PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1388962
PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1388962
Global moto taxi market was estimated to be USD 16.42 billion in 2022, and is expected to reach USD 33.3 billion by 2030, which is anticipated to grow at a CAGR of 9.24% between 2023 and 2030. With the rising traffic and high fares of rental cars, the end users prefer moto taxis for their commute. The market is functioning in major regions, especially metro cities with dense population and vehicle strength. Moto taxis have the advantage of maneuvering through congested traffic and can be easily booked through a user's smartphone. In contrast to public transport, moto taxis offer high route flexibility, adapting to traffic conditions and exploring alternative routes. Accessible apps and GPS tracking systems are contributing to the growth of moto taxi platforms, each tailored to specific regions.
The introduction of electric two-wheelers, including electric scooters and bikes, is gaining popularity due to their lower emissions and cost-effective maintenance. The market expansion is generating employment opportunities, particularly in areas with high unemployment rates, benefiting the youth. Commuters can choose between scheduled and on-demand bookings, offering convenience compared to traditional car rental services. Emerging economies, like India and China, are actively promoting the transition from fossil fuels to alternative energy sources, fostering transportation options with alternative fuels. In conclusion, the market's promising outlook is contingent on factors such as public-private collaboration, the availability of electric vehicles, and the emergence of 5G connectivity.
The rising number of vehicles in metropolitan areas worldwide is causing significant logistical challenges. Fixed routes and road networks congested with traffic impede commuters' ability to reach their destinations promptly. Affordable moto taxis have emerged as a solution, offering daily commuters greater flexibility, swifter mobility, and enhanced accessibility. Due to their compact size, moto taxis can navigate congested traffic more effectively than larger vehicles. The increased presence of moto taxi platforms in densely populated cities and busy streets has provided convenient transportation options for the masses. In contrast to public transportation, moto taxis offer last-mile connectivity, eliminating the need for end-users to walk long distances to reach their destinations.
Notably, moto taxi services are more cost-effective and accessible, catering to a broader population than traditional car rental and taxi services. The introduction of the latest brands, accompanied by a growing adoption of electric vehicles, is expected to reshape the market dynamics soon. Additionally, companies are partnering with innovative brands to enhance the efficiency and safety of moto taxi services.
In September 2023, Gojek in Indonesia entered a collaboration with Vietnam's EV battery-swap startup, "Selex". This partnership aims to provide Gojek drivers in Vietnam with convenient electric motorbike charging through Selex's battery-swap stations, making the process as straightforward as refilling a gas tank. Gojek drivers are expected to utilize Selex's battery ATMs for hassle-free charging.
The extensive adoption of smartphone technology has ushered in a significant transformation across various industries. From food delivery and financial services to a plethora of on-demand services, the modern world is increasingly embracing offerings that can be conveniently accessed through mobile devices. Notably, the emergence of moto taxi services represents a sustainable, cost-effective, and easily accessible example of such services. These moto taxi platforms are equipped with user-friendly mobile applications, featuring GPS tracking, in-app chat, and calling functionalities, along with real-time end-user tracking and support options to enhance customer safety. Furthermore, these apps provide customizable features, enabling users to book moto taxis for others by specifying a different location instead of relying solely on real-time GPS tracking. The seamless integration of online payment apps with moto taxi platforms has streamlined user payment processes. The entry of new startups and market players offering competitive pricing is anticipated to stimulate market growth further.
In May 2023, SafeBoda introduced new ride options known as "Plus" and "Saver." This addition aims to provide customers with more affordable and high-quality transportation choices while simultaneously enhancing the earning potential of SafeBoda's driver community.
Government regulatory bodies worldwide have introduced vehicle standards, pricing regulations, and safety norms to impact the moto taxi sector. Public-private partnerships drive market growth, with government support ensuring end-user data protection. Moto taxi companies collaborate with technology firms to develop user-friendly platforms for booking, monitoring, and customer feedback. Incentives and subsidies for electric vehicle buyers are driving market growth. Streamlined licensing and permitting policies are expected to become more prevalent. Government authorities regulate fare structures, surcharges, and associated charges. However, some Latin American and Asia-Pacific countries have banned moto taxis due to safety and security concerns. Major moto taxi companies are engaging in dialogues to address safety and environmental risks.
In May 2022, the Thai government, in partnership with the United Nations Environment Program (UNEP), initiated a pilot program for electric motorcycle taxis in Thailand. Approximately 50 electric motorcycles, generously donated by the Chinese company TAILG, will be deployed as eco-friendly motorcycle taxis for research purposes and to showcase their capabilities.
In terms of service type, the e-hailing category of moto taxi services is poised for significant growth in the market over the forecast period. E-hailing applications offer real-time tracking of riders' locations, estimated arrival times, and routes, enhancing both security and transparency for passengers. The convenience enables passengers to effortlessly book moto taxi rides via smartphone apps, streamlining the booking process and eliminating the need for traditional methods. Ultimately, the transparency in pricing and the resulting customer satisfaction contribute to the growth of this segment.
Asia-Pacific is anticipated to experience the most substantial growth within the projected period. This growth can be attributed to the rapid population expansion and increased urban congestion observed in many Asia-Pacific countries. Moto taxis have emerged as a speedy and efficient solution to navigate the congested urban landscapes in these regions. The high population density further enhances the convenience and efficiency of moto taxis, making them an ideal mode of transportation, especially in densely packed urban areas.
Indian startups, like Rapido, have made significant strides in capturing a sizable portion of the market in India. Various states and local governments in India have recognized moto taxi services as a legitimate form of transportation, with authorities working to establish rules and regulations to govern the sector. One of the most notable advantages of the moto taxi business in the Asia-Pacific economies, is its capacity to generate employment opportunities for riders. The emergence of these new jobs is poised to garner government support and recognition for the industry, highlighting its potential for substantial expansion in the region.
With global lockdowns, travel restrictions, and government-imposed bans, the demand for moto taxis saw a sharp decline, both domestically and internationally. As lockdown measures, travel bans, and social distancing policies were enforced, the demand for public transportation services, including moto taxis, significantly dropped. Many individuals chose to stay home and minimize non-essential travel, leading to a substantial decrease in the need for daily commuting and tourist-related moto taxi services. In response to these circumstances, moto taxi operators had to allocate resources towards implementing stringent hygiene and sanitation measures to instill confidence in riders and customers. These additional expenses imposed financial strains on operators, constraining market growth. However, the market is swiftly rebounding, and a return to a growth trajectory is anticipated in the upcoming years.
The Russia-Ukraine war has impacted the market, contributing to several key factors. Ongoing conflicts in major regions known for oil and gas production have resulted in fluctuating global fuel prices. Consequently, higher fuel costs have increased the operational expenses for moto taxi services, leading to higher fares for passengers. Additionally, governments in conflict regions have introduced regulatory changes and limitations on transportation services, affecting both the legal and operational aspects of moto taxi services. Furthermore, the political instability and conflicts in these areas have created economic uncertainty, resulting in reduced consumer spending. Moreover, the disrupted internet and connectivity issues have posed challenges to moto taxi operations, limiting the market's expansion.
The moto taxi market is served by a variety of regional and local brands that provide e-hailing and ride-sharing services to their clientele. These companies are incorporating female-focused services and customer loyalty programs into their marketing strategies. The ongoing dialogue and regulatory challenges between moto taxi providers and government authorities are anticipated to find resolution in the forecast period, as companies are implementing safety measures to enhance their services and secure the necessary approvals.
Additionally, many companies are introducing electric two-wheelers to their vehicle fleets to strengthen their rapport with governmental bodies. Furthermore, key players are engaging in collaborations, acquisitions, and partnerships to extend their supply chains and diversify their distribution channels.
In July 2023, Tummoc partnered with Rapido to enhance the commuting experience through Tummoc's Mobility-as-a-Service (MaaS) platform, with the aim of improving first and last-mile connectivity in India.
In October 2023, PT GOJEK Indonesia expanded its services to Binh Duong and Dong NAI Provinces in Indonesia, further broadening its coverage across the country.
All segments will be provided for all regions and countries covered:
Companies mentioned above DO NOT hold any order as per market share and can be changed as per information available during research work.