Online Taxi Services Market Report 2025

The online taxi services market size has grown rapidly in recent years. It will grow from $43.72 billion in 2024 to $48.72 billion in 2025 at a compound annual growth rate (CAGR) of 11.4%. The growth in the historic period can be attributed to ride-sharing convenience, urbanization and population density, mobile app penetration, cost efficiency and transparency, changing consumer behavior.

The online taxi services market size is expected to see rapid growth in the next few years. It will grow to $72.2 billion in 2029 at a compound annual growth rate (CAGR) of 10.3%. The growth in the forecast period can be attributed to last-mile connectivity solutions, sustainable and eco-friendly transportation, integration with public transit, advancements in payment systems, regulatory support and partnerships. Major trends in the forecast period include digital wallet and contactless payments, dynamic pricing algorithms, partnerships with ride-hailing platforms, focus on customer experience and loyalty programs, urban mobility initiatives and regulations.

Increasing internet penetration is fueling the demand for the online taxi service market. The presence of high-speed internet connectivity, along with the convenience of utilizing online services, is shifting consumer preferences towards online taxi options. For example, in October 2023, the GSM Association, a UK-based global industry organization, reported that monthly global mobile data usage per user rose from 8.4 GB in 2021 to 11.3 GB in 2022. Consequently, the growth in internet penetration is propelling the online taxi service market forward.

The growth in the number of smartphone users is expected to contribute significantly to the global expansion of online taxi services. Smartphone users prefer the convenience of booking rides through mobile applications, which offer features such as GPS, real-time tracking, and secure payment options. As of July 2023, according to DemandSage, a US-based data reporting and analytics solutions provider, 86% of the global population owns a smartphone, with 6.8 billion smartphone users worldwide. In the United States, 94.4% of millennials own a smartphone, and almost half of the US population spends 5 to 6 hours per day using smartphones. Consequently, the growing user base of smartphones is anticipated to drive the growth of the online taxi services market.

The introduction of self-driving taxi services is becoming increasingly popular in the online taxi service market. Key players in the industry are consistently focused on implementing innovations and technologies to meet consumer needs more effectively. For instance, in October 2024, the Seoul Metropolitan Government (SMG), a South Korea-based administrative body, launched a nighttime self-driving taxi service that specializes in autonomous mobility solutions utilizing electric vehicles (EVs) for urban transportation. This service operates autonomously on major roads with four or more lanes, while a human safety monitor is present to take control in narrower residential areas. The initiative aims to provide convenient and flexible ride-hailing options, allowing users to request rides through a well-known local transportation app.

Leading companies in the online taxi services market are unveiling innovative mobile apps such as the Ride Hailing app to maintain a competitive edge. This new ride-hailing app enables passengers and cab drivers to negotiate fares online before confirming the trip. For example, in April 2022, inDriver, a US-based ridesharing and taxi app company, launched its Ride Hailing app in Kolkata, one of the states in India, initiating services with over 40,000 drivers. The inDriver service allows drivers and passengers to connect and independently negotiate the details of each ride. Passengers can use the app to discover available rides and receive counter offers from nearby drivers, while drivers can choose ride requests aligned with their preferences and propose their own fare.

In August 2022, Ola Cabs, an India-based online taxi and car booking company, announced a merger agreement with Uber Technologies, Inc. for an undisclosed amount. This strategic merger aimed to enhance taxi rentals, ride services, and overall customer experiences, leveraging the strengths of both companies. Uber Technologies, Inc., based in the United States, is a mobility-as-a-service company known for pioneering services such as food delivery, online taxi bookings, and hotel reservations.

Major companies operating in the online taxi services market include Uber Technologies, Didi Chuxing Technology Co. Ltd., Yandex.Taxi LLC, Lyft Inc., GrabTaxi Holdings Pte Ltd., Bolt Technology OÜ, Careem Networks FZ-LLC, Gett Inc., Wingz Inc., mytaxi AG, 99 Tecnologia Ltda., Via Transportation Inc., Addison Lee Group Limited, Comuto company, DirectCab Group Limited, Easy Taxi Serviços Ltda, PT Gojek Indonesia, Mega Cabs Private Limited, Savaari Car Rentals Private Limited, ANI Technologies Private Limited, Zūm Services Inc., Wheely Technologies Limited, Curb Mobility LLC, Carzonrent (India) Private Limited, Yellow Cab Co. Ltd., Meru Mobility Tech Private Limited, LeCab SAS, Beat Mobility S.A., Arro Inc.

Asia-Pacific was the largest region in the online taxi services market in 2024. Western Europe was the second largest region in the global online taxi services market share. The regions covered in the online taxi services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the online taxi services market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Online taxi services involve the provision of transportation and travel services facilitated by digital intermediaries, acting as a bridge between customers and taxi drivers. These services are accessible through mobile platforms, GPS-enabled applications, or radio signals. Primarily, they offer passenger transportation via taxis that are booked using mobile applications.

The online taxi services market, as outlined in this report, is categorized by service type into ride-hailing and ride-sharing. Ride-sharing refers to instances where rides in a motor vehicle are shared among individuals, primarily commuters. Various types of vehicles, including motorcycles and cars, are utilized, and the payment modes can be online or in cash. The different ride types encompass individual rides and carpooling or ride-sharing arrangements.

The online taxi services market research report is one of a series of new reports that provides online taxi services market statistics, including global market size, regional shares, competitors with an online taxi services market share, detailed online taxi services market segments, market trends and opportunities, and any further data you may need to thrive in the online taxi services industry. This online taxi services market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The online taxi services market includes revenues earned by entities by providing transportation and shipping services by bringing drivers and riders onto one platform to ease travel. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

This product will be delivered within 3-5 business days.