Global Ride Sharing Market,By Business Model (P2P, B2C, B2B), By Vehicle Type (ICE, CNG/LPG, Electric),By Region (North America, Europe, Asia Pacific, Middle East & Africa, and Latin America); Trend Analysis, Competitive Market Share & Forecast, 2020-2027
- Published Date: April 2021
- Report ID: BWC20310
- Available Format: PDF
- Page: 180
Global Ride-Sharing Market Size – Industry Trends & Forecast Report 2027
The Global Ride Sharing Market is growing with a CAGR of 15.54% and touched USD 71.23 billion in 2020. The market is expected to reach USD 221.76 billion by 2027. Rising traffic safety public transportation facilities sustain the market drift in ride-sharing services. Overcrowded public transportation systems, such as light rail, subways, and buses, cause a high degree of uncertainty when commuting. These services often bear the risk of transmitting infections and other communicable diseases. The global ridesharing market is growing because of the increased demand for comfortable intercity transportation.
Source: BlueWeave Consulting
Global Ride Sharing Market Overview:
Ridesharing is the most technologically innovative transportation scheme that allows users to book a short ride as and when desired.Carpooling and platform-based travel services, car-sharing, and bike-sharing (e.g., Uber, Lyft, BlaBlaCar) all come under such conveyance systems. The main objective of introducing such a transportation mode is to reduce automotive pollution, road congestion, and car journeys. To schedule a trip in a privately owned car, one must use a mobile app. Nowadays, instead of owning a car, customers are primarily opting for ride-sharing systems, which reduces commuting costs and the burden associated with owning a vehicle.
Global Ride Sharing Market Forecast and Trends
Increasing Smartphone and Internet Diffusion
Since ridesharing is an internet-enabled service, having access to the internet is a prerequisite for using ride-sharing services in any corner of the world. Users must install an app on their smartphone and make use of data services to utilize the app as well as all navigation and information services connected to it. According to the International Telecommunication Union, the internet is used by nearly 81% of developing countries. On the other hand, 40% of developed countries have access to the internet, and this figure is rapidly rising.
Increase in the Cost of Vehicle Ownership
The cost of owning a personal car has increased due to rising fuel costs as well as increases in credit, insurance, and vehicle registration fees.Maintenance rates, which include the replacement of parts and components as well as labor costs, have also risen, contributing to the overall expense of vehicle ownership. Vehicles require complex, advanced, and expensive after-treatment devices in order to meet rigorous emission norms. These reasons have increased the cost of vehicle possession, which in turn has raised the admiration of ride-sharing services.
Lack of Advanced Technology
The primary reason hindering the market growth is the incomplete accessibility of technology and supporting infrastructure. In heavily populated areas, the lack of convenient parking spaces and pick-up and drop-off places for cars derange the universal adoption of carpooling services.One of the major barriers to entry for new entrants in the market is the high investment needed to develop useful technical support for ride-sharing services in mobile apps.
Resistance from Traditional Transport Services
Additionally, traditional taxi drivers in developing countries such as India are resisting ride sharing service providers as the latter offers more benefits and advanced features, such as doorstep pickup and drop-off facilities, and better convenience. However, the advanced features can pose a threat to passengers because ride-sharing apps contain detailed user information as well as the details of users' linked payment apps, creating a high risk of cybersecurity.
Impact of COVID-19 in the industry
The rapidly spreading COVID-19 pandemic is unfavorably impacting the ride-sharing market demand. Government and healthcare authorities use social distancing laws and regulations to allow residents to keep a two-meter gap from other individuals for safety. As a result, the use of ride-sharing platforms for regular travel has been limited. Owing to health and safety issues, users nowadays in their cars, thereby affecting the market size. The effect of this market problem is expected to diminish as ride-sharing firms improve their sanitization and safety initiatives.
Global Ride-Sharing Market: By Business Model
Based on business models, the global ride-sharing market is categorized into P2P, B2C, and B2B. The P2P (peer-to-peer)business model is projected to witness the highest growth rate by 2026 as numerous ride-sharing services across the world are experimenting with a peer-to-peer business model. Users can contact drivers in their locality through GPS and location services in this business model. Furthermore, people who travel regularly can easily communicate with car owners through their smartphones and tablets.
Global Ride Sharing Market: By Vehicle Type
Based on vehicle types, the global Ride Sharing Market is segmented into ICE, CNG/LPG, and electric-based. Out of these, ICE (internal combustion engines ) is the dominant segment. There are two types of internal combustion engines presently in production: The compression ignition diesel engine and the spark ignition gasoline engine. Most of these are four-stroke cycle engines, meaning four piston strokes are required to complete a cycle. The automotive ICE segment is expected to see significant growth due to high vehicle demand over the prediction period. A surge in demand for high-performance engines with low carbon emissions is also expected to drive fuel-section production.
Global Ride Sharing Market: Regional insights
North America dominates the ride-sharing market because of the stable re-engineering of residents' shifting inclination toward lower environmental emissions in the U.S. and Canada. The Asia-Pacific is predicted to expand at a significant growth rate over the forecast period of 2021 to 2028 due to the massive demand for ride-sharing services in the countries such as India and China. The growing demand for electric cars in ride-sharing systems, as well as increasing vehicle ownership costs and stringent CO2 reduction goals, all add to the growth of the ride-sharing industry. Also, the growing need for cost-effective and alternative transportation options is fueling the growth of the ride-sharing industry, which is propelling the target market forward.
In September 2018, Uber revved up its Canadian operations with the opening of a new tech hub in Toronto and the extension of its self-driving vehicle center in the capital. The company said the engineering hub—which will be Uber's eighth outside of the United States will serve as the "building blocks" for a stronger and quicker global rollout of innovative services including Jump bikes and e-scooter rentals, according to the business.
In October 2018, Microsoft and Grab announced a strategic partnership that will transform the delivery of digital services and mobility in the region by leveraging Microsoft’s world-class expertise in machine learning and other Artificial Intelligence (AI) capabilities. As a first step in the broad collaboration between the two companies, Grab will adopt Microsoft Azure as its preferred cloud platform and Microsoft will make a strategic investment in Grab.
Key players in Global Ride Sharing Market are Uber Technologies Inc. (U.S.), Lyft, Inc. (U.S.), Didi Chuxing Technology Co. (China), Gett (Israel), ANI Technologies Pvt. Ltd. (India), GrabTaxi Holdings Pte. Ltd. (Singapore), Taxify (Estonia), Careem (UAE), Cabify (Spain) and car2go (Germany) and other noticeable players.
Uber: Uber is a leading provider of ride-sharing services. It offers services through mobile applications (app) and websites. Uber was founded in 2009 and is headquartered in San Francisco, California. In September 2018, Uber broadcasted revving up its Canadian operations with a new engineering hub in Toronto and the development of its self-driving vehicle center in the city.
Lyft- Lyft, founded in 2012 and headquartered in San Francisco, California, US., offers on-demand ridesharing services. Lyft is one of the fastest-growing rideshare companies in the US and accessible in more than 200 U.S cities.
Scope of the Report
Historical data – 2016-2019
Base Year – 2019
Forecast – 2020 – 2027
Revenue in USD Billion
U.S, Canada, Germany, UK, France, Italy, Spain, Brazil, Mexico, Japan, South Korea, China, India, Argentina,AUAE, South Africa, Saudi Arabia
ByBusiness Model,By Vehicle Type,By Region
Key players for Global Ride Sharing Marketincludes:Uber Technologies Inc. (U.S.), Lyft, Inc. (U.S.), Didi Chuxing Technology Co. (China), Gett (Israel), ANI Technologies Pvt. Ltd. (India), GrabTaxi Holdings Pte. Ltd. (Singapore), Taxify (Estonia), Careem (UAE), Cabify (Spain) and car2go (Germany) and other prominent players.
By Business Model
By Vehicle Type
Ø The Asia-Pacific
Ø North America
Ø The Middle East & Africa
Ø Latin America
What is the current size of the Global Ride Sharing Market?
Answer : The global Ride Sharing Market has reached USD 71.23 billion in 2020and is projected to reach USD 221.76 billion by 2027, growing at a CAGR of 15.54%.
What are the major factors driving the growth of the Global Ride Sharing Market?
Commuters' growing concerns about the safety of public transportation systems is fueling the growth of ride-sharing services. Overfull public transport facilities, including underpasses and buses causes a high degree ofuneasiness while traveling. These services also pose a risk of scattering infections and viral diseases. The rowing demand for relaxed intercity transport is pouring the market growth.
Who are the key players in the Global Ride Sharing Market?
The key players in the global ride-sharing market are Uber Technologies Inc. (U.S.), Lyft, Inc. (U.S.), Didi Chuxing Technology Co. (China), Gett (Israel), ANI Technologies Pvt. Ltd. (India), GrabTaxi Holdings Pte. Ltd. (Singapore), Taxify (Estonia), Careem (UAE), Cabify (Spain) and car2go (Germany) and other prominent players.
Which segment accounted for the largest Global Ride Sharing Market share?
Global Ride Sharing Market is segmented into ICE, CNG/LPG, Electric based on the ride-sharing market. Out of these, ICE is the dominant segment. There are two types of internal combustion engines presently in production: The compression ignition diesel engine and the spark ignition gasoline engine. Most of these are four-stroke cycle engines, meaning four piston strokes are wanted to complete a cycle. The automotive ICE segment is expected to see significant growth due to high vehicle demand over the prediction period. Surging demand for high competence engines with low carbon release is also predictable to drive the growth of the sector.
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