Travel and transportation have been affected by technology, just as life and society have been transformed. As travel demand and desire have increased, technology has been used to enhance the quality and efficiency of transportation in all forms.
It is crucial to recognize that the advances in transportation technology aren’t always about getting things done faster. In addition to improving passenger experiences, new technologies can also increase safety and security. A lot has happened in the taxi industry in the past decade.
These years have been marked by a revolution in digital technology, which has completely transformed the transportation industry. There is much more happening in the online taxi booking industry, from ride-hailing apps to shared vehicles to electric cars or taxis.
For transportation owners, drivers, and riders, Uber served as a case study that a taxi organization can function in a similar way. New trends are emerging from taxi booking applications such as Uber, Lyft, and Ola in the taxi and transportation industries. Despite the COVID 19 pandemic, the taxi business remains lucrative.
In response to the ease and convenience provided by ride-hailing startups, there is a rise in the number of startups and investing from various areas. The industry is reaching new heights because of these trends. In this block, we will throw some light on the future of ridesharing apps but before that, let’s have a look at some eye=popping statistics.
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Ride-sharing Market Overview – Important Statistics to Know
The ridesharing industry matches drivers of private vehicles with people who need local transportation. Modern technology tools have changed the way people commute, and this approach has been gaining huge momentum since Uber launched an online ridesharing service.
Passengers use taxi booking mobile apps or websites to connect with drivers, and they are then taken along with other commuters to a specific destination. The ridesharing industry has experienced rapid growth during the past few years and is forecasted to grow at over 6.5% CAGR between 2020 and 2026.
In large cities especially, increased population and industrialization means more road traffic and more need for comfortable transportation. It has been a decade since ridesharing began growing exponentially. Global ridesharing popularity soared thanks to multi-million dollar companies like Uber and Lyft that have set an example for other entrepreneurs.
According to experts, the market will grow by over 400% in the next five years, from $51.3 billion in 2017. Well, this figure is huge and ensures a promising future for the ridesharing market. Go through some jaw-dropping statistics that help you understand the market scenario better,
- The global ridesharing industry is worth a projected $61 billion.
- More than 25% of the US population uses online ride-booking apps once a month
- Uber, the leader, has more than 3.8 million drivers globally.
- The online ride-hailing market is estimated to reach an estimated $220 billion by 2025.
- After Uber, Lyft is the second-largest ridesharing company that has captured a 30% market share in the US.
The above figures demonstrate that the growth of online ridesharing as an industry is one of the growing sectors globally. No wonder more and more fleet business owners are thinking of leveraging powerful taxi solutions for their business. The above stats reveal the projected success of the popular companies and the financial potential of emerging business startups.
In short, the online ride-booking market will keep growing even after the pandemic because people are looking for a safe and secure mode of transportation. So, it’s worth watching to analyze trends that will dominate the market in the coming years.
Also Read: Top 15 Best Taxi Booking Apps in India 2021
Significant Trends to Watch Out
The global ride-hailing industry has several significant trends that a young uber-like company can capitalize on. Let’s take a tour and examine some important trends that will transform the ridesharing market.
1. Growing Trend of P2P Ride-sharing Services
Over the next eight years, P2P ride-sharing is projected to grow at a rate of over 7.5% CAGR. P2P carpooling services have become increasingly popular as a result of a demand for shared mobility services very quickly for commutes to the desired location. Through the use of GPS technology and location services, users can contact drivers nearby.
If you are engaged with the ride-hailing business and looking for similar services, you can opt for the below-mentioned solutions to accelerate business growth.
- Eber by Elluminati Inc is a complete platform that comes with all the advanced features and helps entrepreneurs handle online bookings easily.
- Yelowsoft is also a name that helps budding entrepreneurs improve their revenue and business standards in the online transportation business.
- Smart-car tech enables SMBs and fleet business owners to accept booking requests on time and automate other operations.
If you are looking for ready-made solutions, then the above are the best options to choose from. Smart devices such as phones and tablets make it convenient for commuters to communicate with car owners. P2P carpooling services are growing due to the emergence of new platforms.
2. Car and Bike Rentals
After surviving the initial phase of its existence across several countries, the bike rental industry is one such new segment that has taken off to success. What was originally introduced to be a new market segment has now emerged as a highly sought-after and profitable business opportunity.
In the near future, Ola predicts the growth of car-sharing models that are based on subscriptions and corporate leasing. Consumers benefit from the fact that these vehicles provide convenience and ease of ownership without the hassles and financial burden associated with owning a car.
3. Scope for Electric Vehicles
Whether it’s the type of transmission for cars or the fuel they use, the world is currently undergoing massive change. As a fuel, electricity is considered one of the most eco-friendly and energy-efficient options available today. By bringing sustainable energy back to prominence, we can reduce the atrocious load on our pockets while at the same time controlling environmental contamination.
Also Read: Step by Step Guide to Solo Travel in India
With the government promoting the scalability of cleaner transport policies and encouraging the use of electric two-wheelers, the market for electric two-wheelers in the country is heating up. Increasing consumer awareness, technological advancements, and infrastructure investments are accelerating green mobility adoption.
Over the years, the EV market has experienced many milestones and has continually adjusted and changed.
Ride-sharing has received some support and plaudits from around the world in recent years, as global warming has become a major issue. And while taxi and bus drivers may fondly remember the days before Uber, most people have immeasurably benefited from this industry.
Uber’s success quickly brought competition, as it does with most good ideas. Didi and Lyft became multimillion-dollar services very quickly. Within the next few years, Tesla’s ridesharing service will likely also play a major role. Public transportation will likely become more and more reliant on ridesharing in the future.
It offers great opportunities for individuals to sustain their financial livelihoods as well as companies to grow, develop, and improve their services. To get the best results from sharing rides, it is simply necessary to understand the concept better to achieve optimal outcomes.
Deep Moteria, Deep is an aspiring entrepreneur and Co-founder of Elluminati Inc. Deep having led 75+ startups on the right path with their information-admiring entrepreneurial skill and guidelines. Along with that he loves to craft content on topics including on-demand economy, entrepreneurship, technology trends and many more.