The global ride-sharing market size is expected to grow at a CAGR of 20.24% during the forecasted period, 2019–2026.
Ride sharing service platforms connect drivers and vehicles with customers at an agreed price between the driver and the customer. In this service, customers use an application on their smartphones to request a ride at a specific time and place. The application request entails certain steps such as actual & expected pricing of a ride, location of the driver, and possible wait time. Ride-sharing service platforms allow customers and drivers to contact each other without providing personal information through the use of GPS. Upon reaching the destination, the customer is prompted to complete the ride and pick a payment method.
The increasing use of ride sharing services has been reducing traffic congestion and lowering the number of trips covered by a single vehicle, subsequently reducing CO2 and other hazardous emissions from vehicles. Ride sharing services also help reduce the vehicle cost of ownership among millennials as vehicle ownership costs vary with various aspects such as location, fuel price, and usage frequency. According to Schaller Consulting, Transportation Network Companies (TNCs) transported over 2.61 billion passengers in 2017, recording a 37% increase over the 1.90 billion passengers in 2016. Further, the increasing smartphone and internet usage for such services has also been propelling the ride sharing market across the world.
The development of autonomous vehicles for ride sharing is expected to cater to lucrative opportunities for the ride sharing services market in the coming years. Such innovations help reduce the demand for solo trips & private vehicles, provide high-capacity public transport with fixed route services, fix mobility gaps between existing public transport modes.
The global ride sharing market has been segmented by service type, sharing type, vehicle type, travel mode, data service. On the basis of service type, the market has been segmented into e-hailing, ride sharing, car rental, and station-based mobility. On the basis of sharing type, the market has been segmented into P2P and Corporate. On the basis of vehicle type, the market has been segmented into ICE vehicle, CNG/LPG vehicle, and electric vehicle. On the basis of travel mode, the market has been segmented into inter-city and outstation. On the basis of 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.
Geographically, the global ride sharing market has been segmented into North America, Europe, Asia Pacific, and Latin America and the Middle East & Africa (LAMEA).
North America is expected to be the largest and fastest growing region in the ride sharing services market, due to the high adoption rate of technologically-advanced services and high awareness among the population about the benefits of ride sharing services over traditional taxi services. For instance, in 2017, each mile taken off the road was replaced with 2.6 TNC miles. A study observed a noticeable drop in subway and bus riders with respect to 15% increase in ride sharing in one year.
Europe is expected to be the second largest region in the ride sharing market, after North America, in terms of market share. The region’s sizable share can be attributed to the presence of a large number of major automobile manufacturers in developed countries such as Germany, the U.K., and France. Moreover, the availability and high usage of fully-electric or green gas running vehicles further drives the ride sharing market in Europe. Thus, government initiatives that promote the use of fully-electric and hybrid vehicles are also expected to positively impact the market in years to come.
Asia Pacific is a rapidly developing region with the presence of developing countries such as China, India, Japan, and South Korea. Further, China has a massive vehicle park, and some prominent auto manufacturers such as Toyota (Japan) have their bases in the Asia Pacific, which further fuels market growth.
The Latin America and Middle East & Africa region is expected to witness rapid growth during the forecast period (2019–2026), owing to the increasing demand for sophisticated ride sharing systems in countries across these regions.
Some of the key players operating in the ride sharing market share include
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In December 2018, Waymo LLC, a fully self-driving technology provider, launched ‘Waymo One’, the first self-driving car that provides commercial ride-share service, in the U.S. The company developed this technology in collaboration with Google’s self-driving car project.
ANI Technologies Pvt. Ltd. (OLA) has been providing ride sharing services for passengers in Auckland, Wellington, and Christchurch, New Zealand since November 2018. In December 2018, around 50,000 South Korean cab drivers went on a strike nationwide against Uber car sharing services.
The ride sharing market has been witnessing rapid growth in recent years across all its segments. Activities such as improved service launches, strategic collaborations, partnerships, mergers and acquisitions among market participants are expected to positively affect the market during the forecast period, 2019–2026.
This report offers key insights pertaining to the ride-sharing market with emphasis on recent developments across geographies and development strategies adopted by prominent market participants. The following sections have specifically been covered in the report.