DUBLIN--(BUSINESS WIRE)--The "Global Ridesharing Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" report has been added to ResearchAndMarkets.com's offering.
The global ridesharing market was valued at 21.42 billion in 2020 and is expected to reach USD 61.24 billion by 2026, registering a CAGR of 17.32% during the period of 2021-2026.
The increase in demand for cost-saving and time-saving transport will drive the market. The increasing cost of vehicle ownership, the need to reduce traffic for environmental concerns, and government regulations promoting ridesharing options are major factors driving the adoption of ridesharing services across the world.
Key Highlights
- American startups, like Waze, Carma, eRideShare, and CarpoolWorld, are confident that digital networks and smartphones will drive the ridesharing market. Like carpooling, trends are also starting to catch on in Europe; French BlaBlaCar already has 40 million members worldwide. In the United Kingdom, more than 500,000 people are using Liftshare. Traffic is another factor that will fuel the need for ridesharing services. For instance, an average commute in Los Angeles takes 53.68 minutes. In Europe, Britons face the longest commute of up to 45 minutes. Therefore, many governments are also promoting ridesharing platforms. San Francisco's Bay Area Rapid Transit system (BART) launched a new program to encourage carpooling.
- The recent COVID-19 pandemic has shifted consumer interest from ride-hailing services to car rental and own car trends. This is expected to bring some of these customers toward ridesharing services, as the customer mostly verifies the driver in these services. The vendors of longer-term vehicle subscriptions and rentals for the premium vehicles are witnessing Growth due to this. For instance, an Indian self-drive car rental company, ZoomCar, expects to witness a significant spike in demand for personal mobility post lockdown and prepare for a 3-4 x jump in demand. These trends are also likely to shift users from ride-hailing to ridesharing services.
- In regions such as Asia-Pacific and Latin America, due to bad public transport systems and with increasing populations and business operations, the demand for affordable and effective mobility is significantly growing. Regions like Southeast Asia have witnessed a dramatic increase in their ridesharing market in the past 2-3 years. Many global vendors have taken advantage of the surge in popularity of ridesharing services in the region and are increasingly expanding their presence in the region.
- These trends are further growing the ridesharing app, which is becoming the base for smart transportation in the region. According to the Dalia survey, 45% of the region's population with a smartphone living in urban areas has utilized a ridesharing app or site, with Mexico taking the top position at 58%.
Key Market Trends
COVID-19 Has Posed Significant Threat to the Market
- Due to the recent COVID -19 outbreak, both ride-hailing and ridesharing have witnessed massive declines in demand. However, many believe that the ridesharing market can emerge again, as many people are now shifting to personal cars.
- This factor may boost ridesharing services, like fixed ridesharing and corporate ridesharing. According to the recent global survey conducted by Cars.com in mid-March 2020, over 40 % of the respondents had stopped using ridesharing and hailing services to reduce the odds of catching the contagious virus. Over 90% said that they had started using their cars, and 20 % of the respondents had already started looking at investing in buying a new vehicle.
- Many governments are also declining ridesharing and hailing services to control pollution levels. According to a study by the Harvard University's T. H . Chan School of Public Health, cities with higher air pollution levels (PM 2.5) are more susceptible to COVID-19. Similarly, as per the European Public Health Alliance (EPHA), air pollution can increase the impact of COVID-19.
- In April 2020, the Centers for Disease Control and Prevention issued new guidelines for rideshare drivers and other driving occupations (taxis, limousines, etc.). CarGurus's recent COVID -19 sentiment study shows that car sales are unlikely to be affected by the pandemic in the long term. Around 79% of respondents had to delay their car purchases as a result of the pandemic. Meanwhile, 39% reported that they would reduce their ride-hailing service consumption or stop using them entirely.
Europe to Account for Significant Market Share
- Urbanization has been creating pressure on the urban transportation systems that tend to affect the population's quality of life. The reduced mobility options, coupled with inadequate transportation infrastructure, increasing congestion, pollution, and traffic safety problems, are a few crucial problems that need a systematic approach to be resolved.??
- Car ownership in the EU-28 area increased considerably between 2000 and 2019, growing from 411 cars per thousand inhabitants to more than 516. However, the industry is now expected to reduce its carbon emissions in line with the Paris Agreement. Many European cities, for example, have adopted low-emission zones.
Companies Mentioned
- Zimride Inc.
- Kangaride Canada Co.
- CarpoolWorld (Datasphere Corporation)
- Via Transportation Inc.
- SPLT (Bosch)
- Scoop Technologies Inc.
- BlaBlaCar (Comuto SA)
- GoMore ApS
- Klaxit SAS (formerly Wayzup)
- Flinc GmbH (Daimler Mobility Services)
- WunderCar Mobility Solutions GmbH
- Didi Chuxing Technology Co.
For more information about this report visit https://www.researchandmarkets.com/r/ub3ldu
