Ride Sharing Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

Ride Sharing Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Global Ridesharing Market size is estimated at USD 47.57 billion in 2024, and is expected to reach USD 81.78 billion by 2029, growing at a CAGR of 11.45% during the forecast period (2024-2029).

Several factors drive the growth of the ride sharing market, such as rising vehicle ownership costs, environmental concerns prompting a reduction in traffic, and government regulations advocating for ride sharing. These factors are critical drivers of the global surge in ride sharing adoption. These services are favored for their cost-effectiveness and are also anticipated to outpace affordable car ownership.

Key Highlights

• Over the past decade, ride sharing has emerged as a global trend, with many individuals opting for it over conventional taxi services. Typically, ride sharing firms utilize GPS tracking to connect potential passengers with drivers via mobile applications or websites. Ride sharing companies can bypass standard licensing and regulatory mandates, unlike traditional taxi services. Factors such as declining car ownership, increasing internet and smartphone penetration, and stringent CO2 reduction targets collectively drive the rising demand for ride sharing services.
• The rise in the number of people commuting to work also propels the demand for ride sharing services. For instance, according to the US Census Bureau, almost 140 million people in the United States routinely commuted to work in 2022. Further, according to Move in Sync, the Employee Commute India 2023 report stated that Mumbai led the way in employee returns to the office, surpassing pre-pandemic levels in December 2022. Following Mumbai, the National Capital Region (NCR) saw a return rate of 92%, Bangalore at 85%, and Hyderabad at 81%. Such a huge number of people commuting and returning to offices would drive the market's growth.
• Globally, the surge in smart device adoption encompassing smartphones and smart wearables coupled with heightened internet data usage has catalyzed the growth of ride sharing services. Accessing ride transport services hinges on internet connectivity. Users leverage internet-enabled smartphone applications to gather information and navigate their rides. V2V communication, navigation, and telematics rely on this connectivity for optimal performance. Smartphone applications bolster security, offering features like driver's name, number, photograph, vehicle identification, route tracing, and historical ride records.
• There is an increase in the number of service providers and application vendors operating in prominent markets, thus creating a competitive space where vendors are forced to offer benefits to consumers at a loss that may not be sustainable over a long period. Once the service provider switches the business plan to turn toward profitability by increasing the prices of the services offered, consumers may switch to newer players offering similar services at competitive prices. Such scenarios are challenging the growth of service providers.
• During robust economic growth, rising disposable incomes often boost ride sharing demand, with individuals more inclined to pay for convenience. Conversely, high employment rates can tighten the supply of drivers, as fewer individuals are available or willing to participate in ridesharing. For multinational ride sharing firms, fluctuating exchange rates can sway profitability. Pricing strategies across diverse markets are crucial in shaping demand, especially if unfavorable currency shifts lead to price hikes.

Ridesharing Market Trends

App-based Services Hold Major Market Share

• Application-based ridesharing services operate through mobile applications that users download onto their smartphones or tablets. These apps allow users to book rides in real time, track their drivers, and manage payments within the app's interface. The service connects passengers with drivers using personal vehicles, offering an alternative to traditional taxis and public transport. Unlike web-based services, application-based platforms focus entirely on mobile technology, providing a more seamless and user-friendly experience.
• Application-based ridesharing services have grown significantly over the past decade, driven by several factors, including increased smartphone penetration, advancements in mobile technology, and changing consumer preferences. According to Ericsson, in 2023, the global smartphone mobile network subscriptions totaled nearly 7 billion and are estimated to surpass 7.7 billion by 2028. The convenience and ease of use offered by these apps have led to widespread adoption, particularly in urban areas where demand for quick and reliable transportation is high.
• A mobile application is a reasonable solution for modifying information. When a user needs to enter required details such as time of travel, date, pick-up point, and destination, a mobile app may work as a great addition as it allows users to set preferences, create personal accounts, and keep vital information at hand.
• In developed markets such as North America and Europe, the growth of application-based ridesharing services is bolstered by a high level of smartphone ownership and robust internet infrastructure. Consumers in these regions value the efficiency and customization offered by these platforms, which often include features like ride scheduling, fare estimates, and multiple vehicle options, ranging from economy to premium cars. These markets benefit from strong regulatory frameworks that support the integration of ridesharing services into the broader transportation ecosystem.

Asia-Pacific to Register Major Growth

• Economic growth in countries like China, India, and Southeast Asian nations has boosted disposable incomes, enabling more people to afford ridesharing services. The increasing awareness of environmental sustainability and the need to reduce traffic congestion have encouraged both consumers and governments to support ridesharing as a viable alternative to private car ownership.
• Companies operating in the region are also tailoring their offerings to meet local preferences, such as providing two-wheeler ridesharing options in countries where motorcycles are more common. This localized approach, combined with strategic partnerships and investment in advanced technologies, continues to drive the expansion of the ridesharing market across Asia-Pacific.
• In August 2024, Ryde Group Ltd, a tech firm pivotal in Singapore's mobility and quick commerce landscape, entered a partnership with Singlife, a key local financial services provider. This collaboration aims to enhance safety measures in ridesharing and offer unparalleled insurance coverage to both riders and driver-partners. Through this alliance with Singlife, Ryde Group not only boosts the value proposition for its users but also ensures peace of mind for every journey.
• The Japanese government lifted significant parts of its ban on ride-sharing services beginning April 1, 2024, allowing taxi companies to operate these services in areas and at times in which taxis are in short supply. The lifting of the ban follows the government’s adoption on December 20, 2023, of the Digital Administrative and Financial Reform Interim Report (Interim Report).

Ridesharing Industry Overview

The ride sharing market showcases a blend of global players and numerous small-to-medium-sized enterprises. Key players include OmniRide (affiliated with the Potomac and Rappahannock Transportation Commission), Kangaride, Planète Covoiturage Inc./CarpoolWorld Inc., Via Transportation Inc., and Ridesharing.com (linked to COVOITURAGE MONTREAL Inc.). To bolster their product offerings and secure a lasting competitive edge, these players are increasingly turning to strategies like partnerships and acquisitions.

• July 2024: In a groundbreaking move, Lorain County Transit, in partnership with TransitTech leader Via, launched "Via LC," a cutting-edge on-demand public transit service. Beginning July 15, ViaLC planned to revolutionize transportation for residents in Lorain and Elyria, enabling effortless ride bookings at the touch of a button. By joining forces with Lorain County Transit, ViaLC significantly enhances community access to the broader public transit network. Residents can conveniently book rides within Lorain or Elyria using the ViaLC mobile app or easily transfer to a Lorain County Transit bus for longer trips.

• June 2024: Trinity Metro, in collaboration with TransitTech provider Via, is ushering in a new era of innovative public transportation in Tarrant County. Via, celebrated for its success with the ZIPZONE on-demand rideshare service, is now central to Trinity Metro's ambitious vision. With this deepened collaboration, Trinity Metro aims to infuse advanced technology and optimize operations across its entire transit network.

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