Ride Hailing Market Report 2025

The ride hailing market size has grown rapidly in recent years. It will grow from $79.13 billion in 2024 to $90.5 billion in 2025 at a compound annual growth rate (CAGR) of 14.4%. The growth in the historic period can be attributed to urbanization and population density, changing consumer behavior, traffic congestion and parking challenges, first and last-mile connectivity, economic considerations.

The ride hailing market size is expected to see rapid growth in the next few years. It will grow to $164.14 billion in 2029 at a compound annual growth rate (CAGR) of 16%. The growth in the forecast period can be attributed to integration with multimodal transportation, environmental sustainability, regulatory frameworks and compliance, enhanced safety measures, rural and suburban expansion. Major trends in the forecast period include corporate partnerships for employee transportation, dynamic pricing optimization, regulatory compliance and advocacy, inclusive accessibility features, virtual queues and pre-booking options.

The growth of the ride-hailing market is being driven by on-demand transportation services and a decreasing rate of car ownership among millennials. On-demand transportation services are characterized by flexible routing and ad-hoc scheduling of private vehicles, providing a personal transport experience for the public by allowing passengers to choose their pick-up and drop-off locations. These ride-hailing services enable customers to accurately locate vehicles, track their journeys, and ensure safety for occupants, which is expected to significantly boost market growth. Additionally, millennials are experiencing a lower rate of car ownership due to the high maintenance costs associated with personal vehicles, leading to increased demand for ride-hailing services. They prefer practical, smartphone-accessible transport options that are straightforward, flexible, and cost-effective rather than owning a car. Furthermore, purchasing and maintaining a new car tends to be more expensive than renting a vehicle annually. For example, in February 2024, the Bureau of Transportation Statistics, part of the US Department of Transportation (DOT), reported that for-hire freight shipments increased by 1.8% in December 2023 compared to December 2022, while the Freight Transportation Services Index rose from 136.6 in December 2022 to 139.1 in December 2023. Therefore, the growth of on-demand transportation services and a lower rate of car ownership among millennials are driving the expansion of the ride-hailing market.

The anticipated growth of the ride-hailing market is further fueled by increasing fuel prices. Rising fuel prices, including gasoline and diesel, incentivize consumers to opt for ride-hailing services as a cost-effective alternative to using personal vehicles. Ride-hailing services offer a convenient and economical door-to-door transportation solution, particularly as fuel prices continue to rise. For example, statistics from the Bureau of Labor Statistics indicate a 19.4% increase in fuel prices from December 2021 to December 2022 in the United States. Additionally, the Office for National Statistics reported a 48% increase in automotive fuel prices in the UK from 2021 to 2022. Consequently, the upward trajectory of fuel prices acts as a driver for the growth of the ride-hailing market.

Ride-hailing services have undergone significant advancements in recent years, offering innovative features to riders globally. The utilization of ride-hailing apps on Android devices has become commonplace. For example, Uber, a prominent ride-hailing app, provides a feature allowing users to request a female driver, emphasizing the safety of female passengers. This feature ensures a secure experience by connecting users with verified female drivers before initiating the journey. Safr, a major initiative in this regard, enables female passengers to choose the gender of their driver, providing comprehensive details about the driver's training. Another noteworthy ride-hailing app, HopSkipDrive, specializes in safe and intelligent transportation solutions for children, employing professional care drivers with a minimum of five years of caregiving experience.

Leading companies in the ride-hailing market are dedicated to innovating products such as ride-hailing services apps to deliver reliable services to their customers. These apps connect passengers with local drivers who use their personal vehicles. For instance, in March 2023, Godugo Travel Solutions Private Limited, an India-based company offering a vehicle booking mobile app for taxi services, introduced Godugo. This ride-hailing app empowers drivers to operate their businesses through the platform and incorporates advanced features such as a System of Systems (SOS) system. The SOS system sends alerts to users within a 1km radius and the nearest police station when a female passenger or driver feels threatened.

In August 2022, Ola Cabs, an India-based online taxi and car booking company, announced a merger agreement with Uber Technologies, Inc., the U.S.-based mobility-as-a-service pioneer. The merger aimed to enhance taxi rentals, ride services, and customer experiences, contributing to improved business outcomes. Uber Technologies, Inc. has been a trailblazer in mobility services, introducing innovations in food delivery, online taxi bookings, and hotel reservations.

Major companies operating in the ride hailing market include Uber Technologies Inc., Lyft Inc., DiDi Chuxing Technology Co., Grab Holdings Inc., Ola Cabs, Bolt Technology OÜ, BlaBlaCar, Gett Inc., Curb Mobility, Gojek, Via Transportation Inc., Cabify, Wingz Inc., Addison Lee Ltd., Yandex.Taxi, Easy Taxi, LeCab, Zūm Services Inc., T3 Mobility, Heetch, Beat, Meru Cabs, Ryde Technologies, FastGo, GoCatch, Liftango, Blacklane GmbH, Shohoz.

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

Ride-hailing pertains to transportation services where passengers are connected with vehicle drivers through a smartphone-based app, offering passenger transportation by automobile or van. Unlike as regular routes and schedules, ride-hailing services aim to enhance the customer experience by reducing travel time, operational costs, and providing convenience.

The ride-hailing market, as discussed in this report, is categorized based on vehicle types, including two-wheelers, three-wheelers, four-wheelers, and others. A two-wheeler denotes a vehicle, typically a bicycle, with two wheels. Various service types encompass e-hailing, car sharing, station-based mobility, and car rental, catering to diverse sectors such as commercial and personal use.

The ride hailing market research report is one of a series of new reports that provides ride hailing market statistics, including ride hailing industry global market size, regional shares, competitors with a ride hailing market share, detailed ride hailing market segments, market trends and opportunities, and any further data you may need to thrive in the ride hailing industry. This ride hailing 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 ride hailing market includes revenues earned by entities by connecting local drivers and assailants using an online platform to provide travelling services. 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.

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