The global ride sharing market is expected to expand swiftly on account of growing popularity of online booking. Globalization, rapid urbanization, increasing disposable income, and growth of the tourism industry can drive the market in the years to come. In addition, increasing traffic congestions and growing need for personal mobility are expected to increase the demand for these services.
Implementation of advanced digital technologies is a key driving factor in the market. Increasing use of smartphones and tablets, and accessibility to high-speed internet have led to development of the innovative mobile applications and location-based services. This, in turn, is anticipated to boost market growth in the years to come. Development of innovative mobile technologies, along with mobile-based applications, has helped in establishing an effective communication between customers and ride sharing service providers. Customers can obtain the details about the availability of cars, real-time tracking, promotional offers, and fares. Furthermore, implementation of information technology in these services can make the entire process quick, safe, reliable, and easy for consumers as well as providers. Market participants are focusing on providing low-cost car services, along with additional safety features, to attract more customers. For instance, Uber introduced new safety features, including an in-app emergency assistance button in Australia. It is intended to help customers to stay protected and connected throughout the journey. It comprises Trusted Contacts and Share Trip option, and 000 assistance button for both riders and driver-partners to keep them in the loop.
Strict government policies on emission are expected to challenge the market in future. However, development of green and hybrid vehicles may create growth opportunities for the market.
Ride sharing services involve varied vehicle types, such as IC engine vehicles, hybrid vehicles, and electrical vehicles (EVs). IC engine vehicles hold a prominent share in the market due to their high adoption rate across the globe. Electric vehicle is anticipated to exhibit momentous growth in the years to come. This could be attributed to favorable government policies, rapid infrastructure development, and increasing awareness regarding CO2 emission. The market can be segmented based on type as e-hailing, car sharing and rental, and station-based. E-hailing is one of the leading segments in terms of value. It is expected to witness notable growth in the years to come due to its convenience and user-friendliness. Ride sharing service providers make use of payment gateway for online payment processing. Thus, payment service is anticipated to show impressive growth in the years to come. In addition, increasing payments in foreign currency is expected to fuel the segment’s growth.
North America is one of the leading regions in the market. The U.S is one of the major contributors to regional market growth. This could be attributed to growth of the tourism industry due to increasing number of international travelers. Favorable consumer preferences and increasing number of air travelers have augmented the demand for ride sharing services in the region.
Asia Pacific is anticipated to observe the fastest growth in the years to come. Emerging countries, such as Japan, China, and India, are likely to exhibit substantial growth in the years to come. The growth could be attributed to increasing disposable income and presence of poor public transportation service. Growing population and urbanization have led to traffic congestion. Increasing population in the region is also expected to increase the demand for varied transportation options, thereby boosting market growth.
Middle East and Africa is expected to support market growth in the years to come. Countries, such as U.A.E and South Africa, are anticipated to witness impressive growth in the region due to presence of established urban infrastructure.
Some of the leading companies operating in the ride sharing market are Uber Technologies Inc.; Ola, Grab, and Lime. The market comprises several regional as well as international players. Companies are likely to compete on the basis of vehicle size, price, and marketing expertise. They are extensively opting for online platforms to increase their geographical presence and improve their customer base. Moreover, they are forming strategic partnerships to gain traction in the market. For instance, Ola partnered with Microsoft Corporation to build a new connected vehicle platform for manufacturers. The platform will allow the company to utilize productivity tools to enhance passenger experience and provide predictive maintenance of vehicles.
Research Support Specialist, USA