Market Trends of Ride-Hailing Industry
The Cars Segment is Expected to Gain Traction During the Forecast Period
The increasing preference of consumers toward using private transportation for traveling purposes, owing to the rising need for convenience in personal mobility and the growing number of tourists worldwide, serve as major determinants of the rising demand for the cars segment.
Tourists are increasingly turning to ride-hailing services due to their convenience. These services allow them to access transportation as and when they need it, without the need to book a car for an entire day or a specific period.
In the age of environmentally friendly transportation, policymakers across the world are prioritizing advancements in transportation solutions to combat environmental pollution from vehicles and address climate change issues.
Governments globally are advocating for the electrification of vehicle fleets to minimize carbon emissions. New players in the market are investing substantial amounts in introducing an all-electric vehicle fleet for their ride-hailing services. They are actively forming partnerships to strengthen their brand presence.
- In December 2023, electric mobility startup BluSmart announced that it had raised USD 24 million in a fresh round of funding to build large-scale charging superhubs that would enable the expansion of its electric ride-hailing services.
Additionally, several companies in the market are actively incorporating advanced features, such as the "emergency button," into their passenger car fleet to improve customer safety. This, in turn, is expected to drive demand for this segment. Furthermore, with the growing tourism industry and the advancement of ride-hailing platforms, the cars segment of the market is anticipated to experience significant growth during the forecast period.
Asia-Pacific to Become the Fastest-growing Market During the Forecast Period
The growth of the ride-hailing service market in Asia-Pacific is driven by increasing traffic congestion and low fares compared to other modes of transportation. In addition, the rising urban population in countries like India and China is leading to a higher demand for fast transportation solutions, which is positively impacting the ride-hailing market in Asia-Pacific.
In recent years, the ride-hailing market in Asia-Pacific has seen the emergence of new players such as BluSmart in India and GSM in Vietnam. With India and China being the world's most populous countries, the demand for ride-hailing services in these nations is on the rise.
Various companies operating in the ecosystem are forming collaborations and partnerships, expanding their fleets, and strategizing for new initiatives to enhance their brand's presence in this competitive market. For instance,
- In November 2023, Uber partnered with the IAS Secretary of the Transport Department, Government of West Bengal, India, to launch a bus shuttle service in Kolkata. This initiative aims to enhance public transport services and provide more commuting options to make travel easier.
- In May 2023, Uber announced its plan to introduce 25,000 electric cars in partnership with fleet providers such as Lithium, Everest, and Moove for the Indian market. In addition, the company stated that it would roll out 10,000 electric two-wheelers in Delhi by the end of 2024 in collaboration with Zypp Electric, another EV startup.
With the growing urban population, rising integration of new entrants in the market, and the consumers' increasing preference for convenience in personal mobility, the demand for ride-hailing services in the Asia-Pacific market is anticipated to surge rapidly over the coming years.
