PUBLISHER: Knowledge Sourcing Intelligence | PRODUCT CODE: 1295383
PUBLISHER: Knowledge Sourcing Intelligence | PRODUCT CODE: 1295383
E-hailing refers to the service provided to book passenger vehicles via any electronic applications such as smartphones, tab, or laptops. Such services have provided an easy-to-use mode-transportation since users can get a ride anywhere within minutes. The growing traffic congestion in countries has negatively impacted the scale of owning private vehicles, accelerating the demand and usage of e-haling services. Moreover, the surge in internet penetration coupled with the growing technological advancements has further propelled the market growth. According to the Internet World Stats, in December 2022, the number of Internet users globally stood at 5,544 million, which represented an increase of 9.7% compared to the 2020 figure for the same month.
Additionally, the higher customer convenience and easy mobility options provided through e-hailing have made mobility companies expand their services through investments and launches. For instance, in March 2023, Godugo launched its ride-hailing app for women in Kerela, covering 14 districts in the state. The app included features such as sending automatic notifications to passengers' phones and Godugo's monitoring system if the driver deviates from the route. Similarly, in May 2021, OLA launched its "OLA EV" ride-haling in London, which would allow riders to book electric vehicle rides specifically.
The growing number of vehicles on the road, improper public transport availability, and poor driving habits are common causes of traffic congestion. Growing population coupled with rapid urbanization are expected to further increase the scale of traffic congestion, especially in major countries such as USA, India, and China. According to the World Bank's data, in 2021, India's urban population stood at 498.17 million, representing an increase of 2.2% compared to the 2020 population figure. Moreover, according to India's Ministry of Road and Transport 2022-2023 annual report, the total number of registered vehicles in India stood at 326 million in 2020, representing an increase of 10.5% over 2019. E-haling enables passengers to travel from their homes to workplaces and vice-versa at a much lower rate and high convenience, owing to which the need to use personal transport for traveling is expected to witness slow growth, thereby reducing the overall number of private vehicles on the road leading to a reduction in traffic congestion.
The e-hailing market is segmented by vehicle type into cars, two-wheelers, and three-wheelers. The e-hailing market is estimated to grow significantly. E-hailing services offer a convenient way for customers to book and access transportation. With just a few taps on a smartphone, users can request a ride and track their driver's arrival. This convenience has attracted many customers, especially those seeking an alternative to traditional taxis or public transportation. In addition, these services provide competitive pricing compared to conventional cabs. With transparent pricing and the ability to estimate fares upfront, customers can have a clear idea of the cost of their trip. Additionally, options like shared rides or pooling services allow users to further reduce costs by sharing their journey with others heading in the same direction.
The North American e-hailing market is estimated to grow rapidly due to the increasing consumer adoption of ride-hailing services and the expansion of platforms across cities and regions.
By geography, the e-hailing market is segmented as North America, South America, Europe, the Middle East and Africa, and the Asia Pacific. The US is one of the world's largest automobile markets, and as such, the expansion of the automotive industry is expected to boost the growth of the HMI market in the country. Further, the United States holds the largest share of this market, propelled by the rising popularity of ride-hailing services, expanding coverage across cities, and continuous technological advancements. The competitive nature of the US e-hailing market has led companies to offer competitive pricing, promotions, and discounts, attracting more consumers. However, such strategies can be costly for e-hailing companies as they strive to gain market share and maintain profitability. In December 2020, New York announced a pilot program to allow e-hail vehicles to charge passengers based on time rather than distance, aiming to tackle congestion and improve efficiency.