Ride-hailing services provide on-demand transportation using a mobile application which allows users to conveniently book taxi and cab rides from their current location. Some key benefits of ride-hailing services include providing door-to-door transportation, cashless payment options, real-time tracking of rides and reliable service. With rising urbanization and busy lifestyle, there is increasing demand for reliable, affordable and hassle-free transportation options. The global Ride-Hailing Market is estimated to be valued at US$ 214680.76 Mn in 2023 and is expected to exhibit a CAGR of 9.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Increasing smartphone penetration across the globe has been a major driver for the growth of the ride-hailing market size. High smartphone adoption allows users to conveniently book rides through mobile applications of major ride-hailing companies. According to estimates, over 95% of the population in developed countries owns a smartphone as of 2022. Similarly, smartphone users account for over 50% of the population in developing nations as well. Rising internet and smartphone penetration has enabled more number of people to use on-demand transportation services offered by players in the ride-hailing market. This growing access to ride-hailing applications through smartphones is expected to propel market growth over the forecast period.
SWOT Analysis
Strength: Ride-hailing provides flexibility and convenience for passengers to book a ride at any time and at competitive prices. It eliminates the need to own a personal vehicle.
Weakness: Drivers have to bear high operating costs like fuel, vehicle maintenance, insurance etc. This leads to lower profit margins. Dependence on third party drivers also poses operational challenges.
Opportunity: Emerging mobility solutions like ride-sharing, car-pooling presents an opportunity to improve efficiency. Geographic expansion to lower tier cities provides scope for capturing new customer segments.
Threats: Strict regulations around driver liability issues and commercial licensing can limit business growth. Increased competition from traditional taxi operators and new mobility startups also poses threat.
Key Takeaways
The global ride-hailing market is expected to witness high growth over the forecast period.
Regional analysis- The Asia Pacific region is expected to grow at the highest CAGR during the forecast period. This is attributed to growing smartphone and internet penetration and young demographics willing to adopt new mobility solutions in emerging economies like India and China. India and China are likely to emerge as major ride-hailing hotspots globally.
Key players – Key players operating in the ride-hailing market are Endurance Warranty Services LLC, CarShield, Protect My Car, CarChex, Carchex, Ally Financial Inc., CARCHEX, Toco Warranty, American Auto Shield, Warranty Direct, Royal Administration Services, Inc., EasyCare (Automotive Development Group, Inc.), Autopom!, AA Auto Protection, and CarSure. Major players are focusing on launching new offerings, geographic expansions and strategic partnerships to strengthen their market presence.
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- Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it