Ride-Hailing Market Size
| 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
*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 serve as major determinants for the growth of the ride-hailing market worldwide. As more consumers shift to urban cities for better employment and financial opportunity, they will generate high demand for ride-hailing services as these consumers prefer availing of lower-priced services for commuting rather than purchasing a new vehicle. Moreover, due to the increasing traffic congestion, consumers who need to travel for a longer duration daily prefer to avail themselves of services that do not require them to operate vehicles, which can be physically taxing.
• According to the TomTom Traffic Congestion Index, London, Bengaluru, and Dublin were the cities with the worst traffic congestion in 2022. The average travel time per 10 km in London was approximately 36 minutes 20 seconds. Despite its efficient public transit system, car owners in London have to spend 325 hours in rush hour traffic each year.
• According to the Population Reference Bureau, North America, Latin America, and Europe were the leading regions with the highest urbanization rates in 2022. The share of the urban population in North America touched 83% in 2022, followed by Latin America with an 81% share and Europe with a 75% share.
In recent years, passenger preferences for utilizing ride-hailing services across developing countries, such as India, China, and Vietnam, have increased, along with increasing demand in developed regions, such as the United States and Europe. This has led companies to enhance their offerings and expand their operations in order to provide services through mobile applications and try to retain their shares in a highly competitive market.
• In March 2023, Be Group announced its partnership with GSM to offer an EV leasing service that will make it the first ride-hailing company in Vietnam to use all-electric vehicles. As per the agreement, GSM will work with Vietnam Prosperity Bank to enable drivers to transition from combustion engine vehicles.
Ride-hailing companies are working to eliminate tailpipe emissions and reduce overall vehicle carbon emissions globally by converting gasoline vehicles to electric. Fleet conversion has various direct environmental benefits and indirect benefits for other markets, such as the enhancement in public charging infrastructure and increased individual consumer exposure to electric vehicles. With the integration of electric vehicles in ride-hailing fleets, the market is expected to showcase substantial growth during the forecast period.
Ride-Hailing Market Trends
Cars Segment of the Market to Gain Traction during the Forecast Period
Consumers’ increasing preference toward availing a private transportation medium for traveling purposes owing to the rising need for convenience in personal mobility and the growing number of tourists worldwide serve as major determinants for the rising demand for the passenger car segment of the ride-hailing services market. Ride-hailing services are becoming increasingly popular among tourist as they can avail of this service at their convenience rather than booking a car for an entire day or a specific period.
• According to the United Nations World Tourism Organization (UNWTO), the number of international tourist arrivals worldwide touched 965.32 million in 2022 compared to 458.08 million in 2021, representing a Y-o-Y growth of 110.7%. Subsequently, the share of the travel and tourism industry's total contribution to GDP worldwide touched 7.6% in 2022.
In the era of green mobility, to address environmental pollution from transportation and climate change issues, policymakers worldwide are focused on advancements in transportation solutions. Governments worldwide are calling for the electrification of vehicle fleets to reduce their carbon emissions. New market entrants are investing hefty sums to deploy an all-electric vehicle fleet for their ride-hailing operation and are effectively forming partnerships to enhance 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. BluSmart operated approximately 4,500 electric cars in the Indian market as of July 2023, in the capital, New Delhi, and tech hub Bengaluru.
• In September 2023, Gojek announced its plan to partner with Selex, a Vietnamese startup that makes electric vehicles and battery networks, to offer its drivers in Vietnam a swift charging mechanism for their electric motorbikes. As per the agreement, Gojek drivers using Selex bikes will have home chargers and free access to Selex’s “battery ATMs,” or automated lockers where they swap out depleted batteries for fresh ones.
Moreover, various players operating in the market are actively focusing on adding advanced features such as the "Emergency Button" in their passenger car fleet to enhance customers' safety, which, in turn, positively contributes to the demand for this segment. Further, with the expanding tourism industry and the advancement of ride-hailing platforms, the passenger car segment of the market is expected to showcase surging growth during the forecast period.
Asia-Pacific Region to Become the Fastest-growing Market during the Forecast Period
Increasing traffic congestion and low fares for ride-hailing services, compared to other modes of transportation, are the major factors driving the growth of the motorcycle/bike ride-hailing service market in the Asia-Pacific. Moreover, the increasing urban population across countries such as India and China is leading to consumers demanding swift transportation solutions, which, in turn, positively impacts the ride-hailing market across Asia-Pacific countries.
• According to the National Bureau of Statistics of China, the urbanization rate in China stood at 65.22% in 2022 compared to 63.89% in 2021. Similarly, according to the World Bank, the share of urban population as a percentage of the overall population in India stood at 36% in 2022 compared to 35% in 2021.
In recent years, ride-hailing services in the Asia-Pacific market have also been driven by the integration of new entrants in the ecosystem, such as BluSmart in India and GSM in Vietnam. India and China are the world's most populous countries, and therefore, the demand for ride-hailing services in these countries is expanding. 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, in partnership with the IAS, Secretary, Transport Department., Government of West Bengal, India, announced its plan to initiate an Uber Bus Shuttle Service in Kolkata from March 2024 to improve public transport services and expand available transport options to make commuting hassle-free. The bus shuttle service will have a capacity of 60 AC buses, and the shuttle service will be available to passengers on “predefined routes connecting business districts with residential areas.”
• In May 2023, Uber announced its plan to introduce 25,000 electric cars in partnership with fleet providers like Lithium, Everest, and Moove for the Indian market. Further, the company stated that it would roll out 10,000 electric two-wheelers in Delhi by 2024 alongside Zypp Electric, another EV startup. Uber has also joined hands with micro-lender SIDBI to provide INR 10 billion (USD 122.3 million) to buy clean cars and build charging stations with partners.
• In June 2022, Grab Holdings Limited announced the launch of GrabMaps, a new enterprise that will allow the company to provide optimal mapping and location-based services to its customers in Southeast Asia, including customers from Vietnam.
With the growing urban population, rising integration of new entrants in the market, and the consumers's 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 Overview
The ride-hailing market is fragmented and highly competitive due to various incumbent players and new entrants operating in the ecosystem. Some of the major players include 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 the introduction of advanced features in their ride-hailing platforms to enhance customers' convenience.
• In June 2023, South Korean ride-hailing platform TADA, operated by VCNC, announced the introduction of an English language service to its app in a move designed to simplify the user experience for international customers. This English-language functionality extends to situations where the foreign user is not hailing the taxi directly, but a friend or acquaintance uses the "call for me" feature on their behalf. The end user will receive English text messages detailing TADA vehicle deployment status or real-time location.
• In March 2023, Uber announced its expansion of Comfort Electric, the ride-hailing giant’s premium electric vehicle offering, to 14 new markets across the United States and Canada. The expansion is in line with Uber’s goal to become a zero-emissions mobility platform by 2030 in the United States, Canada, and Europe. Eligible luxury EVs include Tesla models S, 3, X, and Y, the Polestar 2, the Ford Mustang Mach-E, the Audi e-Tron, the Porsche Taycan, and the Hyundai Ioniq.
The market is anticipated to witness several companies integrating electric vehicles into their fleet to promote the usage of eco-friendly mediums of transportation and reduce carbon emissions.
Ride-Hailing Market Leaders
Uber Technologies, Inc.
Lyft, Inc.
Grab Holdings Inc.
Bolt
inDrive
*Disclaimer: Major Players sorted in no particular order
Ride-Hailing Market News
- December 2023: The Karnataka state government in India announced its plan to launch its ride-hailing app, similar to Ola and Uber, which will be open to public use from February 2024. The government began working on its app after a surge in grievances voiced by taxi and auto drivers against private ride-hailing platforms in August 2023 over the high commission that the cab aggregators charge from drivers.
- December 2023: TH International Limited, the exclusive operator of Tim Hortons coffee shops and Popeyes restaurants in China, announced its partnership with ride-hailing company DiDi Chuxing as part of a brand-building campaign. This new partnership focuses on cross-brand and cross-channel marketing, leveraging Didi’s large customer base to bolster awareness of the Tims China brand.
- July 2023: Bolt announced that it had surpassed 150 million customers across more than 45 countries and 500 cities. Furthermore, the company boasted of its wide network with 3.5 million partners (drivers and couriers) using the app to earn a living, with over 1 million in Africa alone. To keep up with this demand, the company stated that it had shifted its driver hub from the capital to a city center location in Bermondsey.
Ride Hailing Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.1.1 Rising Traffic Congestion and Increasing Urban Population to Foster Market Growth
4.2 Market Restraints
4.2.1 Strict Government Regulations and Policies Toward Ride-Hailing Services Deter Market Growth
4.3 Industry Attractiveness - Porter's Five Forces' Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (Market Size in Value - USD)
5.1 By Vehicle Type
5.1.1 Motorcycles
5.1.2 Cars
5.1.3 Vans
5.1.4 Buses
5.2 By Propulsion Type
5.2.1 Internal Combustion Engine (ICE)
5.2.2 Electric
5.3 By Geography
5.3.1 North America
5.3.1.1 United States
5.3.1.2 Canada
5.3.1.3 Rest of North America
5.3.2 Europe
5.3.2.1 Germany
5.3.2.2 United Kingdom
5.3.2.3 France
5.3.2.4 Italy
5.3.2.5 Rest of Europe
5.3.3 Asia-Pacific
5.3.3.1 China
5.3.3.2 India
5.3.3.3 Japan
5.3.3.4 South Korea
5.3.3.5 Rest of Asia-Pacific
5.3.4 Rest of the World
5.3.4.1 South America
5.3.4.2 Middle East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles*
6.2.1 Didi Chuxing Technology Co.
6.2.2 Uber Technologies Inc.
6.2.3 Lyft Inc.
6.2.4 Grab Holdings Inc.
6.2.5 Cabify
6.2.6 BlaBla Car
6.2.7 GoJek (GoViet)
6.2.8 Xanh SM (GSM)
6.2.9 Bolt
6.2.10 Gett
6.2.11 Ani Technologies Pvt. Ltd (OLA)
6.2.12 inDrive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Integration of Electric Vehicles in Ride-hailing Fleets Fueling Market Demand
8. GOVERNMENT REGULATIONS FOR RIDE-HAILING INDUSTRY ACROSS THE WORLD
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 scope of the report includes all types of vehicles, including passenger cars, motorcycles (two-wheelers), buses, and vans.
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.
The report offers market size and forecasts for the ride-hailing services in value (USD) for all the above segments.
| By Vehicle Type | |
| Motorcycles | |
| Cars | |
| Vans | |
| Buses |
| By Propulsion Type | |
| Internal Combustion Engine (ICE) | |
| Electric |
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Ride Hailing Market Research FAQs
How big is the Ride-Hailing Market?
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.
What is the current Ride-Hailing Market size?
In 2024, the Ride-Hailing Market size is expected to reach USD 185.64 billion.
Who are the key players in Ride-Hailing Market?
Uber Technologies, Inc., Lyft, Inc., Grab Holdings Inc., Bolt and inDrive are the major companies operating in the Ride-Hailing Market.
Which is the fastest growing region in Ride-Hailing Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Ride-Hailing Market?
In 2024, the Asia-Pacific accounts for the largest market share in Ride-Hailing Market.
What years does this Ride-Hailing Market cover, and what was the market size in 2023?
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.
What are the emerging trends in the Ride-hailing Market?
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
What are the key factors driving the Ride-Hailing Market growth?
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
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.
