Market Trends of Global Ridesharing Industry
COVID-19 Has Posed Significant Threat to the Market
- Due to the recent COVID -19 outbreak, ride-hailing and ridesharing have witnessed massive declines in demand. However, many believe the ridesharing market can emerge again, as many people are now shifting to personal cars.
- This factor may boost ridesharing services, like fixed ridesharing and corporate ridesharing. According to the recent global survey by Cars.com in mid-March 2020, over 40 % of the respondents had stopped using ridesharing and hailing services to reduce the odds of catching the contagious virus. Over 90% said that they had started using their cars, and 20 % of the respondents had already started looking at investing in buying a new vehicle.
- Many governments are also declining ridesharing and hailing services to control pollution levels. According to a study by Harvard University's T. H . Chan School of Public Health, cities with higher air pollution levels (PM 2.5) are more susceptible to COVID-19. Similarly, as per the European Public Health Alliance (EPHA), air pollution can increase the impact of COVID-19.
- In April 2020, the Centers for Disease Control and Prevention issued new guidelines for rideshare drivers and other driving occupations (taxis, limousines, etc.). CarGurus's recent COVID -19 sentiment study shows that car sales are unlikely to be affected by the pandemic in the long term. Around 79% of respondents delayed their car purchases due to the pandemic. Meanwhile, 39% said they would reduce their ride-hailing service consumption or stop using them entirely.
- However, in the coming months, the COVID-19 pandemic will undoubtedly change the transport sector, especially in population-dense countries, like China and India. The fluctuating vehicle sales and reduced trust in ride-hailing services like Uber may develop a space for other carpooling and ridesharing services.
- Many market vendors are also changing their offerings amid the COVID-19 pandemic, which is expected to create a brand image and help them gain customers' trust. For instance, in Germany, Berliner Verkerhsbetriebe (BVG) offers BerlKönig, a rideshare service. It suspended its regular operations during the COVID-19 outbreak. Instead, the company offers free lifts to medical staff during evening and nighttime hours.
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Europe to Account for Significant Market Share
- Urbanization has stressed the urban transportation systems that tend to affect the population's quality of life. The reduced mobility options, inadequate transportation infrastructure, increasing congestion, pollution, and traffic safety problems, are a few crucial problems that need a systematic approach to be resolved.
- France is one of the most prominent tourist spots, the most beautiful city is Paris with Eiffel Tower, Louvre museum, and Disneyland. Paris intends to encourage sustainable transport through electric carsharing and EV purchase incentives and has launched the world's first fully electric carshare service, Autolib, to inculcate sharing culture. Furthermore, it has created a Navigo payment system that ensures great customer satisfaction by providing an easy-to-use network and allowing customers to pay for public transportation, car sharing, and bike-sharing programs. These plans are likely to stimulate the expansion of the ridesharing market.
- Car ownership in the EU-28 area increased considerably between 2000 and 2019, growing from 411 cars per thousand inhabitants to more than 516. However, the industry is now expected to reduce its carbon emissions in line with the Paris Agreement. Many European cities, for example, have adopted low-emission zones.
- Moreover, MaaS (Mobility as a Service) aims to create a simplified and unique marketplace where many mobility services will be offered through a single app or equivalent. According to a recent survey, 59% of Europeans are interested in using a MaaS-type app.
- In Europe, the contenders for ridesharing supremacy include American companies and those born on the continent, operating in various countries, all with their own linguistic, behavioral, and legal particularities. In February 2021, Chinese ride-hailing giant Didi Chuxing Technology Co. planned to make its debut in Western Europe. Beijing-based Didi is considering rolling out ridesharing services in markets that could include the UK, France, and Germany by the first half of this year.
- Furthermore, due to the pandemic, many companies have begun to offer new services to assist. For instance, in August 2020, the French ridesharing company BlaBlaCar announced that it had turned its users into a makeshift volunteer network. Instead of being paid for the rides, drivers offered to deliver the essential items to people who needed them by downloading BlaBlaHelp. This tech shortcut and the help in these difficult times struck a chord within the users, as more than 20,000 people registered on the platform within 72 hours, and thousands have followed since the launch.
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