Ride-Hailing Market is Led by the Economy Vehicles

[Pramod Kumar]

The ride-hailing market is on the way of growth and this trend will continue in the years to come.

The surging popularity of EVs in ride-hailing services is a prominent growth factor. Of the industry Governments globally are introducing regulations and policies to encourage the adoption of these vehicles in the convoys of service providers.

Growth opportunities for key players are increasing as a result of massive investments being made by well-known venture capitalists and automotive technology companies.

 

The economy category had the largest share in the vehicle type segment. This is due to the number of cars operating under this category is more than those in the executive and luxury categories. A large number of users opt for ride-hailing services for traveling short-to-medium distances, so they do not want to invest much and thus choose economy cars.

Several companies all over the world have launched and extended their services in the ride-hailing. For example, Uber Technologies Inc. launched Uber Comfort, a new ride tier, which would offer customers to access quick ride, control vehicle's air conditioning, and high rated drivers at a premium price.

Further, DiDi Mobility Japan Corp., a joint project by SoftBank Corp. and Beijing Xiaoju Technology Co. Ltd. (Didi Chuxing), declared the launch of its ride-hailing services in Hokkaido, Japan, which includes the capital city of Sapporo. This led to a further expansion of services to Tokyo, Kyoto, Osaka, and Hyogo, and other areas, by the end of the year.

The daily/weekly category, under the commuting pattern segment, will advance at the highest CAGR. This is due to the many tie-ups of ride-hailing service providers with business firms to provide shared mobility to the employees.

The personal category reported larger share in the industry, as these services are majorly available for personal errands. Personal usage generally includes commuting to the workplace, grocery shopping, and traveling to specific locations, such as airports and railway stations.