Ride-hailing And Taxi Market (2022 - 2028) Size, Share & Trends Analysis Report By Type (Ride-hailing, Taxi), By Distribution Channel, By Region, and Segment Forecasts

Ride‑hailing & Taxi Market Summary

Ride-hailing services are especially gaining more popularity pertaining to the factors such as convenience to pay, tariff transparency, the known identity of the driver via the app, and door-to-door service. Moreover, the increase in the urban population due to the migration from rural areas for employment purposes leads to the increasing traffic congestion and lack of parking space. These factors are facilitating consumer inclination towards opting for ride-hailing and taxis made of transportation, contributing to the market growth during the forecast years.

The market growth is restrained due to environmental issues and complex regulations globally. Due to the drastic increase in ride-hailing and taxi ridership, an equivalent increase in carbon emission and air pollution has been noted in the large metro cities around the world, which negatively impacts the growth. The Market penetration in various regions is limited due to the complex regulations and governance.

COVID-19 pandemic outbreak impacted negatively the growth of the market during 2020, decreasing ridership and passenger revenues. The change in preference of commuters using taxi and ride-hailing options were comprehensive, shifting towards private cars and two-wheelers in the short term. However, over the long term, the market is expected to recover and witness healthy growth during the forecast period.  

Type Insights

The global market of ride-hailing & taxis was dominated by the taxi segment by type in 2021. The taxi segment accounted for over 75% of the market revenue share in 2021. Taxi services plays important role in public transportation which can be booked via phone as well as the taxi app. Compared to ride-hailing services, taxi services have been operating in the market for a long time in the global market. Additionally, many taxi operators coupled with the widespread availability of taxi services across the world is credited for the higher market share in the global market. However, the taxi market is disrupting due to the increasing popularity of the ride-hailing model.

In the global market, the ride-hailing segment by type is anticipated to witness robust growth. The segment is projected to register a CAGR of 17% from 2022 to 2028 in the global market. The emergence of new technology and market players in the local market are expanding the consumer base at the local level and facilitating the growth of the market at the global level. The increasing affordability of smartphones and internet penetration are rising the dependency on digital solutions across various industries, including ride-hailing services. The rising share of the millennials and generation z among the consumer group is shifting the overall consumer statistics from traditional services to ride-hailing, fueling the global market growth.

Distribution Channel Insights

In the global market, an offline segment based on distribution channels accounted for the highest market revenue share. The offline segment accounted for around 60% of the market revenue share in 2021. Many operators offering offline channels for booking a ride and consumer behavior are attributed to the higher market share of the segment in the global market. Offline channels have been widely used for booking a ride with transportation network companies and taxi companies by phone or travel agents.

The online distribution channel is projected to witness significant growth during the forecast years . In the global market, the online segment is anticipated to register a CAGR of 13.1% from 2022 to 2028. The rising popularity of the transportation model and growing use of app-based travel catapulted by the increasing affordability of the smartphone and internet services are driving the segmental growth during the forecast period. Furthermore, the shift in the demography of the consumer base, with an increasing share of millennials and generation z, is likely to influence the global market, fueling online channel growth.

Regional Insights

The Asia Pacific accounted for the highest market revenue share in 2021. Asia Pacific market revenue share in the global market stood at over 55% in 2021. This large market share is credited to the fact that 60% of the world population resides in the region, notably contributed by the high population in India and China. and makes the region with the highest working population in the world. Moreover, on-demand transportation ridership in the region including, ride-hailing and taxis, has been booming and occupies a large chunk of the global share. Due to the economic growth, new metro cities are emerging in the region with a dense population that contributes to the regional market significantly.

Central and South America is expected to witness strong growth during the forecast period in the market. CSA is anticipated to register a CAGR of 11.6% from 2022 to 2028, ranking 2^nd in the market. Increasing consumer demand in Brazil, Colombia, and Mexico is driving the regional market growth. Additionally, market growth is also driven by the increasing smartphone connections and internet service in the region. Moreover, various companies are expanding their footprint including Uber, Beat, Cabify, and DiDI in other countries across the region propelling the market growth. For instance, DiDi announced in June 2019, that it is planning to double its presence in the region with expansions in Chile and Colombia.

Key Companies & Market Share Insights

The market share is segregated into large, and SME market players, and is highly consolidated in nature. Market players are focusing on expanding to the new geographical area and increasing the consumer base. For instance, Bolt, Estonian on-demand transport firm, plans to introduce electric taxi options in South Africa, as published in October 2021. Also, various players are now offering ride share and ride pool services reducing the ride cost, to attract new consumers. Some prominent players in the global ride-hailing and taxi market include

• Uber Technologies Inc.

• Lyft Inc.

• Didi Chuxing Technology Co.

• Ola Cabs

• Bolt Technology OÜ

• Grab Holdings Inc.

• Gett

• Yandex N.V.

• Cabify España S.L.U.

• Meituan Inc.

Ride-hailing And Taxi Market Report Scope 

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2028. For this study, Grand View Research has segmented the global ride-hailing and taxi market report based on type, distribution channel, and region.

• Type Outlook (Revenue, USD Million, 2017 - 2028)

  • Ride-hailing

  • Taxi

• Distribution Channel Outlook (Revenue, USD Million, 2017 - 2028)

  • Online

  • Offline

• Regional Outlook (Revenue, USD Million, 2017 - 2028)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • Saudi Arabia

    • South Africa