The market for ride hailing is expected to grow from its current value of USD 113 billion in 2020 to USD 230 billion by 2026, showing a CAGR of 8.75% over the forecast period of 2021–2026.

The market suffered greatly during the COVID-19 pandemic due to the worldwide lockdowns that were enacted to stop the virus' spread. But, as economies gradually recover, demand is returning to the market.

Along with rising demand in developed regions like the United States and Europe, ride-hailing service preferences among passengers have expanded recently in developing nations like India, China, Vietnam, etc. To maintain their respective market shares in a highly competitive industry, the businesses have improved the options and expanded their operations to be offered through mobile applications.

By switching gasoline vehicles to electric ones, ride-hailing companies hope to eliminate exhaust emissions and lower global vehicle carbon emissions. The conversion of the fleet provides a number of direct environmental advantages as well as repercussions for other markets. It can strengthen the infrastructure for public charging and broaden consumer exposure to EVs.

Ride-Hailing Sectorial Analysis

By using a ride-hailing app, one can order a ride and pay for it through a transportation network company (TNC), whose market includes various vehicle kinds like motorcycles and cars.

Kind of Vehicle Motorbike Cars

Geography

The Americas

American and Canadian

North America as a whole

Europe

Germany

British Empire

France

Russia

Spain

India Rest of Europe Asia Pacific

China

Japan

Korea, South

Asia-Pacific and Latin America as a whole

Europe, Asia, and Africa

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Trends in the Ride-Hailing Market

According to our research analysts, the following are the main market trends influencing the ride-hailing market:

Growing Interest in Ride-Hailing Services

Over the projected period, ride-hailing is anticipated to replace the traditional cab. A total of 15 million ride-hailing trips are reported to occur daily, and by 2030, that number is predicted to skyrocket to 100 million.

The EU's top court declared in December 2020 that ride-hailing apps that bring customers in direct contact with taxi drivers and do not offer a vital component of the transportation service are online platforms. The Court of Justice of the European Union's decision effectively gives ride-hailing apps like Uber, which are now regulated like taxi firms, the upper hand. If they can demonstrate that they are platforms, it gives them the chance to request more independence from regulation in the EU.

A number of ride-hailing businesses are seeking funding from investors in order to advance their technology and offer their clients better services. For example,

In a fundraising round headed by D1 Capital Partners in December 2020, the Estonian ride-hailing company Bolt raised EUR 150 million (USD 182 million). The business claimed that it will put the funds toward creating a driver face verification system and using machine learning to foresee probable events. Around 40 nations in Europe and Africa currently have more than 50 million users of the company's app.

Meru Cabs announced their intention to raise USD 54.25 million (INR 400 crore) from private equity funds in November 2020. The company's move to raise money comes as it is focusing more intently on offering cabs to businesses and growing its fleet of electric vehicles in India.

Revenue Share (%) by Vehicle Type for the Ride-Hailing Industry in 2020

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In 2020, the largest market will be in Asia-Pacific.

In 2020, Asia-Pacific accounted for a sizeable portion of the industry (43.83% of the global ride hailing market). The main factors influencing the rise of motorcycle/bike ride hailing services in the Asia-Pacific area include increasing traffic congestion and low taxi fares when compared to other forms of transportation.

Given that 60% of the world's population resides in the region, the ride-hailing business there is huge and expanding quickly.

India is the second-most populated nation in the world, with the majority of its citizens belonging to the middle class and traveling short distances in cabs and auto-rickshaws (local three-wheeler taxis).

To bring cab aggregators like Ola and Uber app under regulatory control, the Indian government introduced new regulations in November 2020. The Motor Vehicle Aggregator Guidelines 2020, which set forth the new standards, prohibited ride-hailing companies from charging more than 1.5 times the base fee by mandating a spike price cap. The new regulations also permit businesses to provide private automobile sharing services, but only for a maximum of four intra-city trips per day and two inter-city trips per week.

Ride-hailing Chinese market players are subsidizing their drivers to ensure that daily bookings are not disrupted. For instance, many Didi Chuxing drivers chose to take an early leave in September 2020 because the National Day Holiday coincided with the Mid-Autumn Festival. The platform collaborated with the new economy ride-sharing business Huaxiaozhu and the taxi service unit Kuaidi New Taxi to give a driver incentive worth CNY 100 million in an effort to get more drivers to accept orders.

Regional Growth Rates for the Ride-Hailing Industry, 2021–2026

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Outline of the ride-hailing industry

Due to the players in each region having a large market share relative to the region as a whole, the market is moderately fragmented. In North America, UBER and Lyft have significant market shares, whereas Didi Chuxing Technologies Co. has a significant market share in China. Moreover, Didi, Uber, Lyft, and Grab collectively hold a sizable market share worldwide. Recent changes in the market include:

By collaborating with Alibaba Cloud in April 2020, Shouqi Limousine and Chauffeur was able to create a new industry ecosystem for the 5G Internet of Vehicle. Alibaba Cloud and Shouqi Limousine and Chauffeur have started a pilot project to investigate 5G edge computing for mobile ride-hailing services online. As a pioneer in the new era of intelligent transportation, the project will work to advance the growth and modernization of the public transportation sector by exploring how edge computing may be applied and expanded in the transportation sector under 5G.

Leaders in the ride-hailing market

Does Technology Co.

Technology company Uber Inc.

Uber Inc.

Holdings Inc.

AG Daimler

Major Players listed in no particular order, with a disclaimer

Ride-hailing Ride-Hailing Market Concentration News

Following a $40 billion merger in a special purpose acquisition company deal, Southeast Asia's largest ride-hailing business Grab saw its stock fall in its market debut on Thursday. More than seven months after announcing its intention to merge with Altimeter Growth Corp, a firm based in the United States, in a SPAC, the Singapore-based company made its Nasdaq debut.

The electric ride-hailing platform BluSmart Mobility placed an order for 3,500 XPRES-T EV vehicles with Tata Motors on Friday, the company announced. The business said that BluSmart Mobility and it have signed a Memorandum of Understanding (MoU) for the supply of the units.

Didi Chuxing launched the first shared electric vehicle (EV) fleet in Latin America through its app in Mexico in January 2020 as part of the company's ongoing regional investments in innovative sustainable transportation technologies. In collaboration with local leasing partners and drivers, over 700 EV/HVs from significant international manufacturers, such as BYD and Renault, may be made available via the app during phase one of the campaign. DiDi drivers get exclusive access to 200 EVs.

Uber Technologies Inc. teamed up with EVgo in January 2021 to offer drivers savings on EV charging in more than 800 American cities.