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Ride-Hailing Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Ride-hailing Market is segmented by Vehicle Type (Motorcycle and Cars) and Geography.

Market Snapshot

Ride Hailing Market  Overview
Study Period: 2018 - 2026
Base Year: 2020
CAGR: 8.75 %

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Market Overview

The global ride hailing market is valued at USD 113 billion in 2020 and is anticipated to reach a value of USD 230 billion by 2026, registering a CAGR of 8.75%, during the forecast period, 2021-2026.

During the outbreak of pandemic COVID-19, the market was hit badly because of the imposed lockdowns around the world to curb the spread of virus. Yet, with gradual reopening of economies demand is returning to the market.

In recent years, passenger preferences for utilizing ride-hailing services across the developing countries, such as India, China, Vietnam, etc., have increased, along with increasing demand in the developed regions, such as the United States and Europe. This has led the companies to enhance the options and expand their operations to be provided in mobile applications, to retain their respective market shares in a highly competitive market.

Ride-hailing companies are working to eliminate tailpipe emissions and reduce the overall vehicle carbon emissions globally, by converting gasoline vehicles to electric. Fleet conversion has various direct environmental benefits and indirect benefits for other markets. It can support the public charging infrastructure and increase individual consumer exposure to EVs.

Scope of the Report

Ride-hailing allows for booking rides and paying for service through an app with a transportation network company (TNC), where the market comprises of vehicle types, such as motorcycle and cars.

Vehicle Type
Motorcycle
Cars
Geography
North America
United States
Canada
Rest of North America
Europe
Germany
United Kingdom
France
Russia
Spain
Rest of Europe
Asia Pacific
India
China
Japan
South Korea
Rest of Asia-Pacific
Latin America
Middle-East and Africa

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Key Market Trends

Rising Demand for Ride-Hailing Services

Ride-hailing is anticipated to takeover the conventionall taxi over the forecast period. According to some surveys, a total of 15 million ride-hailing trips happen each day, which is expected to gigantically increase and hit a 100 million mark, by 2030.

In December 2020, EU's top court ruled that ride-hailing apps that put passengers directly in touch with taxi drivers and do not provide a crucial part of the transport service are online platforms. The ruling from the Court of Justice of the European Union amounts to a victory for ride-hailing apps, namely Uber, which have so far been regulated as taxi companies. It opens an opportunity for them to seek greater freedom from regulation in the EU, if they can prove they are platforms.

Several ride hailing companies are raising funds from investors with an aim to improve their technology and provide better services to its customers. For instance,

  • In December 2020, Estonian ride-hailing firm Bolt raised EUR 150 million (USD 182 million) in a funding round led by D1 Capital Partners. The company said it will use the money to develop driver face verification and use machine learning to prevent potential incidents. The firm’s app now counts more than 50 million users in over 40 countries across Europe and Africa.
  • In November 2020, Meru cabs announced that they are planning to raise USD 54.25 million (INR 400 Crore) from private equity funds. The fundraising plan comes at a time when the company is sharpening focus on providing cabs to corporates and expanding its base of electric vehicles in India.
Ride Hailing Market Revenue Share

Asia-Pacific is the Largest Market in 2020

Asia-Pacific captured a major share of the market, accounting for 43.83% of the global ride hailing market, in 2020. Increasing traffic congestion and low taxi fare, when compared to other modes of transportation, are the major factors driving the growth of the motorcycle/bike ride hailing service in the Asia-Pacific region.

Owing to the fact that 60% of world population is resident in the region, the ride hailing market in the region is bigget and is growing with high rate. 

India is the second-most populous country in the world, and most of the people fall under the middle-class category who utilize cabs and auto-rickshaws (local three-wheeler taxis) for commuting short distances.

In November 2020, the Government of India issued fresh guidelines for cab aggregators, like Ola and Uber, to bring them under regulatory framework. The new norms, as per the Motor Vehicle Aggregator Guidelines 2020, mandated a cap on surge price, preventing ride-hailing companies from charging more than 1.5 times of the base fare. The new rules also allow companies to offer pooling services on private vehicles, but with a daily limit of four intra-city rides and two inter-city rides per week.

Ride-hailing Marketcompanies active in China are providing subsidies to their drivers so that there is no disruption in daily bookings, For instance, in September 2020, as the National Day Holiday overlaps with the Mid-Autumn Festival, many Didi Chuxing drivers opted for an early leave. In order to encourage more drivers to take orders, the platform partnered with taxi service unit, Kuaidi New Taxi, and the new economy ride-sharing service, Huaxiaozhu, to issue a driver subsidy worth CNY 100 million.

Ride Hailing Market Growth Rate By Region

Competitive Landscape

The market is moderately fragmented in nature as the players in the respective region have their high market share comparing to the overall region. UBER and Lyft have a prominent share in the North America region, whereas, in China, Didi Chuxing Technology Co. contributes to the high market share. Moreover, overall Didi, Uber, Lyft, and Grab have prominent market share globally. Recent developments in the market are -

  • April 2020 - Shouqi Limousine and Chauffeur cooperated with Alibaba Cloud, leveraging innovation advantages to build a new industry ecosystem of 5G Internet of Vehicle. A pilot project between Shouqi Limousine and Chauffeur and Alibaba Cloud has been initiated for exploring 5G, edge computing for online ride-hailing mobile services. By leading the new era of intelligent transportation, the project will jointly explore the application and expansion of edge computing in transportation under 5G and together promote the development and upgrade of the public transport industry.

Recent Developments

In January 2020, Didi Chuxing launched Latin America’s first shared electric vehicle (EV) fleet through its app in Mexico, as the company further invests in sustainable transportation innovations in the region. In phase one of the initiative, over 700 units of EV/HVs from major international OEMs, including BYD and Renault, may be available on the app through cooperation with local leasing partners and drivers. 200 EVs are exclusive for DiDi drivers.

In January 2021, Uber Technologies Inc. partnered with EVgo to provide EV charging discounts to the drivers for around 800+ cities in the United States.

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 Overview (Assesment of Covid-19 Impact)

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.4.1 Threat of New Entrants

      2. 4.4.2 Bargaining Power of Buyers/Consumers

      3. 4.4.3 Bargaining Power of Suppliers

      4. 4.4.4 Threat of Substitute Products

      5. 4.4.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 Vehicle Type

      1. 5.1.1 Motorcycle

      2. 5.1.2 Cars

    2. 5.2 Geography

      1. 5.2.1 North America

        1. 5.2.1.1 United States

        2. 5.2.1.2 Canada

        3. 5.2.1.3 Rest of North America

      2. 5.2.2 Europe

        1. 5.2.2.1 Germany

        2. 5.2.2.2 United Kingdom

        3. 5.2.2.3 France

        4. 5.2.2.4 Russia

        5. 5.2.2.5 Spain

        6. 5.2.2.6 Rest of Europe

      3. 5.2.3 Asia Pacific

        1. 5.2.3.1 India

        2. 5.2.3.2 China

        3. 5.2.3.3 Japan

        4. 5.2.3.4 South Korea

        5. 5.2.3.5 Rest of Asia-Pacific

      4. 5.2.4 Latin America

      5. 5.2.5 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 Free now (Daimler)

      6. 6.2.6 BlaBla Car

      7. 6.2.7 ANI Technologies Pvt. Ltd

      8. 6.2.8 FastGo Vietnam JSC

      9. 6.2.9 ZuumViet

      10. 6.2.10 Be Group JSC

      11. 6.2.11 Yandex.Taxi LLC

    3. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability

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Frequently Asked Questions

The Ride-Hailing Market market is studied from 2018 - 2026.

The Ride-Hailing Market is growing at a CAGR of 8.75% over the next 5 years.

The Ride-Hailing Market is valued at 113 Billion USD in 2018.

The Ride-Hailing Market is valued at 230 Billion USD in 2026.

Didi Chuxing Technology Co., Uber Technologies, Inc., Lyft, Inc., Grab Holdings Inc., Daimler AG are the major companies operating in Ride-Hailing Market.

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