Global On-Demand Transportation Market Size Analysis, 2019-2028

REPORT ID: BKR1037 Domain: Automotive & Transport Published Date: May 2019
Pages: 283+ Format: PDF

Global On-Demand Transportation market size is estimated to be valued over US$ 91 billion in 2019 and is projected to register double digit CAGR of 16.9% to create huge revenue opportunity for industry players. Since 2013, the automotive and transportation sector is witnessing a pool of disruptive changes wherein new business models have emerged. While the public sharing transportation is nothing new, smart connectivity and integration with gadgets including smartphones has changed the way on-demand transportation used to work. New ecosystem has come up with emergence of many new startups. Few of them having valuation in billion dollars.

Increasing per capita income, rising traffic and higher cost to maintain own automotive vehicles has driven the on-demand transportation market worldwide. Technological advancement has played a key role in overall growth of the market. Technology has enabled integrated mobility involving real time and multi-modal travel features with smartphones. Social trends has also played a key role in shaping the industry growth. Increasing residential locality and rising average number of occupants are other key factors.

Regulatory compliance is another key driving factor for on demand transportation industry. For instance, in 2014, Helsinki, Finland came up with the ambitious plan of making private car unnecessary. The plan is intended to meet reduction in carbon emission and promote public transportation. Such move has a positive impact on on-demand transportation market.

In the last few years, many players have emerged in the market worldwide including Uber, Lyft, Ola, etc. These players are have created new ecosystem and the system is evolving rapidly. This could be analyzed from the fact that Uber, Lyft, and Ola ridership increased exponentially since 2017. Various investors are supporting on-demand car ridership.

  • Uber is one of the leading ride sharing company. Recently, in May 2019, Uber announced to go public at US$ 45 a share. Development is expected to infuse additional funding support and enhance the business operations globally. As of May 2019, the company stands at a valuation of US$ 82 billion.
  • In March 2019, Ola secured US$ 300 million from Hyundai Motor Co. and Kia Motors Corp. The company is further looking to raise US$ 1 billion in Series J round. Earlier, in September 2018, Ola raised US$ 50 million at US$ 4.3 billion from Sailing Capital and China-Eurasian Economic Corporation Fund.
  • Another company, Lyft raised US$ 600 million in 2018, thereby making company valuation to reach US$ 15.1 billion. The company is targeting autonomous vehicle plan especially in United States and Canada.
  • In July 2018, China’s leading ride-hailing app company Didi received US$ 500 million funding from

Companies are expanding business presence in a bid to solidify market positioning on long term period and consolidate revenue

  • In April 2019, Didi Mobility Japan announced its plan to expand to 13 cities across Japan. Didi Chuxing also seems to be focusing on Latin America market especially Chile, Peru and Colombia.
  • In 2017, Taxify launched its service in London, UK by signing 3,000 private hire taxi driver. The company has adopted a low cost business model that helped it to register impressive growth. It charges a commission of 15% commission on rides compared to majority of them charging 20 to 25% commission.

Fierce Competition has led companies to focus on mergers and acquisitions

In last few years, many partnership and acquisitions have been surfaced in on-demand transportation market, despite being the industry still at its growth phase. This depicts aggressive marketing and expansion in order to dominate the global share. Inorganic growth strategy will continue to shape the industry throughout the forecast period.

  • In 2016, China’s Didi acquired Uber local operations in China in order to gain the brand share. Also, in 2018, the company acquired Brazil based ride sharing company 99.
  • In 2015, Ola acquired Taxi For Sure for US$ 200 million. However, the company completely integrated the platform with Ola. The company has also acquired Ridlr, an end to end public transport ticketing and communicating app.
  • In 2017, mytaxi acquired Clever Taxi, the leading taxi app in Romania. Acquisition is expected to help mytaxi to consolidate its position in Europe.
  • In March 2019, Uber acquired Careem for US$ 3.1 billion. The closing of the deal is expected to take place by early 2020. The deal will help Uber to strengthen their presence in Middle East. In April 2018, Uber acquired bike sharing startup JUMP. Two wheeler transportation is increasingly becoming popular among consumers as it helps in faster commutations in busy traffic. The move will help Uber on long term perspective.
  • In 2018, Lyft acquired Motivate, bikeke-sharing company that operates Citi Bike in New York City and Ford’s GoBike program in San Francisco, U.S.

Global On-Demand Transportation Market Size and Forecast: By Service

E-Hailing app services will account for 81% of global revenue by 2028.

On demand transportation is primarily categorized into e-hailing app services, micro mobility service and car sharing. Carsharing stands next to e-hailing app services. Zipcar, Car2go, and DriveNow are few players engaged in carsharing services. These services offers all the benefits of car ownership without any insurance or purchase costs. The trend is gaining prominence and is  expected to register higher growth compared to e-hailing app services worldwide.

Bike commuting or micro mobility services will register fastest growth during the forecast period. Micro mobility services is highly popular in urban metropolitan cities with high population density.

Global On-Demand Transportation Market Size and Forecast: By Vehicle Type

Four wheelers accounted for 86% of on-demand transportation market share in 2018.  

Four wheeler dominates the market owing to transport convenience and comforting experience. Fully autonomous concept in four wheeler is also gaining traction, which might be visible to some extent by 2028. This will further extend the four wheeler based on-demand transportation services such as vehicle on-demand, peer-to-peer sharing, first and last mile commuting and mobility as a utility. 

Global On-Demand Transportation Market Size and Forecast: Regional Analysis

Asia Pacific On-Demand Transportation market accounted for 43% of global sales in 2018

Sales revenue prospects in Asia Pacific is high owing to sheer size of population and increasing urban metropolitan cities. Also, rider per capita spending capacity has increased with emergence of IT commercials and manufacturing capacities. The region not only has socio-demographic factors but also technological factors. The region dominates when it comes to electric mobility. Also, the region is registering state-of-art technological advancement in automation. All these factors will continue to fuel the on-demand transportation market in Asia Pacific region.

Global On-Demand Transportation Market Size and Forecast: Competition Landscape

Some key On-Demand Transportation market players are:

  • Lyft, Inc.
  • Daimler AG
  • GrabTaxi Holdings Pte. Ltd.
  • Uber Technologies Inc.
  • Zimride
  • BlaBlaCar
  • TwoGo
  • Ola Cabs
  • Mytaxi
  • Taxify
  • The Hertz Corporation
  • Didi Chuxing
  • Careem

Industry Segmentation

By Service Type:

  • E-Hailing
  • Car Sharing
  • Micro Mobility

By Vehicle:

  • Four Wheeler
  • Three Wheeler
  • Two Wheelers

What Will You Discover in the Report?

  • An in-depth analysis of the On-Demand Transportation market across regions – North America, Latin America, Western Europe, Central and Eastern Europe, Asia Pacific, Middle East, and Africa.
  • How the On-Demand Transportation market sales is expected to grow throughout the forecast period.
  • How geopolitical policies and technological changes will affect the On-Demand Transportation market in near future
  • Where the stakeholders should invest to generate higher profit margins
  • How consumers (end-users) will reflect to the On-Demand Transportation industry during the forecast period
  • Who are the On-Demand Transportation industry leaders and what are the key initiatives taken by them for long term growth

Who will benefit from the Report?

  • On-Demand Transportation Industry Suppliers
  • On-Demand Transportation Industry Manufacturers
  • Consultants and Analysts
  • Researchers
  • Industry Specialists

Analyst access with Bekryl Market Analysts

Purchasing of On-Demand Transportation market research report will give clients access to 120 minutes telephonic access with a research analyst. The duration for access to analysts will be based on the report subscription editions.



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