Indonesia Ride Hailing Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 2.88 Billion |
| Market Size (2029) | USD 4.83 Billion |
| CAGR (2024 - 2029) | 8.80 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Indonesia Ride Hailing Market Analysis
The Indonesia Ride Hailing Market size is estimated at USD 2.88 billion in 2024, and is expected to reach USD 4.83 billion by 2029, growing at a CAGR of 8.80% during the forecast period (2024-2029).
The ride-hailing market in Indonesia has experienced significant growth and transformation in recent years, largely driven by the rapid adoption of smartphone technology and the convenience offered by app-based transportation services. Grab and Gojek, two of the leading ride-hailing companies in Southeast Asia, have been pivotal in shaping this market. Both companies initially started as motorcycle taxi services but have since expanded their offerings to include car rides, food delivery, payment services, and more.
Grab, founded initially in Malaysia, has established a strong presence in Indonesia through strategic acquisitions and partnerships. It operates in multiple Indonesian cities, offering a range of services beyond transportation, such as GrabFood and GrabPay. Similarly, Gojek, a homegrown Indonesian start-up, has grown into a "super app" that integrates various services, including transportation, food delivery (GoFood), package delivery, and even financial services (GoPay). This diversification has helped Gojek maintain a competitive edge in the market.
Grab and Gojek's intense competition has been marked by aggressive marketing campaigns, promotions, and discounts to attract customers and drivers. This competition has led to innovations in service offerings and improved user experiences, benefiting consumers with more choices and competitive pricing. Additionally, the presence of these companies has contributed significantly to Indonesia's digital economy, providing employment opportunities for drivers and enabling cashless transactions through their payment platforms.
The market is also attracting impressive investment over the online sales channel, which is slowly growing. With rising internet and smartphone penetration, online booking has been witnessing a positive growth outlook. A similar scenario is anticipated over the forecast period. Moreover, the electric vehicle fleets in the country are expected to grow in the coming years, which may also encourage the ride-hailing services offered across the country to attract customers and curb greenhouse emissions.
- In June 2024, Vietnamese electric ride-hailing service Xanh SM announced plans to commence operations in Indonesia, aiming to enter Southeast Asia's largest market based on regulatory filings and job postings.
Considering these factors, the demand for ride-hailing services in Indonesia is expected to remain on the higher side of the graph during the forecast period.
Indonesia Ride Hailing Market Trends
The Personal/Tourism Segment to Positively Drive the Market
Indonesia is the largest archipelago in the world, ranging from Sabang in Aceh to Merauke in Papua. It is made up of thousands of large and small islands connected by the strait and sea, making it the perfect place for tourism. The Indonesian government aggressively promotes tourism globally to achieve 10+ million inbound tourists per year to make it the biggest tourism market.
The Indonesian government has made various changes to the national tourism industry management as a result of the negative impacts of the COVID-19 outbreak. The Ministry of Tourism and Creative Economy aims to attract 1.8-3.6 million international visitors and 260-280 million domestic visitors and generate foreign exchange revenues from the tourism industry of USD 470 to USD 1.7 billion in 2022. Additionally, the government hopes to increase the industry’s share of the GDP to 4.3% in 2022. Minister Sandiaga Salahuddin Uno highlighted the recovery of Indonesia's tourism industry, noting its contribution of up to 3.6% to the national GDP, amounting to USD 6.72 billion in 2022. Domestic tourist trips surged by 19.82% Y-o-Y, reaching 734.86 million trips, surpassing pre-pandemic levels by 1.76%.
The Ministry of Tourism and Creative Economy (MoTCE) in Indonesia, established following a merger in 2019, plays a pivotal role in coordinating efforts to develop tourism and the creative economy, especially in the wake of the COVID-19 outbreak. Collaborations with ministries such as Health, Foreign Affairs, Communication, Information, and Public Works and Housing are integral to enhancing tourism destinations, particularly in priority areas. The MoTCE's budget reached IDR 3.8 trillion in 2022, sourced from government revenue, foreign loans, and non-tax state revenue, reflecting sustained investment in the industry’s growth.
The Ministry of Tourism and the Creative Economy of Indonesia invests in the country's tourism industry to foster sustainable and community-based tourism. Five super-priority tourism destinations, eight special economic zones, and 12 sustainable tourism projects are expected to benefit from the investments, which may boost the demand for car rental services in the coming years.
Owing to such factors, key ride-hailing companies in Indonesia are looking forward to capitalizing on them to resonate with the business and gain better prominence. This trend has elevated the overall demand for ride-hailing services in the market.
Online Booking to Open New Business Avenues
In 2022, a significant 80% of Indonesia's population owned smartphones, with over 212 million people accessing the internet via mobile devices. This robust mobile connectivity underscores Indonesia's position as the fifth-largest mobile market globally, with more than 7.7 billion app downloads and users spending a collective 179 billion hours on mobile platforms in the same year.
With smartphone adoption alongside the rising population of Indonesia, people have quickly shifted their respective stances toward hailing online cars. In addition, tourists and local people have been identified as option channels for ride-hailing. In 2022, around 73.7% of the total country's population were internet users, and this share is likely to grow to 93.2% of the total country's population by 2030. Similarly, during the same period, the number of smartphone users in the country was around 199.18 million, which is likely to boost growth in the online segment of the market.
In addition, it provides additional facilities to monitor a vehicle's operation, performance, and maintenance in real time. Such features are tremendous assets for drivers and fleet managers, enabling them to better and more efficiently identify risks and implement timely improvements to their ride-hailing services.
Online vehicle bookings are increasing in the country due to the rising usage of smartphones and the growth in the number of users preferring online channels. Indonesia is the epicenter of the tourist spots that millions of tourists visit each year. These online booking platforms help them maintain the accessibility of the fleet and improve connectivity.
Most consumers prefer hailing vehicles online during peak seasons. As the vehicle-hailing market experiences an increase in demand during peak holiday seasons, people tend to book vehicles in advance. Only a handful of vehicles are booked through rental stores, mostly during the off-season. Online booking services include booking cars via internet sites and mobile applications, among which booking-via-sites is the most common method opted for by consumers.
Indonesia Ride Hailing Industry Overview
The market is moderately fragmented as the players in Indonesia have a high market share compared to the overall region. UBER, Grab, Gojek, and other players have a prominent share in Indonesia’s ride-hailing market.
The ride-hailing service providers in Indonesia have strategically shifted their brands’ direction by prioritizing the quality and safety of passengers and vehicles, followed by other features.
- In October 2023, GoTo Group raised USD 150 million through a convertible bond sale led by the World Bank's International Finance Corp. This financial boost aims to enhance the Indonesian company's cash reserves as it pursues profitability in the ride-hailing and e-commerce industries.
- In September 2023, Indonesian ride-hailing and delivery giant Gojek partnered with one of the nation's primary commuter railway operators. This collaboration allows Gojek's super-app users to conveniently access a comprehensive range of local transportation services.
Indonesia Ride Hailing Market Leaders
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Grab Holdings Inc.
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PT Gojek
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Uber Technologies Inc.
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Traveloka
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Adi Sarana Armada Tbk
*Disclaimer: Major Players sorted in no particular order
Indonesia Ride Hailing Market News
- May 2024: Indonesian ride-hailing firm Gojek concluded its Series F funding round, reportedly securing over USD 1 billion in investments from backers, including Google, JD.com, Tencent, Mitsubishi Corporation, and Provident Capital.
- February 2024: Grab Holdings Ltd and GoTo Group, Southeast Asia's leading ride-hailing companies, reopened discussions regarding a potential merger. This move is seen as a strategic effort to counterbalance losses from intense market competition between the two entities.
Indonesia Ride Hailing Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (Market Size in Value (USD))
5.1 Vehicle Type
5.1.1 Two-wheelers
5.1.2 Passenger Cars
5.2 Booking Type
5.2.1 Online
5.2.2 Offline
5.2.3
5.3 End Use
5.3.1 Personal
5.3.2 Commercial
5.4
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles*
6.2.1 Uber Technologies Inc.
6.2.2 Grab Holdings Inc.
6.2.3 PT Gojek
6.2.4 Traveloka
6.2.5 Adi Sarana Armada TBK
6.2.6 ANI Technologies Pvt. Ltd
6.2.7 PT Indonesia AirAsia
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Indonesia Ride Hailing Industry Segmentation
Ride-hailing allows for booking rides and paying for service through an app with a transportation network company (TNC), where the market comprises vehicle types, such as motorcycles and cars.
The Indonesian ride-hailing market is segmented by vehicle type, booking type, and end use. By vehicle type, the market is segmented into two-wheelers and passenger cars. By booking type, the market is segmented into online and offline. By end use, the market is segmented into personal and business. For each segment, the market size and forecasts are done based on value (USD).
| Vehicle Type | |
| Two-wheelers | |
| Passenger Cars |
| Booking Type | |
| Online | |
| Offline |
| End Use | |
| Personal | |
| Commercial |
Indonesia Ride Hailing Market Research FAQs
How big is the Indonesia Ride Hailing Market?
The Indonesia Ride Hailing Market size is expected to reach USD 2.88 billion in 2024 and grow at a CAGR of 8.80% to reach USD 4.83 billion by 2029.
What is the current Indonesia Ride Hailing Market size?
In 2024, the Indonesia Ride Hailing Market size is expected to reach USD 2.88 billion.
Who are the key players in Indonesia Ride Hailing Market?
Grab Holdings Inc., PT Gojek, Uber Technologies Inc., Traveloka and Adi Sarana Armada Tbk are the major companies operating in the Indonesia Ride Hailing Market.
What years does this Indonesia Ride Hailing Market cover, and what was the market size in 2023?
In 2023, the Indonesia Ride Hailing Market size was estimated at USD 2.63 billion. The report covers the Indonesia Ride Hailing Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Indonesia Ride Hailing Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the key factors driving the growth of the Ride-Hailing Market in Indonesia?
Key factors driving the Ride-Hailing Market in Indonesia include a) Increasing smartphone penetration b) Growing urban population c) Need for convenient transportation solutions
What are the key factors driving the growth of the Ride-Hailing Market in Indonesia?
Key factors driving the Ride-Hailing Market in Indonesia include a) Increasing smartphone penetration b) Growing urban population c) Need for convenient transportation solutions
Ride Hailing in Indonesia Industry Report
The ride-hailing market in Indonesia is experiencing significant market growth, driven by the widespread use of smartphones, high-speed mobile internet availability, and a rising demand for efficient transportation solutions. This market overview highlights the diverse range of services offered, from two-wheelers to luxury cars, catering to both personal and business segments. The market size is expanding due to the increasing popularity of shared mobility, which helps reduce costs and address traffic and environmental concerns.
According to industry reports, innovations such as electric vehicles and autonomous driving are being integrated to enhance services and reduce operational costs. Strategic partnerships among key players are also contributing to a positive market outlook for the ride-hailing industry in Indonesia. The industry analysis provided by Mordor Intelligence™ includes a comprehensive market forecast, offering valuable insights into market trends, market segmentation, and the future industry outlook.
For those seeking detailed industry information, a free report pdf download is available, which includes in-depth industry research and market data. This report example provides a thorough examination of the market value, industry size, and growth rate, along with industry statistics and market predictions. The market review also covers the performance of market leaders and their strategies to maintain a competitive edge.
Overall, the ride-hailing sector in Indonesia is poised for continued growth, supported by technological advancements and strategic collaborations. The industry trends indicate a promising future, with significant opportunities for both existing players and new entrants.
