Latin American Ride-Hailing & Taxi Market, 2023: Exploring the Evolution of Contemporary Business Models

Key Industry Players, Business Models, Competition, Market Consolidation, and Insights Tailored to Individual Countries

The Latin American ride-hailing market is substantial, reaching $15.1 billion in 2023, with projected growth to $16.4 billion by 2027. Despite competition, growth in user numbers is expected, driven by factors such as urbanization, smartphone adoption, and evolving transportation needs. This report highlights opportunities and risks within the region as well as key players in the largest countries. 

The sharing economy has transformed the way people engage in various activities, and transportation is no exception. Innovative services have emerged, offering new and diverse ways to use vehicles, whether individually or collaboratively. These services go beyond traditional car rentals and have gained popularity among people looking for unique transportation options.

The internet has played a significant role by simplifying the process of offering these shared services, while also making them more accessible to customers. However, the availability of these services varies across different regions worldwide and even within individual countries, with some areas offering more choices than others.

Furthermore, the emergence of innovative platforms has brought about substantial changes in the transportation sector, enhancing convenience and affordability. In fact, these platforms are now directly competing with traditional taxi services, particularly in places where taxi options are limited.

This study provides a comprehensive analysis of the Latin American Ride-Hailing market. It explores key components, including industry players, business models, competition, market consolidation, and insights tailored to individual countries, and will review the trends and growth of this segment of the sharing-mobility market in order to understand today what this ride-hailing market will represent for the region in the near future.

Scope and Objective: The primary goal is to dissect the behavior of the Ride-Hailing sector in Latin America.

Data Categorization: Global Ride-Hailing data often categorizes countries in broad terms, using labels like “Latin America”, “Central America” or “South America”. This is to facilitate the analysis of the Latin American countries, the data used corresponds to research where the grouping allows analysis of the region and its main countries.

Temporal Framework: The study’s temporal scope spans up to 2020, augmented by recent sources to capture updates. While recognizing previous years and acknowledging the Covid pandemic’s influence, these elements are not explored in depth within this report. Regarding projections even though some research can extend beyond 2027 and into 2030, comparable data will mainly include 2027 as the top year projected, and only in a general trend overview will projections beyond will be considered.

Methodology: The research relies exclusively on secondary sources, such as annual reports, market research studies, summaries of Latin American Ride-Hailing and Latin region, and recent online news.

Findings and Implications: The research findings contribute valuable perspectives on anticipated Ride-Hailing in Latin America for a deeper exploration of its dynamics, thereby guiding future research in the region or specific countries.

To better understand the size of the Ride-hailing market, it’s important to clearly define what this market is and who is involved. This will help us see how different countries in the region are participating and positioning their services.

The Ride-hailing & Taxi market is a part of the larger global Sharing Mobility which includes Car Sharing and Micromobility.

The Ride-hailing & Taxi market covers all the ways passengers and drivers connect, both online and offline. This includes traditional taxi services that you can book over the phone, companies that offer rides in private cars, and services where people share rides together. When a passenger needs a ride, they ask for one and are matched with a driver.

In the rapidly changing modern world, how people move and connect has undergone a significant shift. The rise of ridesharing services has played a big role in changing how people get around in cities. This kind of transportation is known for being comfortable and door-to-door. Importantly, sharing information between passengers and drivers during the ride is safer compared to traditional taxis. By using smartphones, apps, and GPS technology, ride-hailing efficiently links drivers and passengers, making payments and the whole process smooth.

A key part of this system is using regular people and their own cars to provide taxi-like services part-time. This method has many benefits, like quickly adjusting to changes in demand. Unlike regular taxis, ride-hailing services can adapt to busy and slow times without having too many unused cars. This flexibility means there are more cars available when people need them.

Ride-hailing and Car-sharing, both part of the Sharing Mobility market, are different ways of getting transportation that affect the economy and the environment in their own ways. At this point, it’s worth detailing their similarities and differences to provide greater clarity about the Ride-hailing market. Both mobility alternatives have various benefits and goals, depending on how you look at them. From the user’s point of view, these options have their own strengths and differences in how they work, their impact on the environment, how flexible they are, and how well they respond to demand. As a result, each of these options works in its own unique way and follows its own trends, especially when it comes to their share of the global market.