Ride Sharing Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

Ridesharing Market Analysis

The Global Ridesharing Market size is estimated at USD 47.57 billion in 2024, and is expected to reach USD 81.78 billion by 2029, growing at a CAGR of 11.45% during the forecast period (2024-2029).

Several factors drive the growth of the ride sharing market, such as rising vehicle ownership costs, environmental concerns prompting a reduction in traffic, and government regulations advocating for ride sharing. These factors are critical drivers of the global surge in ride sharing adoption. These services are favored for their cost-effectiveness and are also anticipated to outpace affordable car ownership.

• Over the past decade, ride sharing has emerged as a global trend, with many individuals opting for it over conventional taxi services. Typically, ride sharing firms utilize GPS tracking to connect potential passengers with drivers via mobile applications or websites. Ride sharing companies can bypass standard licensing and regulatory mandates, unlike traditional taxi services. Factors such as declining car ownership, increasing internet and smartphone penetration, and stringent CO2 reduction targets collectively drive the rising demand for ride sharing services.
• The rise in the number of people commuting to work also propels the demand for ride sharing services. For instance, according to the US Census Bureau, almost 140 million people in the United States routinely commuted to work in 2022. Further, according to Move in Sync, the Employee Commute India 2023 report stated that Mumbai led the way in employee returns to the office, surpassing pre-pandemic levels in December 2022. Following Mumbai, the National Capital Region (NCR) saw a return rate of 92%, Bangalore at 85%, and Hyderabad at 81%. Such a huge number of people commuting and returning to offices would drive the market's growth.
• Globally, the surge in smart device adoption encompassing smartphones and smart wearables coupled with heightened internet data usage has catalyzed the growth of ride sharing services. Accessing ride transport services hinges on internet connectivity. Users leverage internet-enabled smartphone applications to gather information and navigate their rides. V2V communication, navigation, and telematics rely on this connectivity for optimal performance. Smartphone applications bolster security, offering features like driver's name, number, photograph, vehicle identification, route tracing, and historical ride records.
• There is an increase in the number of service providers and application vendors operating in prominent markets, thus creating a competitive space where vendors are forced to offer benefits to consumers at a loss that may not be sustainable over a long period. Once the service provider switches the business plan to turn toward profitability by increasing the prices of the services offered, consumers may switch to newer players offering similar services at competitive prices. Such scenarios are challenging the growth of service providers.
• During robust economic growth, rising disposable incomes often boost ride sharing demand, with individuals more inclined to pay for convenience. Conversely, high employment rates can tighten the supply of drivers, as fewer individuals are available or willing to participate in ridesharing. For multinational ride sharing firms, fluctuating exchange rates can sway profitability. Pricing strategies across diverse markets are crucial in shaping demand, especially if unfavorable currency shifts lead to price hikes.

Ridesharing Market Trends

App-based Services Hold Major Market Share

Ridesharing Industry Segmentation

A ride sharing company, also known as a ride-hailing service, matches passengers with drivers of app-taxis or e-taxis through websites and mobile apps, unlike taxis that can be hailed from a street.

The ride sharing market is defined based on the membership count and overall revenues acquired by the pure-play ride sharing companies that provide different types of services, such as fixed long-distance ridesharing, dynamic (short-distance) ridesharing, and corporate ridesharing. The market scope excludes companies like Uber, Lyft, and Grab (among others) that primarily specialize in providing ride-hailing services, as their key business objective and nature of the engagement between rider and customer is fundamentally different from that of ride-sharing vendors. Additionally, the scope does not include local and informal carpool programs that operate at a very limited scale owing to a lack of credible information on their operations. The analysis is based on the market insights captured through secondary research and the primaries. The market also covers major factors impacting the growth of the market in terms of drivers and restraints.

The ride sharing market is segmented by membership type (fixed ridesharing, dynamic ridesharing, and corporate ridesharing), by service type (web-based, app-based, and web & app-based), and by geography (North America, Europe, Asia Pacific, and the rest of the World). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.