Indonesia Ride Hailing Market Size (2024 - 2029)

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 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).