Ride Sharing – Bridging the Gap Between Drivers and Riders through Platforms that Allow Easy Access to Economically-Feasible Services

Introduction

Ride sharing service was pioneered by Uber, which started in 2010 in San Francisco, U.S. Ride-sharing platforms such as Lyft and Uber have revolutionized the transportation industry by matching the supply of drivers in accordance with the demand for rides. These platforms do not employ drivers and operate as two-sided markets between riders and independent contractors that provide services as drivers. Such platforms use their pricing and compensation policy to facilitate the match between drivers and riders. For instance, Uber received a lot of praise but also criticism on how its pricing works.

Many a times, ride sharing services are often misconnected with ride hailing services, which is essentially flagging down a taxi from the side of the road.

Segmental Insights

The global ride sharing market has been segmented by service type, sharing type, vehicle type, travel mode, and data service. By service type, the market has been segmented into e-hailing, ride sharing, car rental, and station-based mobility. By the sharing type, the market has been segmented into P2P and corporate. By vehicle type, the market has been segmented into ICE vehicle, CNG/LPG vehicle, and electric vehicle. By mode of travel, the market has been segmented into inter-city and outstation. By data service, the market has been segmented into information service, navigation, payment, and others.

Ride sharing is the most widely used service type as it offers a cost-effective and easy alternative to local transport services. Corporate ride sharing has been gaining popularity as a number of large enterprises in various industrial sectors are collaborating with ride sharing service providers for their employees. By vehicle type, the electric vehicle segment is expected to gain traction in the years to come with the growing adoption of these vehicles, due to stringent regulations that aim to curb CO2 emissions.

Regional Insights

The global ride sharing market has been segmented into Europe, Asia Pacific, North America,  and Latin America and Middle East & Africa (LAMEA).

North America dominates the global ride sharing services market due to its technologically advanced infrastructure, anticipated adoption of autonomous ride sharing vehicles and strong presence of several established enterprises in developed countries such as the U.S and Canada.

In Europe, the U.K. and Germany are slated to account for major shares in the ride sharing services market, owing to government initiatives that support expansion of ride-sharing activities.

Asia Pacific is pegged to be the fastest growing market for ride sharing services, owing to volatility in fuel prices, rising traffic congestion, increasing demand from working-class population for daily commute in urban areas.

The Latin America and the Middle East & Africa (LAMEA) region have been witnessing strong growth in the global ride sharing services market.

Competitive Players

1. Uber Technologies Inc.
2. BlaBlaCar Inc.
3. ANI Technologies Pvt. Ltd. (OLA)
4. Wingz
5. Lyft Inc.
6. Grab
7. Careem
8. Curb Mobility
9. Taxify OÜ
10. Gett
11. Beijing Xiaoju Technology Co Ltd. (Didi Chuxing)
12. Cabify.

Recent Developments

Recent Developments

• In February 2024, Nissan Motor Co., Ltd. revealed plans to introduce an autonomous vehicle ride-sharing service in Japan within the next three years. The company aims to meet urban transportation demands by incorporating self-driving cars into the ride-sharing sector.
• In February 2024, Uber launched an electric auto rickshaw service in Ayodhya under its Uber Auto brand. Additionally, Uber is preparing to roll out Uber Go and Uber Intercity to address the growing demand for shared mobility in the region.
• In January 2024, Uber Japan announced it will begin offering ride-sharing services by April, following a partial relaxation of Japan’s ride-sharing ban by the government. These services will be available in specific areas and during times when taxis are in short supply. The central government will establish the details soon, with Uber Japan planning to expand these services across the country.
• In August 2022, ADT partnered with Uber to introduce a nationwide in-app safety feature designed for both riders and drivers. This new feature aims to enhance security by providing users with additional safety tools and resources directly within the Uber app.
• In March 2022, Curb announced a new partnership with Uber, enabling drivers using the Curb platform to accept ride requests from Uber passengers. This agreement facilitates greater flexibility and broader service options for riders and drivers alike.

Segmentation

1. By Service Type
   1. E-Hailing
   2. Ride Sharing
   3. Car Rental
   4. Station-Based Mobility
2. By Sharing Type
   1. P2P
   2. Corporate
3. By Vehicle Type
   1. ICE Vehicle
   2. CNG/LPG Vehicle
   3. Electric Vehicle
4. By Travel Mode
   1. Inter-City
   2. Outstation
5. By Data Science
   1. Information Service
   2. Navigation
   3. Payment
   4. Others