The growing popularity of ride sharing services as an affordable way of transport is expected to boost the growth prospects of the global ride sharing market in the upcoming period. The expanding use of latest technologies such as the Internet-of-Things (IoT), big data, machine learning, and Artificial Intelligence (AI) in these services is also expected to have a large impact on the overall growth of the ride sharing market.
Ride sharing can be described as a mode of travel in which one or more than one anonymous passengers share a single vehicle for traveling to same or different destinations. Ride sharing is also known as vanpool, dynamic ride sharing, instant ride-sharing, and carpool. It is an old concept which is in existence since the 1900s. In the 20th century, ride sharing was known as ride sourcing. With the addition of latest technologies like global positioning systems (GPS) and others, the demand for ride sharing services is estimated to expand at a rapid rate.
Research and development activities are one of the most crucial components for the growth of the ride sharing market. The players indulge in these activities for expanding their reach across different types of consumers. They also plan various marketing strategies that resonate with all age groups. This factor helps in customer acquisition, which eventually benefits the growth trajectory of the ride sharing market. The players try on providing discounts and provide offers on various merchants to attract customers. For such offers, the players are involved in strategic collaborations. Mergers, acquisitions, joint ventures, and partnerships are important for extending such offers and also help in strengthening the influence of the players across untapped regions.
Based on the vehicle type, the ride sharing market can be segmented into utility vehicle, sedan, hatchback, buses, coaches, and vans. The ride sharing market works on different business models such as business to consumer (B2C), business to business (B2B), and peer to peer (P2P). On the basis of service provider, the ride sharing market can be segmented into private, OEM, OEM+private.
Traffic Issues in Metropolitan Cities and Urban Areas to Boost Growth Opportunities across Ride Sharing Market
The growing traffic congestion issues in metropolitan cities due to factors such as rising rural-to-urban migration and increasing working class population may prove to be a boon for the growth of the ride sharing market. In addition, fuel prices have increased extensively over the years. The rising fuel prices and the increasing need to save fuel have encouraged many commuters to embrace ride sharing services. Hence, rising urbanization and traffic congestion issues are expected to bring considerable growth for the ride sharing market.
Emergence of Electric Vehicle Cab Companies to Add Value to Growth Trajectory of Ride Sharing Market
The popularity of electric vehicle cab companies has increased extensively. Many startups are emerging on the horizon of the ride sharing market with EVs. Electric vehicles promote sustainability and helps in cost cutting. Ride sharing in EVs can be a affordable option for the commuters as compared to fuel-powered cabs. Hence, the growing popularity of EVs is estimated to have a significant impact on the growth of the ride sharing market.
COVID-19 Impact on Ride Sharing Market
The COVID-19 pandemic has caused extensive losses across the ride sharing market. Due to the highly transmissible nature of the virus, social distancing norms were in place for a long time. This aspect led to huge losses for the players in the ride sharing market. However, with mass vaccination drives and low hospitalization rates, the social distancing norms have been eased to a certain extent. The ride sharing services have started operating again and is expected to gather traction in the near period.