South America Ride Hailing Market, By Country, Competition, Forecast & Opportunities, 2020-2030F

The South America Ride Hailing Market was valued at USD 174.2 Million in 2024, and is expected to reach USD 392.6 Million by 2030, rising at a CAGR of 14.50%. The South American ride-hailing market is witnessing a significant expansion, fueled by the rising demand for convenient and cost-effective transportation solutions. With more consumers shifting from traditional modes of transport to app-based services, ride-hailing platforms are becoming integral to urban mobility. This shift is largely driven by the increasing penetration of smartphones and internet access, making ride-hailing services more accessible to the general population. Moreover, as cities continue to grow, public transportation systems often fail to meet the increasing demand for efficient mobility, further promoting the use of ride-hailing services.

Key trends shaping the market include a shift towards electric and hybrid vehicles in ride-hailing fleets. As environmental concerns continue to grow, companies are incorporating more sustainable practices by introducing electric vehicles, which appeal to environmentally conscious consumers. Technological advancements such as AI, big data, and improved GPS systems are also transforming the way ride-hailing services are delivered, enhancing the overall user experience by offering more accurate arrival times, optimal routes, and dynamic pricing models.

Despite these positive developments, the market faces several challenges, including regulatory issues and intense competition. Many countries in the region have yet to finalize regulations for ride-hailing services, leading to uncertainty and hindering growth. Moreover, the market is fragmented with several local players vying for dominance, which can result in price wars and reduced profitability for companies. However, the opportunities in terms of market expansion and innovation are substantial, with South America poised to become a key hub for ride-hailing services in the coming years.

Market Drivers

Increased Smartphone and Internet Penetration

With smartphone ownership soaring across South America and mobile internet access expanding rapidly, more consumers are gaining the ability to access ride-hailing platforms. This technological shift is transforming the way people travel, as it allows users to book rides with just a few taps on their mobile devices, increasing the convenience and accessibility of transportation. As smartphone penetration continues to grow, it is expected that ride-hailing services will reach a wider audience, including those in smaller cities and rural areas, further fueling market expansion. The widespread use of the internet also plays a key role in the proliferation of ride-hailing services.

With the rise of mobile data plans becoming more affordable, consumers are spending more time online and using various mobile applications for everyday services, including transportation. The ease of downloading and using ride-hailing apps drives adoption, contributing to the market's rapid growth. As mobile internet infrastructure improves, more people will gain access to these platforms, broadening the scope of ride-hailing services. As of 2024, Brazil had an estimated 175 million active smartphones, accounting for approximately 82.5% of the population. Furthermore, substantial 98.5% of Brazilians access the internet via smartphones, indicating a strong mobile-first digital ecosystem.

Key Market Challenges

Regulatory Uncertainty

One of the biggest challenges faced by ride-hailing companies in South America is the regulatory uncertainty surrounding their operations. In many countries, regulations are either outdated or non-existent, leaving ride-hailing services in a gray area with respect to legal requirements. Governments are still trying to figure out how to regulate these services, leading to inconsistent rules and laws across different regions. Some local authorities have implemented strict rules on vehicle licensing, insurance, and driver qualifications, while others have yet to establish clear guidelines.

Key Market Trends

Shift Toward Electric Vehicles (EVs)

As environmental concerns increase, there is a growing trend for ride-hailing companies to invest in electric and hybrid vehicles. This trend reflects the rising demand for sustainable mobility solutions, offering long-term benefits for both companies and customers. Ride-hailing companies are leveraging AI and big data analytics to optimize route planning, improve vehicle dispatch efficiency, and create personalized experiences for users. These technologies enable better decision-making and are helping to drive service improvements. Brazil's ride-hailing app 99, in collaboration with partners like BYD and Movida, aims to increase its fleet of electric vehicles (EVs) from 485 to 1,000 within a year, with a long-term goal of achieving a 100% electric fleet by 2030. This initiative is part of the "Alliance for Sustainable Mobility," reflecting a commitment to environmental sustainability and innovation in urban mobility

Key Market Players

• Uber Technologies, Inc.
• 99 Tecnologia S.A.
• Maximiliano S.A.
• Lyft, Inc.
• DiDi Global Inc.
• Bolt Technology OÜ
• Ola Electric Mobility Pvt. Ltd.
• Beat S.A.
• Grab Holdings Inc.
• PT. Aplikasi Karya Anak Bangsa

Report Scope:

In this report, the South America Ride Hailing Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

South America Ride Hailing Market, By Vehicle Type:

• Passenger Car
• Micro Mobility Vehicle

South America Ride Hailing Market, By Battery Capacity:

• Internal Combustion Engine
• Electric

South America Ride Hailing Market, By End User:

• Personal
• Business

South America Ride Hailing Market, By Country:

• Brazil
• Argentina
• Rest of South America

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the South America Ride Hailing Market.

Available Customizations:

South America Ride Hailing Market report with the given market data, TechSci Research, offers customizations according to the company’s specific needs. The following customization options are available for the report.

Company Information

• Detailed analysis and profiling of additional market players (up to five).