and safety in the post-pandemic world.
Growing merger and acquisition activities in ride hailing services market is the upcoming trend in the market. The ride-hailing market in Europe is experiencing in strategic collaborations and alliances among key players and providers of ride-hailing services. These partnerships enable companies to broaden their operations and extend their geographic reach. Mergers and acquisitions are also prevalent in the ride hailing industry, allowing companies to enter new territories and strengthen their market presence. By acquiring local establishments or partnering with them, ride hailing firms can swiftly access new markets and consolidate their positions in existing ones. Mergers facilitate the addition of new services to existing offerings. In the context of the global market, fleet conversion to electric vehicles (EVs) is a significant trend.
The ride hailing sector is adapting to measures such as sanitizers, digital thermometers, and virus infection prevention strategies in response to worldwide lockdowns and the virus' spread. Self-driving cars and mobility-as-a-service (MaaS) are emerging trends in the transportation sector. Banks and lenders are offering lower interest rates to encourage automobile purchases, prioritizing passenger comfort and safety. The rising population and the need to reduce emissions and congestion are driving the growth of the market.
Compliance with government regulations in ride hailing services is key challenge affecting the market growth. The European Union's Court of Justice has set a precedent for ride-hailing market players such as Uber, Bolt, and Meru cabs, among others, to prioritize fleet conversion towards electric vehicles (EVs) to meet stringent emissions regulations. This comes as part of measures to mitigate the environmental impact of ride-sharing services, which have seen a demand during worldwide lockdowns due to the virus' spread. The shift towards EVs is further incentivized by the availability of charging infrastructure from providers like EVgo.
However, in the face of rising population and increasing traffic congestion, the transportation sector is under pressure to reduce emissions and offer passenger comfort and safety. Banks and lenders offer attractive interest rates for automobile purchases to facilitate this transition. However, barriers to entry, such as high upfront costs and the need for continuous fleet upgrades, pose challenges for smaller players. In response, some ride-hailing companies are exploring the use of self-driving cars and mobility-as-a-service (MaaS) models to offset these costs. Sanitizers and digital thermometers are also becoming essential tools in ensuring passenger safety during these uncertain times.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
ANI Technologies Pvt. Ltd. - The company offers ride hailing services such as Mini, Bike, Prime Sedan.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The ride-hailing market is experiencing significant transformation as fleet conversion towards electric vehicles (EVs) gains momentum. The EU's Court of Justice ruled that Uber and similar ride-sharing services are transport companies, paving the way for stricter regulations. Players like Bolt, Meru Cabs, Grab, Altimeter Growth Corp, and Blusmart Mobility are investing in EV fleets, with Tata Motors supplying Xpres-T EV units. BYD, Renault, and EVgo are also partnering with ride-hailing companies to promote EV adoption. Ride sharing, a key component of transportation, faces challenges from worldwide lockdowns due to the virus' spread. Measures such as sanitizers and digital thermometers are being implemented to ensure passenger safety.
Moreover, the rising population and urban congestion continue to drive demand for ride-hailing services. However, high interest rates for automobile purchases and passenger comfort and safety concerns pose barriers. Self-driving cars and mobility-as-a-service (MAAS) are potential solutions, with banks and lenders exploring financing options. Emissions reduction remains a priority, with companies investing in EV fleets to mitigate environmental impact.
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Market Scope |
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Report Coverage |
Details |
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Page number |
160 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 16.1% |
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Market growth 2024-2028 |
USD 66.17 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
14.88 |
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Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 31% |
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Key countries |
China, India, US, UK, and Germany |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
ANI Technologies Pvt. Ltd., Be Group Joint Stock Co., Bolt Technology OU, Comuto SA, DiDi Global Inc., FastGo Joint stock Co., Grab Holdings Ltd., GT Gettaxi UK Ltd., Junoride, Lyft Inc., My Taxi Ride Inc., Ridecell Inc, SUOL INNOVATIONS LTD, The Addison Lee Group, TomTom NV, Transopco UK Ltd., Uber Technologies Inc., Via Transportation Inc., Wheely Technologies Ltd., and YandexGo |
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Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Mode of Booking
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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