Growth of worldwide ride-hailing market: Future of taxi apps & factors driving their growth

When Travis Kalanick and Ryan Graves exchanged a treat, little did they know that it would cause a revolution in the field of transportation and on-demand services. Today, a decade later, Uber has established itself as a market leader when it comes to cab-hailing services. The brand is slowly inching into the other streams of services as well.

In most cases and most markets, domination is handled by Uber and another local player. It is Lyft in the case of the United States and Ola in the case of India. In a few instances, Uber has managed to merge with or acquire its competition. However, this does not mean that the market is saturated, not even in the slightest sense!

The Surface Trends:

The global ride-hailing market is expected to grow at a cumulative annual growth rate (CAGR) of 21% by 2023. The United States is the biggest market for ride-hailing, and the Asia Pacific closely follows it. The demand for ride-sharing is expected to be at $126 million by 2025.

The valuation of Uber at 72 billion dollars and the Chinese Uber Didi Chuxing at 56 billion dollars is a resounding testimony to the relevance and popularity of ride-hailing applications.

Artificial intelligence is expected to step into the world of ride-hailing. The acquisition of SPLT by Bosch and the partnership that Sony has established with Tokyo taxi show the future.

The opportunities that lie ahead have given a fillip to a lot of entrepreneurs who would like to create their own local Uber like apps. The availability of clone scripts ensures that the time taken to reach the market is considerably reduced.

The number of people applying for a driver’s license in the United States has reduced in favor of opting in for ride-hailing services. This is a sure sign that mobility as a service will be the order of the future!

The Factors Promoting the Growth

There are a few factors that have constantly been fuelling the growth of the on-demand industry.

There is a general rise in the market for on-demand transportation services, including taxis, passenger vehicles, and charter vehicles. Features like vehicle tracking in real-time, feedback, and the rating of the experience make it extremely friendly for customers to use the services. There are even platforms that facilitate the comparison of prices before you book your cab.

New industries increase employment opportunities. With respect to ride-hailing services, it has gone a notch higher because it offers both part-time and full-time working opportunities. More than 40% of the drivers in America have chosen to become full-time drivers for ride-hailing companies. It is astounding that Uber creates about 50,000 new jobs every month. We are not only talking about the employment generated by corporate offices in terms of operations and technology.

Globally and historically, there has been a general shift towards confining certain activities to a certain set of people who are experts in that activity. There is a surge in demand for mobility as a service. Using ride-hailing services is more profitable than owning a car, considering the auxiliary expenses. If cabs are available lavishly, it is only fair and expected that the users of these services increase.

Above everything, there is a cultural shift even in third world countries like India, where the relation between money and economy were looked at with different perspectives until recently. The internet penetration, the increase in standards of living, and the emergence of local players are slowly shifting the landscape. By 2025, the demand and the market are expected to be graphically different and in favor of on-demand ride-hailing services.

What does it mean for you?

There are very few chances that a market might seem saturated but will still be able to accommodate new players. About six years ago, E-Commerce was in the same state. Today, it has to be ride-hailing applications!

If you would like to capitalize on this opportunity, you would need to formulate a business plan. Needless to say, there is also a big task of aggregating driver’s and selling your App. However, with the availability of clone scripts, you can use an Uber clone to launch the app in a very short time.

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