The global ride hailing services market size is projected to touch USD 82.37 billion by 2025, according to a new report by Million Insights. The market is estimated to grow at a CAGR of 12.8% over the forecast duration. Increasing focus on reducing congestion and vehicle emission is attributing to the market growth. These services are witnessing rapid adoption owing to convenience, safety and easy accessibility. Further, factors such as increasing demand from office commuters and the low cost of travelling are supplementing the market growth.
Considering the growing demand for such services from emerging countries, key players are focusing on expanding their market penetration. For instance, TukTuk-Ride introduced a ride-hailing application in major cities in India. The company charges INR 14 for one kilometer for cab services while INR 8 for bike services. The company is further planning to incorporate various other vehicles such as e-bikes, luxury cars, ambulances and others. In another development, U.S based Alto introduced ride-hailing services with the help of funding it generated from companies such as Frog Ventures and Road Ventures. Further, the company is aiming to expand in other cities in the United States by the end of 2019.
Automotive manufacturers are aiming to make entry into the market which is projected to bode well for the market growth over the next few years. Owing to the rapidly growing urban population in countries such as China and India, companies find them lucrative investment destinations. For example, SAIC Motor in collaboration with Daimler and Geely announced their intention to introduce ride-hailing services in China. Further, BMW, in January 2019, started premium services named ReachNow in China. Additionally, Grab Holdings, in 2019, announced that it will commence three ride-hailing services namely GrabCall, GrabShuttle and GrabWeb in Myanmar. All these three services are aimed at catering the need of different consumer groups.
By offering type, E-hailing services occupied the largest share, in 2018 with over 50%. Features such as easy to use, one-tap booking and easy navigation are attributing to its market growth. However, rental services are likely to be the fastest-growing segment owing to its growing demand from emerging countries. These services are cost-effective and attract millennials, thereby, proliferating the ride hailing services market growth.
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Further key findings from the report suggest:
• E-hailing segment held over 50% of the ride hailing service market share in 2018 and this segment is likely to maintain its dominance over the forecast period.
• Car rental segment is likely to exhibit the highest growth rate with a CAGR of 13.8% over the forecast duration.
• Among different regions, North America held the largest market share with over 35% in 2018.
• Asia Pacific, on the other hand, is estimated to grow at a CAGR of 13.9% over the forecast duration.
Million Insights has segmented the global ride hailing services market on the basis of offering and region:
Ride Hailing Services Offering Outlook (Revenue, USD Million, 2015 - 2025)
• Car Sharing
Ride Hailing Services Regional Outlook (Revenue, USD Million, 2014 -2025)
• North America
• Asia Pacific
• Central & South America
• Middle East & Africa (MEA)