Ride-Sharing Market: Current Analysis and Forecast (2022-2028)

Ridesharing is the practice of sharing rides or modes of transportation, particularly by commuters, generally in the form of carpooling and vanpooling. It links drivers with passengers who need a trip to a certain location, frequently using an app. Traditional taxis and rented automobiles have been replaced by popular ride-sharing services like Uber and Lyft. Drivers can use these applications to discover passengers and make money by giving rides, and passengers can use them to request rides and pay for them through the apps. In recent years, the demand for ride-sharing has risen dramatically due to ease of convenience and accessibility, as commuters request a ride from their smartphones and have a car arrive at their doorstep within minutes and the increased number of ride-sharing options in the market particularly in the metropolitan cities. As more ride-sharing companies enter the market, consumers have more options for their transportation needs, which leads to competition in the market and concluded with affordable pricing, which has further skyrocketed the demand for ride-sharing in the market. For instance, in February 2023, Uber Technologies Inc, a ride-sharing company having a presence worldwide signed a Memorandum of Understanding (MoU) with Tata Motors to bring 25,000 electric vehicles (EVs) onto the Uber platform in India. The partnership aims to provide drivers on the Uber platform access to affordable EVs, which will help reduce their operating costs and improve their earnings, and propels the growth of the ride-sharing market.

The Ride Sharing Market is expected to grow at a steady rate of around 18% owing to the rising expenses of car ownership, and high maintenance costs that upsurged the demand for the ride-sharing market. Rideshare refers to an arrangement wherein drivers of mostly privately owned vehicles who want to offer rides and passengers who want to get rides utilize a network to coordinate the sharing of individual automobile trips for which the passengers pay a fare (such as one accessed through an app or a website). The rising expenses of car ownership and increased maintenance costs have steadily risen over the past few years due to the combination of factors such as increased fuel prices, increasing insurance policy costs, and maintenance. As a result, owning a car is quite difficult for the middle-class family as their disposable income is comparatively low. . For instance, in 2022, According to the report published by Hindustan Times multiple car manufacturers such as Maruti Suzuki increased prices by 1.3%, whereas Tata Motors has increased prices by 0.9%. Thus, ride-sharing offers a cost-effective alternative to car ownership as it only pays for the trips they need without having to worry about the cost of owning and maintaining it. Moreover, due to a shortage of semiconductors several automobile manufacturers have warned of increased prices shortly. Therefore the increasing prices and maintenance cost drives the ride-sharing market.

Based on service type, the market is segmented into e-hailing, carpooling, and station-based. E-hailing category to witness higher CAGR during the forecast period. The factors attributed to the growth of the segment such as the increased penetration of the mobile phone and high internet connectivity that leads to ease of booking rides from anywhere within minutes propels the growth of the ride-sharing market. Furthermore, various governments across the world such as India, China, and the USA promoting awareness among the people regarding air pollution that fuels the demand for ride-sharing, predominantly e-hailing

Based on type, the market is segmented into P2P Sharing and Corporate sharing. P2P Sharing has seen robust growth in the market and is expected to continue the same in the forecast period. The major factor attributed to the growth of the market is increased fuel prices in the country such as India, and China resulting people avoid moving out with their own vehicles. For instance, in 2023, according to the report published by Petroleum Planning & Analysis Cell, the price of petrol in New Delhi (India) in December 2021 is approximately Rs 95/liter compared to an increase of Rs 103/liter in April 2022., Therefore, the ride-sharing is the most affordable and flexible option for the P2P category, as it can be booked at any time and at any location, making it more convenient in nature.

On the basis of distance, the market is categorized into short-distance and long-distance. Among these, is the short distance to hold a significant share in the market in 2022. This is mainly due to consumers using these services frequently for their daily transportation needs such as commuting to workplaces, shopping complexes, etc as a result the demand for short distances is higher than for long distances. Additionally, in metropolitan cities, short-distance ride-sharing has more convenience are often more convenient for consumers who live in densely populated areas where traffic congestion and limited parking availability is the major problem.

Based on propulsion type type, the market is bifurcated into ICE Vehicle, Electric Vehicle, CNG/LPG Vehicle, and others(Hydrogen Fuel Cell Engine). Among these, the Electric vehicle is currently dominating the market and expected to dominate in the forecast period, owing to cost-effectiveness for the long term as they require minimal maintenance, lower fuel costs, and high-profit return. Moreover, the government of major countries in the world such as the USA, India, and China are promoting net zero emission policies that aim to cut greenhouse gas emissions to as close to zero as possibleby 2070, China has announced carbon neutrality by 2060, and the USA aims to hit net zero by 2050. Ride-sharing companies plays an important role as they are aware of their footprint, and pushing electric vehicles in the market to meet their sustainability goals.

Based on platform mode, the Ride Sharing market has been classified into Android, iOS, and others. Android is currently leading the market as the Android operating system has a larger market share globally than the ios category and ride-sharing companies focused on Android as it has a larger potential customer base. Moreover, android devices are more affordable in nature as compared to ios that leads to a wide range of customer base for ride-sharing companies. Consequently, the Android device is an open-source platform that allows developers to create applications more easily at low cost which leads to a greater number of ride-sharing applications in the market. Additionally, countries like India and China with approximately covering 36% of the total world population and that too is emerging markets for ride sharing have a larger Android user base comparatively ios category making the category dominate in the market

For a better understanding of the market adoption of the ride-sharing industry, the market is analyzed based on its worldwide presence in the countries such as North America (U.S., Canada, Mexico, and the Rest of North America), Europe (Germany, U.K., France, Spain, Italy, Russia, Rest of Europe), Asia-Pacific (China, Japan, India, Australia, South Korea, Rest of Asia-Pacific), Rest of World. APAC is anticipated to grow at a substantial CAGR during the forecast period. In the Asia Pacific region, countries such as India and China have emerging markets for ride-sharing due to the vast population and unimaginable congestion challenges, ride-sharing become one of the most preferred modes of urban transportation. Moreover, these countries have wide productions hub leads to the growing migration of skilled workforces into urban areas from rural areas. As the passenger does not necessarily need a personal vehicle for a short commute, this will act as a growth attribute for ride-sharing, saving fuel and easing traffic congestion. In addition, the region is the headquarters of the industry leaders Ola, Didi, Go-Jek, Grab, and BluSmart Mobility

Some of the major players operating in the market include: Lyft, Inc.; Wingz Inc.; DiDi Global Inc; Uber Technologies, Inc.; Cabify Espana S.L.U.; Ola Electric Mobility Pvt Ltd.; Gett; Grab; Curb Mobility; and BlaBlaCar.