June 24, 2024

Ride-Hailing Market Propelled By Increased Consumer Preference For Convenience

Ride-hailing services have grown exponentially in popularity in recent years as they offer on-demand, convenient transportation options to commuters. Through mobile applications, users can book a variety of vehicle types from cars, auto-rickshaws to motorbikes for both long-distance and local commute needs. Ride-hailing provides advantages like eliminating the hassle of owning a vehicle, reducing traffic congestion and carbon emissions.

The global Ride-Hailing Market is estimated to be valued at US$ 247312.24 Bn in 2023 and is expected to exhibit a CAGR of 9.0% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
Increased preference for convenience is a major driver of growth in the ride-hailing market. On-demand mobility services have revolutionized transportation by offering instant, door-to-door point-to-point transportation with just a few taps on a mobile app. This has provided immense convenience to users, especially in urban areas with high traffic congestion. The convenience of not having to search for taxis or public transport, wait times, make payments in cash etc has increased consumer preference for ride-hailing services over other transportation modes. This has propelled significant growth of the ride-hailing market worldwide.

SWOT Analysis
Strength: Ride-hailing provides an on-demand and convenient mode of transportation. It allows customers to book a ride instantly through a mobile app.
Weakness: Increased regulation and legal compliance adds operational costs for ride-hailing companies. Driver shortage and high driver turnover rates also affect operations and service quality.
Opportunity: Expanding into new markets and underserved areas presents growth opportunities. Partnerships with public transit agencies can help address first-mile/last-mile connectivity issues.
Threats: Strict rules and regulations imposed by some cities pose challenges. Increased competition from traditional taxi services and new mobility options also threatens market share.

Key Takeaways
The global ride-hailing market demand is expected to witness high growth during the forecast period of 2024 to 2031.

Regional analysis – North America currently dominates the global market due to strong presence of key players like Uber and Lyft. Asia Pacific region is expected to grow at the fastest rate owing to rising urbanization, increasing smartphone penetration, and growing adoption of online transportation services in countries like India and China.

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. The global ride-hailing market is consolidated in nature with major players like Uber and Lyft capturing a significant market share. These players are focused on expanding into new markets and launching new mobility offerings like on-demand scooters and bikes to strengthen their market position.

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