Ride Sharing Market Analysis

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.