The global ride hailing services market is expected to grow at a CAGR of around 17% from 2021 to 2028 and expected to reach the market value of around US$ 127.8 Bn by 2028.
Ride hailing is the process by which a person uses an app to hail or request a local driver to pick them up and take them directly to a specific location. These trips can be scheduled on-demand or in advance, and passengers can ride alone or in a group with other passengers. The primary distinction between ride hailing and taxi services is that ride hailing deals with experiencing services through an app and offers pooling options, whereas taxi services offer private transportation and are typically not pooled.
|Market||Ride Hailing Services Market|
|Analysis Period||2017 - 2028|
|Forecast Data||2021 - 2028|
|Segments Covered||By Offering and By Region|
|Regional Scope||North America, Europe, Asia Pacific, Latin America, and Middle East & Africa|
|Key Companies Profiled||Uber Technologies, Inc., Lyft, Inc., Via.com, Gett, Grab Holdings Inc., Bolt Technology OÜ, Curb Mobility, and among others|
||Market Trends, Drivers, Restraints, Competitive Analysis, Player Profiling, Regulation Analysis|
|Customization Scope||10 hrs of free customization and expert consultation|
Ride hailing services is highly concentrated among urban residents coupled with demographics groups using ride hailing at maximum rates
According to a Pew Research Center report, ride hailing apps primarily offer their services in and around urban areas because demand for these services is low among rural residents. For example, one in every five urban Americans (21%) has used ride-hailing services, with 15% living in suburbs. In comparison, only 3% of rural residents have used these services, and more than half (54%) have never heard of ride-hailing apps. Such factors have a positive impact on the global ride hailing services market's growth.
Ride hailing services is more popular among young generation making it popular ultimately fuelling the overall market growth globally
Ride hailing utility varies significantly with age due to the strong influx of technology in ride hailing services. Approximately one-quarter of 18-29 year olds (28%) and one in every five 30-49 year olds (19%) have used ride hailing services. This demonstrates that ride hailing services are more popular among the young population, who use them frequently. Furthermore, ride hailing services are very popular among college graduates and the relatively affluent. According to estimates, 29% of college graduates have used ride hailing services, while only 13% are unfamiliar with them. Aside from that, there is no discernible difference in ride hailing usage across gender or race. Whites, Blacks, and Hispanics are more likely to use these services than men and women.
Technological advancements fuel the growth of global ride hailing services market
Technological advancements and commitments from ride hailing operators and the government indicate that ride hailing fleets are on the verge of transitioning to electric vehicles (EVs). Because of the high number of kilometers driven by these vehicles, this ultimately results in providing climate and public health benefits. The influx of electrifying ride-hailing fleets also hastens the broader transition to electric vehicles by raising public awareness of EVs and spurring the deployment of an efficient charging network. One of the key factors resulting in the overall growth of the global ride hailing services market is the acceleration of ride hailing fleets, which reduces environmental impacts.
What is new in ride hailing services market?
According to a report released by the World Business Council for Sustainable Development, the consistent growth of ride-hailing services can make mobility more convenient, affordable, and accessible, resulting in increased carbon emissions and pollution. Union of Concerned Scientists report released on ride hailing service companies to increase their share of pooled rides, and improves connections to public transit hubs; electrify their fleets, citing the negative environmental impact of current ride hailing services. According to statistics, an electric non-pooled ride-hailing trip can reduce emissions by nearly 53%. Aside from that, businesses are increasing their efforts through collaborative action. For example, China's Didi Chuxing announced collaboration with BYD to co-design custom EVs for ride hailing, as well as a joint venture with BP to establish charging infrastructure. Uber has committed US$800 Mn in resources to assist drivers in making the switch to electric vehicles and has begun several partnerships with vehicle manufacturers and charging infrastructure companies in various geographies.
The global ride hailing services market is segmented based on offering. Based on offering, the market is segmented as E-hailing, car sharing, and rental.
In terms of offering segment, the e-hailing segment accounted for a sizable share in 2020 and is expected to maintain this trend throughout the forecast period. According to UCSUSA statistics, e-hailing services can reduce emissions by nearly 68% when compared to a private vehicle trip in an average car, or by nearly 79% when compared to a non-pooled ride hailing trip. This is one of the key factors influencing segmental growth, which in turn contributes to overall market growth.
North America records dominating share; Asia Pacific to register fastest growing CAGR for the ride hailing services market
15% of Americans have experienced using ride hailing services resulting in recording reasonable share for the market
According to a Pew Research Center report, despite technological advancements, only 15% of American adults have ever used a ride-hailing service such as Uber or Lyft. Half of all Americans (51%) are aware of these services but have not used them, while one-third (33%) have never heard of them. Furthermore, 6% of Americans use rides hailing services on a regular (daily or weekly) basis, indicating that these services are not available in their area.
Asia Pacific to register all time high CAGR for ride hailing services market
Asia Pacific will experience a high CAGR in the coming years as ride hailing electrification progresses. According to the ICCT report, China is aiming for ride hailing fleets to be 100% electric by the end of 2020. China will also allow electric vehicles to be newly registered on ride-hailing platforms beginning in 2021, with a total conversion to electric vehicles by 2028. Such factors have a positive impact on regional growth, which in turn contributes to the overall market growth for ride hailing services.
The prominent players of the global ride hailing services market involve Uber Technologies, Inc., Lyft, Inc., Via.com, Gett, Grab Holdings Inc., Bolt Technology OÜ, Curb Mobility, and among others
Market By Offering
Market By Geography
• Rest of Europe
• South Korea
• Rest of Asia-Pacific
• Rest of Latin America
Middle East & Africa
• South Africa
• Rest of Middle East & Africa
Ride hailing services market is expected to reach a market value of around US$ 127.8 Bn by 2028.
The ride hailing services market is expected to grow at a CAGR of around 17% from 2021 to 2028.
Based on offering, e-hailing segment is the leading segment in the overall market.
Technological advancement is one of the prominent factors that drive the demand for ride hailing services market.
Uber Technologies, Inc., Lyft, Inc., Via.com, Gett, Grab Holdings Inc., Bolt Technology OÜ, Curb Mobility, and among others.
North America is anticipated to grab the highest market share in the regional market
Asia Pacific is expected to be the fastest growing market in the forthcoming years