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Egypt Ride Hailing Service Products Market Size, Share, & Trends Analysis Report (2023 – 2030)
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Report Overview
The Egypt ride hailing service market was valued at USD 7.3 billion in 2021 and is expected to grow at a CAGR of 10.6% over the forecast period from 2022 to 2030. The Egyptian government is encouraging the growth of ride hailing services in the country by introducing policies and regulations. This is expected to drive the growth of the Egypt ride hailing service market in the coming years.
The growing popularity of ride hailing services among the country’s young population is driving the market growth. Young people are increasingly using ride hailing services for their daily commute, which is boosting the market. Furthermore, the availability of ride hailing services in multiple cities across Egypt is expected to drive the market. Additionally, the rise of new players in the market offering innovative services is expected to further fuel the market growth.
The introduction of new services such as shared rides and subscription-based services is expected to offer significant opportunities for the ride hailing service providers. For instance, in March 2021, Careem launched a subscription-based service named Careem Pass in Egypt. This service enables customers to pay a fixed amount every month and avail unlimited rides. This service is expected to gain traction among the customers, which is likely to drive the market growth.
The market is witnessing a rapid growth due to the growing demand for safe and comfortable rides. The introduction of new payment methods such as mobile wallets is also driving the market. The increasing adoption of mobile wallets is expected to fuel the market growth. Furthermore, the implementation of advanced technologies such as AI and machine learning is expected to further drive the market growth. The increasing use of these technologies for ride hailing services is expected to propel the market growth.
Product Insights
The ride hailing services segment led the market and accounted for a share of around 55% in 2022. Ride-hailing services have experienced significant growth in the past few years due to the rising demand for on-demand mobility and the increasing concentration of population in urban centers. According to a report published by KPMG, in October 2020, the ride-hailing sector in Egypt has seen a significant surge in the number of daily rides, with an average of 600,000 rides per day.
The car rental services segment is anticipated to expand at the fastest CAGR of 8.5% over the forecast period. Car rental services have been gaining traction in Egypt due to the increasing number of travelers and the availability of discounted rates. Furthermore, the emergence of various car rental companies such as GoCar, Marhaba, and EZ Rent-a-Car, which provide easy and affordable rental services, is also driving the growth of the market. Additionally, the rise in the number of tourists in the country is also fueling the demand for car rental services in Egypt.
Distribution Channel Insights
The ride-hailing services segment is expected to register the highest CAGR of 10.6% over the forecast period. The growth of this segment is mainly attributed to the growing digitalization and rising smartphone penetration in the country. In addition, several large players are entering the ride-hailing market in Egypt, further fuelling the segment’s growth. For instance, in October 2020, Uber launched its operations in Egypt, providing services to users in Cairo, Giza, and Alexandria. The company also launched its Uber Bike and Uber Bus services in Cairo and Alexandria.
The traditional taxi segment accounted for the largest market share in 2020. The large market share of this segment can be attributed to the presence of numerous traditional taxis in the country. In addition, the traditional taxis offer convenience to travelers as they do not require any app or payment gateway to book a ride. Moreover, traditional taxi drivers are well-aware of the streets of the cities, providing a more convenient ride to the customers.
Type Insights
The online ride hailing services segment accounted for the largest revenue share of 91.3% in the year 2022. The growing adoption of smartphones and internet services in Egypt is fuelling the market growth. The increasing demand for convenient and economical transportation options, especially among the youth and working-class population, is also a key factor driving the market. In addition, the growing focus of ride hailing companies on expanding the reach to rural areas and semi-urban areas is driving the market growth.
The offline ride hailing services segment is expected to expand at the highest CAGR of 8.1% over the forecast period. The increasing availability of offline ride hailing services in Egypt is expected to drive the demand for offline services. Also, the growing focus of companies on expanding their service reach to rural areas and semi-urban areas is also driving the market growth. Furthermore, the increasing adoption of cashless payments, such as mobile wallets, is likely to boost the demand for offline ride hailing services in the forecast period.
Regional Insights
The Middle East and Africa region is estimated to be the fastest-growing region in the global ride-hailing services market. The rising population in the region is one of the prime factors driving the growth of the market. The rising disposable income of consumers in the region has also led to an increase in demand for ride-hailing services. In addition, the presence of leading players, such as Uber and Careem, has further supported the growth of the market in the region.
Egypt is expected to be the major market in the Middle East and Africa region. The increasing number of smartphone users in the country is expected to drive the growth of the market. The government in the country has also adopted favorable regulations for ride-hailing services, which has led to an increase in the number of participants in the market. In addition, the rising number of tourists in the country has led to an increase in demand for ride-hailing services.
Financial Projections
In this part of the Egypt Ride Hailing Services business plan we will provide a detailed breakdown of all income and expense categories of the business. These forecasts include cash flow projections and capital requirements for the ride hailing service. Usually, these projections are drafted for a 5-year period.
Revenue Assumptions
The main source of revenues for a ride hailing service comes from fares, advertising, sponsorship, and partnerships. Here you will find a list with a description of each of them and other possible sources of profit such as subscription-based services, and discounts or promotions.
Projecting Expenses
In this section, all the regular expenses related to keeping the ride hailing service running will be described. The list of operating expenses includes salaries for employees, software and hardware, vehicle maintenance, insurance policies, fuel, advertising, and others.
Key companies & market share insights
Some of the key companies operating in the Egypt ride hailing services market are increasingly focusing on product launches and expansion of the distribution channel to gain prominent visibility among consumers. Some of the initiatives are:
– In June 2022, Uber launched UberX in Egypt, allowing riders to choose from a variety of car types.
– In August 2022, Careem launched CareemBus, a new bus service in Cairo, Egypt.
– In October 2022, Swvl launched its new service, Swvl Plus, offering more luxury and convenience for riders.
Some of the prominent players in the Egypt ride hailing services market include:
– Uber Technologies Inc.
– Careem
– Swvl
– Easy Taxi
– Ousta
– Halan
– Siwwa
– Cabby
– Nile Taxi
Global Egypt Ride Hailing Service Market Segmentation
This report forecasts growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global Egypt ride hailing services market based on service, application, and region:
1. Service Outlook (Revenue, USD Million, 2017 – 2030)
– Taxi
– Car Rental
– Bus/Shuttle Services
2. Application Outlook (Revenue, USD Million, 2017 – 2030)
– Corporate
– Personal
3. Regional Outlook (Revenue, USD Million, 2017 – 2030)
– Egypt
– North Africa
– Sub-Saharan Africa
– Middle East
– Others
Frequently Asked Questions
[Q]: Who are the Key Players in the Egypt Ride-Hailing Services Market?
[A]: Some of the major players in the Egypt ride-hailing services market are Uber Technologies, Inc., Careem, DiDi Chuxing, Ola Cabs, and Lyft, Inc.
[Q]: What Factors are Driving the Growth of the Egypt Ride-Hailing Services Market?
[A]: The growing trend of digitalization, increasing internet penetration, growing urbanization, and increasing disposable incomes are the major factors driving the growth of the Egypt ride-hailing services market.
[Q]: What are the Potential Opportunities for Egypt Ride-Hailing Services?
[A]: Egypt’s ride-hailing services market is anticipated to witness significant growth in the coming years due to the increasing demand for convenient transportation solutions. Additionally, the increasing demand for on-demand services and the growing trend of sharing economy are expected to open up potential opportunities for the Egypt ride-hailing services market.
[Q]: What is the Current Market Scenario for Egypt Ride-Hailing Services?
[A]: The market for Egypt ride-hailing services is currently in a growth phase, with the leading players in the market investing heavily in their services. Additionally, the increasing availability of ride-hailing services in Egypt is expected to drive market growth in the near future.
[Q]: What are the Future Prospects for the Egypt Ride-Hailing Services Market?
[A]: The Egypt ride-hailing services market is expected to witness significant growth in the coming years due to the increasing demand for convenient transportation solutions. Additionally, the increasing demand for on-demand services and the growing trend of sharing economy are expected to open up potential opportunities for the Egypt ride-hailing services market.
Research Methodology
Impact Analytix employs a comprehensive and iterative research methodology focused on minimizing deviance in order to provide the most accurate estimates and forecasts possible. The company utilizes a combination of bottom-up and top-down approaches for segmenting and estimating quantitative aspects of the market. In Addition, a recurring theme prevalent across all our research reports is data triangulation which looks market from three different perspectives. Critical elements of the methodology employed for all our studies include:
Preliminary data mining
Raw market data is obtained and collated on a broad front. Data is continuously filtered to ensure that only validated and authenticated sources are considered. In addition, data is also mined from a host of reports in our repository, as well as a number of reputed paid databases. For a comprehensive understanding of the market, it is essential to understand the complete value chain and in order to facilitate this; we collect data from raw material suppliers, distributors as well as buyers.
Technical issues and trends are obtained from surveys, technical symposia, and trade journals. Technical data is also gathered from an intellectual property perspective, focusing on white space and freedom of movement. Industry dynamics with respect to drivers, restraints, and pricing trends are also gathered. As a result, the material developed contains a wide range of original data that is then further cross-validated and authenticated with published sources.
Statistical model
Our market estimates and forecasts are derived through simulation models. A unique model is created and customized for each study. Gathered information for market dynamics, technology landscape, application development, and pricing trends are fed into the model and analyzed simultaneously. These factors are studied on a comparative basis, and their impact over the forecast period is quantified with the help of correlation, regression, and time series analysis. Market forecasting is performed via a combination of economic tools, technological analysis, industry experience, and domain expertise.
Econometric models are generally used for short-term forecasting, while technological market models are used for long-term forecasting. These are based on an amalgamation of the technology landscape, regulatory frameworks, economic outlook, and business principles. A bottom-up approach to market estimation is preferred, with key regional markets analyzed as separate entities and integration of data to obtain global estimates. This is critical for a deep understanding of the industry as well as ensuring minimal errors. Some of the parameters considered for forecasting include:
Market drivers and restraints, along with their current and expected impact
Raw material scenario and supply v/s price trends
Regulatory scenario and expected developments
Current capacity and expected capacity additions up to 2030
We assign weights to these parameters and quantify their market impact using weighted average analysis, to derive an expected market growth rate.
Primary validation
This is the final step in estimating and forecasting our reports. Exhaustive primary interviews are conducted, face to face as well as over the phone to validate our findings and assumptions used to obtain them. Interviewees are approached from leading companies across the value chain including suppliers, technology providers, domain experts, and buyers so as to ensure a holistic and unbiased picture of the market. These interviews are conducted across the globe, with language barriers overcome with the aid of local staff and interpreters. Primary interviews not only help in data validation but also provide critical insights into the market, current business scenario, and future expectations and enhance the quality of our reports. All our estimates and forecast are verified through exhaustive primary research with Key Industry Participants (KIPs) which typically include:
Market-leading companies
Raw material suppliers
Product distributors
Buyers
The key objectives of primary research are as follows:
To validate our data in terms of accuracy and acceptability
To gain an insight into the current market and future expectations
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