Ride Hailing Industry Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Ride-Hailing Market Report is Segmented by Vehicle Type (Motorcycles, Cars, Vans, and Buses), Propulsion Type (Internal Combustion Engine (ICE) and Electric), and Geography (North America, Europe, Asia-Pacific, and Rest of the World). The Report Offers Market Sizes and Forecasts for all the Above Segments in Value (USD).

Ride-Hailing Market Size

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Ride-Hailing Market Summary
Study Period 2019 - 2029
Market Size (2024) USD 185.64 Billion
Market Size (2029) USD 294.11 Billion
CAGR (2024 - 2029) 9.64 %
Fastest Growing Market Asia Pacific
Largest Market Asia-Pacific

Major Players

Ride-hailing Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Ride-Hailing Market Analysis

The Ride-Hailing Market size is estimated at USD 185.64 billion in 2024, and is expected to reach USD 294.11 billion by 2029, growing at a CAGR of 9.64% during the forecast period (2024-2029).

Over the long term, the increasing urbanization rate worldwide, the growing tourism industry, and the rising traffic congestion in urban cities will be major factors driving the growth of the ride-hailing market.

The increasing urbanization has led to a higher demand for ride-hailing services as more people seek better job opportunities in cities. These consumers prefer affordable commuting options over owning a vehicle. In addition, with growing traffic congestion, people who need to travel long distances daily prefer to avoid having to drive themselves, as it can be physically exhausting.

In recent years, there has been a growing preference for ride-hailing services in developing countries like India, China, and Vietnam, as well as in developed regions such as the United States and Europe. This trend has prompted companies to improve their services and expand their operations through mobile applications to compete effectively in the market.

Ride-hailing companies are working to reduce vehicle carbon emissions globally by converting gasoline vehicles to electric, aiming to eliminate tailpipe emissions. Fleet conversion offers direct environmental benefits and indirect advantages for other markets. The integration of electric vehicles in ride-hailing fleets is expected to drive substantial market growth.

Ride-Hailing Market Trends

The Cars Segment is Expected to Gain Traction During the Forecast Period

The increasing preference of consumers toward using private transportation for traveling purposes, owing to the rising need for convenience in personal mobility and the growing number of tourists worldwide, serve as major determinants of the rising demand for the cars segment.

Tourists are increasingly turning to ride-hailing services due to their convenience. These services allow them to access transportation as and when they need it, without the need to book a car for an entire day or a specific period.

In the age of environmentally friendly transportation, policymakers across the world are prioritizing advancements in transportation solutions to combat environmental pollution from vehicles and address climate change issues.

Governments globally are advocating for the electrification of vehicle fleets to minimize carbon emissions. New players in the market are investing substantial amounts in introducing an all-electric vehicle fleet for their ride-hailing services. They are actively forming partnerships to strengthen their brand presence.

  • In December 2023, electric mobility startup BluSmart announced that it had raised USD 24 million in a fresh round of funding to build large-scale charging superhubs that would enable the expansion of its electric ride-hailing services.

Additionally, several companies in the market are actively incorporating advanced features, such as the "emergency button," into their passenger car fleet to improve customer safety. This, in turn, is expected to drive demand for this segment. Furthermore, with the growing tourism industry and the advancement of ride-hailing platforms, the cars segment of the market is anticipated to experience significant growth during the forecast period.

Ride-Hailing Market: Number of International Tourist Arrivals Worldwide (Million Users), 2019-2023

Asia-Pacific to Become the Fastest-growing Market During the Forecast Period

The growth of the ride-hailing service market in Asia-Pacific is driven by increasing traffic congestion and low fares compared to other modes of transportation. In addition, the rising urban population in countries like India and China is leading to a higher demand for fast transportation solutions, which is positively impacting the ride-hailing market in Asia-Pacific.

In recent years, the ride-hailing market in Asia-Pacific has seen the emergence of new players such as BluSmart in India and GSM in Vietnam. With India and China being the world's most populous countries, the demand for ride-hailing services in these nations is on the rise.

Various companies operating in the ecosystem are forming collaborations and partnerships, expanding their fleets, and strategizing for new initiatives to enhance their brand's presence in this competitive market. For instance,

  • In November 2023, Uber partnered with the IAS Secretary of the Transport Department, Government of West Bengal, India, to launch a bus shuttle service in Kolkata. This initiative aims to enhance public transport services and provide more commuting options to make travel easier.
  • In May 2023, Uber announced its plan to introduce 25,000 electric cars in partnership with fleet providers such as Lithium, Everest, and Moove for the Indian market. In addition, the company stated that it would roll out 10,000 electric two-wheelers in Delhi by the end of 2024 in collaboration with Zypp Electric, another EV startup.

With the growing urban population, rising integration of new entrants in the market, and the consumers' increasing preference for convenience in personal mobility, the demand for ride-hailing services in the Asia-Pacific market is anticipated to surge rapidly over the coming years.

Ride Hailing Industry, Growth Rate (%) by Region, 2024 - 2029

Ride-Hailing Industry Overview

The ride-hailing market is dominated by several key players, such as Didi Chuxing Technology Co., Uber Technologies Inc., Lyft Inc., Grab Holdings Inc., Cabify, Bolt, inDrive, Gett, and Ani Technologies Pvt. Ltd (OLA). These players are actively engaging in mergers and acquisitions, geographical expansions, and introducing advanced features in their ride-hailing platforms to enhance customers' convenience. For instance,

  • In June 2023, the South Korean ride-hailing platform TADA, operated by VCNC, introduced an English-language service to its app to simplify the user experience for international customers. The English-language functionality also extends to situations where a foreign user is not directly hailing the taxi, but a friend or acquaintance uses the "call for me" feature on their behalf.
  • In December 2023, the Karnataka government in India planned to launch its ride-hailing app, similar to Ola and Uber, which was expected to be open to the public by February 2024. This decision came after taxi and auto drivers voiced grievances against private ride-hailing platforms in August 2023.

Ride-Hailing Market Leaders

  1. Uber Technologies, Inc.

  2. Lyft, Inc.

  3. Grab Holdings Inc.

  4. Bolt Technology OÜ

  5. SUOL INNOVATIONS LTD (inDrive)

*Disclaimer: Major Players sorted in no particular order

Ride Hailing Market Concentration
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Ride-Hailing Market News

  • April 2024: The Japanese government implemented the use of private ride-hailing services, which are accessible through mobile applications such as Uber and Go.
  • March 2024: Alphabet's autonomous driving division, Waymo, introduced its ride-hailing service, Waymo One, in Los Angeles, California. The service is being offered to the public for free, and this decision was made after the successful completion of the Waymo One Tour program that the company initiated in the city.
  • December 2023: TH International Limited, the exclusive operator of Tim Hortons coffee shops and Popeyes restaurants in China, announced a partnership with the ride-hailing company DiDi Chuxing as part of a brand-building campaign. This new partnership will focus on cross-brand and cross-channel marketing, leveraging DiDi's large customer base to increase awareness of the Tims China brand.

Ride Hailing Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

      1. 4.1.1 Rising Traffic Congestion and Increasing Urban Population to Foster Market Growth

    2. 4.2 Market Restraints

      1. 4.2.1 Strict Government Regulations and Policies Toward Ride-hailing Services Impact the Market Growth

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION (Market Size in Value - USD)

    1. 5.1 By Vehicle Type

      1. 5.1.1 Motorcycles

      2. 5.1.2 Cars

      3. 5.1.3 Vans

      4. 5.1.4 Buses

    2. 5.2 By Propulsion Type

      1. 5.2.1 Internal Combustion Engine (ICE)

      2. 5.2.2 Electric

    3. 5.3 By Geography

      1. 5.3.1 North America

        1. 5.3.1.1 United States

        2. 5.3.1.2 Canada

        3. 5.3.1.3 Rest of North America

      2. 5.3.2 Europe

        1. 5.3.2.1 Germany

        2. 5.3.2.2 United Kingdom

        3. 5.3.2.3 France

        4. 5.3.2.4 Italy

        5. 5.3.2.5 Rest of Europe

      3. 5.3.3 Asia-Pacific

        1. 5.3.3.1 China

        2. 5.3.3.2 India

        3. 5.3.3.3 Japan

        4. 5.3.3.4 South Korea

        5. 5.3.3.5 Rest of Asia-Pacific

      4. 5.3.4 Rest of the World

        1. 5.3.4.1 South America

        2. 5.3.4.2 Middle East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles*

      1. 6.2.1 Didi Chuxing Technology Co.

      2. 6.2.2 Uber Technologies Inc.

      3. 6.2.3 Lyft Inc.

      4. 6.2.4 Grab Holdings Inc.

      5. 6.2.5 Maxi Mobility SL (Cabify)

      6. 6.2.6 BlaBla Car

      7. 6.2.7 GoTo Group (GoJek)

      8. 6.2.8 Xanh SM (GSM)

      9. 6.2.9 Bolt Technology OU

      10. 6.2.10 Gett Group

      11. 6.2.11 Ani Technologies Pvt. Ltd (OLA)

      12. 6.2.12 SUOL INNOVATIONS LTD (inDrive)

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  8. 8. GOVERNMENT REGULATIONS FOR RIDE-HAILING INDUSTRY ACROSS THE WORLD**

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Ride-Hailing Industry Segmentation

A ride-hailing service refers to ridesharing services that, via website and mobile applications, match passengers with drivers of vehicles for hire that, unlike taxicabs, cannot be legally hailed from the street.

The ride-hailing market is segmented by vehicle type, propulsion type, and geography. By vehicle type, the market is segmented into motorcycles, cars, vans, and buses. By propulsion type, the market is segmented into internal combustion engine (ICE) and electric. By geography, the market is segmented into North America, Europe, Asia-Pacific, and Rest of the World. For each segment, the market size and forecast are provided in terms of value (USD).

By Vehicle Type
Motorcycles
Cars
Vans
Buses
By Propulsion Type
Internal Combustion Engine (ICE)
Electric
By Geography
North America
United States
Canada
Rest of North America
Europe
Germany
United Kingdom
France
Italy
Rest of Europe
Asia-Pacific
China
India
Japan
South Korea
Rest of Asia-Pacific
Rest of the World
South America
Middle East and Africa
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Ride Hailing Market Research FAQs

The Ride-Hailing Market size is expected to reach USD 185.64 billion in 2024 and grow at a CAGR of 9.64% to reach USD 294.11 billion by 2029.

In 2024, the Ride-Hailing Market size is expected to reach USD 185.64 billion.

Uber Technologies, Inc., Lyft, Inc., Grab Holdings Inc., Bolt Technology OÜ and SUOL INNOVATIONS LTD (inDrive) are the major companies operating in the Ride-Hailing Market.

Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).

In 2024, the Asia-Pacific accounts for the largest market share in Ride-Hailing Market.

In 2023, the Ride-Hailing Market size was estimated at USD 167.74 billion. The report covers the Ride-Hailing Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Ride-Hailing Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

The emerging trends in the Ride-hailing Market are a) Integration with micro-mobility options (e-scooters, bikes) b) Autonomous vehicles c) Subscription-based ride-hailing models

Key factors driving the Ride-hailing Market are a) Increasing smartphone penetration b) Need for personal mobility in the wake of urbanization c) Shift towards cashless transactions

The emerging trends in the Ride-hailing Market are a) Integration with micro-mobility options (e-scooters, bikes) b) Autonomous vehicles c) Subscription-based ride-hailing models

Ride Hailing Industry Report

The global ride-hailing services market is witnessing remarkable growth, fueled by the demand for efficient, convenient, and cost-effective transportation. Innovations in smartphone technology have made ride-hailing services more accessible, leading to their increased popularity worldwide. This market, featuring e-hailing, car sharing, and rental services, caters to various traveler needs, with e-hailing being particularly dominant due to its ease and availability. The introduction of mobility-as-a-service (MaaS) and potential self-driving cars are set to revolutionize this sector further. Additionally, the rise in vehicle sales, including electric vehicles, aligns with ride-hailing services companies' goals to offer sustainable options amidst growing urban populations and traffic challenges. These companies are innovating and expanding their services to improve passenger comfort and safety, with support from government initiatives in developing countries. The shift towards on-demand and personalized travel solutions underscores the importance of ride-hailing services in urban mobility. For detailed market insights, including the ride-hailing market share, size, and revenue growth rate, access a free report PDF download from Mordor Intelligence™ Industry Reports, offering a comprehensive analysis and forecast outlook.

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Ride Hailing Industry Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)