Ride Hailing Services Market Analysis Report By Offering, By Region And Segment Forecasts From 2019 To 2025

Industry Insights

The global ride-hailing services market size was worth USD 34.45 billion in the year 2018. Rapidly increasing urban population in emerging countries is attributing to the growth of the market. The emergence of self-driving vehicles is expected to bolster Mobility-as-a-Service (MaaS) as such vehicles will significantly reduce the cost of ride-hailing services. Further, owning a car has become easier owing to the availability of loans at a low interest rate. Key players involved in the market are relying on hiring automated fleets to ensure passenger safety.

The growing popularity of ride-sharing facilities among daily office commuters in cities is likely to create a lucrative opportunity for the growth of the market over the forecast period. Such services greatly reduce the cost of commuters along with reducing carbon emission and parking hassle. Carpooling helps in air quality improvement as it reduces the total number of vehicles on the road. Germany has witnessed the highest number of carpooling services followed by France in Europe.

Customers can choose any type of vehicles such as sedan, hatchback, SUV, and others depending upon their convenience. Further, they can choose the drop and pick-up location based on their suitability. Features such as real-time tracking of vehicles and sharing one’s detail with friends and kin make these services safer. Moreover, the availability of various service providers allows customers to compare the quality of services and give feedback, which results in increasing the credibility of such services. According to a recent study conducted by the University of Pennsylvania, it was found that drunken driving cases have been reduced considerably owing to the expansion in ridesharing services.

Consumers’ preferences from driving a car to a car being driven by others have positively affected the market growth. Further, increasing demand from millennials for luxury cars at affordable prices has hugely attracted them. Growing utilization of public transport has significantly reduced the congestion on the road and positively contributed to environmental safety. Additionally, owing to the growing digitalization, customers are increasingly opting for the digital mode of payment, which, in turn, offers convenience to both passengers and drivers. Growing promotion of digitalization by governments and increasing adoption of such payments services by masses make ride-hailing services the first choice, thereby, proliferating the market growth.

Offering Insights

E-hailing held over 50% of the market share in the base year 2018. Factors such as convenience and user-friendliness are attributing to the growth of this segment. This service provides well-trained drivers and easy-to-use navigation maps, thereby, making traveling easier even in new cities. Further, the app is designed in such a way as it makes the price estimation easy, thus, reducing the chances of being duped by the driver. Therefore, such easy-to-use features coupled with one-tap booking are anticipated to drive the market growth from 2019 to 2025.

On the other hand, rental services are projected to exhibit the highest growth rate, growing at a CAGR of 13.8% over the forecast period. Growing demand for self-driving services in emerging countries such as China and India has positively affected the market growth. Benefits such as self-control, comfort, and additional time limit have encouraged more consumers, especially millennials, to opt for rental services. Although, renting costs more than mass transportation but it is significantly less than owning a car.

Regional Insights

North America led the ride-hailing service market with over 35% of the market share in 2018. The growing number of U.S based companies and increasing demand for public transport facilities from cities such as San Francisco, New York, Ottawa, Dallas, and others are attributing to the growth of the regional market. Amid changing lifestyles and growing awareness about the environment, consumers are opting for a convenient, affordable, and eco-friendly transportation solution, which, in turn, driving the demand for ride-hailing services in the region.

Asia Pacific is projected to grow at the highest CAGR of 13.9% over the forecast period. Increasing demand from populated cities such as Delhi, Mumbai, Tokyo, and Shanghai are expected to proliferate the regional demand. Further, favorable government policies, growing job opportunities owing to increasing economic growth, and the eco-friendly nature of such services are estimated to create a lucrative opportunity for the growth of the market. 

Ride-Hailing Services Market Share Insights

Key players functioning in the market include Via, Xoox, Ola, Lyft, Didi Chuxing, Via Van, Gett, Grab, My Taxi, Kabbee, and Addison Lee among others. Companies are focusing on introducing advanced safety features to attract a larger consumer base. Favorable government support from emerging countries such as China, Indonesia, and India is expected to encourage companies to expand their market penetration. Further, key players are focusing on innovation in services to ensure maximum comfort for commuters.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels, and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For the purpose of this study, Million Insights has segmented the global ride-hailing services market on the basis of offering and region:

• Offering Outlook (Revenue, USD Million, 2015 - 2025)
    • E-hailing
    • Car Sharing
    • Rental

• Regional Outlook (Revenue, USD Million, 2015 - 2025)
    • North America
        • U.S
    • Europe
        • Germany
        • U.K
    • the Asia Pacific
        • China
        • India
    • Central & South America
        • Brazil
    • Middle East & Africa
        • U.A.E.