Ride Sharing Market

The global ridesharing market to be worth more than USD 356.12 billion by 2033.

The ongoing proliferation demand for carpool and bike pool services coupled with growing disposable income in developing regions is predicted to support ridesharing market growth enormously. The analysis has represented vast opportunities in Asia- pacific region. Along with the rise in disposable income, consumer interest is also inclining towards affordable and comfortable rides. The growing preference for not owning a private vehicle propels more demand for the ridesharing market. Major companies in the ridesharing market, such as Lyft, Uber, and BlaBlaCar, are meeting the growing demands of consumers.

Another Triggering factor for ride-sharing market growth lies in the fact that ridesharing offers the freedom of not owning a vehicle but still being able to commute at affordable prices that can align with current demands. Safety concerns and no clarity on rules and regulations can hinder market growth. For instance, the U.S. released a safety report of Uber cases between 2017-18. During the period, there were 5,981 sexual assault cases, 19 fatal assaults and 107 people died in crashes. The only way to overcome this hurdle is if companies themselves take initiatives to assure passenger safety. For instance, in September 2018, Ola rolled out a real-time customer ride-monitoring system called Ola Guardian to enhance ride safety. This is a part of Ola's national safety Programme, Street Safe. If these safety and regulatory issues are left undealt, they will hamper the growth of the ridesharing market. The increasing market demand for ridesharing is a collective outcome of consumers not committing to a permanent job and willingness to not purchase a vehicle. According to American Automobile Association (AAA), the average annual cost of owning and operating an automobile in 2022 is $10,729 compared to $9,666 in 2021. Consumer focus has shifted to ridesharing services instead of owning a vehicle. The ridesharing market is propelling due to such consumer patterns and is promising a higher growth rate in the forecast period.

The companies operating within the ridesharing industry are undergoing mergers, collaboration, acquisitions, long-term contracts, and service agreements to increase their global footprint. For instance, in July 2021, Lyft, Argo AI, and Ford Motor Company launched autonomous ridesharing services in Miami and the United States, fulfilling a joint commitment to deploy Ford's autonomous vehicles powered by the Argo Self-Driving System on Lyft's ridesharing network. Lyft, Argo AI, and Ford Motor Company are working in tandem to commercialize autonomous ride-hailing. The exclusive collaboration merges all the parts essential to fashion a feasible autonomous ride-hailing service, including the self-driving technology, vehicle fleet, and transportation network required to sustain a scalable business and deliver an incomparable experience for riders. Argo AI and Ford deployed Ford self-driving cars, with safety drivers, on the Lyft network, as part of a network access agreement, with passenger rides that began in Miami in late 2020 and commenced in Austin in 2022. As vehicles were deployed, Lyft users within the defined service areas could select a Ford self-driving vehicle to hail a ride. This preliminary deployment phase laid the groundwork for scaling operations, as the parties are now occupied with concluding agreements aiming to deploy at least 1,000 autonomous vehicles on the Lyft network across multiple markets over the next five years.

According to the CXOs and primary research conducted, the rise in disposable income and the growing influence of safer and more comfortable rides in developing or developed regions would aggressively impact ridesharing market growth. The trend of not owning a vehicle would trigger the consumer to invest more of their disposable income toward ridesharing services. Established ridesharing companies are making autonomous rides their unique selling point.

The ridesharing market is analyzed across North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa. In line with the analyzed region, the Asia-pacific region will witness the highest market growth, followed by Europe, Asia-Pacific, Latin America, and Middle East & Africa. Quick adoption of new demands, the influence of not owning a vehicle, the rise in disposable income, and the presence of major industry players within the region are primary factors supporting market potential within the Asia- Pacific region. The major companies operating within the market are ANI Technologies Pvt. Ltd., BlaBlaCar, Beijing Xiaoju Technology Co, Ltd., Car2go Group GmbH, Cabify Espana S.L.U., Gett, Lyft, Inc., Uber Technologies Inc., Yandex, and Zimride.

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