Ride-Hailing Market to Surpass $54.4 billion with at 13.0% CAGR by 2024

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The arrival of shared mobility companies, such as Uber, Ola, and Meru Cabs, has definitely made life easier for the urban resident. People no longer need to own a vehicle and spend ridiculous amounts on their maintenance every year; they can simply download the mobile app of the company and call a cab wherever they are, to go wherever they want. Travelers are usually charged on the type of vehicle rented and duration or distance of the trip.


The convenience these services offer people is a key reason cited by P&S Intelligence for the growth of the ride-hailing market to $120.2 billion by 2024 from $50.4 billion in 2018, at a 13.0% CAGR between 2019 and 2024. Apart from buying a vehicle, even maintaining it is becoming costly with the increasing prices of fuel, insurance premiums, registration and licensing services, and parking services. Therefore, many people, especially the youth in cities, are shifting their focus from owning one to renting one.

Now, despite the fact that ride-hailing services can help curb air pollution to some extent by reducing the number of vehicles on the roads, most of the cars deployed by companies are still driven by diesel or petrol (gasoline). Thus, ride-hailing companies are partnering with automakers to replace conventional cars with electric cars, encouraged by the strong government support for the latter. For instance, in 2019, plans to induct different types of EVs in Ola’s Indian fleet by 2021 were announced by Hyundai Motor Company.

Due to such initiatives by governments and service providers, the ride-hailing market of Asia-Pacific (APAC) has been the largest till now. The growing urban population of India, China, Vietnam, and Indonesia is propelling the demand for a cost-effective means of commute. In addition, with fuel and car maintenance services becoming increasingly expensive, it is becoming infeasible for many to own a car, which is why they are availing of such services instead. Further, the boom in the popularity of such services in the region can be owed to the increasing availability of the internet and penetration of smartphones.

Hence, with the surging need for cost-effective urban transportation, especially among young people, ride-hailing companies can hope to make big business.

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