Ride hailing is a service that allows passengers to hire a personal vehicle and driver through a mobile app. It is similar to traditional taxi services but enhanced by modern technology, offering features such as transparent pricing and convenient booking processes.
The ride hailing market consists of sales of ride hailing services by entities (organizations, sole traders and partnerships) that is an on-demand transportation service that connects passengers with drivers via digital platforms. Users request rides through mobile apps, specifying pick-up and drop-off locations. The service is widely used by urban commuters, tourists, business travelers and individuals without personal vehicles. It is used primarily in urban areas where public transport is insufficient, for late-night travel, airport transfers and reducing parking concerns.
The global ride hailing market was valued at $119,109.99 million in 2019 which grew till 2024 at a compound annual growth rate (CAGR) of more than 4.00%.
Increasing Fuel Prices
The increasing fuel prices supported the growth of the ride hailing market during the historic period. Rising fuel prices increase the cost of car ownership, including fuel, maintenance and insurance, prompting many individuals to reassess their need for a personal vehicle. As a result, consumers increasingly turn to ride-hailing services for daily commutes, errands and travel. To address cost concerns, these platforms offer shared ride options allowing passengers to split expenses, making ride-hailing a more cost-effective alternative to personal vehicles and traditional taxis. For instance, in January 2023, according to the Bureau of Labor Statistics, a US-based government agency, fuel prices increased 19.4% from December 2021 to December 2022. Additionally, in September 2022, the Office for National Statistics, a UK-based government department, reported that automotive fuel prices in 2022 had increased by 48% from 2021. Therefore, the increasing fuel prices drove the growth of the ride hailing market.
Revolutionizing The Ride-Hailing Market With Flexible Loan Terms
Companies in the ride-hailing market are focusing on integrating income-based financing to make vehicle ownership more accessible for drivers. By offering flexible financing options based on drivers' earnings, these companies aim to attract and retain a larger pool of drivers, improving service availability and ensuring a steady supply of vehicles. For instance, in October 2024, inDrive, a US-based transportation platform offering ride-hailing and delivery services, introduced 'inDrive Money' in Colombia, aiming to enhance financial inclusion for its drivers. This service offers income-based financing, allowing drivers in 17 Colombian cities to access loans of up to COP 1,000,000 (approximately USD 240) with flexible repayment terms ranging from three to five months, depending on their activity on the inDrive app. The loan system is seamlessly integrated into the app, allowing drivers to apply for loans, check balances and manage repayments directly, with automatic deductions alongside inDrive's commission from each ride.
The global ride hailing market is fragmented, with a large number of small players in the market. The top ten competitors in the market made up to 6.90% of the total market in 2023.
Ride Hailing Global Market Opportunities And Strategies To 2034 from The Business Research Company provides the strategists; marketers and senior management with the critical information they need to assess the global ride hailing market as it emerges from the COVID-19 shut down.
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Where is the largest and fastest-growing market for ride hailing? How does the market relate to the overall economy; demography and other similar markets? What forces will shape the market going forward? The ride hailing market global report from The Business Research Company answers all these questions and many more.
The report covers market characteristics; size and growth; segmentation; regional and country breakdowns; competitive landscape; market shares; trends and strategies for this market. It traces the market's history and forecasts market growth by geography. It places the market within the context of the wider ride hailing market; and compares it with other markets.
The report covers the following chapters
- Introduction and Market Characteristics - Brief introduction to the segmentations covered in the market, definitions and explanations about the segment by vehicle type, by service type and by end-user.
- Key Trends- Highlights the major trends shaping the global market. This section also highlights likely future developments in the market.
- Growth Analysis And Strategic Analysis Framework- Analysis on PESTEL, end use industries, market growth rate, global historic (2019-2024) and forecast (2024-2029, 2034F) market values and drivers and restraints that support and control the growth of the market in the historic and forecast periods, forecast growth contributors and total addressable market (TAM).
- Global Market Size And Growth - Global historic (2019-2024) and forecast (2024-2029, 2034F) market values and drivers and restraints that support and control the growth of the market in the historic and forecast periods
- Regional And Country Analysis- Historic (2019-2024) and forecast (2024-2029, 2034F) market values and growth and market share comparison by region and country.
- Market Segmentation- Contains the market values (2019-2024) (2024-2029, 2034F) and analysis for each segment by vehicle type, by service type and by end-user in the market. Historic (2019-2024) and forecast (2024-2029) and (2029-2034) market values and growth and market share comparison by region market.
- Regional Market Size And Growth- Regional market size (2024), historic (2019-2024) and forecast (2024-2029, 2034F) market values and growth and market share comparison of countries within the region. This report includes information on all the regions Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa and major countries within each region.
- Competitive Landscape- Details on the competitive landscape of the market, estimated market shares and company profiles of the leading players.
- Other Major And Innovative- Companies Details on the company profiles of other major and innovative companies in the market.
- Competitive Benchmarking- Briefs on the financials comparison between major players in the market.
- Competitive Dashboard- Briefs on competitive dashboard of major players.
- Key Mergers And Acquisitions- Information on recent mergers and acquisitions in the market covered in the report. This section gives key financial details of mergers and acquisitions, which have shaped the market in recent years.
- Recent Developments- Information on recent developments in the market covered in the report.
- Market Opportunities And Strategies- Describes market opportunities and strategies based on findings of the research, with information on growth opportunities across countries, segments and strategies to be followed in those markets.
- Conclusions And Recommendations- This section includes recommendations for ride hailing providers in terms of product/service offerings geographic expansion, marketing strategies and target groups.
- Appendix- This section includes details on the NAICS codes covered, abbreviations and currencies codes used in this report.
Markets Covered:
- 1) By Vehicle Type: Two Wheeler; Three Wheeler; Four Wheeler; Other Vehicle Types
- 2) By Service Type: E-Hailing; Car Sharing; Station Based Mobility; Car Rental; Other Service Types
- 3) By End User: Commercial; Personal; Other End Users
- Companies Mentioned: Uber Technologies Inc.; Didi Chuxing Technology Co.; Lyft Inc.; Ola Cabs (ANI Technologies Pvt.Ltd.); PT GoTo Gojek Tokopedia Tbk
- Countries: China; Australia; India; Indonesia; Japan; South Korea; USA; Canada; Brazil; France; Germany; UK; Italy; Spain; Russia
- Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
- Time-series: Five years historic and ten years forecast.
- Data: Ratios of market size and growth to related markets; GDP proportions; expenditure per capita; ride hailing indicators comparison.
- Data segmentations: country and regional historic and forecast data; market share of competitors; market segments.
- Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.