The global ride hailing market was valued at USD 112.75 billion in 2020 and is estimated to expand at a robust CAGR during the forecast period, between 2021 and 2028. Ride hailing is a third-party service offered to users, which enables them to book a ride through an online platform. Ride hailing services offer a communication platform that connects the passengers with the drivers. These platforms offer a safe and comfortable ride to passengers and enable them to pre-book any ride by adding the time and destination in the respective ride hailing app. Ride hailing offers a door-to-door service as opposed to a conventional taxi service. Mobility service providers offer different vehicles and options best fitted and adapted according to user convenience. The customer needs to open the app and enter the payment mode, destination, time of departure, and confirm the ride to avail the ride hailing service.
Worldwide lockdowns were imposed due to the spread of COVID-19, which resulted in the shutting down of many services. No ride hailing services were required, as people were not stepping out of their houses, which hampered the ride hailing market. People were hesitant to use ride hailing services as an after effect of the pandemic. Drivers began sanitizing and maintaining all safety precautions to retain the trust among passengers. The market is expected to gradually grow, as the users are beginning to hail rides as companies, drivers, and passengers are taking necessary sanitization steps and adhering to strict cleanliness protocols.
Market Trends, Drivers, Restraints, and Opportunities:
- High cost of vehicles is boosting the ride hailing market. People prefer using car rentals services and e-hailing services as the prices of owning a vehicle is increasing.
- Rising prices of fuel has increased the demand for ride hailing services, thus driving the ride hailing market.
- Varying policies in different countries regarding transportation is restraining the market, as many ride hailing apps are not regulated by any legal authority.
- Drivers need to have a valid license and registration before engaging in ride hailing services. This makes it difficult for drivers, as many app-based companies do not own the vehicles. Thus, impeding the market.
- Autonomous vehicles are being integrated into the ride hailing market by key players to increase their market share and further develop the automobile industry, which in turn, is expected to fuel the market.
- Increasing preferences for availing ride hailing services among the younger generation is an emerging trend that is projected to drive the market.
Scope of the Report:
The report on the global ride hailing market includes an assessment of the market, size, share, trends, segments, and regional markets. Overview and dynamics have been included in the report.
| Attributes | Details |
| Report Title | Ride Hailing Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast |
| Base Year | 2020 |
| Historic Data | 2018 & 2019 |
| Forecast Period | 2021–2028 |
| Segmentation | Service Types (E-Hailing, Car Sharing, Car Rental, and Others), Vehicle Types (Two-wheelers, Cars, and Others), Payment Methods (Cash, Card, and Online) |
| Regional Scope | Asia Pacific, North America, Europe, Latin America, and Middle East & Africa |
| Report Coverage | Market scope, analysis, share, competitive analysis, growth facts, restraints, opportunities, and revenue forecast |
| Key Players Covered | Uber Technologies Inc.; Lyft Inc.; Ola; BlaBlaCar; DiDi; Gett; and Kabbee |
Ride Hailing Market Segment Insights:
Ease of booking and passenger comfort to drive the e-hailing segment
Based on service types, the ride hailing market can be segmented into e-hailing, car sharing, car rental, and others. E-hailing is a lucrative segment due to increasing traffic congestion, passenger comfort, and government initiatives to increase awareness regarding air pollution. The e-hailing segment allows users to book their ride through an app, which is easy to use, and increasing prevalence of the internet. Car rental services are becoming popular, as customers are travelling to other countries where they do not know roads and cannot transport their own vehicles. The e-hailing segment is projected to grow substantially during the forecast period owing to its benefits over conventional taxi rides.
Convenience and availability fuel the car segment
Based on vehicle types, the ride hailing market can be categorized as two-wheelers, cars, and others. The cars segment is projected to hold a key share of the market during the forecast period due to rising preference for users to avail ride hailing services by travelling in cars. Rising prices of cars and fuel is encouraging people to opt out of buy cars and instead use ride hailing services to travel. Cars are safe and convenient option for travelling long distances, and thus are preferred. This, in turn, makes the segment lucrative. However, many key players are launching two wheelers such as scooters and bikes, as they are faster and more efficient alternative to cars.
Online mode of payment is the more convenient and easier option
On the basis of payment methods, the market can be segmented into cash, card, and online. The online payment method is a convenient option, as it ensures contactless payment and eliminates the requirement to carry cash everywhere. Users prefer to pay for their rides using payment apps, which are easier, faster, and convenient. The COVID-19 pandemic has increased the preference among people to pay for their rides through online mode to avoid any contact, thus adhering to the safety protocols.
Asia Pacific dominates the market
In terms of regions, the global ride hailing market can be split into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. Increasing population in the countries in Asia Pacific has resulted in many availing ride hailing services, making this region lucrative. The ride hailing companies in China provide subsidies to drivers to ensure that there are no disruptions in bookings. The market in North America is growing rapidly due to the rise in daily commute.
Segments
By Service Types
- E-Hailing
- Car Sharing
- Car Rental
- Others
By Vehicle Types
By Payment Methods
By Regions
- North America
- Europe
- Latin America
- Asia Pacific
- Middle East & Africa
By Key Players
Competitive Landscape
Key players in the ride hailing market include Uber Technologies Inc.; Lyft Inc.; Ola; BlaBlaCar; DiDi; Gett; and Kabbee. These players engage in mergers & acquisitions, collaborations, agreements, product development, strategic marketing activities, and partnerships to strengthen their geographical presence.
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