Ride-hailing is a passenger transportation service in which the passengers are connected with the vehicle drivers and owners through a smartphone-based app. Ride-hailing services are the same as hiring a taxi, the difference being, in ride-hailing, a vehicle is hired through a smartphone-based app.
Increase in traffic congestion, lack of proper public transportation mode, longer time required for public transportation services, and faster service offered by the ride-hailing service providing companies are attracting passengers and travelers toward on-demand services. Hailing a ride is the same as owning a vehicle for a specific time period. Lower number of vehicles per 1000 people, especially across developing nations and regions such as Asia Pacific and Latin America, is fueling the demand for ride-hailing services. Increased fuel prices, rise in vehicle maintenance, and implementation of more stringent emission norms effectively makes ride-hailing less expensive as compared to the cost of owning a vehicle. Increased number of on-road vehicles have raised global pollution levels drastically, which has led to increase in global temperature and hampered the health of humans and nature. Therefore, governing bodies of several nations are primarily focused on the elimination of major sources of pollution, which in turn is expected to result in implementation of stringent emission norms and incentives for alternative fuel and transportation services. Ride-hailing services have proven to be effective in reducing the number of vehicle ownership, which in turn is expected to lead to significant decline in pollution levels. Consequently, governing bodies are promoting ride-hailing services across the globe.
In the U.S. several governing bodies have established separate road lanes for High Occupancy Vehicles (HOV), which in turn is fueling the demand for ride-hailing services across the U.S. Discounts offered by manufacturers and dealers on vehicles being utilized for ride-hailing services, increase in per capita income, developing road infrastructure, and increase in number of daily commuters are propelling the global ride-hailing market.
Several developing nations across regions, such as Latin America and Middle East & Africa, have significantly lower number of vehicles per 1000 persons. Raised income due to increased job opportunities and lack of presence of ride-hailing service providers are expected to offer lucrative opportunities to the global ride-hailing market during the forecast period.
The global ride-hailing market can be segmented based on vehicle type, commuting distance, autonomy level, and region. In terms of vehicle type, the global ride-hailing market can be classified into four segments. Sedan and hatchbacks are widely being employed for ride-hailing services. Compactness of sedans and hatchbacks, higher efficiency, and exemption from road toll taxes across several countries are fueling the demand for sedans and hatchbacks for ride-hailing services. Demand for SUVs among consumers is rising, especially in North America and Asia Pacific, which is anticipated to boost the SUV segment of the ride-hailing market during the forecast period.
Based on commuting distance, the global ride-hailing market can be divided into two segments. The intra-city segment is expanding at a rapid pace primarily due to the increase in number of daily commuters, rise in number of working commuters, lack of punctuality of public transportation, and increased fuel prices. The intra-city segment of the market accounted for a major share of the market, in terms of revenue, in 2017.
In terms of autonomy level, the global automotive ride-hailing market can be segregated into two segments. Majority of the vehicles utilized for ride-hailing services are manually operated. However, several ride-hailing service providing companies are predicted to incorporate autonomous vehicles in their fleets in the near future. Elimination of expense over driver is primarily prompting ride-hailing service providers to adopt autonomous vehicles.
In terms of region, the global ride-hailing market can be segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. Asia Pacific comprises rapidly expanding economies such as China and India. On an average, Asia Pacific accounts for less than 200 vehicles per 1000 people, which offers numerous opportunities to global ride-hailing service providers. Increase in per capita income, rise in usage of smartphones, availability of faster internet connectivity, and presence of leading ride-hailing service providing companies are fueling the ride-hailing market in Asia Pacific. Global leaders in ride-hailing market focusing on Latin America and Middle East Africa, owing to the lack of presence of ride-hailing service providers and increasing demand for ride-hailing services amongst daily commuters and travelers in these regions.
Key players operating in the global ride-hailing market include ANI Technologies Pvt. Ltd. (OLA), Lyft, Inc., Careem, Uber Technologies Inc., Taxify OÜ, Gett, Grab, Beijing Xiaoju Technology Co, Ltd. (Didi Chuxing), Wingz, Inc, Curb Mobility, BlaBlaCar, and Cabify. Mergers, acquisitions, and joint venture activities are increasing in the global ride-hailing market. Leading global ride-hailing service providers are expanding their footprints, either by acquiring local service providers or by partnering with them.
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