The global ride-hailing and taxi products market is estimated to be valued at USD 137.3 billion in 2022 and is projected to expand at a CAGR of 10.6% from 2023 to 2030. The ride-hailing and taxi industry has grown significantly in recent years due to the increasing demand for convenience, safety, and cost-effectiveness. Moreover, the growing demand for on-demand services has encouraged ride-hailing companies to expand their offerings to include taxi services, leading to a surge in the number of taxi-hailing services.

In addition, the rapid adoption of smartphones and internet access has enabled the growth of ride-hailing services. Furthermore, the emergence of autonomous vehicle technology is expected to provide a further push to the market as it will reduce labor costs and provide a safe and timely ride. For example, in August 2021, Waymo, an autonomous vehicle technology company, started a ride-hailing service in Phoenix, Arizona, USA, and plans to expand the service to other major cities.

The adoption of ride-hailing and taxi services has been growing in the corporate sector, driven by the need for cost-effectiveness, convenience, and safety. Companies are increasingly using these services to provide transportation for their employees, and this trend is expected to accelerate during the forecast period. For instance, in June 2021, Uber announced it had partnered with companies such as Microsoft, Box, and Dropbox to provide discounted rides to employees through its ‘Uber for Business’ program.

The increasing focus on green initiatives such as reducing emissions and encouraging the use of electric vehicles is also contributing to the growth of the market. Ride-hailing companies are increasingly shifting towards using electric vehicles to reduce their carbon footprint. For instance, in October 2021, Uber rolled out its electric vehicle program in the United Kingdom to reduce emissions and improve air quality.

The growing trend of cashless payment is also driving the demand for ride-hailing and taxi services. The increasing acceptance of digital payment methods such as e-wallets, UPI, and credit/debit cards is expected to further contribute to the growth of the market. Furthermore, the integration of blockchain technology into ride-hailing and taxi services is expected to revolutionize the market, providing enhanced security and improved efficiency. For instance, in April 2021, Beam, a blockchain-based ride-hailing platform, announced the launch of its services in the United Kingdom.

The ride-hailing segment is expected to witness the highest CAGR of 18.1% over the forecast period. The increasing penetration of smartphones, rising demand for convenient cab services, and the emergence of various ride-hailing services such as Uber and Lyft are some of the key factors driving the ride-hailing market growth revenue. According to an article published by Statista, in May 2020, global ride-hailing services were estimated to have around 1.7 billion users worldwide. Furthermore, macro-level factors such as increasing urbanization and rising disposable income among consumers are also propelling the market growth.

The taxi segment is anticipated to expand at the second-highest CAGR of 11.2% over the forecast period. The advent of technology and the emergence of various taxi services such as Grab, Didi, and Ola are some of the key factors driving the market growth. According to an article published by Statista, in May 2020, the number of taxi rides in China was estimated to be around 3.7 billion. Furthermore, macro-level factors such as rising disposable income among consumers and mushrooming growth of distribution channels are also bolstering the demand for taxi services worldwide.

The ride-hailing and taxi services segment is anticipated to expand at the highest CAGR of 11.2% over the forecast period. The growth of the segment is mainly driven by the increasing popularity of ride-hailing and taxi services among the consumers. Ride-hailing and taxi services provide convenience to commuters, who can book a ride using a smartphone app. Companies offering ride-hailing and taxi services are making use of technological advancements such as AI-based navigation and mapping, data-driven analytics, and real-time tracking. Ride-hailing companies are also investing in electric vehicles to reduce their overall environmental impact.

The traditional taxi segment is anticipated to expand at a moderate CAGR over the forecast period. The growth of the segment is mainly driven by the presence of a large number of traditional taxi services in various countries. Traditional taxi services are still popular among commuters who prefer the convenience of hailing a taxi cab and paying the fare in cash.

The ride-hailing segment is anticipated to expand at the highest CAGR of 23.3% over the forecast period. The increasing demand for ride-hailing services due to its convenience of booking a ride within a few clicks and its cost-effectiveness compared to traditional taxi services are driving the growth of the segment. The advent of various technology-based companies such as Ola and Uber has also led to an increase in the number of vehicles available for ride-hailing services. Moreover, the rapidly increasing number of smartphone users and the increasing penetration of internet has further facilitated the growth of the segment.

The taxi segment is anticipated to hold a significant share in the market due to its widespread presence across the globe. Increasing urbanization has led to a surge in the demand for taxi services in the recent years. The availability of advanced services such as online booking and payment options has further facilitated the growth of the segment. Moreover, the rising awareness about the safety and convenience associated with taxi services is also expected to boost the segment in the forecast period.

North America is projected to register the highest growth in the market, owing to the presence of several key ride-hailing and taxi companies in the region. The increasing preference of the consumers towards ride-hailing services, such as Uber and Lyft, is driving the market growth in the region. These companies are investing heavily in technological advancements and expanding their services in different cities across the region. For instance, in April 2021, Uber launched its Uber Green service in Los Angeles, allowing consumers to travel in electric vehicles.

Asia Pacific is expected to witness the second-fastest growth in the market. The increasing number of smartphone users in the region is expected to drive the growth of the market. The deployment of cost-effective ride-hailing services, such as Grab, Ola, and Go-Jek, is further expected to propel the market growth. For instance, in April 2021, Grab announced the launch of its ride-hailing services in Thailand.

In this part of the ride-hailing and taxi products 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 your ride-hailing and taxi products. Usually, these projections are drafted for a 5-year period.

Revenue Assumptions

The main source of revenues for a ride-hailing and taxi products business comes from fares and fees, app/platform usage fees, advertising, and other related services. Here you will find a list with a description of each of them and other possible sources of profit such as partnerships with other businesses, corporate contracts, and subscription fees.

Projecting Expenses

In this section, all the regular expenses related to keeping the ride-hailing and taxi products business running will be described. The list of operating expenses includes wages, maintenance and repairs, fuel, licensing and registration fees, insurance policies, advertising, and others.

Some of the key companies operating in the ride-hailing and taxi 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 Technologies Inc. launched its Uber Pool service that allows customers to share a ride and pay less.

– In August 2022, Lyft Inc. launched its Express Drive program which allows customers to rent cars and pay a reduced rate.

– In October 2022, Didi Chuxing launched its Didi Express service, a premium taxi service providing luxury cars and experienced drivers.

Some of the prominent players in the ride-hailing and taxi market include:

– Uber Technologies Inc.
– Lyft Inc.
– Didi Chuxing
– Ola Cabs
– Grab
– Careem
– Gett
– Go-Jek
– Via
– Yandex. Taxi

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 ride-hailing and taxi products market based on product, vehicle type, service type, and region:

1. Product Outlook (Revenue, USD Million, 2017 – 2030)

– Ride-hailing
– Taxi Services
– Others

2. Vehicle Type Outlook (Revenue, USD Million, 2017 – 2030)

– Economy
– Luxury
– Others

3. Service Type Outlook (Revenue, USD Million, 2017 – 2030)

– Ride Sharing
– Corporate Ride Services
– Others

4. Regional Outlook (Revenue, USD Million, 2017 – 2030)

– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa

[Q]: What are the key factors driving the ride-hailing and taxi market?
[A]: The key factors driving the ride-hailing and taxi market are the rising demand for convenience and safety, the increasing availability of affordable ride-hailing and taxi services, and the availability of various payment options. Additionally, the increasing penetration of smartphones and other mobile devices, along with the emergence of mobile applications and services, have also contributed to the growth of the ride-hailing and taxi market.

[Q]: What are the major applications of ride-hailing and taxi services?
[A]: Ride-hailing and taxi services are mainly used for personal transportation, corporate transportation, and leisure activities. Additionally, ride-hailing and taxi services are also utilized for airport transportation, medical transportation, and other miscellaneous purposes.

[Q]: What is the potential of the ride-hailing and taxi market?
[A]: The ride-hailing and taxi market is expected to grow significantly over the forecast period due to the increasing demand for convenience and safety, the availability of various payment options, and the increasing penetration of smartphones and other mobile devices. Additionally, the development of new technologies and the emergence of advanced services are expected to provide numerous opportunities for the growth of the ride-hailing and taxi market.

[Q]: Who are the major players in the ride-hailing and taxi market?
[A]: Some of the major players in the ride-hailing and taxi market are Uber Technologies, Inc., Didi Chuxing, Lyft, Inc., Ola Cabs, Curb Mobility, Inc., Taxify, and Gett.

[Q]: What are the key strategies adopted by the major players in the ride-hailing and taxi market?
[A]: The major players in the ride-hailing and taxi market are focusing on strategic partnerships and collaborations with other companies in order to expand their market presence and strengthen their market position. Additionally, these companies are investing in research and development activities to introduce new and advanced services. Furthermore, they are also focusing on improving their customer experience through various initiatives.