Africa Ride-Hailing Market Assessment, By Mode of Booking, By Offering, By Vehicle Type, By Propulsion Type, By Country, Opportunities and Forecast, 2018-2032F

Africa ride-hailing market is projected to witness a CAGR of 5.21% during the forecast period 2025-2032, growing from USD 2.85 billion in 2024 to USD 4.28 billion in 2032. The market has experienced significant growth in recent years and is expected to maintain a strong pace of expansion in the coming years owing to the growing demand for convenient transportation, growing safety concerns while commuting, technological advancements, and improvement in internet connectivity in the region.

Due to the rise in cities and population, traditional transportation systems struggle to keep pace with the demand, creating significant space for alternative mobility services. This gap has been effectively filled by ride-hailing services, which offer convenience, affordability, and real-time tracking that resonate with urban riders. Currently, the market is dominated by key players such as Uber Technologies Inc., and Bolt Technology OU, and local competitors like Little Limited in Kenya. These companies are not only expanding their operations but also customizing their services to meet local needs such as adjusting pricing strategies and incorporating cash payment for diverse customer bases.

Governments across the region are recognizing the importance of ride-hailing services and incorporating regulatory frameworks in favor of ride-hailing service providers and easing the flow of growth of the market. Investment in infrastructure is another critical factor fueling the growth of the ride-hailing market in Africa. Many African nations are witnessing investments in improving urban transport systems which is influencing the demand for ride-hailing services. The integration of advanced technologies such as GPS and real-time navigation further enhances the efficiency of these platforms and makes them more appealing to consumers.

Moreover, the rise of electric vehicles presents new opportunities, promoting environmentally friendly transportation options. Governments around the region are promoting electric vehicles for transportation. For instance, in May 2024, Egypt launched a pilot project of its first fleet of electric taxis consisting of 10 electric vehicles in the New Administrative Capital (NAC) to provide eco-friendly and smart transportation options.

Demand for Convenient Transportation Drives Market Growth

Increasing demand for convenient and reliable transportation is a big driver for the ride-hailing market. Ride-hailing services ensure a smooth experience for the users through the mobile application where bookings can be made with a few taps. Features like live tracking of the drivers, fare estimates up front, and cashless payments are attracting more customers and therefore increasing adoption and eliminating the difficulties related to overcrowding in public transport and safety concerns. Moreover, companies are increasingly incorporating multiple safety features in the app to gain customer confidence and increase market share. For instance, in November 2024, Bolt Technology OU announced a USD 104.2-million-commitment to improve safety measures that includes trip verification, rider verification and audio recordings in its ride-hailing platform in Africa over the next three years. Moreover, the growing middle class in Africa is increasingly using these services due to these features for their daily commutes, social outings, and other travel needs.

Technological Advancements and Connectivity Pushes Africa Ride-Hailing Market Demand

Rapid advancement in technology and improvement in internet connectivity in the continent have transformed people's access to services, allowing millions to engage with ride-hailing platforms that were previously unavailable or difficult to use. Many African countries have witnessed a rise in mobile internet users due to affordable data plans and internet coverage. This development has led to multiple downloads of e-hailing apps and allows utilization of services without any barrier.

Moreover, technological advancements have allowed local entrepreneurs to come up with innovative ideas tailored for local people and to meet regional challenges. Homegrown companies often understand local dynamics better than international competitors, allowing them to innovate and adapt their offerings effectively. This local adaptation enhances user experience and allows better service every time. Frequent usage and feedback by people also help companies to understand the problem in the market and foster frequent solutions and updates.

For instance, in October 2024, Soul Innovations Ltd. (inDrive), launched its ride-hailing service in Lusaka, Zambia with a unique offering, by allowing zero commission fees for drivers during the first six months of operation. This offer allows drivers to take 100% of their earnings to their homes without giving any commission to the company.

Four-Wheeler Segment Dominates the Africa Ride-Hailing Market Share

The four-wheeler segment dominates the ride-hailing market in Africa for multiple reasons such as it offers a higher level of comfort and privacy as compared to two-wheelers and three-wheelers. Passengers prefer the spaciousness and protection that cars provide and other vehicle type lacks. Moreover, four-wheelers are optimal for families and longer routes, which influences the segment's dominance in the market. Moreover, safety concerns significantly influence vehicle type and justify the dominance of four-wheeler dominance in the market. Ride-hailing services that utilize four-wheelers often highlight their commitment to passenger safety, further enhancing their appeal.

Additionally, the growing availability of vehicle options within the four-wheeler segment, including standard sedans, SUVs, and luxury cars, caters to various customer preferences. This variety allows riders to choose vehicles that suit their needs and budgets.

For instance, in March 2024, Bolt Technology OU launched its operation in Cairo, Egypt to compete with Uber Technologies Inc and Suol Innovations Ltd. (inDrive), aiming to provide affordable transportation options for residents and visitors.

South Africa is the Key Market

South Africa is a key ride-hailing market. South Africa continues to grow as a central hub of economic and industrial activity, thereby the demand for ride-hailing services is increasing at a high rate as the country is witnessing massive urbanization. Moreover, the country's robust transportation infrastructure with extensive road networks, urban planning, and the rising income of people is increasing the demand further for convenient traveling. Furthermore, the high smartphone penetration in the country allows easy adoption and growth of companies providing ride-hailing services.

Additionally, the government also understands the importance and growing demand for these services. As these services not only provide convenience but also reduce the burden from public transportation. Therefore, government supports and amends frameworks to enable the faster growth of ride-hailing services.

For instance, in June 2024, South Africa amended the National Land Transportation Act (NLTA) opening the door for ride-hailing service providers to apply for operating licenses which were earlier operating in the legal grey area.

Future Market Scenario (2025-2032F)

Rapid urbanization and growing demand for convenient traveling have surged the demand for efficient commuting choices, driving the Africa ride-hailing market growth.

Increased investments coupled with a significant rise in disposable incomes are driving the Africa ride-hailing market demand.

Technological advancements and the rising utilization of electric vehicles for rides are projected to foster the Africa ride-hailing market in the forecasted period.

Companies in the market are giving attractive offers to both riders and drivers and advancing performance, these initiatives are expected to propel the demand for ride-hailing services in Africa.

Key Players Landscape and Outlook

Companies operating in the market are significantly investing to understand the market and increasing their offering to influence the demand and gain additional market share. Furthermore, companies are adopting different growth strategies such as introducing electric vehicles in the fleet to reduce operational costs and attract environmentally conscious consumers. In addition, local market players are providing unique offers to attract both rider and customer base in the market. Strong competition among companies is driving innovation, enhancing service quality, and ultimately leading to a more diverse range of options for consumers, while also contributing to the overall growth and sustainability of urban transportation solutions across the continent.

For instance, in November 2024, DiDi Mobility Egypt LLC announced the expansion of its services to four new cities: Hurghada, Ismailia, Suez, and Port Said, enhancing accessibility and economic opportunities in these regions.