Ride Sharing Market Size By Business Model (P2P, B2C, B2B), By Vehicle Type (ICE, CNG/LPG, Electric), COVID-19 Impact Analysis, Regional Outlook, Application Potential, Price Trend, Competitive Market Share & Forecast, 2020 – 2026

Ride Sharing Market Size

Ride Sharing Market size exceeded USD 34 billion in 2019 and is anticipated to grow at over 6.5% CAGR between 2020 and 2026. Stringent vehicle emission regulations implemented by government authorities across the globe are increasing the adoption of shared mobility solutions for routine commute.
 

Growing safety concerns related to the usage of public transport facilities among commuters are fueling the rideshare services demand. Overcrowded public transport facilities including subways and buses cause high level of discomfort while travelling. These facilities also pose a risk of spreading of infections and viral diseases.
 

Significant increase in ownership of private cars coupled with insufficient network of roads in populated cities has led to a rapid increase in traffic congestion. According to the industry update by the Federal Highway Administration, congestion on roads takes up more than 37% of the travel time of daily commuters in the U.S. High traffic congestion in cities has increased the overall travel time by an average of 3.5 hours over the last 20 years. Shifting preference toward reducing the daily travel time is driving the ride sharing industry statistics.
 

The major factor hampering the market growth is the limited availability of technology and supportive infrastructure. The unavailability of convenient parking spots and pick-up & drop locations for cars in densely populated cities is challenging the wide adoption of carpooling services. One of the major barriers of entry for new market players is the high investment required to develop a technological support in terms of mobile applications and location tracking.
 

The rapidly spreading COVID-19 pandemic is adversely impacted the ride sharing industry. Social distancing norms and regulations implemented by government and healthcare authorities encourage citizens to maintain a two-meter distance from other persons for safety. This has restricted the usage of ride sharing services for daily commute. Users prefer to travel in their own vehicles due to health and safety concerns, hampering the market size in 2020. The impact of this industry challenge is expected to reduce impelled by the increasing sanitization and safety measures undertaken by companies.
 

Ride Sharing Market Analysis

The P2P ride sharing market is poised to register growth rate of around 7.5% through 2026. The demand for shared mobility services on a very short notice for commute to the desired location is increasing the adoption of P2P carpooling services. This business model allows users to contact drivers in their vicinity through GPS and location services.
 

Electric cars segment held about 3% of the revenue share in 2019. Electric cars are witnessing a growing demand owing to rising vehicular emission concerns. Companies are focusing on minimizing the carbon footprint of their business operations by adding electric cars to their fleet. Shifting consumer preference toward using sustainable mobility solutions for routine commute is further boosting the market revenue.
 

Industry leaders are collaborating with automobile manufacturers to expand their fleet of electric cars for rideshare purposes. For instance, in September 2020, Uber partnered with Volkswagen to add more electric cars to its ride hailing and sharing services in Europe. Through this partnership, Uber will add new e-Golf cars to its carpooling fleet in Germany. The company aims to offer 100% of its rides in electric cars by 2030 in major North American and European countries.
 

The North America ride sharing market crossed USD 4.5 billion in 2019 and is set to observe high growth through 2026. The continuous improvement in industry can be attributed to the increasing inclination of residents of the U.S. and Canada toward reducing environmental pollution. Market trends emphasize the growing tendency of commuters in these countries to reduce their dependency on fossil fuels for daily transport requirements.
 

The establishment of stringent emission regulations by authorities, such as the Environment Protection Agency (EPA), is further augmenting the regional market size. The EPA offers several carpool incentives programs to encourage individual commuters to use carpooling services for day-to-day transport. It also offers tax benefits to corporate players, encouraging their employees to use carpooling services for their commute to work.
 

Ride Sharing Market Share

Key players operating in the ride sharing market include :

• Bla Bla Cars
• Uber
• Ola
• Careem
• Lyft
• Grab
• Via
• Scoop
• sRide
• ZIFY SAS
• Quick Ride
•  DiDi Chuxing
   

The major industry participants are focusing on acquisition of small players to increase their shares and revenues. Small companies are emphasizing on raising capital to increase their business operations.
 

This market research report on ride sharing includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2020 to 2026 for the following segments:

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Market, By Business Model

• P2P
• B2B
• B2C

Market, By Vehicle Type

• ICE
• CNG/LPG
• Electric
• Others

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
• Latin America
  • Brazil
  • Mexico
• MEA
  • UAE
  • Saudi Arabia
  • South Africa