Global Ride-Hailing and Taxi Market Size, Share, Growth Analysis, By Type(Ride-Hailing, and Taxi), By Distribution Channel(Offline, and Online) - Industry Forecast 2024-2031

The global rise-hailing and taxi market size was valued at USD 13.10 billion in 2022 and is poised to grow from USD 13.98 billion in 2023 to USD 23.48 billion by 2031, growing at a CAGR of 6.7% during the forecast period (2024-2031).

Consumer behavior to avoid the high overhead costs of car ownership is a major driver of the market expansion for ride-hailing and taxi services. This pattern is especially noticeable in ride-hailing services, which are gaining popularity because of their door-to-door service, clear pricing, easy payment options, and driver identification via the app. Due to rising traffic and a shortage of parking spaces brought on by the migration of people to cities in search of employment, ride-hailing and taxis are becoming more and more popular modes of transportation. Globally complex regulations and environmental concerns, however, limit progress.

Growth has been adversely affected by the rise in carbon emissions and air pollution that has coincided with the rise in ride-hailing and taxi ridership, especially in large urban areas. Furthermore, complicated administration and legislation limits market penetration in different areas. Despite a brief shift in favor of private automobiles and two-wheelers, the market is anticipated to rebound and develop steadily over the course of the projected period. In conclusion, the market for taxis and ride-hailing services is expected to develop significantly, but there are still issues with regulations and the environment that need to be resolved. From 2023 to 2030, the market size in North America is expected to increase at a compound annual growth rate (CAGR) of 8.5%, according to our comprehensive study. The report ascribes the surge to variables like the rising use of ride-hailing services, the population's tendency toward urbanization, and the rise in consumers' disposable income. The report further notes that throughout the projected period, the Asia Pacific market is anticipated to increase significantly because to factors including the growing urban population, rising smartphone and internet penetration, and rising need for transportation services.

Top-down and bottom-up approaches were used to estimate and validate the size of the Global Rise-Hailing and Taxi Market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Global Rise-Hailing and Taxi Market Segmental Analysis

The global ride-hailing and taxi market is segmented by type, distribution channel, and region. Based on type, the market can be segmented into ride-hailing, and taxi. In terms of distribution channel, the market is segmented into offline, and online. Regionwise, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

Drivers of the Global Rise-Hailing and Taxi Market

Because ride-hailing services are convenient, inexpensive, and have safety features, their growing popularity is one of the main factors propelling the expansion of the taxi and ride-hailing industries. A smooth user experience is offered by ride-hailing services like Uber, Lyft, and Didi Chuxing, which let customers schedule trips on demand, follow them in real time, and pay with cash using smartphone apps. Customers are using ride-hailing and taxi services more frequently as a more practical and affordable form of transportation due to growing urbanization, increased traffic congestion, and a shortage of parking spaces.

Restraints in the Global Rise-Hailing and Taxi Market

The intricate rules and governance controlling these services' activities are one of the main obstacles facing the ride-hailing and taxi industries. Numerous legal and regulatory obstacles, such as those pertaining to insurance, background checks, licensing, and safety requirements, confront the ride-hailing sector. Furthermore, the legislation in different regions differ, which makes it difficult for ride-hailing services to function efficiently across international borders. These rules restrict ride-hailing businesses' market penetration and raise their operating expenses, which in turn slows the expansion of the ride-hailing and taxi industries.

Market Trends of the Global Rise-Hailing and Taxi Market

The rising use of electric and hybrid cars in the ride-hailing and taxi sectors is a significant market trend that aims to lower carbon emissions and advance sustainable mobility. Large ride-hailing services like Uber and Lyft have made the commitment to switch to electric cars; by 2040, Uber wants all of its rides to be conducted in zero-emission cars. The trend towards sustainable and electric transportation is being further propelled by governments across the globe providing ride-hailing businesses and drivers with subsidies, tax credits, and other incentives in order to encourage the adoption of electric vehicles.