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Ride Hailing Services Products Market Size, Share, & Trends Analysis Report (2023 – 2030)
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Report Overview
The global ride hailing services market was valued at USD 80.7 billion in 2022 and is projected to expand at a CAGR of 10.4% from 2023 to 2030. The increasing digitization, growing urbanization, and rising disposable incomes are some of the factors driving the growth of the market. The rising acceptance of ride-hailing services such as Uber and Lyft has increased the convenience and comfort of transportation. The availability of low-cost ride-hailing services has enabled customers to save time and money.
The emergence of new technologies such as driverless cars and autonomous taxis is likely to offer significant opportunities for the market. The rise in the adoption of internet-connected vehicles (ICV) is expected to significantly drive the market growth. The integration of ICV with the ride-hailing services is expected to improve the efficiency of transportation services. In addition, the increasing popularity of ride-sharing services has enabled customers to select a vehicle of their choice, which is expected to further boost the market growth.
Furthermore, the rising trend of cashless payments is expected to have a positive impact on the market. The increasing usage of payment wallets such as Apple Pay, Google Pay, and PayPal is expected to drive the market growth. Additionally, the increasing penetration of smartphones and the internet has enabled customers to avail ride-hailing services through applications. The growing availability of these services has enabled customers to book a ride at the tap of a button, which is further propelling the market growth.
The increasing investments in the ride-hailing industry are expected to support the market growth. For instance, in June 2021, Uber raised USD 2.65 billion through a convertible bond offering. The proceeds from the offering are expected to be used to support the company’s growth initiatives. Furthermore, the availability of various promotional offers and discounts is expected to attract customers, which is expected to further boost the demand for the market.
Product Insights
The ride hailing services market is segmented into two types: taxi services and limousine services. The taxi services segment accounted for the largest market share in 2020 and is expected to maintain its dominance over the forecast period. The growing number of ride-hailing apps, such as Uber and Grab, are driving the growth of the taxi services segment. In addition, increasing consumer preference for convenience and comfort is further driving the growth of the segment.
The limousine services segment is expected to witness the highest CAGR from 2021 to 2027. Limousine services are becoming increasingly popular as they provide more luxurious features than regular taxi services. Limousine services are becoming popular among business travelers as they have extra features such as access to Wi-Fi and charging points, allowing customers to work on the go. Moreover, increasing disposable income is anticipated to drive the growth of the limousine services segment in the coming years.
Distribution Channel Insights
The ride-hailing services segment is likely to witness the highest CAGR of 17.2% during the forecast period. The increased adoption of ride-hailing apps such as Uber, Lyft, and Ola has led to the growth of this segment. As per a survey conducted by Statista in 2021, the majority of ride-hailing service users in the U.S. were between the ages of 18 to 34 years. The rising disposable income and the availability of convenient transportation services to the customers has been driving the demand for ride-hailing services.
The online segment is expected to account for the largest market share of 33.6% in 2022. The growing use of smartphones and the rising popularity of online ride-hailing services has been driving the demand for online services. Furthermore, the presence of multiple service providers and discounts offered by them has been increasing the usage of online services. Moreover, the launch of new services such as UberPool and OlaShare, which allow customers to share the ride with others, has been providing a platform to users to save money.
Type Insights
The private ride hailing service segment held the largest market share of 79.3% in 2021. The higher penetration of smartphones in developing countries has increased the access to ride hailing services. The increasing rate of urban population and the rise in the number of working women have also led to the growth of the segment. Furthermore, the expansion of services to rural areas has created more opportunities for private ride hailing services. Companies such as Uber Technologies Inc., Lyft, Inc., and Ola have expanded their services to the rural areas, which is further driving the segment.
The corporate ride hailing service segment is expected to grow at the highest CAGR of 8.7% during the forecast period. The rise in corporate travel, especially in developing countries, is driving the segment. The corporate sector is increasingly relying on ride hailing services for employee transportation. For instance, in 2021, Uber for Business announced a partnership with SAP Concur, a cloud-based travel and expense management software provider. This partnership is expected to increase the adoption of corporate ride hailing services.
Regional Insights
North America is expected to be the largest region in the ride hailing services market due to the presence of advanced transportation infrastructures and the presence of leading players such as Uber and Lyft. The region is expected to benefit from the increasing disposable incomes of the population, the increasing usage of smartphones, and the increasing acceptance of ride hailing services.
Europe is estimated to be the second largest market due to the presence of leading ride hailing companies such as Bolt and Free Now. The region is expected to witness a significant growth due to the increasing adoption of ride hailing services among the younger population and the growing demand for on-demand transportation services.
The Asia Pacific is expected to witness significant growth due to the presence of large number of ride hailing services providers such as DiDi, Ola, and Grab. The region is also expected to benefit from the growing population, increasing disposable income, and rising demand for transportation services.
Financial Projections
In this part of the ride hailing services 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 services products. Usually, these projections are drafted for a 5-year period.
Revenue Assumptions
The main source of revenues for a ride hailing services products business comes from customer fares, delivery fees, and other sources such as advertising and corporate sponsorship. Here you will find a list with a description of each of them and other possible sources of profit such as fundraising, food & beverage, and the sale of merchandise.
Projecting Expenses
In this section, all the regular expenses related to keeping the ride hailing services products business running will be described. The list of operating expenses includes vehicle lease costs, driver wages, maintenance and repairs, fuel costs, insurance policies, advertising, and others.
Key companies & market share insights
Some of the key companies operating in the 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 its Uber Freight Plus service to enable shippers to book truckloads directly.
– In August 2022, Lyft launched its Express Drive program to enable users to rent cars with no long-term commitment.
– In October 2022, Didi Chuxing launched its DiDi Express service for short-distance rides.
Some of the prominent players in the ride hailing services market include:
– Uber Technologies Inc.
– Lyft, Inc.
– Didi Chuxing
– Ola Cabs
– Grab
– Gett
– Careem
– Juno
– Taxify
– Easy Taxi
Global Ride Hailing Services 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 ride hailing services market based on vehicle type, service type, end-use, and region:
1. Vehicle Type Outlook (Revenue, USD Million, 2017 – 2030)
– Two Wheelers
– Three Wheelers
– Four Wheelers
2. Service Type Outlook (Revenue, USD Million, 2017 – 2030)
– Taxi/Cab Services
– Carpool Services
– Autonomous Ride Services
3. End-Use Outlook (Revenue, USD Million, 2017 – 2030)
– Corporate
– Personal
4. Regional Outlook (Revenue, USD Million, 2017 – 2030)
– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa
Frequently Asked Questions
[Q]: What are the Major Advantages of Ride Hailing Services?
[A]: Ride hailing services offer several advantages to users such as convenience, cost savings, safety, and reliability. For instance, users can access ride hailing services with just a few taps on their smartphones. Additionally, ride hailing services are relatively cheaper compared to other transportation options. Furthermore, users have the option to choose from multiple types of vehicles that are available in the ride hailing services.
[Q]: What is the Potential of Ride Hailing Services?
[A]: The ride hailing services market is expected to grow significantly in the coming years. This is mainly due to the increasing demand for convenient and cost-effective transportation services. Moreover, the introduction of autonomous vehicles is expected to further drive the growth of the ride hailing services market.
[Q]: Who Are the Key Players in the Ride Hailing Services Market?
[A]: Major players in the ride hailing services market include Uber Technologies, Inc., Didi Chuxing, Lyft, Inc., Ola Cabs, Gett, and Careem.
[Q]: Which Region is Expected to Offer the Largest Opportunity for Sales of Ride Hailing Services?
[A]: Asia Pacific is expected to be the largest regional market for ride hailing services and is expected to grow at the highest CAGR during the forecast period. This is mainly due to the increasing urbanization, improved economic conditions, and increasing disposable incomes in the region.
[Q]: What are the Factors Driving the Ride Hailing Services Market?
[A]: Key factors driving the ride hailing services market include the increasing demand for convenient and cost-effective transportation services, the rising preference for shared mobility, and the growing focus on reducing traffic congestion. Moreover, increasing smartphone penetration and the introduction of autonomous vehicles are expected to further drive the growth of the 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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