The global Ride-Hailing Service Market is expected to grow from US$ 48,922.78 million in 2021 to US$ 98,745.11 million by 2028; it is estimated to grow at a CAGR of 10.6% from 2021 to 2028.

The global ride-hailing service market is segmented on the basis of service type, vehicle type, location, end user, and geography. On the basis of service type, the market is segmented into e-hailing, car sharing, car rental, and station-based mobility. The rising proliferation of smartphones and internet connectivity is driving the demand for e-hailing services across the globe. On the basis of vehicle type, the market is segmented into two-wheeler, three-wheeler, four-wheeler, and other. The various technological innovations for digital payments, safety, and comfort for the riders, as well as drivers, etc. have further helped in the growth of the four-wheeler ride-hailing service market. Based on the location, the ride-hailing service market is segmented into urban, and rural. Surging penetration of the internet coupled with the growing acceptance of ride-hailing services has led to growth in the urban ride-hailing service market. Based on the end user, the ride-hailing service market is segmented into institutional, and personal. A surge in the daily commute to work in urban areas, as well as an increased desire to save gasoline by giving a ride to commuters and colleagues travelling the same route, are expected to fuel the personal ride hailing market. Further, on the basis of geography, the ride-hailing service market is primarily segmented into North America, Europe, Asia-Pacific, the Middle East and Africa, South and Central America. Surge in the adoption of ride-hailing service in the UK, Germany, and Switzerland is bolstering the growth of the market in Europe.

The key stakeholders in the ride-hailing service market ecosystem include technology solution providers, ride-hailing service providers, and end users. The technology solution providers include connected devices or other hardware manufacturers and software developers. The increase in the number of technology solution providers is critically driving the digitization in the ride-hailing. Ride-hailing services demand is expected to increase post COVID due to the rising trend of on-demand transportation services, creation of employment opportunities, and low rate of car ownership among millennials. In addition, advancements in connected & automatic vehicles to reduce CO2 emission and substantial increase in sales of these vehicles for the use of ride-hailing services propel the global market growth.

The ride-hailing service providers take services from technology solution providers. With the growing technological developments in the ride-hailing, the demand for a ride-hailing service market is increasing. However, despite favorable growth conditions globally and high demand from ride-hailing companies, the ongoing COVID-19 outbreak has minimally affected the growth rate of ride-hailing service market in 2020. During pandemic, the requirement of ride-hailing service has been negatively impacted. Moreover, with opening of several growth markets in all regions, vaccination development, and initiatives taken by various governments to support economic and industrial growth, the future demand of ride-hailing service market among end users is anticipated to grow at a positive and steady. Some of ride-hailing service market players include Daimler AG, ANI Technologies Pvt. Ltd., DiDi Global Inc., Uber Technologies Inc., Gett and Delphi Technologies Plc, among others.

Impact of COVID-19 Pandemic on Ride-Hailing Service Market

According to the World Health Organization's (WHO) most recent situation report, the United States, Spain, Italy, France, Germany, the United Kingdom, Russia, Turkey, Brazil, Iran, and China are among the countries most afflicted by the COVID-19 pandemic. The global economy experienced substantial implications in 2020, and the impacts are projected to last for some time. Electronics, semiconductors, and the automobile industry have all been affected by the outbreak. The ride-hailing service market's growth is being hampered by a sharp decline in the growth of the aforementioned industries. Factory closures, travel and trade bans, and border closures have all had an impact on the operation of many commercial and corporate facilities around the world. Additionally, the social or physical distancing measures imposed by governments have led the ride-hailing service providers to limit their operations. For instance, according to a recent global survey conducted by Cars.com in mid-March 2020, more than 40% of respondents had ceased utilizing ridesharing and hailing services in order to limit their risk of contracting the contagious virus. Over 90% of respondents stated they had begun to use their vehicles, and 20% had even begun to consider purchasing a new vehicle. Due to a significant downturn in the ride-hailing industry revenue in 2020, the demand for new ride-hailing services has lowered, limiting the market growth. The Lyft have seen a 36 percent drop in revenue year over year. Furthermore, according to the Canaccord Genuity price tracker, ride-share fares in 2020 will be down 6% month over month. However, with the uplifting of lockdown and vaccination processes, the manufacturing and construction companies have started working again, and ease of travel restriction, the ride-hailing industry started to regain its momentum. Thus, in the year 2021 market witnessed significant demand for ride-hailing service.

The overall Ride-Hailing Service market size has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. The process also serves the purpose of obtaining an overview and forecast for the Ride-Hailing Service market with respect to all the segments. It also provides the overview and forecast for the market based on all the segmentation provided with respect to five major regions-North America, Europe, Asia Pacific, Middle East & Africa, and South America. Also, primary interviews were conducted with industry participants and commentators to validate data and gain more analytical insights into the topic. The participants of this process include industry experts such as VPs, business development managers, market intelligence managers, and national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders, specializing in the Ride-Hailing Service market. A few major players operating in the market are ANI Technologies Pvt. Ltd.; Daimler AG; Delphi Technologies Plc; DiDi Global Inc.; Gett; Grab Holdings Inc.; Lyft, Inc.; TUKTUK RIDE; Uber Technologies Inc.; zTrip.