Why Cost Cutting Measures Are Driving Popularity of Ride-Hailing?
Till a little while ago, owning a car was considered an indicator of people’s economic status, and it still is in most of the countries. But with everything, from car and diesel/gasoline to insurance and regular maintenance, costing more now, many are shunning the idea of buying a car themselves and opting for shared mobility.However, people still want the comfort offered by a personal vehicle and, therefore, many avoid the crowded public transport. Thankfully, with smartphones equipped with internet connectivity, people can call cabs right to them, any time they want.
P&S Intelligence cites all these advantages while proclaiming that the worldwide ride-hailing market will grow from $50.4 billion in 2018 to $120.2 billion by 2024, at a CAGR of 13.0% between 2019 and 2024. Ride-hailing is the technical name of the transportation services offered by well-known companies such as Uber and Ola. It is where people book a cab via the mobile app of the company, and the driver takes them to their destination at their request. This is different from ride-sharing, where the cab has a fixed route, and it picks up more than one passenger on the way.
Currently, the ride-hailing market is the most productive in Asia-Pacific (APAC), which accounts for a huge middle-class population, much of which still cannot afford a car. Moreover, with air pollution choking regional urban areas, such as Beijing, Delhi/NCR, Mumbai, and Tokyo, governments in their respective countries are strongly promoting shared mobility. The region is already home to well-established ride-hailing companies, including Lyft Inc., Uber Technologies Inc., Beijing Xiaoju Technology Co. Ltd. (Didi Chuxing), and ANI Technologies Private Ltd. (Ola), which are taking steps to not only expand their presence, but also deploy EVs.
Thus, with more people becoming aware of the comfort and convenience ride-hailing offers and the important role it can play in cleaning up the environment, the number of people using these services is bound to go up.
Source: P&S Intelligence
