Your payment is in progress...

Ride-Hailing Market - Growth, Trends, And Forecasts (2020 - 2025)

Published on: Jun 2020 | From USD $4250 | Published By: MORDOR INTELLIGENCE | Number Of Pages: 120

The Ride-Hailing Market is estimated to grow at a CAGR of about 15% over the forecast period 2020 to 2025. The ride-hailing trend has emerged in a futuristic landscape of shared mobility, catering to the consumer’s need for quick, convenient, and cost-effective transportation. In the future, blockchain may be integrated with ride-hailing technology to ensure more significant screening measures of drivers and higher security standards for drivers. This has become a vital need, mainly to ensure the safety of female users of ride-hailing.

- The increasing adoption of services in different industrial sectors is driving the market. Ride-hailing service providers have entered the mainstream business in recent times, and the companies are focusing on other industrial sectors such as food delivery, healthcare, freight business, and many other sectors. Uber is currently contributing to the healthcare industry by offering safe and secure scheduled rides to the patients and caregivers with the Health Insurance Portability and Accountability Act (HIPPA) compliance.
- Also, another instance of healthcare and ride-hailing collaboration is the partnership of Blue Cross and Blue Shield and Lyft to offer rides in remote communities, thereby preventing missing health checkups due to lack of effective transportation. Further, in January 2020, Uber sold its food delivery business in India to Zomato in a USD 350 million all-stock deal. India remains an exceptionally important market to Uber, and we will continue to invest in growing their local rides business.
- Increasing the adoption of electrification in ride-hailing vehicles is expected to drive the market. Companies are adopting green initiatives to lower vehicular emissions by gradually adopting electric vehicles. According to the International Council on Clean Transportation, Didi Chuxing is leading the cutting age revolution of eco-friendly measures acquiring around 260,000 electric vehicles recently, which equals 1.3% of its total vehicles. Further, Ola has 0.6% electric vehicle share and Grab, Lyft, and Uber with less than 0.2% electric vehicles of the entire fleet. The rise in the increasing demand for electric vehicles is anticipated to hike in the near future.
- Further, Lyft’s Express Drive Rental Car Sharing Program allows contracted drivers in San Diego, Los Angeles, and San Francisco to rent an electric car, currently, those manufactured by GM, for a short term basis. This is part of Lyft’s recently announced effort to provide 1 billion automated electric car rides by 2025. Also, Uber launched an electric car initiative in Portland, Oregon, to reach its goal of electrifying more than 10 percent of its fleet by 2020.
- However, the current Covid-19 pandemic has significantly slowed down the market growth. In California, the demand for ride-hailing has drastically lower down about 60% versus last year in 2019. A major player such as Uber decided in May 2020, to sack around 6,500 employees globally. Also, Ola announced to layoff 1/3rd of the workforce after business shrinks 95%.
- Further, Didi Chuxing has taken a series of measures to safeguard its drivers and customers in China against the disease, including installing protective plastic sheets in its cars to separate drivers from passengers. In May 2020, Didi Chuxing announced its expansion of its in-app “Health Guard” program to its Latin American markets, using artificial intelligence (AI) to verify whether its drivers are wearing face masks in an effort to curb the spread of the coronavirus pandemic. This significantly helps the Didi to generate revenue taking this significant precaution.

Key Market Trends

Motorcycle to Witness Significant Growth

- A motorcycle ride-hailing is a licensed form of transport available in various nations. The motorcycle carries one passenger, who rides pillion behind the motorcycle operator. According to The Energy and Resources Institute (TERI), there are about more than 20 million motorcycle taxis globally in which 2 million in Brazil, 1 million in Nigeria, and 0.2 million in Bangkok, including both conventional and app-based service providers. With the revenue generation through motorcycle ride-hailing, the internet economy revenue parallelly increases in this sector.
- In many cities across Africa, motorcycle taxis are as common as the yellow cabs in New York. That includes Lagos, Nigeria, where ride-hail startup Gokada in May 2019 raised a USD 5.3 million Series A round to grow its two-wheel transit business. Gokada has trained and on-boarded more than 1,000 motorcycles and their pilots on its app that connects commuters to moto-taxis and the company’s signature green, DOT– approved helmets.
- Asia-Pacific region promises a significant growth of the market, Increasing traffic congestion and low taxi fare, when compared to other modes of transportation, are the major factors driving the growth of the motorcycle/bike taxi service in the Asia-Pacific market.
- Malaysian Government said that bike hailing would be an important component in providing a comprehensive public transport system, as a medium for first- and last-mile connectivity. In January 2020, motorcycle hailing service Dego Ride begins operations as the company looks to expand coverage. Dego Ride announced to widen coverage as it is in the process of vetting over 4,000 rider applications. This significantly caters to the market growth.
- Moreover, in Vietnam, the usage of motorbike taxis is extremely in the current time period due to a lack of public transport. In some cities, these vehicles act as access vehicles connecting core areas with the main street. Motorcycles for more than two decades are widely used modes of transportation by the Vietnamese people. As of 2019, out of 96 million population in Vietnam, nearly about 49 million owned motorbikes. Over the past three years, the country has registered nearly 3 million motorbike sales each year, owing to the growing affordability, due to the improvement of their average monthly income.
- During 2017-2019, Vietnam witnessed significant growth in the ride-hailing market, as many domestic startups and ASEAN regional companies have entered the country. For instance, recently, in 2018, Go-Jek launched its motorbike ride-hailing services in Vietnam, and another ride-hailing app from Mpos Vietnam Technology called FastGo, launched its ride-hailing service in the same year. Similarly, other companies, like Aber, Be Group, Vato, and Xelo, have been offering ride-hailing services, from motorcycles through app booking.

North America Accounts for Significant Share

- North America propels to cater to a significant share in the market. According to Accenture, nearly two-thirds (63%) of U.S. car owners who use ride-hailing services say that they would consider giving up their vehicles over the next decade in favor of ride-hailing. Based on a survey of more than 1,000 U.S. consumers, Accenture found that consumer satisfaction with ride-hailing companies is extreme, at 92%, and that the vast majority (93%) of the respondents expect to maintain or increase their spending on ride-hailing services this year.
- Ride-hailing usage has increased across most demographic groups, but adoption figures continue to vary by age, educational attainment, and income level. For example, roughly half of Americans ages 18 to 29 (51%) say they have used a ride-hailing service, compared with 24% of those ages 50 and older. Those whose annual household income is USD 75,000 or more are roughly twice as likely as those earning less than USD30,000 to have used these services.
- Further, Uber is the standard-bearer in the cab-hailing app industry. In the United States, 21.3% of the Android devices have Uber installed in them. Lyft is one of the biggest competitors that Uber has in the United States, with coverage in 60 cities across the country and overall in more than 300 markets across the United States and Canada. Since safety is of the utmost priority for the users of transport apps, Lyft makes sure that all its drivers possess a valid license and have gone through DMV, background, and criminal checks.
- Further, due to the Covid-19 pandemic, the ride-hailing business has suffered a near-total collapse as large parts of the United States. Nearly two-thirds of Uber's revenue is generated in the United States and Canada, and with such pandemic, Uber announced the news of layoffs in the countries.
- But as parts of the U.S. economy start to re-open facing the Covid-19 pandemic, demand for ride-hailing services is expected to get a significant boost, following weeks of upheaval in the core businesses of Lyft and Uber due to lockdowns. Americans are also expected to turn to ride-hailing as a significant source of income, which in turn is expected to create a supply glut that will help companies such as Lyft and Uber to curb driver incentives and other costs.lockdown.

Competitive Landscape

The market is consolidated in nature as the players in the respective region have their high market share comparing to the overall region. Such as UBER and Lyft have a prominent share in the North America region, whereas, in China, Didi Chuxing Technology Co. contributes to the high market share. Moreover, overall Didi, Uber, Lyft, and Grab have prominent market share globally. Recent developments in the market are -

- April 2020 - Shouqi Limousine & Chauffeur cooperated with Alibaba Cloud, leveraging innovation advantages to build a new industry ecosystem of 5G Internet of Vehicle. A pilot project between Shouqi Limousine & Chauffeur and Alibaba Cloud has been initiated for exploring 5G, edge computing for online ride-hailing mobile services. By leading the new era of intelligent transportation, the project will jointly explore the application and expansion of edge computing in transportation under 5G and together promote the development and upgrade of the public transport industry.

Reasons to Purchase this report:

- The market estimate (ME) sheet in Excel format
- 3 months of analyst support

1 INTRODUCTION
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study

2 RESEARCH METHODOLOGY

3 EXECUTIVE SUMMARY

4 MARKET DYNAMICS
4.1 Market Overview (Assessment of Covid-19 Impact)
4.2 Market Drivers
4.2.1 Increasing Adoption of Services in Different Industrial Sectors
4.2.2 Increasing Adoption of Electrification in Ride Hailing Vehicles
4.3 Market Restraints
4.3.1 Resistance From Traditional Transport Services
4.4 Industry Value Chain Analysis
4.5 Industry Attractiveness - Porter's Five Forces Analysis?
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry

5 MARKET SEGMENTATION
5.1 By Vehicle Type
5.1.1 Motorcycle
5.1.2 Cars
5.1.3 Other Vehicle Types (Buses)
5.2 Geography
5.2.1 North America
5.2.1.1 United States
5.2.1.2 Canada
5.2.2 Europe
5.2.2.1 Germany
5.2.2.2 United Kingdom
5.2.2.3 France
5.2.2.4 Russia
5.2.2.5 Spain
5.2.2.6 Rest of Eurpoe
5.2.3 Asia-Pacific
5.2.3.1 India
5.2.3.2 China
5.2.3.3 Japan
5.2.3.4 Rest of Asia-Pacific
5.2.4 Latin America
5.2.5 Middle-East & Africa

6 COMPETITIVE LANDSCAPE
6.1 Key Vendor Profiles
6.1.1 Didi Chuxing Technology Co.
6.1.2 Uber Technologies, Inc.
6.1.3 Lyft, Inc.
6.1.4 Grab Holdings Inc.
6.1.5 Daimler AG
6.1.6 BlaBla Car
6.1.7 Ola Cabs
6.1.8 FastGo Vietnam JSC
6.1.9 ZuumViet
6.1.10 Be Group JSC

7 INVESTMENT ANALYSIS

8 MARKET OPPORTUNITIES AND FUTURE TRENDS

SECONDARY RESEARCH
Secondary Research Information is collected from a number of publicly available as well as paid databases. Public sources involve publications by different associations and governments, annual reports and statements of companies, white papers and research publications by recognized industry experts and renowned academia etc. Paid data sources include third party authentic industry databases.

PRIMARY RESEARCH
Once data collection is done through secondary research, primary interviews are conducted with different stakeholders across the value chain like manufacturers, distributors, ingredient/input suppliers, end customers and other key opinion leaders of the industry. Primary research is used both to validate the data points obtained from secondary research and to fill in the data gaps after secondary research.

MARKET ENGINEERING
The market engineering phase involves analyzing the data collected, market breakdown and forecasting. Macroeconomic indicators and bottom-up and top-down approaches are used to arrive at a complete set of data points that give way to valuable qualitative and quantitative insights. Each data point is verified by the process of data triangulation to validate the numbers and arrive at close estimates.

EXPERT VALIDATION
The market engineered data is verified and validated by a number of experts, both in-house and external.

REPORT WRITING/ PRESENTATION
After the data is curated by the mentioned highly sophisticated process, the analysts begin to write the report. Garnering insights from data and forecasts, insights are drawn to visualize the entire ecosystem in a single report.

FAQs

Market research is a defined process to collect information about customers, competitors, and everything that a business needs to understand to sustain and grow. It offers important analysis to distinguish and examine the market needs, size, and trends. Market research is generally divided into, primary research and/or secondary research.

The process usually includes collection and interpretation of market data by using statistical and analytical techniques to support the decision making process.

The report helps in identifying and tracking emerging players in the market and their portfolios, enhances decision making capabilities and helps to create effective counter strategies to gain competitive advantage.

Market research reports provide in-depth analysis about the market conditions and requirements for effective decision making.
The report provides a snapshot of the global market size, segmentation data, marketing growth strategies, market share, export and import information, analysis and forecast of market trends, competition, domestic production, best sales prospects, statistical data, tariffs, regulations, distribution and business practices, end-user analysis, contact points and more.

These research reports include information about competitive strategies, solutions, fact-based research, key takeaways, recommendations, market considerations, emerging business models and market opportunities for multiple segments of an industry.

Market research reports assist in solving business problems and making better decisions to improve business as per the prevalent market trends.
When you place an order with MarketInsightsReports, we try our best to deliver the product as soon as possible. The report will be delivered to you either by email or by physical delivery. If it’s delivered by email the order will be dispatched on the same working day or on the next working day of receipt of payment (unless otherwise specified on our website). There may be exceptions to this if you place order on a non-working day specifically because our publisher partners are located all over the globe. In case of physical delivery report will be couriered to you within 3 working days from the date of the receipt of payment and delivery time will differ based on your location

Any person who has the capacity to make decisions for the business must buy the reports. These reports help management in decision making process. Market research helps person to obtain market information from different sources, and in multiple formats. It aims to study supply and demand, analyze data as per geography, age factors, demography, technology, product, psychographic & gender differences, and many other parameters. Access to in-depth market trends helps person to assess the market effectiveness. Some of the multiple techniques used for market research include customer analysis, choice modeling, competition and risk analysis, product research, advertising the research, marketing mix modeling, simulated test marketing, and more.
Market research studies several features of business environment, such as competitors, market structure, government regulations, economic trends, technological advances and financial analysis of companies, industries, and sectors. This helps person in the decision-making process of planning and implementing strategies for their markets.

The generation of research report is concerned by most clients when purchasing it. Following general steps are taken for generating reports.
1. Choose a topic.
2. Make skeleton catalogue.
3. Fill content. As for report content, there are two main information source, Primary and Secondary data collection. Secondary data collectionrefers to information searched from the Internet or data bought from database. Primary data collection refers to information concluded from telephone interview, face-to-face interview, expert’s interview, meeting etc.
4. Audit the report
5. Publish the report.

With regard to information cost, information searching costs the least, database support the second least, and telephone interview the third least. Face-face interview cost higher, in-depth interview much higher and expert interview the highest. A research may adopt all of these approaches, or just some of them.
In general, a good-quality research report needs 1-3 months to be finished. Time and method varies according to different Publishers. Thus, it’s difficult to define an exact procedure or process of making research report. Both time and cost vary. However, specialization has become a basic industry standard. Professional and dedicated products will be more and more popular.
MarketInsightsReports has focused on various fields such as Life Science, IT, Telecommunication, Food& Beverages, Energy & Power, Automotive & Transportation, Materials& Chemicals, Financial Services and many more. These market research reports are available for all regions around the globe.
When you place an order with MarketInsightsReports, we try our best to deliver the product as soon as possible. The report will be delivered to you either by email or by physical delivery. If it’s delivered by email the order will be dispatched on the same working day or on the next working day of receipt of payment (unless otherwise specified on our website).

There may be exceptions to this if you place order on a non-working day specifically because our publisher partners are located all over the globe. In case of physical delivery report will be couriered to you within 3 working days from the date of the receipt of payment and delivery time will differ based on your location

Please Choose License Type

USD $4250
USD $4750
USD $6000
USD $7500
Offer

Why Us

  • Why Us In-depth database
    Our Report’s database covers almost all topics of all regions over the Globe..
  • Recognised publishing sources Recognised publishing sources
    Tie ups with top publishers around the globe.
  • Customer Support Customer Support
    Complete pre and post sales support.
  • Safe & Secure Safe & Secure
    Complete secure payment process.