Ride-sharing plays an integral role in enhancing the passenger experience. The global ride-sharing market depends on this factor significantly, which is expecting substantial growth during the forecast period (2018-2023), reveals Market Research Future (MRFR).
Ridesharing includes services such as carpooling, and car-hailing has emerged as a concept that has gained much traction in the mobility market in recent years, which contributes to the market growth considerably.
Market Drivers & Challenges
The factors such as rising fuel prices, lack of parking spaces and mounting traffic and congestion, predominantly in metro cities, have had a positive impact on the growth of the ride-sharing market.
The study reveals that some developing countries lack proper public transport systems, which has further boosted the demand for ride-sharing and carpooling services.
Such situations have also influenced the market constructively and have raised the market valuation at present. With this, the growing regard for electric vehicles for ride-sharing is anticipated to propel growth in the coming years.
At the same time, the service that rideshare offers such as one-way or two-way transportation on short notice has convinced the consumers for a comfortable ride. Apart from this, the concept also includes car-sharing, in which two or more passengers travel in the same vehicle, at the same time has also regulated the importance of ridesharing in a significant way.
By these factors, the ride-sharing has witnessed tremendous growth in developing economies owing to consumer’s inability to own a vehicle.
Such service offers the convenience of traveling comfortably at a lower cost in comparison to traveling in their car.
These factors have profoundly impacted the global market of ride-sharing by availing high valuation and is expected to reach more during the assessment period.
On the flip side, the safety-related concerns in sharing rides with unknown passengers could pose a risk to the market’s growth. Numerous unpleasant incidents during ride-sharing have also been witnessed recently, which has risen people’s hesitation towards using these services in some regions.
These factors could restrain the market from expanding in the other areas, yet the companies are into action in minimizing the hindrance factors to offer more comfortable travel for the customers in the future.