GVR Report cover Ride Hailing Services Market Size, Share & Trends Report

Ride Hailing Services Market Size, Share & Trends Analysis Report By Offering (E-hailing, Car Sharing, Rental), By Region, And Segment Forecasts, 2019 - 2025

  • Report ID: GVR-3-68038-175-7
  • Number of Pages: 80
  • Format: Electronic (PDF)

Report Overview

The global ride hailing services market size was valued at USD 34.45 billion in 2018. The growing urban population in developing economies including China and India is expected to remain a favorable factor. Mobility-as-a-Service (MaaS) is inspired by the anticipation of self-driving cars, which are expected to reduce the price of ride hailing services significantly. Furthermore, the financing activity for owning a car has been made easier and cheaper by reducing the rate of interest by banks and lenders. Organizations are innovating the services by hiring fleets of automated vehicles for ensuring better passenger safety and comfort.

Ride Hailing Services Market size, by offering

Rising preference for carpool and bike pool services among regular office commuters is anticipated to create growth opportunities for the market. These services have proved to be beneficial for commuters as they can cut their expense pertaining to gas and parking by more than 50%. The service allows the riders to travel with comfort at discounted prices. Pooling can improve air quality by reducing the number of cars and traffic on the road. In Europe, Germany has the highest rate of adoption of carpooling, and it is followed by France.

Customers can a hatchback, sedan, and SUV amongst others. Ride hailing enables them in outrunning the conventional public transportation services. Furthermore, these services allow them to choose a convenient pick-up and drop locations. Some of the services such as Ola and Uber also facilitate real-time vehicle tracking, sharing it with one’s kin and friends, feedback, and rating system. The availability of multiple service providers has given customers an edge as it gives them a chance to compare the service and rates. A recent study by the University of Pennsylvania highlighted that the expansion of ride hailing services has reduced the instances of drunk driving, which makes these vehicles a safer option.

Another important factor driving the ride hailing services market is the shifting preference of the masses from driving a car to being driven. Rise in demand for luxury car services at affordable prices, especially among millennials is anticipated to create growth opportunities for the market. Majority of millennials avoid buying cars, saving the ownership, maintenance, and fuel costs along with road tax. Increasing use of public transport is reducing traffic congestions and is proving beneficial for the environment. A common trend that has been noticed in countries including India, China, and Australia is the payment made by digital mode owing to the convenience it offers to both drivers as well as passengers.

Another major factor positively influencing the growth is the increasing use of digital money. With governments across the globe focusing on digital payments, ride hailing services have evolved as the medium of public transport that support the cause. These companies accept payment by digital wallet, unified payment interface, net banking, and various other e-payment methods. In India, the demonetization in November 2016 offered a leverage to the companies operating in the country. They became the first choice of people for travelling owing to the convenience of payment. Post demonetization, the industry saw three times increase in the demand for the services.

Ride Hailing Services Market Trends

The rising population has led to problems such as increased traffic congestion, lack of appropriate public transportation modes, and longer wait times for public transportation services. As a result, the demand for ridehailing services is attracting more travelers as it provides faster services and offers-on-demand services. Increased fuel prices, increased vehicle maintenance, and the adoption of strict emission norms effectively make ridehailing less expensive than owning a vehicle. This is expected to drive market growth during the forecast period.

People who cannot afford a car are able to enjoy smooth travel by using mobility services. It reduces traffic congestion and overall vehicle pollution in cities. Digitally enabled carsharing and ridehailing efficiently manage transport demands as well as provide convenient and environmentally friendly rides. This is handled through a single smartphone application, which is anticipated to generate a lucrative opportunity for the market during the forecast period.

Developing economies, such as Eritrea, Chad, Somalia, Burundi, and others lack proper internet connectivity which limits the market for ridehailing services. To hail a trip, the driver needs to have a smartphone with GPS (Global Positioning System) and an active and fast internet connection in order to determine the exact pickup and dropoff locations of passengers. As a result, the market's global expansion is hampered by poor internet connectivity.

Offering Insights

E-hailing was the largest segment, with a market share of more than 50% in 2018. The growth is attributed to user-friendliness and convenience these services offer. These services have made travelling around in new cities easier by offering them trained drivers using reliable maps for navigation. Along with this, the app related algorithms make price estimation for a ride easier, which reduces the chances of being cheated by a driver. Also, the convenience of hiring a cab by a single tap on mobile is expected to continue the growth in the upcoming years.

Ride Hailing Services Market size, by offering

The revenue from rental services is expected to witness the fastest CAGR of 13.8% from 2019 to 2025. Increasing awareness regarding self-driving rental services in emerging economies including China and India as it allows freedom of movement and comfort, is expected to have positive impact. The perks, such as control over route, time, and comfort encourages consumers to opt for rental services. Although the price is higher than mass transportation, they help consumers save the money required for owning a car. This factor is expected to further drive the market.

Regional Insights

North America accounted for a market share of more than 35% in terms of revenue in 2018. This is attributed to the fact that most companies operating in the industry were incorporated in U.S. High demand for public transportation in cities like New York, Chicago, San Francisco, Seattle, Utah, Burllington, Dallas, Boulder, and Portland among others is prompting the market growth. The fast-paced life and growing population have created a need for quick, easy, all-time accessible modes of transport.

Ride Hailing Services Market Trends by Region

Asia Pacific is expected to witness the fastest CAGR of 13.9% from 2019 to 2025. The growing population of cities such as Delhi, Bangalore, Mumbai, Beijing, Shanghai, and Tokyo among others is driving the need for these services. Moreover, companies in these regions are finding immense support from the regional or provincial governments of the countries including India, Bangladesh, China, Japan, and Sri Lanka. The developing economy, increasing need for job opportunities, and efforts toward creating business-friendly environment have led to this kind of support in the region.

Key Companies & Market Share Insights

Some of the key players operating in the market include Uber, Lyft, Via, Juno, Xoox, Wheely, ViaVan, My Taxi, Gett, Addison Lee, Ola, Kabbee, BlaBlaCar, Lyft, Grab, Didi Chuxing, and Yandex.taxi to name a few. As the ride hailing services require a huge workforce of trained drivers, the industry is getting support from the governments of developing nations including China and India. Further, the companies coming up with service innovation for maximum comfort of commuters is expected to boost the market.

Recent Developments

  • In December 2021, Uber introduced a new technology for booking a ride. The feature allows users to schedule an Uber ride through WhatsApp chatbot. The Uber application will no longer be required to be downloaded or used by riders. The WhatsApp chat interface will be useful for managing user registration, booking a ride, and receiving a travel receipt

  • In July 2021, Argo and Ford decided to launch self-driving vehicles on Lyft’s ridehailing application. Over the next 5years, Argo AI, an autonomous vehicle technology startup, and Ford- its sponsor, and customer intend to roll out almost 1,000 self-driving vehicles on Lyft's ride-hailing network in a variety of locations. Ford’s first self-driving vehicle incorporating Argo's autonomous vehicle technology will be readily available on Lyft's application in Miami

Ride Hailing Services Market Report Scope

Report Attribute


Revenue forecast in 2025

USD 82.37 billion

Growth rate

CAGR of 12.8% from 2019 to 2025

Base year for estimation


Historical data

2015 - 2017

Forecast period

2019 - 2025

Quantitative units

Revenue in USD billion and CAGR from 2019 to 2025

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Offering, Region

Regional scope

North America, Europe, Asia Pacific, Central & South America, Middle East & Africa

Country scope

U.S.; U.K.; Germany; China; India; Brazil; U.A.E.

Key companies profiled

Uber, Lyft, Via, Juno, Xoox, Wheely, ViaVan, My Taxi, Gett, Addison Lee, Ola, Kabbee, BlaBlaCar, Lyft, Grab, Didi Chuxing,  Yandex.taxi

Customization scope

Free report customization (equivalent to up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.

Pricing and purchase options

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Ride Hailing Services Market Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2015 to 2025. For the purpose of this study, Grand View Research has segmented the global ride hailing services market on the basis of offering and region.

Ride Hailing Services Market Segmentation

  • Offering Outlook (Revenue, USD Million; 2019 - 2025)

    • E-hailing

    • Car Sharing

    • Rental

  • Regional Outlook (Revenue, USD Million; 2019 -2025)

    • North America

      • The U.S.

    • Europe

      • Germany

      • The U.K.

    • Asia Pacific

      • China

      • India

    • Central & South America

      • Brazil

    • Middle East & Africa

      • U.A.E.

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