Ride Sharing Market Size, Share & Trends Analysis Report By Business Model (P2P, B2B, B2C), By Commute Type (Corporate, Short Distance), By Application, By Region, And Segment Forecasts, 2019 - 2025

Industry Insights

The global ride sharing market size was valued at USD 6.68 billion in 2017. It is projected to expand at a CAGR of 7.5% over the forecast period. The need to reduce urban traffic congestion and demand for cost-effective mode of commute with better comfort are the key factors driving the growth.

Increasing penetration of smart devices, such as smartphones, tablets, and others is projected to drive the market. In the ride sharing business model, smart personal devices hold the most significant as the platforms on which the apps are installed.

Penetration of personal smart devices has increased in many developing countries in the last few years. The adoption of smart phones in countries such as India and China has witness tremendous growth over the last few years and has helped fuel growth of ride sharing and ride hailing market.

Increasing domination of Android supported devices over iOS supporting devices has also helped these platforms to reach new customer base, as these platforms have automatic payment gateway services, which iOS supported devices do not support.

Many ride sharing platforms endorsing such direct online payments are available only on Android devices, hence the growing reach of Android devices to new customer base has worked effectively for ride sharing platforms.

Business Model Insights

The Business-to-Business (B2B) segment was valued at USD 2.40 billion in 2017 and is anticipated to expand at a steady CAGR over the forecast period. However, Peer-to-Peer (P2P) is expected to be the most promising application segments over the forecast period.

Introduction of newer platforms for ride sharing between peers have significantly extended the reach of the idea of shared commute among regular commuters. Increased penetration of smartphones and consumer awareness regarding hazardous environmental impact of rise in emissions have greatly promoted shared commute as a feasible substitute to private commute.

The Business-to-Consumer (B2C) segment is anticipated to continue leading the ride sharing market over the forecast period. The P2P business model segment is anticipated to be the fastest growing segment amid an increasing number of startups venturing in platforms enabling peer-to-peer ride sharing.

The P2P business model engages vehicle owner and commuter through a mobile app enabling a ride sharing, while accepting online payments from the commuters. Although the business-to-business segment is anticipated to lose its share to business-to-consumer and peer-to-peer models, it is projected to register strong CAGR of 6.3% over the forecast period.

Commute Type Insights

The short distance commute segment is expected to expand at a CAGR of 8.9% from 2018 to 2025. This type of commute provides daily commuters with an excellent alternative to private vehicles.

Short distance and corporate commute are projected to hold the majority of market share. However, the short distance type is anticipated to lead during the forecast period, attributed to the increase in the trend of ride hailing platform providers venturing in these services through their existing platforms. This type of service allows commuters to choose between ride hailing and ride sharing. This convenience is anticipated to contribute largely to the segment growth over the forecast period.

The long distance commute segment is expected to have good growth potential. This type of commute is in nascent stage, but is gaining acceptance amid the extended adoption of various ride sharing platforms by end users. The adoption of long distance commute type is expected to register significant growth as more and more users connect through various popular platforms.

Regional Insights

North America led with the U.S. holding around 94.0% of the regional market share in 2017. However Asia is anticipated to surpass North America during the forecast period. Uber and Lyft are the major platforms operating in the region. While Uber holds the majority market share, Lyft has successfully gained significant regional share.

Asian is a potential market for ride sharing platforms with a large number of rapidly developing cities and towns. The region is home to the two largest countries in terms of population - China and India. China is already dominating the ride hailing market and is anticipated to witness rapid growth in ride sharing over the forecast period. India has witnessed good growth in the last few years, but the industry has not yet exploited the country’s potential to the fullest.

Europe is also not yet fully operational with countries such as Germany still displaying reluctance to adapt the concept. Developed countries such as the U.K. and France have enthusiastically adopted four-wheeler and bike sharing platforms over the last decade.

South East Asia is another prominent market with the ASEAN nations being home to many fast developing economies such as Indonesia and Thailand. Australia has shown good growth in the last few years and is anticipated to continue over the forecast period.

Latin America and Mexico are yet in nascent stage. The flourishing Mexican automotive industry is anticipated to benefit from shared commuting and ride hailing platforms during the forecast period.

Ride Sharing Market Share Insights

Key players include Uber, Didi Chuxing, and GRAB. This is mainly on account of diversified customer base and enhanced regional reach through various acquisitions and mergers along with other business agreements. Other prominent platform providers include OLA, Gett, and Lyft among others.

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 2016 to 2025. For the purpose of this study, Grand View Research has segmented the global ride sharing market report on the basis of business model, commute type, and region:

• Business Model Outlook (Revenue, USD Million, 2015 - 2025)

  • P2P

  • B2C

  • B2B

• Commute Type Outlook (Revenue, USD Million, 2015 - 2025)

  • Long Distance

  • Corporate

  • Short Distance

• Regional Outlook (Revenue, USD Million, 2015 - 2025)

  • North America

    • The U.S.

    • Canada

  • Europe

    • The U.K.

    • France

  • Asia

    • China

    • India

    • South Korea

  • South East Asia

    • ASEAN

    • Australia

  • Latin America

    • Brazil

    • Mexico

  • RoW