July 20, 2024

Rapid Digitalization and Technological Innovations to Drive Growth of the Global Ride-Hailing Market

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 19.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Ride-hailing refers to on-demand transportation arranged through transportation network companies and online services. It enables users to book online taxi services through websites or mobile applications. Users can book passenger cars, luxury cars, SUVs, and micro-mobility vehicles such as cycles through ride-hailing apps. Ride-hailing platforms provide affordable transportation options and enables hassle-free commuting experiences. Technological advancements have made ride-hailing services more accessible, affordable and convenient.

Market key trends:
Rapid digitalization and rising penetration of smartphones across emerging economies are major factors fueling the growth of the global ride-hailing market. Technological innovations such as integrated payment platforms, real-time tracking and automated vehicle dispatch systems have improved the ride experience for users. Micromobility options and subscription packages offered by key players are also attracting more users. Growing concerns regarding vehicle ownership and advantages such as flexibility of on-demand transport are further augmenting the demand for ride-hailing services globally. However, stringent regulations and increasing operating costs remain longstanding challenges.

Porter’s Analysis
Threat of new entrants: The threat of new entrants in the ride-hailing market is moderate as existing players have achieved significant economies of scale and brand loyalty. New entrants face high capital requirements and established network effects.

Bargaining power of buyers: The bargaining power of buyers in the ride-hailing market is high given the availability of substitutes and price sensitivity of customers. Buyers can easily switch between various available options.

Bargaining power of suppliers: The bargaining power of suppliers is moderate in the ride-hailing market as drivers are not dependent on any single platform and have some flexibility. However, existing networks provide stability to drivers.

Threat of new substitutes: The threat of new substitutes in the ride-hailing market is high with alternatives like owned vehicles, public transport and peer-to-peer transportation gaining traction.

Competitive rivalry: The competitive rivalry in the ride-hailing market is intense with global and regional players competing on parameters like service quality, price, offerings and technological features.

Key Takeaways

The Global Ride-Hailing Market is expected to witness high growth, exhibiting a CAGR of 19% over the forecast period, due to increasing urbanization and rising adoption of smartphones. The high popularity of ride-hailing services among people for their inherent flexibility and affordability is also driving the market.

Regional analysis: Asia Pacific dominates the global ride-hailing market and is expected to grow at the fastest rate owing to large population sizes and massive expansion plans of key players like Uber and Ola in the region. China and India represent huge untapped opportunities. North America and Europe are also major markets with high adoption rates.

Key players: Key players operating in the ride-hailing market are Yandex.Taxi LLC, Didi Chuxing Technology Co., Be Group JSC, Uber Technologies Inc., ZuumViet, Lyft Inc., FastGo Vietnam JSC, Grab Holdings Inc., ANI Technologies Pvt. Ltd., Free now (Daimler), and BlaBla Car. Players are focusing on regional expansions and introduction of new features to consolidate their positions.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it