The global ride sharing market is projected to grow at a CAGR of 19.87% from 2020 to 2027, to reach a market size of USD 218.0 billion by 2027 from USD 61.3 billion in 2020. Stringent vehicle emission regulations implemented by government authorities across the globe are increasing the adoption of shared mobility solutions for routine commute.
Growing safety concerns related to the usage of public transport facilities among commuters are supporting the amplifying market trend of ride sharing services. Overcrowded public transport facilities including subways and buses cause high level of discomfort while travelling. These facilities also pose a risk of spreading of infections and viral diseases. Increasing demand for comfortable intercity transport is driving the market growth.
Significant increase in ownership of private cars coupled with insufficient network of roads in populated cities has led to a rapid increase in traffic congestion. According to the industry update by the Federal Highway Administration, congestion on roads takes up more than 37% of the travel time of daily commuters in the U.S. High traffic congestion in cities has increased the overall travel time by an average of 3.5 hours in the last 20 years. Shifting preference toward reducing the daily travel time is fueling the market for ride sharing services.
The major factor hampering the market expansion is the limited availability of technology and supportive infrastructure. The unavailability of convenient parking spots and pick-up & drop locations for cars in densely populated cities is challenging the wide acceptance of carpooling services. One of the major barriers of entry for new market players is the high investment required to develop a supportive technological support for ride sharing services in terms of mobile applications and location tracking.
The rapidly spreading COVID-19 pandemic is adversely impacting the ride sharing market demand. Social distancing norms and regulations implemented by government and healthcare authorities encourage citizens to maintain a two-meter distance from other persons for safety. This has restricted the usage of ride sharing services for daily commute.
Users prefer to travel in their own vehicles due to health and safety concerns, hampering the market size in 2020. The impact of this industry challenge is expected to reduce owing to the increasing sanitization and safety measures undertaken by ride sharing companies.
The increasing number of ride sharing services such as Uber, Ola, and Lyft has disrupted the market for traditional taxi operators. Many people have lost jobs and revenue that was generated from traditional businesses. Traditional taxi operators have formed cartels to protest against app-based ride sharing service providers in many places
The prominent players in the global Ride Sharing Industry include Uber Technologies Inc. (U.S.), Lyft, Inc. (U.S.), Didi Chuxing Technology Co. (China), Gett (Israel), ANI Technologies Pvt. Ltd. (India), GrabTaxi Holdings Pte. Ltd. (Singapore), Taxify (Estonia), Careem (UAE), Cabify (Spain) and car2go (Germany).
Geographically, the global ride sharing market has been segmented into four major regions namely North America, Europe, Asia-Pacific, and the Rest of the World. North America is estimated to account for a significant market share in the global ridesharing market. The market in this region, dominated by the U.S., is highly consolidated with ride hailing giants such as Uber and Lyft together accounting for the majority of the market share. Agreements between corporations and ride sharing companies to reduce traffic congestion and control pollution from vehicle emissions have been major driving factors of the market in this region.
Growing safety concerns related to the usage of public transport facilities among commuters are supporting the amplifying market trend of ride sharing services. Overcrowded public transport facilities including subways and buses cause high level of discomfort while travelling. These facilities also pose a risk of spreading of infections and viral diseases. Increasing demand for comfortable intercity transport is driving the market growth.
Significant increase in ownership of private cars coupled with insufficient network of roads in populated cities has led to a rapid increase in traffic congestion. According to the industry update by the Federal Highway Administration, congestion on roads takes up more than 37% of the travel time of daily commuters in the U.S. High traffic congestion in cities has increased the overall travel time by an average of 3.5 hours in the last 20 years. Shifting preference toward reducing the daily travel time is fueling the market for ride sharing services.
The major factor hampering the market expansion is the limited availability of technology and supportive infrastructure. The unavailability of convenient parking spots and pick-up & drop locations for cars in densely populated cities is challenging the wide acceptance of carpooling services. One of the major barriers of entry for new market players is the high investment required to develop a supportive technological support for ride sharing services in terms of mobile applications and location tracking.
The rapidly spreading COVID-19 pandemic is adversely impacting the ride sharing market demand. Social distancing norms and regulations implemented by government and healthcare authorities encourage citizens to maintain a two-meter distance from other persons for safety. This has restricted the usage of ride sharing services for daily commute.
Users prefer to travel in their own vehicles due to health and safety concerns, hampering the market size in 2020. The impact of this industry challenge is expected to reduce owing to the increasing sanitization and safety measures undertaken by ride sharing companies.
The increasing number of ride sharing services such as Uber, Ola, and Lyft has disrupted the market for traditional taxi operators. Many people have lost jobs and revenue that was generated from traditional businesses. Traditional taxi operators have formed cartels to protest against app-based ride sharing service providers in many places
The prominent players in the global Ride Sharing Industry include Uber Technologies Inc. (U.S.), Lyft, Inc. (U.S.), Didi Chuxing Technology Co. (China), Gett (Israel), ANI Technologies Pvt. Ltd. (India), GrabTaxi Holdings Pte. Ltd. (Singapore), Taxify (Estonia), Careem (UAE), Cabify (Spain) and car2go (Germany).
Geographically, the global ride sharing market has been segmented into four major regions namely North America, Europe, Asia-Pacific, and the Rest of the World. North America is estimated to account for a significant market share in the global ridesharing market. The market in this region, dominated by the U.S., is highly consolidated with ride hailing giants such as Uber and Lyft together accounting for the majority of the market share. Agreements between corporations and ride sharing companies to reduce traffic congestion and control pollution from vehicle emissions have been major driving factors of the market in this region.
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