Ride Sharing Market Size & Share 2020 to 2026
Market Size by Business Model (P2P, B2C, B2B), by Vehicle Type (ICE, CNG/LPG, Electric), COVID-19 Impact Analysis, Regional Outlook, Application Potential, Price Trend, & Forecast.
Report ID: GMI3733
|
Published Date: October 2020
|
Report Format: PDF
Download Free PDF
Authors:
Preeti Wadhwani, Aishvarya Ambekar
Ride Sharing Market Size
Ride Sharing Market size exceeded USD 34 billion in 2019 and is anticipated to grow at over 6.5% CAGR between 2020 and 2026. Stringent vehicle emission regulations implemented by government authorities across the globe are increasing the adoption of shared mobility solutions for routine commute.
Growing safety concerns related to the usage of public transport facilities among commuters are fueling the rideshare services demand. Overcrowded public transport facilities including subways and buses cause high level of discomfort while travelling. These facilities also pose a risk of spreading of infections and viral diseases.
Significant increase in ownership of private cars coupled with insufficient network of roads in populated cities has led to a rapid increase in traffic congestion. According to the industry update by the Federal Highway Administration, congestion on roads takes up more than 37% of the travel time of daily commuters in the U.S. High traffic congestion in cities has increased the overall travel time by an average of 3.5 hours over the last 20 years. Shifting preference toward reducing the daily travel time is driving the ride sharing industry statistics.
The major factor hampering the market growth is the limited availability of technology and supportive infrastructure. The unavailability of convenient parking spots and pick-up & drop locations for cars in densely populated cities is challenging the wide adoption of carpooling services. One of the major barriers of entry for new market players is the high investment required to develop a technological support in terms of mobile applications and location tracking.
The rapidly spreading COVID-19 pandemic is adversely impacted the ride sharing industry. Social distancing norms and regulations implemented by government and healthcare authorities encourage citizens to maintain a two-meter distance from other persons for safety. This has restricted the usage of ride sharing services for daily commute. Users prefer to travel in their own vehicles due to health and safety concerns, hampering the market size in 2020. The impact of this industry challenge is expected to reduce impelled by the increasing sanitization and safety measures undertaken by companies.
Ride Sharing Market Analysis
The P2P ride sharing market is poised to register growth rate of around 7.5% through 2026. The demand for shared mobility services on a very short notice for commute to the desired location is increasing the adoption of P2P carpooling services. This business model allows users to contact drivers in their vicinity through GPS and location services.
Electric cars segment held about 3% of the revenue share in 2019. Electric cars are witnessing a growing demand owing to rising vehicular emission concerns. Companies are focusing on minimizing the carbon footprint of their business operations by adding electric cars to their fleet. Shifting consumer preference toward using sustainable mobility solutions for routine commute is further boosting the market revenue.
Industry leaders are collaborating with automobile manufacturers to expand their fleet of electric cars for rideshare purposes. For instance, in September 2020, Uber partnered with Volkswagen to add more electric cars to its ride hailing and sharing services in Europe. Through this partnership, Uber will add new e-Golf cars to its carpooling fleet in Germany. The company aims to offer 100% of its rides in electric cars by 2030 in major North American and European countries.
The North America ride sharing market crossed USD 4.5 billion in 2019 and is set to observe high growth through 2026. The continuous improvement in industry can be attributed to the increasing inclination of residents of the U.S. and Canada toward reducing environmental pollution. Market trends emphasize the growing tendency of commuters in these countries to reduce their dependency on fossil fuels for daily transport requirements.
The establishment of stringent emission regulations by authorities, such as the Environment Protection Agency (EPA), is further augmenting the regional market size. The EPA offers several carpool incentives programs to encourage individual commuters to use carpooling services for day-to-day transport. It also offers tax benefits to corporate players, encouraging their employees to use carpooling services for their commute to work.
Ride Sharing Market Share
Key players operating in the ride sharing market include :
The major industry participants are focusing on acquisition of small players to increase their shares and revenues. Small companies are emphasizing on raising capital to increase their business operations.
This market research report on ride sharing includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2020 to 2026 for the following segments:
Click here to Buy Section of this Report
Market, By Business Model
Market, By Vehicle Type
The above information has been provided for the following regions and countries:
Research methodology, data sources & validation process
This report draws on a structured research process built around direct industry conversations, proprietary modelling, and rigorous cross-validation and not just desk research.
Our 6-step research process
1. Research design & analyst oversight
At GMI, our research methodology is built on a foundation of human expertise, rigorous validation, and complete transparency. Every insight, trend analysis, and forecast in our reports is developed by experienced analysts who understand the nuances of your market.
Our approach integrates extensive primary research through direct engagement with industry participants and experts, complemented by comprehensive secondary research from verified global sources. We apply quantified impact analysis to deliver dependable forecasts, while maintaining complete traceability from original data sources to final insights.
2. Primary research
Primary research forms the backbone of our methodology, contributing nearly 80% to overall insights. It involves direct engagement with industry participants to ensure accuracy and depth in analysis. Our structured interview program covers regional and global markets, with inputs from C-suite executives, directors, and subject matter experts. These interactions provide strategic, operational, and technical perspectives, enabling well-rounded insights and reliable market forecasts.
3. Data mining & market analysis
Data mining is a key part of our research process, contributing nearly 20% to the overall methodology. It involves analysing market structure, identifying industry trends, and assessing macroeconomic factors through revenue share analysis of major players. Relevant data is collected from both paid and unpaid sources to build a reliable database. This information is then integrated to support primary research and market sizing, with validation from key stakeholders such as distributors, manufacturers, and associations.
4. Market sizing
Our market sizing is built on a bottom-up approach, starting with company revenue data gathered directly through primary interviews, alongside production volume figures from manufacturers and installation or deployment statistics. These inputs are then pieced together across regional markets to arrive at a global estimate that stays grounded in actual industry activity.
5. Forecast model & key assumptions
Every forecast includes explicit documentation of:
✓ Key growth drivers and their assumed impact
✓ Restraining factors and mitigation scenarios
✓ Regulatory assumptions and policy change risk
✓ Technology adoption curve parameter
✓ Macroeconomic assumptions (GDP growth, inflation, currency)
✓ Competitive dynamics and market entry/exit expectations
6. Validation & quality assurance
The final stages involve human validation, where domain experts manually review filtered data to identify nuances and contextual errors that automated systems might miss. This expert review adds a critical layer of quality assurance, ensuring data aligns with research objectives and domain-specific standards.
Our triple-layer validation process ensures maximum data reliability:
✓ Statistical Validation
✓ Expert Validation
✓ Market Reality Check
Trust & credibility
Verified data sources
Trade publications
Security & defense sector journals and trade press
Industry databases
Proprietary and third-party market databases
Regulatory filings
Government procurement records and policy documents
Academic research
University studies and specialist institution reports
Company reports
Annual reports, investor presentations, and filings
Expert interviews
C-suite, procurement leads, and technical specialists
GMI archive
13,000+ published studies across 30+ industry verticals
Trade data
Import/export volumes, HS codes, and customs records
Parameters studied & evaluated
Every data point in this report is validated through primary interviews, true bottom-up modelling, and rigorous cross-checks. Read about our research process →