May 28, 2024
Ride-hailing Market

Online Ride-hailing Market driven by Convenience and Cost Savings

The global online ride-hailing market enables commuters to book and pay for rides via mobile applications, providing ease and flexibility of movement. Car and cab services offered through platforms such as Uber and Ola enable passengers to hail rides from any location at affordable prices and avoid the hassle of cash transactions or waiting for cabs. The need for door-to-door transportation in urban areas has boosted the popularity of ride-hailing services that are available 24/7. As more cities continue to become crowded, on-demand mobility solutions have emerged as a convenient way to reduce traffic congestion and pollution. The global online 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:

One of the main trends in the online ride-hailing market size is the development of autonomous vehicles. Companies are investing heavily in research and development of self-driving cars that can reduce operation costs without drivers. Autonomous taxis are expected to transform urban transportation and traffic management over the next decade. Ride-hailing giants have been testing autonomous prototypes and plan to launch commercial fleets in the future to reduce fares. These driverless cars offer the potential for greater safety and reduced traffic congestion if deployed widely. However, regulatory and technology challenges remain before autonomous mobility services can be scaled globally.

Porter’s Analysis
Threat of new entrants: The ride-hailing market has medium threat of new entrants as considerable capital is needed to enter the market and compete with existing global players. However, technology advancements have lowered the entry barriers.

Bargaining power of buyers: The bargaining power of buyers is high as various options are available and switching costs are low. Buyers can choose between different ride-hailing apps and traditional taxi services.

Bargaining power of suppliers: Drivers have low bargaining power as several players rely on part-time drivers. However, driver shortage is pushing up wages and incentives in certain markets.

Threat of new substitutes: Alternatives like private vehicles, public transport, and bike/scooter sharing have medium substitution threat. However, ride-hailing offers convenience and price advantages in many situations.

Competitive rivalry: The rivalry is intense among top global players and regional operators. Players compete on factors like pricing, service quality, driver treatment policies, incentives, and technological superiority.

Key Takeaways
The global ride-hailing market is expected to witness high growth over the forecast period supported by growing urbanization and digitalization.

Regional Analysis: North America currently dominates the market owing to high smartphone and internet penetration and early adoption of ride-sharing technologies. However, Asia Pacific is expected to emerge as the fastest growing market with increasing disposable income and large population opting for convenient commuting options.
Europe also holds significant potential for ride-hailing services. Major cities like London and Paris have witnessed increasing adoption of ride-sharing due to heavy traffic congestion and emission reduction initiatives. Investments in electric vehicles by ride-hailing players is also supporting the green mobility push in the region.

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 strategic acquisitions and partnerships to expand network and service offerings globally. Technological advancements in AI, IoT, and machine learning are also widening the addressable market for ride-hailing.

*Note:

  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it