Ride-Hailing Service Market Emerging Factors, Future Demands, and Key Players

 The Ride-Hailing Service Market is expected to grow from US$ 48,922.78 million in 2021 to US$ 98,745.11 million by 2028; it is estimated to grow at a CAGR of 10.6% from 2021 to 2028.

Finance, fuel, upkeep, registration/taxes, and maintenance & repair, as well as depreciation, all contribute to the cost of owning a car. The expense of owning a vehicle rises year after year. The depreciation accounts for 43% of the total ownership cost, according to the American Automobile Association (AAA), however the other costs, such as maintenance and gasoline, account for 25%. Fuel prices and maintenance expenses have risen dramatically in recent years, and the trend is expected to continue without any decline. Owning a car has become more of a liability than an asset as cities become increasingly congested with people and cars. As the millennial generation has little to no interest in owning a car, the percentage of people aged 18 to 35 who own a car has decreased over time. Other factors contributing to the fall in car ownership include poor public transportation connectivity in major cities and the growing popularity of internet shopping, among others. Though car ownership increased during the pandemic, it is anticipated to decline after 2021, returning to pre-pandemic levels. As a result, ride-hailing service providers can profit from these demographics, as the new tech-savvy generation is one of the most active users of these services.

Key Findings of Study:

The global Ride-Hailing Service market is segmented into five major regions—North America, Europe, APAC, MEA, and SAM. Based on Service Type, the Ride-Hailing Service market is characterized into e-hailing, car sharing, car rental, and station-based mobility. In 2020, the E-hailing segment accounted for a larger share in the market. Based on Vehicle Type, the Ride-Hailing Service market is characterized into two-wheeler, three-wheeler, four-wheeler, and others. In 2020, the Four-Wheeler segment accounted for the largest share in the market. Based on Location, the ride-hailing service market is characterized into urban, and rural. In 2020, the urban segment accounted for the largest share in the market. Similarly, based on end-user, the Ride-Hailing Service market is segmented into institutional, and personal. In 2020, the Institutional segment accounted for the largest share in the market.

Ride-Hailing Service Market Business Opportunities and Growth Challenges Report

 According to our latest market study on “Ride-Hailing Service Market Forecast to 2028 – COVID-19 Impact and Global Analysis – by Service Type, Vehicle Type, Location and End User,” the Market is expected to grow from US$ 48,922.78 million in 2021 to US$ 98,745.11 million by 2028; it is estimated to grow at a CAGR of 10.6% from 2021 to 2028.

Autonomous vehicles are still in the early stages of development. Many OEMs have working prototypes that are being tested in various parts of the world. Many businesses are vying to be the first to market with a completely autonomous vehicle. Lyft, Ford, Uber, Honda, Toyota, and Tesla are among them. Waymo, Alphabet's autonomous vehicle business, has started testing trip pricing with its early users as it gets closer to launching its commercial ride-hailing service in Phoenix this year. The rapid economic growth assures a steady stream of development, from transportation infrastructure to smart city development. Many countries, including Mexico, Canada, and the United States, are building digital infrastructure to enable communication between automobiles and infrastructures in order to collect crucial information, reducing traffic congestion and improving road safety. The autonomous vehicle market is predicted to be fueled by an increase in the construction of smart cities. Considering the factors, the development of autonomous vehicles will drive the ride-hailing service market in the next 6–7 years.

Based on Service Type, the Ride-Hailing Service market is characterized into E-hailing, Car Sharing, Car Rental, and Station-based Mobility. The E-hailing segment was valued at US$ 27,566.61 million in 2020. Based on Vehicle Type, the Ride-Hailing Service market is characterized into Two-Wheeler, Three-Wheeler, Four-Wheeler, and Others. Based on Location, the Ride-Hailing Service market is characterized into Urban, and Rural. Similarly, based on end-user, the Ride-Hailing Service market is segmented into Institutional, and Personal.

Impact of COVID-19 Pandemic on Ride-Hailing Service Market
The North American market had suffered considerable economic losses in the first two quarters of 2020, owing to high count of COVID-19 cases, especially in the US. The economic growth was slowed, which directly impacted the ride-hailing service across the region. North America is one of the leading regions in terms of new technology development and adoption, owing to favorable government policies that encourage innovation and improve infrastructure capabilities. As a result, any impact on the industrial sector's expansion hinders the region's economic growth. Due of the COVID-19 outbreak, the United States is currently the world's worst-affected country.  Owing to the impact of COVID-19 pandemic, the lower cross-border activities and implications of social distancing regulation for supporting the slow-down of the virus spread, the ride-hailing industry is being impacted negatively. However, increasing cost of ownership supported the market growth in the year 2021 and expected to continue in forecasted period. For instance, according to American Automobile Association (AAA), the average cost of owning and operating a new car grew by US$ 279 from 2019 to US$ 9,561 in 2020.


ANI Technologies Pvt. Ltd.; Daimler AG; Delphi Technologies Plc; DiDi Global Inc.; Gett; Grab Holdings Inc.; Lyft, Inc.; TUKTUK RIDE; Uber Technologies Inc.; and zTrip are a few major companies operating in the Ride-Hailing Service market.

Ride-Hailing Service Market — by Geography, 2020 and 2028 (%)
 
Source: The Insight Partners Analysis