Ride Sharing Market All Set to Boom: Projected to Grow at a CAGR of over 16% during by 2028

The global ride sharing market is flourishing at a high rate because of the influencing factors, such as use of mobile apps or websites to provide users or passengers with access to vehicles or drivers for hire. Additionally, the increased mobile and internet penetration is also propelling the market forward.

A study recently conducted by the strategic consulting and market research firm Report Ocean revealed that the global ridesharing market is projected to reach USD 85.1 billion by 2021 growing at a CAGR of 16.4% during the forecast period (2022-2028). The use of mobile apps or websites to provide users or passengers with access to vehicles or drivers for hire is known as ride - sharing. Ridesharing is beneficial for the environment and people in general as it involves more than one rider in the same vehicle. The demand for ride-sharing is growing globally because of increased mobile and internet penetration. In addition, the rising cost of vehicle ownership, combined with strict rules and regulations pertaining to the reduction of carbon dioxide is driving the demand for ride-sharing, globally. Furthermore, the industry is heavily influenced by the increasing demand for electric vehicles in ride-sharing services.

Growth Drivers

Increasing use of smartphone and internet

Since ride-sharing is an internet-based service, having access to the internet is a must to use in any part of the world. Users must download any ride-sharing app to their smartphone and use data services to navigate the app as well as to access other relevant information services. According to the International Telecommunication Union, the internet is used by 81% of developing countries. Also, 40% of people in developing countries now have internet access, and this figure is increasingly rising.

Rising cost of vehicle ownership

Due to rising fuel prices, as well as rising financing, insurance, and car registration costs, owning a personal vehicle has become prohibitively expensive. In addition to this, maintenance cost, such as repairs of parts and accessories and labor charges, is also added to the cost of vehicle ownership. Aside from that, stringent rules and regulations pertaining to pollution control, among other things, make owning a personal car a little more difficult, allowing customers to use ride-sharing services.

Impact of COVID-19 in the global ride sharing market

Ride-sharing has been witnessing a major decrease in demand as a result of the COVID -19 outbreak. Owing to an increase in the number of cases of COVID-19, commuters are increasingly becoming concerned