COVID 19 Impact on Global Ride-Hailing Market Future: Ken Research
Major players in the ride-hailing market are Uber Technologies Inc., Grab, ANI Technologies Pvt. Ltd., Gett Inc., Lyft Inc., DiDi Chuxing, Delphi Automotive, Daimler AG., BlaBlaCar, and Didi Chuxing Technology Co.
The global
ride-hailing market is expected to decline from USD 60.5 billion in
2019 and to USD 52.07 billion in 2020 at a compound annual growth rate (CAGR)
of -13.88%. The decline is mainly due to the COVID-19 outbreak, extending
lockdown across countries, and the measures to contain it. The market is then
expected to recover and reach USD 85.48 billion in 2023 at a CAGR of 17.97%.
The ride-hailing market consists of revenue generated by ride-hailing used for passenger transportation service in which the passengers are connected with the vehicle drivers through a smartphone-based app. The industry comprises establishments primarily engaged in providing passenger transportation by automobile or van, not operated over regular routes and on regular schedules. Establishments of taxicab owners/operators, taxicab fleet operators, or taxicab organizations are included in this industry.
North America was the largest region in the
Ride-hailing market in 2019. Asia Pacific is expected to be the fastest-growing
region in the forecast period.
Ride-hailing services have been advancing in the past few years by delivering
innovative facilities to riders all over the world. Using a ride-hailing app on
an Android device has now become very common. For instance, Uber is a ride-hailing
app from which we can request a women driver. This feature is mainly
implemented to focus on the safety of a woman which helps to stay protected
with a verified profile of a woman driver before committing the journey. A
major initiative is promoted by Safr, which permits the female passengers to
select the gender of the driver, offers complete details about the driver's
training. Similarly, HopSkipDrive is another ride-hailing app that gives safe
and smarter transportation solutions to children by employing professional care
drivers who have a minimum of 5year experience in caregiving.
The ride-hailing market covered in this
report is segmented by vehicle type into two-wheeler, three-wheeler,
four-wheeler, others. It is also segmented by end-user into commercial,
personal, and by service type into e-hailing, car sharing, station-based
mobility, car rental.
Ride-hailing service providers need to follow
several state and central laws for uninterrupted services. For instance, in the
U.S, driver-related regulations include requirements for background checks,
driver's licenses, vehicle registrations, special licenses such as business
licenses, and external vehicle displays. While, the company-related regulations
include requirements for the number of ride-hailing vehicles operating in a
metropolitan area, providing a list of drivers to the city, and sharing trip
data with the city. In some countries, fingerprint-based background checks are
mandatory. This is because of the reported incidents of sexual assault and
violence. In February 2020, a report from the Union of Concerned Scientists
shows that the average U.S. ride-hailing trip results in 69% more pollution
than the transportation choices it displaces, based on federal vehicle
efficiency statistics. The environmental concern has enforced certain
regulations on pollution control. Therefore, more restrict regulations are
coming into force, and compliance with these government regulations may act as
a restraining factor to the ride-hailing service market growth.
In March 2019, Uber is an American
multinational ride-hailing company that acquired Careem for USD 3.1 billion
amount. This provides an opportunity for both companies to rapidly expand and
capitalize on the region's underpenetrated mobility opportunity and the growing
digital economy. The transaction would be the largest-ever technology industry
transaction in the greater Middle East region. Careem is the internet platform
for the greater Middle East region. A pioneer of the region's ride-hailing
economy, Careem is expanding services across its platform to include mass
transportation, delivery, and payments.
On-demand transportation services and a lower
rate of car ownership among millennials are driving the growth of the
ride-hailing market. On-demand transportation services are characterized by
flexible routing and ad-hoc scheduling of private vehicles offering personal
transport experience to the general public by picking or dropping at locations
of passenger's choice. On-demand ride-hailing services ensure that customers
can accurately locate the vehicles, track their journey, and offer safety to
the occupants, and this factor is expected to significantly drive the market
growth. Additionally, a lower rate of car ownership among millennials due to
the high maintenance cost of personal cars is resulting in the rise in demand
for ride-hailing services. The millennials are choosing practical, smartphone
accessible transport options that are simple, flexible, and inexpensive over
car ownership. Also, buying a new car and maintaining it is costlier than
renting a vehicle every year. Thus, gradual penetration of such car ownership
(car rentals) is estimated to fuel its demand across the globe in the coming
years. Hence, on-demand transportation services and a lower rate of car
ownership among millennials drive the growth of the ride-hailing market.
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Research Report, refer to below links: -
COVID
19 Impact on Global Ride-Hailing Market
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Ankur Gupta, Head Marketing &
Communications
+91-9015378249
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