Ride Sharing Market

According to Stratistics MRC, the Global Ride Sharing Market is accounted for $143.12 billion in 2024 and is expected to reach $398.30 billion by 2030 growing at a CAGR of 18.6% during the forecast period. Ride sharing is a transportation model where multiple passengers share a single vehicle for their journeys, typically arranged through apps like Uber or Lyft. This service uses GPS to match passengers heading in similar directions, allowing them to split the cost of the ride. It provides a convenient and often cost-effective alternative to traditional taxis and personal car use. Ride sharing can reduce traffic congestion and lower the environmental impact by decreasing the number of vehicles on the road. 

According to a recent survey, 59% of Europeans are interested in using a MaaS-type app. According to the latest data from the United Nations, the global urban population is expected to reach 68% by 2050, up from 55% in 2018.

Market Dynamics: 

Driver: 

Increasing penetration of internet and smartphones

The growing use of smart devices like smartphones and smart wearables as well as the rising use of internet data have increased the demand for ride sharing services globally and accelerated the expansion of the global ride sharing market. The essential need for using ride-hailing services is internet connectivity. To access the information and navigation of the ride, passengers must download ride-providing programmes onto their cellphones through the internet. Additionally, the smartphone apps offer a range of security measures, including the name, number, and photo of the driver, the vehicle's number, route information, and records of previous rides.

Restraint:

Resistance from the traditional transport services

Disputes and confrontations between conventional three-wheeler and taxi drivers are being spurred on by the increasing use of ride-sharing services throughout the world. In comparison to traditional transportation service providers, the providers of ride services have more advantages, such as affordable doorstep pickup and drop-off, full route details, and increased convenience. As a result, taxi drivers in nations like Japan and India are against the ride-sharing companies.

Opportunity:

Stringent carbon emission norms

The rate of vehicle emissions has been rising over time on a global scale. The global greenhouse gas emissions are significantly influenced by the car industry. The government, businesses, and automakers are making additional efforts to reduce the rising CO2 emissions. Many organisations, including the International Institute for Sustainable Development of Canada, the Ministry of Environment and Climate Change of India, and the Paris Agreement on Climate Change of the European Union, have established aspirational goals and standards, including increasing the amount of forest cover to reduce carbon footprints in the upcoming years.

Threat:

Impact of government oversight and involvement

Regulating agencies are adamant that innovative business strategies produce both winners and losers. While Europe is currently lagging behind in this transition to ride-sharing, it is happening quickly in the US and Asia. It is also anticipated that certain nations would work toward unifying their regulations for both ride-sharing and taxis. Obtaining licences to operate in different nations is another difficulty faced by players in the ride-hailing industry. Local transportation network firms are governed by a number of established norms and regulations that are set forth by governments. 

Covid-19 Impact: 

Due to the new corona virus, the automobile and travel industries have seen a sharp decline in the number of customers and commuters. The market will face new challenges as a result of the new rules and regulations the government has implemented to support social isolation and hygienic standards. The COVID-19 pandemic can further impede the growth of the business due to the panic and concern that individuals feel about the transmission of infection while travelling. Cab services will be avoided during the epidemic, which will have a direct impact on industry growth and introduce new challenges.

The E- hailing segment is expected to be the largest during the forecast period

The e-hailing segment in the ride-sharing market has experienced substantial growth, driven by urbanization, technological advancements, and the convenience of on-demand services. E-hailing, which involves booking rides via apps like Uber and Lyft, is revolutionizing traditional taxi services by offering quicker, more efficient transportation solutions. Increased smart phone penetration and a preference for cashless transactions have further fueled this growth. Additionally, the integration of AI and data analytics enhances route optimization and the user experience, while expanding geographic coverage and strategic partnerships have widened market reach.

The short distance segment is expected to have the highest CAGR during the forecast period

The short distance segment is anticipated to witness the fastest CAGR growth during the forecast period. Daily commuters have a great alternative to private vehicles with this kind of commute. The majority of the market share is anticipated to be held by corporate commuting and short distance. However, it is projected that the short-distance type will dominate over the forecast period due to the rising trend of ride-hailing platform providers offering these services through their current platforms. The option to choose between ride hailing and ride sharing is provided by this kind of service.

Region with largest share:

Asia Pacific is projected to hold the largest market share during the forecast period owing to Asian countries have a lot of cities and towns that are developing quickly, making them a promising market for ride-sharing services. The two countries with the largest populations in the region are China and India. Over the projected period, ride sharing is expected to grow quickly in China, which already dominates the ride hailing business. Although India has had recent years of strong growth, the sector has not yet fully realised the potential of the nation.

Region with highest CAGR:

North America is projected to have the highest CAGR over the forecast period, owing to the rapid growth of electric vehicles in nations like Canada, the United States, and Mexico, the area dominates the global market. Additionally, the ride service companies' quick embrace of technologically enhanced services. In Canada, Uber has been growing its clientele quickly. For instance, Lyft was the first business to announce the debut of its green mode, which allows consumers to rideshare in electric cars, last year. 

Key players in the market

Some of the key players in Ride Sharing market include AirAsia, BlaBlaCar, Bolt Technology OÜ, Cabify España S.L.U., Careem, CarpoolWorld (Datasphere Corporation), Didi Chuxing Technology Co., Gett, Grab, HyreCar Inc, Kangaride, Klaxit SAS, Lyft, Inc., Share Now, Uber Technologies Inc., Via Transportation Inc., Vride Inc and Zimride Inc.

Key Developments:

In March 2024, BlaBlaCar has secured €100 million in bank loans to acquire new firms and to grow its business internationally. At its inception, the app was designed to link up drivers and passengers travelling along the same route. With its new funding, the firm hopes to expand both its carpooling and bus operations in countries where it already has a presence - such as Brazil, Mexico and India.

In March 2023, Spain’s Cabify has raised $110 million in a new funding round as it expands in ride-hailing business. The Madrid-headquartered company plans to invest the funds in expanding its presence in Latin America, the market that makes up the lion’s share of its business. The investment was led by Orilla Asset Management, a firm linked to automotive entrepreneur Francisco Riberas, and financial services group AXIS.

Service Types Covered:
• Station-Based Mobility
• E- Hailing
• Car Sharing
• Car Rental
• Other Service Types 

Membership Types Covered:
• Fixed Ridesharing
• Corporate Ridesharing
• Dynamic Ridesharing

Vehicle Types Covered:
• Electric Vehicle
• CNG/LPG Vehicle
• Internal Combustion Engine Vehicle
• Micro-Mobility Vehicle
• Other Vehicle Types 

Business Models Covered:
• Peer to Peer Car Sharing
• Corporate Car Sharing
• Business to Business
• Business to Customer

Data Services Covered:
• Navigation
• Information Service
• Payment
• Other Data Services

Distances Covered:
• Short Distance
• Long Distance

Applications Covered:
• IOS
• Android
• Other Applications

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan        
o China        
o India        
o Australia  
o New Zealand
o South Korea
o Rest of Asia Pacific    
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa 
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

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o Comprehensive profiling of additional market players (up to 3)
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• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances