Online Taxi Services Global Market Report 2024

The online taxi services market size has grown rapidly in recent years. It will grow from $38.89 billion in 2023 to $43.15 billion in 2024 at a compound annual growth rate (CAGR) of 10.9%. The growth in the historical period can be attributed to the convenience of ride-sharing, urbanization, and high population density, widespread penetration of mobile apps, cost efficiency, transparency, and shifts in consumer behavior.

The online taxi services market size is expected to see rapid growth in the next few years. It will grow to $64.74 billion in 2028 at a compound annual growth rate (CAGR) of 10.7%. The anticipated growth in the forecast period can be attributed to solutions for last-mile connectivity, the promotion of sustainable and eco-friendly transportation, integration with public transit services, advancements in payment systems, regulatory support, and strategic partnerships. Major trends expected in the forecast period include the adoption of digital wallets and contactless payment methods, the implementation of dynamic pricing algorithms, partnerships with ride-hailing platforms, emphasis on enhancing customer experience and introducing loyalty programs, and the implementation of urban mobility initiatives and regulations.

The growing penetration of the internet is a key driver for the online taxi service market. The widespread availability of high-speed internet and the convenience associated with online services are reshaping consumer preferences towards online taxi services. According to Internet World Stats, the number of internet users increased from 4,208 million to 4,833 million in June 2020. Additionally, the number of internet users in India is projected to rise from 636.73 million in 2019 to an estimated 974.86 million by the end of 2025. The expanding base of internet users, equipped with smartphones, now has easy access to taxi services, providing driver details and real-time location information, thereby driving the demand for online taxi services.

The growth in the number of smartphone users is expected to contribute significantly to the global expansion of online taxi services. Smartphone users prefer the convenience of booking rides through mobile applications, which offer features such as GPS, real-time tracking, and secure payment options. As of July 2023, according to DemandSage, a US-based data reporting and analytics solutions provider, 86% of the global population owns a smartphone, with 6.8 billion smartphone users worldwide. In the United States, 94.4% of millennials own a smartphone, and almost half of the US population spends 5 to 6 hours per day using smartphones. Consequently, the growing user base of smartphones is anticipated to drive the growth of the online taxi services market.

Stringent regulations imposed on the operations of online taxi services present a challenge to the market's growth. Governments worldwide have implemented strict regulations in response to reports of assault and molestation incidents involving online taxi services. These regulations include mandatory background checks for Uber and Lyft drivers, with some governments requiring fingerprint background checks for enhanced security. In India, the Motor Vehicle (Amendment) Bill 2016 and the Information Technology Act, 2000 are in place, while Malaysia enforces regulations such as the Commercial Vehicles Licensing Board Act 1987 (Act 334) and the Land Public Transport Act 2010 (Act 715). Compliance with these regulations, including the need for intermediation business licenses in Malaysia, has become mandatory for e-hailing service providers. Consequently, the stringent regulatory environment is hindering the growth of the online taxi services market during the forecast period.

The introduction of self-driving taxi services is gaining traction in the online taxi service market, with major industry players continuously focusing on innovations and technologies to better cater to consumer needs. In August 2020, AutoX, an autonomous driving startup, publicly launched its Robo-taxi services in China.

Leading companies in the online taxi services market are unveiling innovative mobile apps such as the Ride Hailing app to maintain a competitive edge. This new ride-hailing app enables passengers and cab drivers to negotiate fares online before confirming the trip. For example, in April 2022, inDriver, a US-based ridesharing and taxi app company, launched its Ride Hailing app in Kolkata, one of the states in India, initiating services with over 40,000 drivers. The inDriver service allows drivers and passengers to connect and independently negotiate the details of each ride. Passengers can use the app to discover available rides and receive counter offers from nearby drivers, while drivers can choose ride requests aligned with their preferences and propose their own fare.

In August 2022, Ola Cabs, an India-based online taxi and car booking company, announced a merger agreement with Uber Technologies, Inc. for an undisclosed amount. This strategic merger aimed to enhance taxi rentals, ride services, and overall customer experiences, leveraging the strengths of both companies. Uber Technologies, Inc., based in the United States, is a mobility-as-a-service company known for pioneering services such as food delivery, online taxi bookings, and hotel reservations.

Major companies operating in the online taxi services market report are Uber Technologies, Didi Chuxing Technology Co. Ltd., Zimride Inc., Yandex.Taxi LLC, Lyft Inc., JunoUSA LP, GrabTaxi Holdings Pte Ltd., Bolt Technology OÜ, Careem Networks FZ-LLC, Gett Inc., Wingz Inc., mytaxi AG, 99 Tecnologia Ltda., Via Transportation Inc., Addison Lee Group Limited, Comuto company, Sidecar Technologies Inc., DirectCab Group Limited, Easy Taxi Serviços Ltda, PT Gojek Indonesia, Mega Cabs Private Limited, Hailo Network Limited, Savaari Car Rentals Private Limited, ANI Technologies Private Limited, Zūm Services Inc., Wheely Technologies Limited, Curb Mobility LLC, Carzonrent (India) Private Limited, Yellow Cab Co. Ltd., Meru Mobility Tech Private Limited, LeCab SAS, Beat Mobility S.A., Arro Inc. Asia-Pacific was the largest region in the online taxi services market in 2023. Western Europe was the second largest region in the global online taxi services market share. The regions covered in the online taxi services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The online taxi services market, as outlined in this report, is categorized by service type into ride-hailing and ride-sharing. Ride-sharing refers to instances where rides in a motor vehicle are shared among individuals, primarily commuters. Various types of vehicles, including motorcycles and cars, are utilized, and the payment modes can be online or in cash. The different ride types encompass individual rides and carpooling or ride-sharing arrangements.

The online taxi services market research report is one of a series of new reports that provides online taxi services market statistics, including global market size, regional shares, competitors with an online taxi services market share, detailed online taxi services market segments, market trends and opportunities, and any further data you may need to thrive in the online taxi services industry. This online taxi services market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The countries covered in the online taxi services market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The online taxi services market includes revenues earned by entities by providing transportation and shipping services by bringing drivers and riders onto one platform to ease travel. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.