Ridesharing Market - Growth, Trends, and Forecast (2020 - 2025)
The Ridesharing Market is segmented by Service Type (Fixed, Dynamic, Corporate), and Geography.
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Scope of the Report
Key Market Trends
TABLE OF CONTENTS
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The Ridesharing Market was valued at USD 73.07 billion in 2019 and is expected to reach USD 209.60 billion by 2025, at a CAGR of 19.2% over the forecast period 2020 - 2025. The increase in demand for cost-saving and time-saving transport will drive the market.
Advances in technology that aid in the adoption of ridesharing, and governmental policy support, such as toll fee waivers and high-occupancy vehicle (HOV) lanes, are bolstering the market growth. Investors are rushing to claim a stake in the developing ridesharing market.
Ridesharing has emerged as a clean, smart, and powerful tool to deal with the fallouts of urbanisation and the development of megacities. It is estimated that ridesharing could reduce the number of cars needed on urban roads globally by over 2 million vehicles, decrease vehicle kilometres travelled by around 40 billion and lower the corresponding end-of-life (EOL) emissions by over 16 megatons.
It is also believed that ridesharing can have a positive impact on the entire automotive industry. While there might be fewer cars on the road, the amount of mileage will increase.
Autonomous self-driving vehicles are expected to be used for ridesharing purposes. In Yokohama, Nissan is expected to run a pilot program for Easy Ride, a mobility service brand created in collaboration with DeNA Co., Ltd.
Though Uber and Lyftshare are market giants, they are not acknowledged for the analysis since they offer taxi and ridesharing services in multiple cities, also their drivers work for a profit, unlike traditional ridesharing.
However, the security of self-driving cars would be a significant obstacle, mainly because the technology would be of extraordinary interest to hackers.
Scope of the Report
Ridesharing is an arrangement where the passengers travel in a paid vehicle (two wheelers or four wheelers)which could be free also, according to the organization app or website. They are mostly booked online, over the internet.
By Service Type
Rest of the World
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Key Market Trends
Advent of Driverless Cars to Change the Market Scenario
Although self-driving cars were in science fiction a few years ago, today the demand for connected cars is swiftly evolving the technology. However, several car companies are looking into the technology, with Tesla leading the way. Autonomous self-driving vehicles are expected to be used for ridesharing purposes.
The pilot program will use modified Nissan Leaf electric vehicles and be accessible to voluntary participants who sign up for the field inspections ahead of time. Similarly, Waymo already has driverless cars picking up passengers, while General Motors plans to roll out its service in 2019, and Ford indicates that it will have a self-driving fleet ready for ridesharing, by 2021.
Since these services are all done over the internet there is a concern for the security for all the vital information which is all handled by the computer systems and the data goes over the cloud which is vulnerable for the hackers.
However, with technological advancements and advances in cybersecurity for cars, such obstacles can be overcome very efficiently. Since there is cryptography, multi-step verification, high advancements in apps and website's security, which can further push the market in the forecast period.
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North America to Account for Significant Market Share
North America holds the largest market in this segment whereas The United States holds the largest penetration rate for ridesharing behind China. It was estimated that around 15 million US adults used a ride-sharing service or other sharing economy transportation service, a 20.5% improvement over the last year.
Following this massive demand in the region, European ride-sharing company Carpooling entered the US market in 2014, offering people a way to share rides for road trips that average 125 miles.
Traditional automakers based out of the region have also begun investing in the ridesharing mix. Ford acquired Chariot, a private urban mass-transit company, in September 2016, to enter the ridesharing market, Ford has chosen 2021 for when it will have a self-driving fleet specifically for ridesharing.
Instead of hailing taxis, passengers that use ride-sharing services for carpooling may lead to reduced traffic congestion, pollution, and fuel use, which could lead to increased demand in the region.
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The major players include Didi, Blablavars, Zimride, Carpool, Grab, Liftshare, among others. The market is fragmented as there is high competition in the market among major players since this market is booming there are more entrants in the market creating more competition with their various unique services, on the other hand, the major players are trying to increase their users. Therefore, the market concentration will be low.
February 2018 - Ford’s chariot ride-sharing vans were expected to be launched in London. Around 14 specially-branded transit buses, capable of seating 15 passengers at a time, will run four services across South London.
February 2018 - Nissan and Hytch partnered to launch a new app called Hytch Rewards, to promote ridesharing in Tennessee. The app will be able to track route details and pay drivers and passengers, to ride together. The goal is to reduce traffic and explore future mobility solutions.