The global e-hailing market is projected to witness a compound annual growth rate of 24.02% to grow to US$238.191 billion by 2026, from US$52.775 billion in 2019. E-hailing is the process of requesting a passenger vehicle through any electronic device such as desktop, mobile, etc. The rising proliferation of smartphones and internet connectivity is driving the demand for e-hailing services across the globe. According to DataReportal, 2021, the number of mobile subscriptions associated with smartphones reached 6.4 billion globally. Further, the growing internet penetration nationwide is contributing to the growth of the e-hailing market. According to the Internet World Stats, 2021, as of March 2021, the internet penetration rate in major regions such as Asia was 63.8%, Europe 88.2%, Africa 43.2%, and North America 93.9%. Moreover, the rising traffic congestion and increasing fuel costs are further boosting the demand for e-hailing services. The United States is the most congested developed country in the world, with American drivers spending an average of 42 hours per year stuck in peak-hour traffic. The excessive traffic congestion on the roads is accelerating the demand for e-hailing services in the global market.
INCREASING INVESTMENT AND PARTNERSHIPS
One of the key factors complementing the demand for the global e-hailing market is the lucrative investment and increasing collaboration and partnerships in the industry. The investment in the e-hailing cluster has been constantly increasing every year which is propelling the market growth. Several market giants are forming partnerships and collaborations in the mobility sector to meet the increasing customer demand which is increasing the competitiveness of the market.
Since 2010, the investors have invested over $330 billion in more than 2,000 mobility companies. At the beginning of 2019 alone, over $100 billion was invested. Despite the Covid-19 pandemic, in October 2020, $39 billion was invested globally in mobility technologies.
Furthermore, Ford and Volkswagen, in July 2019, together invested $7 billion in Agro Al, an autonomous vehicle platform. Similarly, in February 2019 Daimler and BMW entered into a partnership of $1.13 billion to introduce car-sharing, ride-hailing, and multi-modal transportation services. Such partnerships and collaborations will strengthen the market growth of the e-hailing market during the forecast period.
RISING IMPACT OF E-HAILING CARS
As per the 44th Statistical Report on Internet Development in China published by the China Internet Network Information Center (CNNIC), online taxi bookings in China surpassed 337 million in June 2019, an increase of 6.7 million from the end of 2018 and covering 39.4% of total Internet users. Urban transportation is certain to be affected more by the rapid growth of ride-hailing services. Furthermore, it is likely to have an effect on urban traffic congestion and environmental pollution.
In the Asia-Pacific region, e-hailing is projected to grow rapidly. China and India have dense populations and rising urbanization, which account for much of the growth in Asia-Pacific. With urbanization and growing traffic congestion, ride-hailing services are likely to be in demand. By 2030, South Asia's urban population is expected to grow by almost 250 million, more than the entire demographic of Japan between 2001 and 2011. In a survey done by Cox Automotive in 2019, around 55% of millennials and 34% of Gen X agree that transportation is important, but owning a vehicle is not. Therefore, millennials are less likely to own cars, so on-demand transportation services like e- hailing, due to their lower rates of ownership are driving the market growth.
INDIA IS EXPECTED TO REGISTER SIGNIFICANT GROWTH
The state of public transportation in India has remained in a dilapidated state over the years with low connectivity. The launch of e-hailing services in the market has transformed the way people travel. The increasing usage of smartphones and cheap internet services has assisted the spread of the market. The booking apps provide a hassle-free service easing the journey for travelers. Uber started in India in 2013 currently operating in all major cities. Currently, Uber not only provides riding services but also package delivery. Uber Moto is highly popular in the country as traffic congestion remains a major issue. Other two-wheeler services like Rapido are also extensively used. Homegrown brand Ola also provides similar services with the largest share in the market during the period. In 2021, Ola launched its electric scooter bringing transformation in their product and service portfolios. Self-driven e-hailing services like Zoomcar are a common choice for long-distance journeys. Other market players in the country include Meru Cabs, Carzonrent, Jugnoo taxi, Mega cabs accrue a considerable market share even in the presence of giant market players. As electronic vehicles are launched in India, the e-hailing market will further expand with a low-cost structure due to the high price rise of petrol and diesel.
However, with the impact of the COVID-19 pandemic, the E-hailing market had been estimated to lose a fair share of revenue, due to the increase in restrictions by the government, worldwide. Moreover, the travel ban imposed, and closure of public and private places also had a negative impact on the market growth, in the year 2020. Major companies such as Uber, Lyft, and others, had reported a significant decline in their revenue in 2020. These companies had reported a major decline in their gross bookings in 2020, as compared to its previous year. Many countries have also allowed the movement of e hailing vehicles, as these countries have begun to ease COVID-19 restrictions. For instance, in June 2021, in Malaysia, e-hailing vehicles and taxis in Malaysian Peninsula had been allowed to operate across states and districts.
|Market size value in 2019||US$52.775 billion|
|Market size value in 2026||US$238.191 billion|
|Growth Rate||CAGR of 24.02% from 2019 to 2026|
|Forecast Unit (Value)||USD Billion|
|Segments covered||Type And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||Uber Technologies, Inc., Lyft, Inc., Didi Chuxing Technology Co., Ola Cabs, MyCar, Grab Holdings Inc., Gojek, Bolt|
|Customization scope||Free report customization with purchase|
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