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The global ride sharing market size was valued at USD 182.12 billion in 2018 and is projected to reach USD 212.60 billion by 2026, exhibiting a CAGR of 2.0% during the forecast period.
Ridesharing system enables the drivers and passengers to connect by booking a ride with the help of online sites or smartphone applications. The ride-sharing service provides several advantages such as no parking trouble, affordable door-to-door ride services, easy booking options, and low carbon footprints. Additionally, the introduction of AI, IoT, and Big data analytics facilitates smart riding options, as well as the rise in the availability of cab booking services, are the foremost factors that are accelerating the ride sharing market growth rate. Several service providers offer various facilities, offers, and discounts on rides to reduce the expenses of daily commuters. For instance, service providers such as Uber and OLA offer monthly pass at low rates to their daily passengers. Moreover, the increase in road traffic and congestion, rising fuel prices, lack of parking spaces, and also lack of proper public transport systems have further propelled the demand for carpooling and sharing services for ride.
Ride Sharing Market to Experience a Steep Fall Amid COVID-19 Pandemic
The outbreak of COVID-19 was originally detected in Wuhan, China, and later spread across the world. The WHO declared the COVID-19 situation a pandemic disease. This pandemic condition has severely impacted the economic conditions as well as the whole civilization. It has also affected the general lifestyle and the behavior pertaining to travel, consumption of goods and services as well as the working style of individuals.
The automotive and transportation industry has also been impacted by the pandemic situation and is facing several challenges. The sealing of borders by the governments of various regions has led to a decrease in the sales of vehicles. Also, people are diverting their significant share of investment in resolving the incurred losses and are focusing on fulfilling the necessities and utilities.
This market has gained high popularity owing to its various advantageous factors in the past few years. However, the market is expected to witness a drastic drop amid the COVID-19 pandemic. The new policies and norms imposed by the government to maintain social distancing, and hygiene protocols has also affected the market. Also, the nature of the virus being active on surfaces for a long period of time as well as the fear of infection raised in the minds of people has compelled them to avoid traveling. The cabs were one of the medium of the rapid spread of the virus. Thus, the people are more likely to avoid traveling by cabs hereafter at least till the time, appropriate treatment and vaccine is not available in the market. However, the market is expected to gain its share by 2021 as the service providing companies are likely to come up with additional precautions such as partition to maintain distance between the passengers and driver, installing devices to measure body temperature, and equipping the car with sanitizer to eliminate the threat of infection in the forecast period. At the same time, the ride pooling fares may see a rise owing to these additional precautionary measures.
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Rising Demand for Micromobility to Drive the Market Growth
Micro-mobility can be termed as the ability of movement for short distances using vehicles that can accommodate only one or two people. These vehicles consist of light vehicles such as mopeds, bikes, scooters, and longboards. Shared micro-mobility is a smart option for the commuters who are seeking a quick ride in the city without any hustle of mass transit. The idea of micro-mobility makes a huge impact on how to make use of scooters and bikes as well as earn from them. The rising congestions especially in metro cities are there is a vast scope for micro-mobility as it can over these problems. For instance, the Volkswagen Group is promoting micro-mobility as a part of its electric mobility plan. The company has introduced Cityskater and Streetmate electric scooters in Geneva. Daimler and BMW together are offering scooters on rent in more than 6 cities in Europe.
Increasing Penetration of Internet and Smartphones to Boost the Market Growth
The rapid adoption of smart devices such as smartphones, smart wearable, and increasing use of internet data have created high opportunities for these services across the world. The internet connectivity is the primary requirement for availing ride transport services. The users must download a ride providing applications on their smartphones using the internet to access the information and navigation of the ride. The internet connectivity is necessary for the efficient functioning of V2V communication, navigation, and telematics. Moreover, the smartphone apps provide various security features such as name, number, and the photograph of the driver, vehicle number, route tracing details, as well as provides records of the past rides.
Stringent Carbon Emission Norms to Drive the Market Growth
Globally, the rate of vehicular emission is continuously increasing over the years. The automotive industry has a major share in the global greenhouse gas emission. The government as well as private organizations along with the automotive companies are taking additional efforts to curb the rising CO2 emission. Various organizations such as the International Institute for Sustainable Development of Canada, Indian Ministry of Environment and Climate Change as well as the European Union Paris Agreement on Climate Change have set aspiring targets and norms including expansion of the forest cover for the reduction of carbon footprints by the coming years. Therefore, these norms are likely to drive the use of these sharing services of ride over private car ownership.
Resistance from the Traditional Transport Services as well as High Risk of Cyber Threat to Hamper Market Growth
The growing penetration of ride sharing services across the globe is creating conflicts and disagreements from the traditional three-wheeler and taxi drivers. The ride services providers are offering more advantages such as affordable doorstep pick-up and drop, complete details of the ride, and higher convenience as compared to the traditional transport service providers. Therefore, the taxi driver in countries like Japan and India are opposing the ride service providers. However, the advanced features may cause a threat to the passengers. The ride service apps consist of detailed information of the user along with the payment apps linked to these apps. Also, the real-time data of the ride is available which creates a high risk of cybersecurity threats.
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E-Hailing is Expected to Dominate the Market
Based on type, the market is segmented into E-hailing and station-based type. The e-hailing segment holds a major ride sharing market share in the global market. E-hailing ride services provide transportation to passengers by hiring a personal driver through a contract or employment basis. In e-hailing ride services, the rides are booked in advance and paid through the smartphone application of the transportation network company. Uber, Ola, Lyft, and Gett are prominent players in the e-hailing ride business. For instance, Didi Chuxing a leading company takes over the shares of 99, Brazil’s leading ride-hail app. The company invests in smart transportation services and AI capabilities through operations and partnerships. For instance, BMW has launched the car-sharing service ReachNow with BMW 370 series cars for short and long term rental and delivery services.
Inter City Segment is Expected to Hold the Largest Market Share
Based on the vehicle type, the market is segmented corporate, long-distance, and intercity. The intercity segment holds the largest share of the global market. The intercity rides are between 2 cities. The commute comprises of a single way tour from one city to another. Intercity rides are widely availed by the daily commuters that commute from one city to another for work purposes. With the rising congestion in public transports and fatigue occurred while driving private vehicles are creating high opportunities for intercity commute rides as they offer enhanced comfort, convenience at affordable fare rates.
Android Segment is Expected to Hold the Largest Market Share
Based on the vehicle type, the market is segmented into Android, iOS, and others. The android segment holds the largest share of the global market. The ride sharing applications are developed using cloud computing in mobiles. The majority of the population owns an android based smartphone owing to its user-friendly nature. Therefore, several prominent ride sharing companies develop apps that are supported by the android operating system. For example, android is the leading operating system in India with over 75% of the market share. Samsung, Xiaomi, Oppo, Vivo are few of the many top players in the mobile sector that are operating on the Android system.
North America Ride Sharing Market Size, 2015-2026 (USD Billion)
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The market size in North America stood at USD 59.10 billion in 2018. The region holds dominance in the global market owing to the rapid development of electric cars in countries such as Canada, the US, and Mexico. Also, the rapid adoption of technologically advanced features by the ride service providers. Uber has been rapidly expanding its business in Canada. For instance, last year Lyft became the first company to announce the launch of green mode, providing electric car rideshare to its customers. The company introduced this development with the intention of ‘Green City Initiative’ which works on reducing the use of fossil fuels. These developments are thereby accelerating the market in this region. Europe holds the second-largest share in the global market owing to the rising partnerships between the service providers and the government to promote these sharing services for the rides in this region.
DiDi Chuxing is a Top Player in the Market
DiDi Chuxing is a global leader in the mobile transportation platform. The company excels in offering app-based transportation services to more than 550 million users in Asia. Australia, and Latin America. They offer a full range of transportation services including bus, Luxe, Taxi, designated driving, bike, and e-bike sharing and enterprise solutions. The company also collaborates with several policymakers, automotive and taxi industries by communicating and solving environmental and transportation challenges by innovating smart solutions using its AI capabilities. DiDi is continuously working to improve user experience and build a safe and sustainable mobile transportation for better future.
DiDi Chuxing comes up with the new in-app Health-Guard program AI solution to verify daily vehicle disinfection, mask-wearing, and driver temperature.
The report provides detailed market analysis and focuses on key aspects such as leading companies, product types, and leading applications of the product.
An Infographic Representation of Ride Sharing Market
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Besides this, the report offers insights into the ride-sharing market trends and highlights key ride-sharing industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the growth of the market over recent years.
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Value (USD billion)
By Commute Type
By Application Type
Fortune Business Insights says that the global ride sharing market size was USD 182.12 billion in 2018 and is projected to reach USD 212.60 billion by 2026.
In 2018, the North America market value stood at USD 59.10 billion.
The market is projected to grow at a CAGR of 2.0% and will exhibit steady growth in the forecast period (2019-2026).
E-hailing is expected to be the leading segment in this market during the forecast period.
Increasing penetration of internet and smartphones to boost the market growth
Didi Chuxing is the leading player in the global market.
North America dominated the market share in 2018.
Stringent emission reduction norms are expected to drive market growth.
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