Corporate Employee Transportation Service Market Size

Employee Transportation Services Market Analysis

The Corporate Employee Transportation Service Market size is estimated at USD 38.14 billion in 2024, and is expected to reach USD 49.48 billion by 2029, growing at a CAGR of 5.34% during the forecast period (2024-2029).

The COVID-19 pandemic hampered the market by forcing many companies to work from home, resulting in less employee transportation. However, as economies have recovered from the lockdown, a return to office is expected to provide transportation service operators with numerous opportunities in the coming years. Moreover, governments in various states are also initiatives to improve employee commute systems. For instance,

• April 2022: Baltimore Mayor announced the launch of the city's innovative transportation program, "Let's Ride to Work." The Mayor's Office of Employment Development (MOED) and Lyft, Inc. collaborated on the agenda. Its main goal is to help newly hired Baltimore City residents by providing free rides to and from work for the first four weeks. This initiative is funded by the American Rescue Plan Act and is part of Baltimore City's COVID-19 employment recovery strategy.

Over the long term, employee transportation services are becoming more popular as people have become more aware of the significance of improved transportation safety measures. In addition, with the low prices offered by transportation providers, employees are choosing them to save time and effort when traveling. Therefore, players are coming up with new product developments and launches for employee transportation services. For instance,

• November 2022: CharterUP, the fully integrated charter bus marketplace for corporations, consumers, and operators, announced the national launch of Corporate Shuttles, a new platform for booking and managing day-to-day employee transportation. Hilton, Hyatt, Sysco, H-E-B, Texas Instruments, and other companies are currently using CharterUP to address their daily corporate shuttle needs.

Rising incidents of transportation insecurity, assaults, rude behavior, and high fees in ride-hailing and ride-sharing vehicles have prompted employers to consider their employees' safety. This factor is also in charge of driving market growth.

Asia-Pacific is expected to dominate the market due to a growing corporate office presence. It is because many North American and European MNCs are establishing offices, factories, warehouses, and plants in countries such as India, China, and the Philippines, owing to rising demand for goods and low labor costs. For instance,

• April 2022: Siam Rajathanee Public Co., Ltd (SO), a personnel recruitment service provider and a rental and service business, partnered with SWAT Mobility Pte Ltd (SWAT Mobility), Southeast Asia's leading transportation technology provider. The companies collaborated to launch the "SWAT Mobility" application to improve employees' commute experience to meet the demands of businesses in both the public and private sectors.