Ridesharing Market size is set to surpass USD 50 billion by 2026, according to a new research report by Global Market Insights Inc.
Emergence of new players in the global market is likely to fuel the ride sharing demand. The barriers to entry are eased by supportive government policies and new regulations that promote the use of alternative mobility solutions.
One of the major factors driving the growth of ride sharing services is the advancement in connected technologies. Innovations in the field of IoT and AI significantly assist in improving the accessibility and adoption of carpooling services.
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Analyst view: “The P2P ride sharing business model is expected to witness high growth due to increased flexibility and ease of carpooling with nearby passengers. Convenient payment options offered by this model will contribute to the growing industry revenue.”
Industry challenges include lack of consumer trust and confidence in ride sharing services. Commuters feel uncomfortable while travelling with strangers, especially for long distances. Increasing safety concerns related to ride sharing is estimated to hamper the market growth. The growing number of theft and robbery incidents occurring in carpooling activities is impacting the confidence levels of commuters. However, advanced location detection and driver information provided by carpooling platforms are anticipated to improve the ridesharing market demand.
The outbreak of the COVID-19 pandemic has severely impacted the transportation industry. Stringent nationwide lockdowns enforced by countries across the globe led to shutdown of corporate offices and businesses. Several companies implemented work-from-home policies for the safety of their employees, impacting the revenues of carpooling services in the market. Commuters are highly inclined toward travelling in their own vehicles even post lockdown owing to the risk of infection from other passengers while carpooling. The ride sharing industry is expected to witness steady growth with the reduction in pandemic impacts.
Browse key industry insights spread across 150 pages with 109 market data tables & 21 figures & charts from the report, “Ride Sharing 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, Competitive Market Share & Forecast, 2020 – 2026” in detail along with the table of contents:
Comfortable and safe transport options provided by B2C carpooling model
The B2C business model accounted for over 55% of the ridesharing market share in 2019 on account of the high penetration of service providers such as Uber, Lyft, and OLA. This business model offers commuters a cost-effective and comfortable way to address their daily transport requirements. The competitive pricing of carpooling services offered by industry players is attributable to the wide-scale adoption of these services. B2C ride sharing companies are introducing new features to ease rider anxiety and improve safety of their rides.
Growing demand for ICE cars
The ICE cars segment is projected to grow at around 6.5% CAGR till 2026. The segment is experiencing a steady growth due to the increasing adoption of electric vehicles. ICE vehicles are increasingly popular in price-sensitive markets, such as India and China, owing to low initial investments. Electric cars are expensive in nature and require high investments from ride sharing companies operating in low-income economies.
High consumer inclination toward modern mobility solutions in Europe
The Europe ridesharing market is predicted to reach USD 8.5 billion by 2026 propelled by the changing car ownership pattern in the region. This trend is amplified by the plummeting passenger vehicle sales in the market.
The residents of European countries including Germany, France, and the UK are highly inclined toward using public transport and shared mobility services for their routine commute. The presence of leading companies, such as Lyft, DiDi Chuxing, and Uber, in Europe is providing several market opportunities.
Ridesharing market players are focusing on expansion of their services in international markets to increase their penetration. Key industry participants include Uber, Lyft, Bla Bla Cars, Careem, Lyft, Scoop, sRide, Via, Grab, ZIFY SAS, DiDi Chuxing, and Quick Ride.