Ride Hailing Services Market To Hit Value $82.37 Billion By 2025 |Grand View Research, Inc.
The global ride hailing
services market size is expected
to reach USD 82.37 billion by 2025,
according to a new report by Grand View Research, Inc. It is projected to
register a CAGR of 12.8% during the
forecast period. Rising need to combat the rushing traffic coupled with pilling
road taxes is expected to expand the scope of ride-hailing services. These
rides are easily traceable and the contacts of both the passenger and driver
are easily accessible. This factor is projected to bode well for the adoption
of these services. Low cost of car ownership and growing employment
opportunities is expected to open new avenues over the next few years.
The home care & decor industry has been
witnessing inconsistent growth, since the Covid 19 outbreak. As a result of the
ongoing pandemic crisis, there has been a drop in the overall performance of
discretionary products such as decorative fixtures, bedding products, to name a
few. The virus outbreak has, however, led to substantial growth in categories
such as cleaning and hygiene products. Prominent growth in the e-commerce
business is also one of the positive influences of the outbreak, wherein
companies are focusing on expanding their distribution networks to online
channels in order to cater to the surging consumer demand. Our team is
diligently working towards accounting these factors in our report with the aim
of providing you with the up-to-date, actionable market information and
projections.
In January 2019, TukTuk-Ride launched
a new ride hailing service app for ten major cities in India. The consumers
have to pay INR 14 per kilometer for cabs and INR 8 per kilometer for bike
taxis. The organization is also planning to expand their services by
incorporating luxury cars, vintage cars, e-bikes, deliver vehicles, and
ambulances in the same service segment. Dallas-based Alto launched its ride
hailing service in January 2019, through the funding of USD 14.5 million from
companies including Road Ventures and Frog Ventures. The company will expand to
more U.S. cities by the end of 2019.
Some of the automotive manufacturers
are expected to enter the market to maintain their customer base over the next
eight years. For instance, developing economies including China and India are
expected to remain some of the favorable destination as a result of
urbanization and expansion of middle-income population. Furthermore, other cab
hailing services are entering the China ride sharing service market. For
instance, in October 2018, SAIC Motor, Geely and Daimler jointly announced
plans for new ride hailing services in China. Additionally, BMW initiated its
premium service, ReachNow for China in January 2019. The new venture has a crew
of drivers to chauffer rides in a fleet of 200 BMW 5 series. The organization
plans to include Mercedes-Benz E-Class and Audi A6 in the fleet. The service
will cost around USD 3 per kilometer.
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In January 2019, Grab Holdings Inc.
announced plans for commencing three new ride hailing services under the names,
GrabShuttle, GrabCall, and GrabCall in Myanmar. GrabShuttle will be targeted at
office workers and university students and GrabCall will allow booking cabs
through call center agents. Grab Web Booking allows booking trips through
online portals.
Further key findings from the report suggest:
·
E-hailing offering segment
accounted for more than 50% of the market share in terms of revenue in 2018
·
Car rental offering segment is
expected to register the fastest CAGR of 13.8% from 2019 to 2025
·
North America held a market
share exceeding 35% in 2018 and is anticipated to register significant growth
over the forecast period
·
Asia Pacific is expected to
witness the fastest CAGR of 13.9% in the ride hailing services market during
the forecast period
The
global ride hailing services market size was valued at USD 34.45 billion in
2018. The growing urban population in developing economies including China and
India is expected to remain a favorable factor. Mobility-as-a-Service (MaaS) is
inspired by the anticipation of self-driving cars, which are expected to reduce
the price of ride hailing services significantly. Furthermore, the financing
activity for owning a car has been made easier and cheaper by reducing the rate
of interest by banks and lenders. Organizations are innovating the services by
hiring fleets of automated vehicles for ensuring better passenger safety and
comfort.
Rising
preference for carpool and bike pool services among regular office commuters is
anticipated to create growth opportunities for the market. These services have
proved to be beneficial for commuters as they can cut their expense pertaining
to gas and parking by more than 50%. The service allows the riders to travel
with comfort at discounted prices. Pooling can improve air quality by reducing
the number cars and traffic on the road. In Europe, Germany has the highest
rate of adoption of carpooling and it is followed by France.
Customers
can a hatchback, sedan, and SUV amongst others. Ride hailing enables them in
outrunning the conventional public transportation services. Furthermore, these
services allow them to choose the convenient pick-up and drop locations. Some
of the services such as Ola and Uber also facilitate real-time vehicle
tracking, sharing it with one’s kin and friends, feedback, and rating system.
The availability of multiple service providers has given customers an edge as
it gives them a chance to compare the service and rates. A recent study by the
University of Pennsylvania highlighted that the expansion of ride hailing
services has reduced the instances of drunk driving, which makes these vehicles
a safer option.
Another
important factor driving the ride hailing services market is the shifting
preference of the masses from driving a car to being driven. Rise in demand for
luxury car services at affordable prices, especially among millennials is
anticipated to create growth opportunities for the market. Majority of
millennials avoid buying cars, saving the ownership, maintenance, and fuel
costs along with road tax. Increasing use of public transport is reducing
traffic congestions and is proving beneficial for the environment. A common
trend that has been noticed in countries including India, China, and Australia
is the payment made by digital mode owing to the convenience it offers to both
drivers as well as passengers.
Browse Press
Release of this report:
Grand View Research has segmented the
global ride hailing services market on the basis of offering:
Ride Hailing Services Offering Outlook (Revenue, USD
Million, 2015 - 2025)
·
E-hailing
·
Car Sharing
·
Rental
Another
major factor positively influencing the growth is the increasing use of digital
money. With governments across the globe focusing on digital payments, ride
hailing services have evolved as the medium of public transport that support
the cause. These companies accept payment by digital wallet, unified payment
interface, net banking, and various other e-payment methods. In India, the
demonetization in November 2016 offered a leverage to the companies operating in
the country. They became the first choice of people for travelling owing to the
convenience of payment. Post demonetization, the industry saw three times
increase in the demand for the services.
E-hailing
was the largest segment, with a market share of more than 50% in 2018. The
growth is attributed to user-friendliness and convenience these services offer.
These services have made travelling around in new cities easier by offering
them trained drivers using reliable maps for navigation. Along with this, the
app related algorithms make price estimation for a ride easier, which reduces
the chances of being cheated by a driver. Also, the convenience of hiring a cab
by a single tap on mobile is expected to continue the growth in the upcoming
years.
About Grand View Research
Grand View Research, Inc. is a U.S.
based market research and consulting company, registered in the State of
California and headquartered in San Francisco. The company provides syndicated
research reports, customized research reports, and consulting services. To help
clients make informed business decisions, we offer market intelligence studies
ensuring relevant and fact-based research across a range of industries, from
technology to chemicals, materials and healthcare.
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