Ride Hailing Services Market Growth by By Mode Of Booking, Application, and Geography - Forecast and Analysis 2023-2027

 Ride Hailing Services Market Size 2023-2027

The  ride hailing services market size is forecast to increase by USD 58.24 billion, at a CAGR of 12.86% between 2022 and 2027. Market growth hinges on rising online ride-hailing service use, increased smartphone and internet penetration, and rapid urbanization. The surge in digital connectivity and urban living drives demand for convenient transportation solutions, spurring the expansion of online ride-hailing platforms. As more individuals gain access to smartphones and the internet, the adoption of ride-hailing services grows, contributing to market expansion. Moreover, rapid urbanization intensifies the need for efficient mobility options, further propelling the growth of the online ride-hailing market. These factors collectively shape the market's trajectory, highlighting the significant role of technology and urban development in driving transportation preferences and market dynamics.

What will be the Size of the Market During the Forecast Period?

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Market Segmentation

This market report extensively covers market segmentation by application (car sharing and e-hailing), mode of booking (online and offline), and geography (APAC, North America, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

Market Customer Landscape

The 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 growth strategies.

Market Customer Landscape

Market Dynamics

The market is driven by various factors, such as the increasing popularity of ride sharing and automobile journeys, especially in urban areas. However, challenges arise due to the impact of worldwide lockdowns and concerns regarding Virus' spread. Fleet conversion to EV units and the emergence of companies like Uber, Grab, and Didi Chuxing reflect ongoing trends toward sustainable transportation solutions. Regulatory influences from bodies like the EU's top court and the Court of Justice also shape the landscape, while addressing emissions and congestion remains a key challenge for the industry. Our researchers analyzed the data with 2022 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.

Key Market Driver

The rising use of online ride hailing services is the key factor driving the global market growth. Increased use of online ridesharing services is driven by new and innovative mobile applications that consumers are using to book rides. Uber in the US, Beijing Xiaoju Technology in China, and Grab Holdings in Singapore are market leaders in their respective countries. The surge in investment from venture capitalists provides leverage for major market players to enter greenfield developed and developing markets, giving players more opportunities to grow and increase overall revenues.

Moreover, rapid urbanization in developing countries is expected to support the growth of the ride-sharing market in the region and create more opportunities for ride-sharing providers. The increasing booking of on-demand taxis for daily commuting by consumers in various developing countries has played a key role in determining the growth of the market. Rapid urbanization has brought significant changes to the lifestyles of people in developed and developing countries such as Brazil, India, and China. Rising disposable income has led to higher per capita spending, increasing consumer purchasing power and contributing to higher living standards. Therefore, increasing urbanization in developing countries is a key factor driving the growth of the market and is expected to continue growing during the forecast period. 

Significant Market Trends

The growing mergers and acquisitions activity and strategic alliances will fuel the global market growth. The market has witnessed a significant increase in the number of strategic alliances and partnerships among competitors operating in different geographical locations and companies that provide ride hailing services. These strategic alliances and partnerships between companies help them improve their operations and expand their geographic footprint. Mergers and Acquisition activities enable ride hailing companies to expand their services into new regions and markets. By acquiring or partnering with established local players, these companies can gain access to new territories quickly and gain a stronger foothold in existing territories.

Along with this, Uber Technologies and Lyft have been testing self-driving cars for the past few years. Lyft Inc. has begun deploying self-driving vehicles to provide on-demand transportation across the United States. The complexity of autonomous vehicle functionality requires companies and original equipment manufacturers (OEMs) to pool their research and development (R&D) resources to design and develop a successful prototype.  Therefore, such developments related to the adoption of autonomous vehicles by ride hailing companies will also boost the growth of the market during the forecast period. 

Major Market Challenge

Compliance with government regulations can majorly impede the growth of the market. Ride hailing service providers have to comply with several state and federal laws aimed at protecting the environment. These regulations encourage suppliers and manufacturers to use solutions that can reduce emissions of gases such as nitrogen oxides, carbon monoxide, and carbon dioxide. Some of the tests that are conducted by government agencies around the world to control air pollution are engine emissions legislation, an annual Ministry of Transport (MOT) examination, and PUC (Pollution Under Control) certification. Such government regulations are likely to hamper the growth of the market during the forecast period. 

Along with this, passenger safety is a major issue in this industry. Uber, DiDi, Lyft, Grab, and Gett have introduced various safety features for riders. Crime against passengers by drivers continues to increase. For example, in August 2021, DiDi Global Inc. suspended its hitch service in China after a driver killed a female passenger using the service. It was the second murder in three months, after which DiDi Chuxing faced nationwide protests demanding people stop using DiDi services. Therefore, such issues related to passenger safety may reduce the acceptance of rideshare services among customers and will also adversely affect the growth of the market during the forecast period. 

Who are the Major Market Players?

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.

Olacabs: The company offers cab booking and renting services. It also offers different ride hailing services, such as bikes, minis, and prime sedans.

Be Group Joint Stock Co: The company offers different types of ride hailing services such as 4-seaters beCar, beBike, and 7-seater beCar.

We also have detailed analyses of the market’s competitive landscape and offer information on 15 market companies, including:

• ANI Technologies Pvt. Ltd.
• Comuto SA
• DiDi Global Inc.
• FastGo Joint stock Co.
• Grab Holdings Ltd.
• GT Gettaxi UK Ltd.
• Junoride
• Lyft Inc.
• My Taxi Ride Inc.
• The Addison Lee Group
• Transopco UK Ltd.
• Uber Technologies Inc.
• Via Transportation Inc.
• Wheely Technologies Ltd.
• YandexGo

The market research and growth report offers clients a deeper understanding of the market and its players through a combined qualitative and quantitative analysis of the companies. The market growth analysis classifies companies into categories based on their business approach, including pure-play, category-focused, industry-focused, and diversified. companies are specially categorized into dominant, leading, strong, tentative, and weak to understand the dos and don’ts of business which in turn can help a client make the best decision.

Market Segmentation by Application, Mode Of Booking, and Geography 

The market is evolving rapidly, driven by various factors and key players. Uber, Grab, Didi Chuxing, and Bolt are among the prominent names shaping this industry. The market has witnessed a significant shift in ride sharing patterns and automobile journeys, especially with the impact of the Virus' spread and worldwide lockdowns. Fleet conversion to EV units is becoming a focal point, with companies like Tata Motors, BYD, and Renault leading the charge towards more sustainable transportation solutions, addressing concerns about emissions and congestion. Regulatory frameworks, including decisions from the EU's top court and the Court of Justice, play a crucial role in shaping the ride-hailing market and influencing the strategies of companies like Uber and BluSmart Mobility. Investments from firms like D1 Capital Partners and Altimeter Growth Corp further fuel innovation and expansion within the sector.

Application Analysis

The car sharing segment will contribute a major share of the market, as this model is becoming more and more popular in the global automotive service market, and several global companies have adopted this model to better serve their customers. The global market recognizes the great potential of car-sharing in cities where public transport is non-existent, inadequate, or inaccessible. Companies have already started offering car-sharing options to passengers. For example, Uber has launched the Uber pool feature, which will allow multiple passengers to travel together in one vehicle, reducing costs and environmental impact.

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The car sharing segment showed a gradual increase in market share with USD 19.95 billion in 2017 and continued to grow by 2021. Car sharing is part of the larger shared mobility trend. Carsharing includes station-based free-floating services and carpool services. Urban mobility is undergoing a dramatic change, allowing people to book on-demand car-sharing services through mobile apps and online platforms. The concept of car sharing has become important to reduce CO2 emissions and soften city streets. Unlike traditional rental cars, where consumers are required to reserve a vehicle in advance and pick up and drop off the vehicle at a designated location, the free-floating model uses vehicles parked freely in city or business areas.

Mode Of Booking Analysis

Over the past decade, technology has revolutionized the market. This was largely facilitated by the advent of online booking services. Online booking has made the process of booking a ride easy with just a few clicks on a smartphone app. With the rise of ride hailing services such as Uber and Lyft, passengers are now able to book and track their rides via their mobile apps. The software allows passengers to enter pick-up and drop-off locations, view travel cost estimates, and request a ride. The app uses the consumer's GPS location to find the closest available driver and also offers secure payment options. With online booking mode, drivers can pre-book a ride to ensure they pick it up at the specified time and get it to their destination. The online booking mode, therefore, offers a simpler, more efficient, and transparent way to secure a ride in the market. Increasing smartphone and internet penetration, especially in emerging markets, will boost the growth of the online segment of the global market during the forecast period. 

Regional Analysis

APAC is estimated to contribute 30% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period.  

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North America is another major shareholding region in the market. In North America, increasing baby boomer spending, increasing demand for car sharing, growing number of tourists, and the presence of prominent operators are driving the growth of the ride hailing market in the region. North American countries are undergoing significant urbanization, which is increasing the demand for ride-hailing services. These factors are expected to accelerate the growth of ride hailing market in North America.  

Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2023 to 2027, as well as historical data from 2017 to 2021 for the following segments. 

• Mode of booking Outlook 
  • Online
  • Offline

• Application Outlook 
  • Car sharing
  • E-hailing

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Brazil
    • Argentina
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The market is experiencing a profound transformation driven by various factors. Fleet conversion initiatives, such as the integration of electric vehicles (EVs) like XPRES-T EV units and partnerships with companies like BYD and Renault, are reshaping the landscape. Notable players like Bolt, Meru Cabs, BluSmart Mobility, and EVgo are at the forefront of this evolution, supported by investors like D1 Capital Partners and Altimeter Growth Corp. The COVID-19 pandemic significantly impacted the market, prompting measures like sanitizers, digital thermometers, and virus infection protocols to ensure passenger safety. However, challenges remain, including the cost of ride-hailing services, regulatory barriers, and changing mobility trends post-lockdowns.

Moreover, technological advancements, including Mobility-as-a-Service (MaaS), smartphone applications, and digitally enabled car-sharing, are enhancing user-friendliness and convenience. Additionally, the market is witnessing an influx of smart wearables and internet services integration, offering innovative solutions for the evolving transportation needs of consumers. Governments of developing nations are also playing a pivotal role by promoting service innovation and supporting the e-hailing market segment. As the population rises and traffic congestion increases, the demand for efficient ride-hailing services continues to grow, emphasizing the importance of sustainable practices, emission norms adherence, and passenger comfort in the industry.

The Market is witnessing a dynamic shift influenced by a myriad of factors. The EU's top court and the Court of Justice play significant roles in shaping regulatory frameworks that impact companies like Tata Motors and their EV fleet initiatives. The ride-sharing sector has experienced fluctuations due to disruptions like worldwide lockdowns and the spread of viruses, prompting adaptations and enhanced safety measures across the industry. Financial aspects are crucial, with banks and lenders influencing interest rates that affect automobile purchases and the adoption of fleets of automated vehicles. Rising population densities and evolving public transportation modes contribute to varying wait times and drive the demand for ride-hailing services.

Market Scope
Report Coverage	Details
Page number	157
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 12.86%
Market growth 2023-2027	USD 58.24 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	12.43
Regional analysis	APAC, North America, Europe, South America, and Middle East and Africa
Performing market contribution	APAC at 30%
Key countries	US, China, India, UK, and Germany
Competitive landscape	Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks
Key companies profiled	ANI Technologies Pvt. Ltd., Be Group Joint Stock Co., Comuto SA, DiDi Global Inc., FastGo Joint stock Co., Grab Holdings Ltd., GT Gettaxi UK Ltd., Junoride, Lyft Inc., My Taxi Ride Inc., The Addison Lee Group, Transopco UK Ltd., Uber Technologies Inc., Via Transportation Inc., Wheely Technologies Ltd., and YandexGo
Market dynamics	Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period
Customization purview	If our 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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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market industry across APAC, North America, Europe, South America, and Middle East and Africa
• A thorough market growth and forecasting analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market forecast analysis of factors that will challenge the growth of market companies

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