July 24, 2024
Ride-Hailing Market

The Ride-Hailing Market is Expected to be Flourished by Growing Demand for Shared Transportation Services

The ride-hailing market involves booking and sharing rides through smartphone applications and websites. Major companies operating in this market include Uber, Lyft, Ola, DiDi, and Bolt. With the touch of a button, users can book a ride with a nearby driver partner and get door-to-door transportation services. This has led to significant adoption among customers looking for alternative options to public transportation or owning private vehicles. Ride-hailing helps reduce traffic congestion and carbon emissions from individual vehicles.

The global ride-hailing Market is estimated to be valued at US$ 214680.76 Mn in 2023 and is expected to exhibit a CAGR of 5.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:
Growing demand for shared transportation services is expected to drive the growth of the ride-hailing market over the forecast period. As mentioned in the heading, preference for shared mobility solutions over private vehicles is increasing due to cost benefits and traffic management. Several cities are experiencing high pollution levels and traffic congestion issues due to the rise in number of private vehicles. On-demand ride-hailing services help address these challenges by reducing the number of individual car rides through vehicle sharing. Additionally, the availability of alternative transportation modes has reduced dependence on public transit among customers.

Ride-hailing platforms allow drivers to earn flexible income in their spare time, creating more job opportunities. This acts as another driver for market growth. However, stringent regulations in some regions to control these ridesharing services and protect taxi industries may restrain the market to a certain extent over the forecast period.

Segment Analysis
The ride-hailing market can be segmented into car, motorbike and others. The car segment dominated the market and accounted for around 65% share in 2023 due to increasing demand for safer and comfortable rides. This segment has witnessed strong growth over the past few years and is anticipated to continue its dominance during the forecast period.

PEST Analysis
Political: Governments across many countries have introduced regulations to legalise and monitor ride-hailing services to ensure passenger safety and security. Favourable policies are boosting market growth.
Economic: Rising per capita income and improving living standards have increased the demand for affordable and convenient transportation options. This is a key economic driver for the ride-hailing market.
Social: Changing lifestyles and increased urbanisation are compelling more people to adopt ride-hailing services for daily commutes instead of using public transport or owning private vehicles.
Technological: Advanced technologies like GPS, mapping, mobile payment interfaces etc. have enabled seamless operations of ride-hailing platforms. Continued innovation is expanding their product offerings.

Key Takeaways
The Global Ride-Hailing Market Demand is expected to witness high growth.

Regional analysis comprises Asia Pacific dominates with a market share of over 35% in 2023 driven by strong growth in countries like India and China. The availability of affordable options and a large consumer base are key factors leading to the regions dominance.

Key players operating in the ride-hailing market are Gerresheimer AG, Becton, Dickinson and Company, West Pharmaceutical Services, Inc. Key players focus on expanding their service networks and fleet size to increase customer base. Some leading players have also introduced bicycles and electric scooters for short distance rides to diversify their offerings.

Source: Coherent Market Insights, Public sources, Desk research
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