Ride Sharing Market Size, Industry Analysis Report, Regional Outlook, Application Development Potential, Price Trend, Competitive Market Share & Forecast, 2020 - 2026
Report ID: GMI3733
Ride Sharing Market size is expected to grow over the coming years with the rapid increase in road traffic and demand for a comfortable riding experience. It allows passengers to connect with the drivers and book their rides easily with the help of mobile applications or online sites. There are several advantages related to ride-sharing such as convenient booking options, affordable door-to-door rides, no parking troubles, and reduced carbon footprints. Additionally, the increased variability in cab booking charges due to the presence of a large number of service providers is a major factor, accelerating ride sharing market growth. Several companies in the market are providing different offers, discounts, and facilities to reduce the expenses of daily passengers. For instance, companies, such as OLA and Uber, provide monthly pass facilities to users, where consumers can use ride pooling at lower rates than paying for their rides every day.
Increasing use of smart devices, such as tablets, wearable, smartphones, and notepads, is encouraging ride sharing market players to develop the mobile application software that will help passengers to easily avail the services. The application provides various features such as details about the driver and the users, making it easy for both to track the ride. It also provides details about the driver with a photograph and vehicle number, thereby improving the safety of the passenger. Moreover, it also provides the user with various payment options, making it reliable for the user to book and enjoy the ride. These mobile applications can also be used in smart wearable devices now, thereby augmenting the market growth. For instance, Android wear 2.0 smartwatch can be used to book an Uber without even interacting with the smartphone.
Increasing conflicts and opposition from taxi and three-wheeler drivers will restrict the ride sharing market growth. The services are becoming popular among consumers, which is hampering the taxi business. Therefore, taxi vendors are opposing ride-sharing service in a few countries such as India and Japan. The safety and security of passengers that are availing these services is a major concern for ride sharing market players. Such increases in conflicts are terrifying the passengers, thereby restraining the market growth. For instance, in China, several cases have been witnessed in which the passengers and drivers were harmed by taxi operators.
The increasing interest of automobile manufacturers in ride hailing services will drive the ride sharing market growth. The automotive manufacturers are developing vehicle models that are specifically designed for cab sharing services. In April 2016, BMW announced the launch of a new car sharing service ReachNow with the use of 370 BMW and mini vehicles for short-term rental, long-term rental, and delivery services. Moreover, some of the automobile manufacturers are partnering with service providers for the use of their advanced models in rental services. For instance, in November 2017, Uber announced its plans to buy around 24,000 self-driven cars from AB Volvo for offering convenient cab sharing services to customers. Such factors are expected to accelerate the market growth.
Hatchbacks and sedans are being widely used for providing car hailing services in the ride sharing market owing to the increased accessibility, administration, and comfort of these vehicle categories. These vehicles are widely used for short trips as they provide low-cost rental service. However, the SUV type model is majorly used to accommodate a large number of people and for tour purposes. It helps the user to overcome the problem of using multiple cars pooling for a group. The fare rates of the companies differ depending on the vehicle booked for the trip. For instance, Uber offers different rate patterns as per customer & vehicle requirements. UberX option consists of hatchback and sedan vehicles with charges around USD 7-9; however, Uber SUV charges USD 25-26. Such increased specifications to customize the ride will drive the market growth.
The Europe ride sharing market is expected to witness high growth owing to the increased adoption of modern vehicles for providing services to passengers. The growing development and adoption of electric cars in the UK, Germany, and France are encouraging market players to shift toward these car models. For instance, in February 2019, Lyft announced the launch of green ride mode, which allows the customer rideshare in an electric car. Lyft launched this idea with the intention of “Green Cities Initiative”, which is an attempt to reduce the use of fossil fuels that harm the environment. Moreover, governments are developing several initiatives to promote the adoption of electric cars in the region, thereby accelerating the ride sharing market demand. In April 2019, the Swedish government built an electrified road for charging electric vehicles, wherein a tail at the end of the vehicle is connected to the tracks installed on the road, which will charge the car while running.
Key players in the ride sharing market are Grab, Uber Technologies Inc., ANI Technologies Pvt. Ltd., Careem, Taxify OÜ, Gett, BlaBlaCar, Wingz, Inc., Easy Taxi, and Cabify, among others. These players are competing to provide better services to customers. Moreover, increased investments to improve service offerings are also major factors propelling the market. For instance, in February 2019, Daimler and BMW announced their partnership to invest around USD 1.13 billion in a joint ride-hailing and car-sharing business. This investment would target the development of parking, carpooling, and charging services for electric cars in big cities.
Ride Sharing Market, By Type
- Car sharing & rental
Ride Sharing Market, By Model
Ride Sharing Market, By Vehicle Type
- Internal Combustion Engine (ICE) vehicle
- CNG/LPG Vehicle
- Electric Vehicle
The above information has been provided for the following regions and countries:
- North America
- Asia Pacific
- South Korea
- Latin America
- Middle East & Africa (MEA)
- South Africa
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