“Pay as You Go”- The Ride Hailing Market Is All Set to Grow
Ride-hailing
is precisely what it sounds like a man who hails a car and is quickly grabbed
and headed to their goal for a period and separation based charge.
Global
Ride Hailing Market is projected to grow at a CAGR of over 16%,
in value terms during the forecast period backed on growing urbanization and
growing demand for personal mobility.
What OEM’s Are DOING?
BMW, the German car maker, is planning for
ride-hailing services. BMW’s mobility offerings are centred on its DriveNow and
ReachNow services. DriveNow is a car sharing platform for 11 European countries
and ReachNow is a US based platform for booking rides with a driver and help
car owners to rent out their cars as well.
Moreover, the company is
expanding its operation in every possible manner. After its opening in 2016,
BMW’s ReachNow has made expansions in Portland with 760 fleet. The company is
making extra efforts to beat the Ride
Hailing Market.
The company’s claimed that
in the first sixth month of its operation, 31,000 people got registered with
them and compiled 1.2 million miles on ReachNow platform.
GM (General Motors), is
focusing on car rental services. In 2016, the company announced a $ 500 million
investment in Lyft to work on autonomous cars, to provide all rental cars to
Lyft Drivers. The main aim of the two companies is to simply put more Lyft
vehicles on the roads. Moreover, the tie up of Lyft and Waymo will benefit GM
to develop self-driving cars.
Toyota in 2016,
established MSPF (Toyota Mobility Services Platform) and to expand its services
the company has joined services with ride-hailing company Grab to provide its services in Southeast Asia. Based on the popularity
of ride hailing services, the company will have various roles to support these
services and leverage the Toyota Smart Centre (TSC), financial services and the
Toyota Big Data Centre.
Didi, the largest ride
hailing service in China, is serving more than 300 million users in
Chinese cities. The service portfolio includes ride-hailing, ride-sharing, car
rental etc. The biggest investors in Didi are Alibaba, Apple, Tencent. To grow
internationally the company has raised around more than $ 16 Billion and from
investor like SoftBank, Bank of Communication it has raised more than $5
Billion in 2017. The company is also working on autonomous driving and
moreover, top expand its operation, the company acquired UberChina in
$35Billion. Moreover, the company has a strategic partnership with Volkswagen
China in ride hailing segment.
Classification
according to service type:
Classification
according to internet connectivity type:
Uber Technologies Inc., operating in more than 600 cities globally has generated a revenue of more than $ 6.5 Billion in 2016 and crossed a millage in number of booking with more than 20 Billion in 2016. The company has recently launched Uber Central, under which the companies will be able to offer on-demand, door-to-door transportation for their customers on a huge scale.
Key success factors behind growing ride hailing market:
- Growing Urban Population:
The urban population is developing, driven by worldwide population development and intensified by provincial to urban movement. Considering UNPD projections, the urban populace is set to develop at a CAGR of 1.6% to 2030, versus 2.2% normal development during recent decades. With additional individuals come expanded interest for versatility. Growing urbanization will drive the global ride hailing market during the forecast period.
Pool services giver consumer discounted ride hailing services. The consumer can book a ride at share pass and can avail a discount up to50 percent, this helps the customer to travel at a cheaper price and with same comfort level. In many developing countries, the government is also taking initiative for pool services to minimise the traffic level and to control the pollution. This will drive the ride hailing market globally.
- Electric ride hailing will fuel the demand:
In expansion to program, pollution has turned into a critical urban medical problem. Urban communities are reacting by empowering electric vehicles through special duty treatment, foundation or even motivating forces on buy costs. The government in developing countries are offering incentives on electric vehicles to push the electric vehicle sales. As the cost of running electric vehicles will be lesser as compare to internal combustion engine, the travel cost will proportionally decrease and the demand for ride hailing market will further increase.
Conclusion: Global Ride Hailing Market is projected to grow at a CAGR of over 16%, in value terms during the forecast period backed on growing urbanization and growing demand for personal mobility. Improving economic conditions coupled with rising traffic congestions are prominent factors expected to drive the Global Ride Hailing market during forecast period.
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