by Ride-hailing services such as Uber and Lyft have experienced immense growth in recent years by providing convenient and affordable transportation solutions for passengers. These apps allow users to book rides from professional drivers directly through their smartphones, eliminating the need to wait by the roadside or interact with strangers. Ride-hailing has become popular among commuters looking for a cheaper alternative to traditional taxis or owning a personal vehicle. Consumers also appreciate the flexibility and transparency of pricing models adopted by these platforms.
The global Ride-Hailing Market represents a multi-billion dollar industry with participation from major tech companies. It is estimated that close to 50% of the US population has used a ride-hailing service at least once. Younger users are increasingly relying on these services for everyday commutes instead of driving themselves. Additionally, ride-hailing is gaining traction in locations that were traditionally underserved by public transportation systems. The global Ride-Hailing Market is estimated to be valued at US$ 247312.24 Bn in 2024 and is expected to exhibit a CAGR of 9.0% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Shared mobility services that allow multiple passengers to book rides together are emerging as an important trend driven by sustainability goals. Ride-hailing platforms are incentivizing commuters to use shared options like carpool through reduced fares. This is aimed at reducing traffic congestion and carbon emissions from individual rides. Companies are also testing autonomous vehicle services for specific routes, which could lower operating costs and fares if deployed widely. However, driver availability and regulations continue to impact the large-scale adoption of self-driving taxis.
Porter’s Analysis
Threat of new entrants: The established players hold strong brand names and have significant financial resources which make entry difficult for new players.
Bargaining power of buyers: Buyers have high bargaining power due to the presence of many players offering substitutable services.
Bargaining power of suppliers: Drivers are the key suppliers and have moderate bargaining power due to availability of alternative income opportunities.
Threat of new substitutes: Public transport and own vehicles pose a threat. However, shared mobility offers convenience at affordable rates.
Competitive rivalry: Intense competition exists between major players to gain market share through product innovation, geographic expansion and mergers.
Key Takeaways
The global Ride-Hailing market size is expected to witness high growth.
Regional analysis
comprises the Asia Pacific region dominates the market and is expected to witness the fastest growth over the forecast period supported by increasing preference for shared mobility in countries like India and China.
Key players
operating in the Ride-Hailing Market are Endurance Warranty Services LLC, CarShield, Protect My Car, CarChex, Carchex, Ally Financial Inc., CARCHEX, Toco Warranty, American Auto Shield, Warranty Direct, Royal Administration Services, Inc., EasyCare (Automotive Development Group, Inc.), Autopom!, AA Auto Protection, CarSure. Major players are focusing on product innovation and partnerships for business expansion.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
