Ride Sharing Market

Market Overview

The global ride sharing market size was valued at USD 106.28 billion in 2022. It is projected to reach USD 564.20 billion by 2031, growing at a CAGR of 20.38% during the forecast period (2023–2031). North America leads the market, followed by Europe, where big automakers and green regulations boost demand. Asia-Pacific, especially China and India, grows fast with large and urbanizing populations. Latin America and the Middle East also see rising opportunities for ride-sharing, as governments and technology improve the automotive sector.

Platforms for ridesharing services facilitate matching drivers with riders in exchange for a predetermined fee. Customers can schedule a ride at a specific time and location using the service's mobile app. The process of requesting a ride via the app includes entering the destination, selecting a pickup location, and waiting for the driver to arrive. Platforms for ridesharing services employ GPS to facilitate anonymous communication between riders and drivers. Upon arrival, the customer is given the option to finish the ride and select a payment method.

Market Dynamics

Market Drivers

Increasing Internet and Smartphone Penetration

The rapid popularity of smart devices like smartphones and smart watches, as well as the rising prevalence of internet data usage, has created numerous opportunities for Ride Sharing services worldwide, thereby amplifying the global ride-sharing market growth. Access to the internet is crucial for using ride-hailing services. Users need internet access to download ride-providing apps to their mobile devices, which is then used to access ride data and navigation. Access to the internet is necessary for V2V communication, navigation, and telematics. Additionally, smartphone applications provide many safety features, including the driver's name, number, and picture, the vehicle's number, route tracing data, and records of previous trips.

Carbon Emissions Regulations

The number of vehicles contributing to global emissions has increased annually. The automotive industry is one of the world's most significant sources of greenhouse gases. The government, private organizations, and the auto industry are all making more of an effort to curb rising CO2 emissions. The International Institute for Sustainable Development in Canada, the Ministry of Environment and Climate Change in India, and the European Union's Paris Agreement on Climate Change have all established lofty goals and standards, such as increasing forest cover, to help mitigate the effects of climate change in the coming years.

Market Restraint

High Cyber Threat Risk and Opposition from Traditional Transport Services

As ride-sharing services increase worldwide, tensions arise between those who drive traditional three-wheeled vehicles and those who drive taxis. Compared to more conventional modes of transportation, ride services provide more benefits, such as low prices, convenient door-to-door service, and full transparency regarding the trip's cost and duration. It has resulted in pushback from taxi drivers in countries such as Japan and India. However, there is a possibility that the high-tech additions will endanger the passengers. Information about individual riders is stored in the ride-hailing apps' associated payment apps. Additionally, there is a high risk of cyber-attacks due to real-time ride data availability.

Market Opportunities

Emergence of Autonomous Ride-Sharing

The technology necessary for fully autonomous vehicles is still in the works. Many original equipment manufacturers are currently field-testing functional prototypes in various locations. Several businesses are vying to be the first to market a fully autonomous vehicle. The list goes on and on, but some examples are Lyft, Ford, Uber, Honda, Toyota, and Tesla. With the commercial launch of its ride-sharing service in Phoenix this year, Waymo, the autonomous vehicle division of Alphabet (Google's parent company), has begun testing trip fares with its early riders. In light of these considerations, the next 6-7 years will see the ride-sharing market driven by the development of autonomous vehicles.

Regional Analysis

The global ride sharing market share is bifurcated into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.

North America's ride sharing industry share is expected to grow during the forecast period. Considering the rapid development of the electric vehicle industry in North American countries like Canada, the United States, and Mexico, this region currently holds most of the global market share. In addition, technological advancements are being rapidly adopted by transportation service providers. There are growing number of Uber drivers and riders in Canada. Last year, Lyft was the first company to announce the launch of green mode, which offers electric car ridesharing to its customers. Due to the widespread acceptance of innovative services and widespread knowledge of the advantages of ridesharing over traditional taxis, this trend is expected to continue.

Europe is expected to grow during the forecast period. Major automobile manufacturers in developed countries like Germany, the United Kingdom, and France account for the region's sizable share. Over the past decade, developed nations like the United Kingdom and France have adopted four-wheeler and motorcycle-sharing programs with great enthusiasm. Additional factors propelling the European ridesharing market are the widespread availability and increasing popularity of fully electric or green gas-running vehicles. As a result, policies advocated by the government for the widespread adoption of all-electric and hybrid cars are anticipated to affect the market in the future positively.

It's no secret that countries like China, India, Japan, and South Korea are driving economic growth in the Asia-Pacific region. Many rapidly expanding cities and towns in Asia present an opportunity for ride-sharing businesses. In terms of population, the two most populous countries in the world are located in this area: China and India. During the forecast period, ride-sharing is expected to expand rapidly in China, which is already the market leader. India has experienced rapid growth in recent years, but the industry has yet to realize the country's potential fully.

Demand for advanced ride-sharing systems in countries across Latin America and the Middle East and Africa is expected to drive rapid growth in these regions over the forecast period. During the projected period, shared commuting and ride-hailing platforms are expected to contribute to the development of Mexico's already robust automotive sector. The increasing popularity of ride-sharing services due to their potential to ease traffic congestion and technological advancements and supportive government policies are expected to drive market demand forward in the coming years.

Segmental Analysis

The global ride sharing market share is segmented by service type, sharing type, vehicle type, travel mode, and data science.

Based on service type, the global ride sharing market is bifurcated into e-hailing, ride sharing, car rental, and station-based mobility.

The e-hailing segment is the highest contributor to the market and is expected to grow during the forecast period. Clients of e-hailing ride services are transported by a professional driver under contract with or employed by the service. In addition, the rising demand for e-hailing services can be traced back to the government's efforts to raise public awareness about air pollution, passenger comfort, rising traffic congestion, and the ease of booking. E-hailing rides are reserved and paid for in advance through a mobile app provided by a transportation network company. Huge players in the taxi-hailing market include Uber, Ola, Lyft, and Gett. For instance, the leading ride-hailing company Didi Chuxing has purchased 99, Brazil's most popular ride-hailing app.

Based on sharing type, the global ride sharing market is bifurcated into P2P and Corporate.

The Corporate segment is the highest contributor to the market and is expected to grow during the forecast period. Recent developments in peer-to-peer ridesharing platforms have significantly increased the concept's appeal among regular commuters. Shared computing has become increasingly popular as a viable alternative to private commuting due to the widespread availability of smartphones and rising consumer awareness of the harmful environmental impact of increasing emissions. Market growth for ridesharing services in Asia Pacific is expected to be sped up by increasing industrialization and the relocation of IT companies to the region. Furthermore, corporate ridesharing services present a promising opening for market vendor proliferation shortly.

Based on vehicle type, the global ride sharing market is bifurcated into ICE vehicles, CNG/LPG vehicles, and electric vehicles.

The electric vehicle segment is the highest contributor to the market and is expected to grow during the forecast period. Increased demand for electric vehicles is anticipated as strict regulations to reduce carbon dioxide emissions increase conventional cars' prices. These developments help close mobility gaps between various forms of public transportation, decrease the need for individuals to travel alone or in privately owned vehicles, and increase the availability of public transportation services with high capacity and fixed routes.

Based on travel mode, the global ride sharing market is bifurcated into inter-city and outstation.

The inter-city segment is the highest contributor to the market and is expected to grow during the forecast period. E-hailing and micro-mobility are two examples of popular intercity ridesharing services. Customers use them to get to and from public transit hubs like bus and train stations and for other purposes like shopping, socializing, and visiting family and friends. It's common for ridesharing services to concentrate on providing multiple options for trips shorter than 30–40 kilometers in the distance. That's why it's annoying to deal with city traffic whenever you take a quick trip that doesn't require a lengthy commute by car or public transit. Short-distance commuters are increasingly turning to ridesharing services due to rising concerns about air pollution in urban areas and the rising cost of fuel.

Based on data service, the global ride sharing market is bifurcated into information services, navigation, payment, and others.

The information service segment is the highest contributor to the market and is expected to grow during the forecast period. Mobile cloud computing is used in the creation of ridesharing apps. Because of how accessible they are, most people nowadays have an Android-powered smartphone. That's why a number of the most well-known ridesharing services have released apps for the Android platform. Android, for instance, has more than 75% market share in India, making it the dominant operating system. Numerous prominent mobile industry leaders use the Android platform, including Samsung, Xiaomi, Oppo, and Vivo.

Recent Developments

• August 2022- ADT collaborates with Uber to provide a nationwide in-app safety feature for riders and drivers.
• March 2022- Curb recently announced that it had signed a partnership agreement with Uber, allowing drivers connected to curb to accept ride requests from Uber riders.