Market Trends of Ride-Hailing Industry
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.
