New York, United States, Aug. 22, 2024 (GLOBE NEWSWIRE) -- As per the Latest Report by Straits Research, the global ride-hailing and taxi market size was valued at USD 243.23 billion in 2023. It is expected to reach from USD 270.81 billion in 2024 to USD 639.55 billion by 2032, growing at a CAGR of 11.34% over the forecast period (2024-32).
Sharing a ride with another person, particularly one travelling in the same direction, is referred to as "ride-hailing." It can be used by numerous passengers on a sharing basis. For riders and drivers to find and connect with one another in order to use these ride-share services, a middleman typically provides an app. In a process known as e-hailing, a passenger can reserve a shared trip by calling and texting, visiting the service provider in person, or using a smartphone app or website. The route can be pre-determined by the passenger, and they can reserve or rent a taxi or cab for that route. The typical types of vehicles utilised for ride-sharing services include passenger cars, motorcycles, scooters, minivans, vans, buses & coaches, and auto rickshaws.
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Huge cost involved in vehicle ownership is driving the market
Finance, fuel, upkeep, registration/taxes, maintenance & repair, and depreciation are just a few of the aspects that go into vehicle ownership. Owning a car costs more and more money every year. Although depreciation accounts for 43% of the cost of ownership, the American Automobile Association (AAA) estimates that other costs, including fuel and maintenance, account for 25% of the total. The cost of fuel and maintenance has multiplied in recent years, and the same trend is predicted to continue unabated. The possession of a car has shifted from being a benefit to being more of a problem as cities become increasingly congested with people and vehicles. The average cost to own and operate a new car rose by $279 in 2020 compared to 2019 to reach $9,561.
The rate of car ownership among those between the ages of 18 and 35 has decreased over time as a result of the millennial generation's minimal to nonexistent interest in having a vehicle. Among other things, the rise of online shopping and the lack of connectivity of public transportation in major cities are other factors contributing to the reduction in car ownership.
An increasing demand for pool services is driving the market
The key element influencing the expansion of ride-sharing services is the significant increase in commuters' choice of carpool and bike pool services. Consumers are being encouraged to adopt ride-sharing services due to the expansion of the services provided by the major market participants, such as Uber and Ola, as well as the ability to select convenient pick-up and drop-off locations. The demand for ride-sharing is also being fueled by a considerable increase in the number of different ride-sharing services, including intercity ride-sharing, bus-sharing, bike-sharing, and even auto-sharing services for short-distance travel. Additionally, compared to traditional transportation service providers, ride-sharing service providers offer benefits such as affordable pick-up and drop-off, co-passenger information, affordable ride costs, and better convenience. In order to lower the costs of everyday commuters, many service providers also give a variety of amenities, incentives, and discounts, such as a monthly pass on shared transportation. As a result, the surge in demand for carpooling and bike-sharing services together fuels the expansion of the ride-sharing industry.
Micro-mobility will bring in new opportunities for the market:
Numerous cars that hold one or two persons are referred to as micromobility. For anyone who wants to go around a city fast and without the hassles of public transit, shared micro-mobility is a wise choice. There is an increasing need for door-to-door mobility choices that can address these issues as urban traffic congestion and the demand for social isolation rise. Shared dockless bikes, e-bikes, and e-scooters can be used in different lanes and are carbon-neutral and subsidy-free. They are also more accident-resistant.
The use of micromobility is anticipated to rise in the next years due to rising demand and affordability. For instance, only 50 to 60% of all car trips in the US are more than five miles, indicating that micro-mobility has the potential to replace a significant amount of the annual miles driven by vehicles. Whereas, in May 2020, the city recorded a 67% rise in the use of New York's Citi Bike bike-sharing programme, according to the city's Department of Transportation.
Regional analysis
The region with the most revenue share in 2021 was the Asia Pacific. In 2021, the Asia Pacific region's revenue share of the overall market was over 55%. This significant market share is attributed to the area, which is home to 60% of the world's population, particularly the massive populations of China and India. This creates the area with the greatest concentration of workers on the entire planet. A significant portion of global ridership for on-demand transportation services, such as ride-hailing and taxis, has also been growing in the region. New metro areas with dense populations are developing in the area as a result of the economic boom, which has a substantial impact on the local market.
The market in Central and South America is anticipated to expand significantly during the forecast period. From 2022 to 2030, the CAGR for CSA is predicted to be 11.6%, placing it second in the market. Brazil, Colombia, and Mexico's growing middle classes are fueling regional market expansion. The expansion of internet service and smartphone connections in the area also contribute to the market's growth. Additionally, a number of businesses, like Uber, Beat, Cabify, and DiDI, are growing their presence in other nations in the area, driving the market's expansion. For instance, DiDi declared in June 2019 that it intended to expand in Chile and Colombia in order to more than double its regional footprint.
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Key Highlights
- The global ride-hailing and taxi market size was valued at USD 243.23 billion in 2023. It is expected to reach from USD 270.81 billion in 2024 to USD 639.55 billion by 2032, growing at a CAGR of 11.34% over the forecast period (2024-2032).
- Huge vehicle ownership costs and an increase in demand for pool services are driving the market.
- This market can be segmented on the basis of types, distribution channels, regions and competitors.
- By 2030, the Asia Pacific is anticipated to have the largest market share, with Central & South America emerging as the fastest-growing market.
Competitive Players
- Uber Technologies Inc
- Lyft Inc.
- Didi Chuxing Technology Co.
- Ola Cabs
- Bolt Technology OÜ
- Grab Holdings Inc.
- Gett
- Yandex N.V.
- Cabify Espaa S.L.U
- Meituan Inc
Recent Developments
- April 2024 - InterGlobe, IndiGo's major shareholder, plans to establish a joint venture with Archer Aviation this year and introduce electric air taxis in India in 2026. Additionally, the firm announced that it will collaborate with Ola, Uber, and IndiGo to increase its market share in the nation.
- April 2024 - In its native city of Bengaluru, ride-hailing app Namma Yatri launched its taxi services. In Bengaluru, Namma Yatri's app now has a dedicated section for taxi reservations. With this, the platform can now provide its users with more services than just city auto rides. Namma Yatri provides taxi aggregator services in Kochi, Kolkata, and Chennai, as well as Bengaluru.
Segmentation
- By Type Outlook
-
- Ride-hailing
- Taxi
- By Distribution Channel Outlook
-
- Online
- Offline
- By Regoin
- North America
- Europe
- APAC
- LATAM
- Middle East and Africa
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