The global ride sharing market is anticipated to expand at a compounded annual growth rate (CAGR) of 19 per cent from 2020 to 2026. Some of the major drivers of the global ride sharing market include the need for expansion for personal mobility at the time of rising urbanization and fall in personal car ownership. Moreover, with the growing usage of internet and penetration of smartphones and stringent carbon dioxide reduction targets, are leading to the expansions of the global ride sharing market. However, some of the factors restraining the growth of this market are resistance from traditional transport services and complex transport policies of different countries.

Within the global ride sharing market, station-based mobility market is expected to record the fastest CAGR. Governments have incentivized station-based mobility globally and dedicated tracks have been laid in various countries for the station-to-station mobility. Car sharing is the second fastest growing segment. The growth of car sharing is mainly due to certain factors, such as, getting benefits of a private vehicle without the costs and responsibilities of car ownership. Car sharing companies are entering into different markets to provide for the growing global ride sharing market. For instance, BlaBlaCar has expanded in Russia and Ukraine, the two biggest countries in Europe. Some of the largest players in this market are Maven, car2go, BlaBlaCar, and Getaround.

Ride Sharing Market

As ride sharing is an internet-based service, internet connectivity is the primary requirement for availing ride sharing services across the globe. The users are typically required to install an application on their smartphones and use data services to access the application and other navigation and information services related to it. Internet connectivity is also needed for navigation, telematics, and V2V communication. Given that approximately 81 per cent of the population in developed countries use the internet, the global ride sharing market becomes more accessible.

Additionally, the cost of owning a personal vehicle has increased, coupled with rising fuel prices and a rise in finance, insurance, and vehicle registration costs. Maintenance costs, which include the repair of parts and accessories and labour charges, have also increased, adding to the overall cost of vehicle ownership. These factors have risen the cost of vehicle ownership resulting in an increased popularity of ride sharing services.

The short distance commute segment within the global ride sharing market is expected to witness the highest CAGR between 2020 and 2026. The short distance type of commute provides daily commuters with better alternative to private vehicles. Short distance commute   and corporate commute are estimated to dominate the majority of market share. However, during the forecast period, the short distance type is anticipated to lead owing to the increase in the trend of ride hailing platform providers venturing in these services through their existing platforms. This type of service allows commuters to choose between ride hailing and ride sharing. This convenience is anticipated to contribute largely to the segment growth over the forecast period.

North America, which is led by the U.S., holds around 94 per cent of the global ride sharing market in 2017. However, Asia is likely to surpass North America between 2020 and 2026. Uber and Lyft are the major platforms operating in this region. Although, Uber holds the majority market share, Lyft has successfully gained significant regional share in recent times.

The Asian region has good potential for global ride sharing market with a large number of rapidly developing cities and towns. The region is home to of the two largest countries in terms of population - China and India. China is already dominating the global ride sharing market and is projected to witness fast growth in the market over the forecast period. India, on the other hand, has witnessed good growth in the last few years, However, the industry has not yet exploited the country’s potential completely.