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On-demand Transportation Market - Snapshot

On-demand transportation is an internet-based service that is used to book means of transportation in return of money, based on the time and distance it is used for. Various types of vehicles, such as passenger vehicles or commercial vehicles, can be booked or reserved through on-demand transportation services as per the requirement of the consumer. Moreover, the service is highly popular in urban areas, owing to high digitalization and high dependency on internet-based services. 

The market for on-demand transportation services is primarily driven by the lower middle class population owing to its low per capita income. Moreover, the market is expanding significantly in developing nations such as China and India. On-demand transportation services provide short-term ownership to consumers at significantly lower prices and hence, consumers prefer such transportation means instead of owning a vehicle. A privately owned vehicle is only utilized for up to 5% of its total life; it remains parked for 95% of its life in most cases. Considering this, several vehicle owners are readily sharing their vehicles. Increase in number of vehicle owners has led to increased traffic congestion and rise in global emission levels. Consequently, governing bodies are promoting alternative fuel-powered vehicles and alternative modes of transportation that emit less to zero-emission. On-demand transportation services are effectively capable of reducing the number of vehicle owners and hence, governing bodies are implementing regulations in favor of shared mobility services. Consumers who do not own a vehicle prefer on-demand mobility services. Increasing tourism and working class population coupled with rising trend of road trips is fueling the on-demand transportation market significantly. Developments by software companies to make the mobile phone-based applications faster and user friendly have played a vital role in promoting on-demand transportation services. 

on demand transportation market

Incorporation of electric and autonomous vehicles is likely to reduce the cost of on-demand transportation services. Electric vehicles reduce fuel expenses, which reduces the overall cost of utilizing mobility sharing services, such as ride sharing and ride sourcing. This, in turn, is likely to fuel the demand for on-demand services across the globe. Autonomous vehicles are expected to eliminate the driver and subsequently, expenses over the driver. Lower number of vehicles per capita across several nations is fueling the demand for on-demand transportation services, which in turn is likely to offer lucrative opportunities to the global on-demand transportation market. Forward integration of vehicle manufacturers in the on-demand transportation service market is likely to offer considerable opportunities and propel the market. 

Taxi fleet operators across several nations are opposing on-demand sharing services, which in turn is restraining the global on-demand transportation market, especially for ride-sharing and ride sourcing services. Several nations, such as Germany and France, have banned peer-to-peer taxi services, which is marginally hampering the global on-demand transportation market. 

In terms of revenue, the ride sourcing segment accounts for a notable share of the on-demand transportation market, followed by vehicle rental or vehicle leasing services segments. Vehicle leasing services are significantly popular across families and companies willing to provide transportation services to their employees. Long family tours, outings with friends, and increased tourism activities are fueling the demand for vehicle sharing and leasing services. Subscribing vehicle is another term being used in the vehicle rental and leasing industry in which consumers can lease their vehicle for a specific time period, such as one month to a year or may be longer. Demand for ride sharing and ride sourcing services is rising due to the increase in congestion across urban areas. Rapid urbanization, increase in vehicle ownership, and expansion of urban areas are fueling the demand for transportation services within urban areas. Longer routes and longer time of travel for public transportation services, increased crowd in various modes of public transportation, lack of proper connectivity, and lack of punctuality of public transportation services are fueling the demand for ride sourcing and ride sharing services. 

The passenger car segment accounts for a major share of the market, in terms of revenue, as passenger cars are being widely preferred for ride sharing, sourcing, and rental services. Cars are preferred for ride sharing and sourcing services due to their easy maneuverability and higher mileage. Light commercial vehicles are extensively preferred across countries in North America and Latin America. Car pool and ride sharing services are prominently provided by vehicle owners; therefore the P2P segment accounts for a prominent share of the market, in terms of revenue. However, vehicles utilized for rental and leasing services are owned by service providing companies, thus the B2C segment accounts for a notable share of the market, in terms of revenue. Shared mobility services are preferred for passenger transportation; however, there are several companies that provide light and heavy trucks for goods transportation. Demand for sharing services and micro mobility, such as scooters, bikes, and other small vehicles, is rising, which in turn is likely to gain significant share of market during the forecast period. 

The market of electric vehicles for on-demand transportation services is expanding at remarkable pace owing to exemption from various taxes in different regions. Moreover, electric and hybrid vehicle segments are expanding at a rapid pace in Europe, owing to stringency of emission norms in the region. Furthermore, the low maintenance and running cost of hybrid and electric vehicles results in higher profit margin for vehicle or fleet owners. However, high initial investment for electric vehicles is anticipated to boost the electric vehicle segment at a sluggish pace in developing countries. Moreover, expansion of electric vehicle charging infrastructure, extended range of electric vehicles, and decline in prices of the electric vehicle battery are anticipated to propel the electric vehicle segment of the on-demand transportation market. Several shared mobility service providers have formed alliances with auto manufacturers in order to incorporate autonomous vehicles in their fleets. 

Ride sharing and ride sourcing services are significantly popular across countries in Asia Pacific such as China, India, and ASEAN. DIDI Chuxing, OLA, Uber, and Grab are major mobility sharing service providers operating in Asia Pacific. Rapid rise in urban population and rise in the number of daily commuters, crowded public transits, low motorization rate, and surge in fuel prices are fueling the demand for on-demand transportation services across Asia Pacific. Large population and presence of globally leading on-demand transportation service providers led Asia Pacific to hold a major share of the global on-demand transportation market. 

Key players operating in the global on-demand transportation market include ANI Technologies Pvt. Ltd. (OLA), Lyft, Inc., Grab, Careem, Uber Technologies Inc., Taxify OÜ, Gett, BlaBlaCar, Wingz, Inc, Curb Mobility, Cabify, Europcar, The Hertz Corporation, Beijing Xiaoju Technology Co, Ltd. (Didi Chuxing), Avis Budget Group, Inc., and Enterprise Holdings, Inc. The global on-demand transportation market is witnessing an increase in mergers and acquisitions as well as integration activities.

On-demand Transportation Market - Overview

This report analyzes and forecasts the market for on-demand transportation at the global and regional level. The market has been forecasted based on value (US$ Mn) from 2018 to 2026. The study includes drivers and restraints of the global on-demand transportation market. It also covers the impact of these drivers and restraints on the demand for on-demand transportation services during the forecast period. The report also highlights opportunities and future scope in the market at the global and regional level.

The report comprises a detailed value chain analysis, which provides a comprehensive view of the global on-demand transportation market. The Porter’s Five Forces model for the market has also been included to help understand the competitive landscape in the market. The study encompasses market attractiveness analysis, wherein the service is benchmarked based on market size, growth rate, and general market share.

The study provides a decisive view of the global on-demand transportation market by segmenting it in terms of type, vehicle type, business model, autonomy level, power source, and region. These segments have been analyzed based on present and future trends. Regional segmentation includes the current and forecast demand for on-demand transportation service in North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The report also covers the demand for individual segments in all major countries across all the regions.

The study includes profiles of major companies operating in the global on-demand transportation market. Market players have been profiled in terms of attributes such as company overview, financial overview, business strategies, recent developments, key executive bios, and manufacturing footprint.

The global on-demand transportation market is primarily driven by the rise in demand for internet- and smartphone-based transportation services such as ride-sharing, vehicle leasing or rental, and ride sourcing. Lower number of vehicles per 1000 people across several nations, increase in population, rapid rise in urbanization, and rise in number of working class people willing to travel to their workplaces and homes coupled with a lack of proper public transportation facilities are fueling the demand for ride hailing services across the globe, which in turn is fueling the global on-demand transportation market.

The report provides the estimated market size of on-demand transportation for 2017 and forecast for the next nine years. The global market size has been provided in terms of revenue. Market numbers have been estimated based on type, vehicle type, business model, autonomy level, power source, application, and geography segments. Market size and forecast for each type, vehicle type, business model, autonomy level, and power source have been provided in terms of global and regional/country markets.

In order to compile the research report, we conducted in-depth interviews and discussions with a number of key industry participants and opinion leaders. Primary research represents the bulk of research efforts, supplemented by extensive secondary research. We reviewed key player’s product literature, annual reports, press releases, and relevant documents for competitive analysis and market understanding. Secondary research also includes a search of recent trade, technical writing, internet sources, and statistical data from government websites, trade associations, and agencies. This has proven to be the most reliable, effective, and successful approach for obtaining precise market data, capturing industry participants’ insights, and recognizing business opportunities.

Secondary research sources that are typically referred to include, but are not limited to company websites, annual reports, financial reports, broker reports, investor presentations, and SEC filings, internal and external proprietary databases, and relevant patent and regulatory databases, national government documents, statistical databases, and market reports, news articles, press releases, and webcasts specific to companies operating in the market, National government documents, statistical databases, and market reports, American Automobile Association, European Automobile Manufacturers Association, Automotive Research Association of India, Organisation Internationale des Constructeurs d'Automobile (OICA), Consumer Connectivity Association, ACRA, World Bank, Factiva, etc.

Primary research involves e-mail interactions, telephonic interviews, LinkedIn interviews, and face-to-face interviews for each market, category, segment, and sub-segment across geographies. We conduct primary interviews on an ongoing basis with industry participants and commentators in order to validate the data and analysis. Primary interviews provide firsthand information on market size, market trends, growth trends, competitive landscape, and outlook, etc. These help validate and strengthen secondary research findings. These also help to develop the analysis team’s expertise and market understanding. 

The global On-demand transportation market has been segmented as follows:


  • Ride-sharing
  • Vehicle Rental/Leasing
  • Ride Sourcing

Business Model


  • P2P
  • B2B
  • B2C 

Vehicle Type

  • Passenger Cars
  • Light Commercial Vehicles
  • Heavy Commercial Vehicles
  • Buses & Coaches
  • Micro-mobility 

Autonomy Level

  • Manual
  • Semi-autonomous
  • Autonomous 

Power Source

  • Fuel Powered
  • HEV (HEV)
  • BEV (BEV)



  • Passenger Transportation
  • Goods Transportation 


  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • U.K.
    • France
    • Italy
    • Spain
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • ASEAN
    • Rest of Asia Pacific
  • Middle East & Africa (MEA)
    • GCC
    • South Africa
    • Rest of MEA
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America

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On Demand Transportation Market

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