COVID-19 Impact on Ride Sharing Market

COVID-19 Impact on Ride Sharing Market by Service Type (E-Hailing, Car Sharing, Car Rental, Station-Based Mobility), Data Service (Information, Navigation, Payment) and Region - Forecast to 2021

Report Code: AT 7620 Apr, 2020, by marketsandmarkets.com

Post-COVID-19, the global ride sharing market size is projected to grow at a Y-O-Y growth of 55.6% from 2020 to 2021, to reach USD 117.34 billion by 2021 from USD 75.39 billion in 2020. The projection for 2021 is estimated to be down by 2% as compared to pre-COVID-19 estimation.

The major drivers of this market include the growing need for personal mobility in the wake of rising urbanization and fall in car ownership. Also, growing internet and smartphone penetration and stringent CO2 reduction targets are leading to the high growth of the ride sharing market.

COVID-19 Impact on Ride Sharing Market

Car sharing services are expected to be the most impacted in the ride sharing market, by service type, during the forecast period

In the past few years, car sharing has gained popularity due to several positive factors such as reduced travel costs, traffic congestion, and emissions. However, with the impact of COVID-19, the car sharing market is estimated to lose its share by 50–60% during 2020. Furthermore, by 2021, it will gain its market by 70–80% because of new strategies like providing partitions to keep the distance between driver and passenger, equipping the vehicle with sanitizers, and installing devices to measure the body temperature of passengers to eliminate the threat of such infections in future. However, at the same time, it is expected that fares would increase due to the added precautionary measures.

Payment service is estimated to be the fastest growing segment during the forecast period

The payment service market is growing at the fastest CAGR during the forecast period. Ride sharing service providers use payment gateways for online payment processing. International expansion of ride sharing service providers and payments in foreign currency are likely to boost the growth of the payment service segment. In the post pandemic period, users would prefer app-based payments instead of cash to minimize the chances of infection.

Electric vehicles have the potential to disrupt the ride sharing market in the future

During the analysis of COVID-19, it is observed that pollution level of most of the cities has gone down. According to a study by Harvard University T.H. Chan School of Public Health, cities with more air pollution (PM 2.5) are more susceptible to coronavirus infections. On similar lines, the European Public Health Alliance (EPHA) mentions that air pollution causes diabetes, hypertension, and respiratory diseases—the  underlying health conditions that make coronavirus more deadly. Keeping this in mind, electric vehicles would be a better option for ride sharing companies. The electric vehicle market is growing at the fastest CAGR during the forecast period. This growth is attributed to favorable government policies, better infrastructure, and growing awareness about CO2 emissions. IC engine vehicles have the largest share in the ride sharing market as these vehicles are most widely adopted and used globally.

Key Market Players

The ride sharing market is dominated by global players and comprises several regional players. Some of the key players in the ride sharing market are Uber (US), Lyft (US), DiDi (China), Grab (Singapore), Gett (Israel), Ola (India), BlaBlaCar (France), Lime (US), and Herts (US).

Uber and DiDi are anticipated to be the dominant players in the ride sharing market. Both the companies have adopted the strategies of expansion, new product development, partnership, and merger & acquisition to retain their leading position in the ride sharing market. By strengthening the product portfolio and global presence by building customer relationships, they have left a mark not only on the current market but also emerging markets.

Scope of the Report

Report Metric

Details

 

Market Size Available for Years

 

2018–2021

Base Year Considered

2019

Forecast Period

2020–2021

Forecast Units

Value (USD billion)

Segments Covered

Service Type, Car Sharing Type, Data Service,  And Country

Geographies Covered

Asia Pacific, Europe, North America, and RoW

Companies Covered

Uber (US), Lyft (US), DiDi (China), Gett (Israel), and Grab (Singapore)
Total 10 major players covered

This research report categorizes the exhaust system market based on service type, data service, car sharing type, and country.

By Service Type

  • E-hailing
  • Car sharing
  • Station-based mobility
  • Car rental

By Car Sharing Type

  • P2P
  • Corporate

By Data Service

  • Navigation
  • Information service
  • Payment service
  • Others (cost estimation, reports, messaging, backend support)

By Country

  • US
  • China
  • India
  • Germany
  • France
  • Spain
  • Italy

Recent Developments

COMPANY NAME

PRECAUTIONARY MEASURES ADOPTED

DiDi

  • Built disinfection stations across China for on-demand mobility vehicles
  • Invested about USD 14.3 million in this safety measure that involves installing protective plastic sheets

Uber

  • Distributing disinfectants to drivers to help keep cars clean
  • Reduced their fares during the pandemic
  • Disinfecting all high contact surfaces on bikes and scooters in respective depots
  • Developed a new 'Work Hub' app to help drivers find alternative jobs

Grab

  • Providing face masks and hand sanitizers to drivers
  • Temporarily suspended GrabShare and GrabBike services

Lyft

  • Temporarily paused shared rides across all of its markets
  • Over 200,000 bottles of hand sanitizers, along with other cleaning supplies, are being distributed to Lyft drivers free of cost
  • Disinfecting all high contact surfaces on bikes and scooters at depots

Ola

  • Reduced their fares during the pandemic period
  • Temporarily paused shared rides—Ola Share
  • Sanitizers are available to Ola drivers free of cost

 

Key Questions addressed by the report

  • What is the impact of COVID-19 on the ride sharing market and its services?
  • What would be the impact of COVID-19 on ride sharing industry by 2021?
  • What are the opportunities for ride sharing service providers?
  • Which ride sharing services would get impacted? (Positive/Negative)
  • Who are the major competitors, and what are their growth strategies?

To speak to our analyst for a discussion on the above findings, click Speak to Analyst

TABLE OF CONTENTS

1 INTRODUCTION (Page No. - 9)
    1.1 COVID-19 HEALTH ASSESSMENT
    1.2 COVID-19 ECONOMIC ASSESSMENT
           1.2.1 COVID-19 IMPACT ON THE ECONOMY—SCENARIO ASSESSMENT

2 MARKET OVERVIEW (Page No. - 15)
    2.1 INTRODUCTION
    2.2 RIDE SHARING – AN OVERALL ECOSYSTEM
    2.3 MOBILITY-ON-DEMAND ECOSYSTEM AND INDICATION OF IMPACTED SERVICE
    2.4 RIDE SHARING COMPANIES & IMPACT ON THEIR ECOSYSTEM, BY REGION & SERVICE TYPE
           2.4.1 UBER
           2.4.2 DIDI
           2.4.3 LYFT
           2.4.4 GRAB
           2.4.5 OLA
    2.5 MARKET DYNAMICS
           2.5.1 SHORT-TERM DRIVER - BETTER FOCUS ON FIRST & LAST MILE SERVICES IN COMBINATION WITH STATION-BASED MOBILITY
           2.5.2 SHORT TERM RESTRAINT - IMPACT ON INVESTMENTS BY INVESTORS

3 IMPACT OF COVID-19 ON MARKET SIZE OF RIDE SHARING SERVICES (Page No. - 21)
    3.1 INTRODUCTION
    3.2 E-HAILING
           3.2.1 E-HAILING IS THE MOST IMPACTED SERVICE DURING COVID-19 LOCKDOWN
    3.3 CAR SHARING
           3.3.1 AS A PRECAUTIONARY MEASURE TO CONTROL THE SPREAD OF PANDEMIC, THE MARKET FOR CAR SHARING WILL WITNESS NEGATIVE GROWTH
           3.3.2 CAR SHARING MARKET, BY TYPE, 2018 VS. 2021 (USD BILLION)
                    3.3.2.1 P2P car sharing
                               3.3.2.1.1 P2P will have major impact from Covid-19
                    3.3.2.2 Corporate car sharing
                               3.3.2.2.1 Corporate car sharing will have a moderate impact during post-Covid-19
    3.4 CAR RENTAL
           3.4.1 DEMAND FOR CAR RENTAL WILL REMAIN STAGNANT DUE TO GROWING DEMAND FOR E-HAILING AND STATION-BASED MOBILITY
    3.5 STATION-BASED MOBILITY
           3.5.1 MODERATE HIKE IN DEMAND FOR STATION-BASED MOBILITY WILL BE OBSERVED DUE TO COVID-19

4 IMPACT OF COVID-19 ON MARKET SIZE OF RIDE SHARING DATA SERVICES (Page No. - 32)
    4.1 INTRODUCTION
    4.2 INFORMATION
           4.2.1 WITH THE ADVENT OF TECHNOLOGY, USAGE OF INFORMATION SERVICES HAS INCREASED
    4.3 NAVIGATION
           4.3.1 NAVIGATION IS THE MOST IMPERATIVE DATA SERVICE FOR RIDE SHARING SERVICE PROVIDERS
    4.4 PAYMENT
           4.4.1 INCREASING ADOPTION OF DIGITAL PAYMENT SYSTEMS WILL DRIVE THE MARKET FOR PAYMENT DATA SERVICES
    4.5 OTHERS
           4.5.1 BACKEND SUPPORT IS IMPORTANT FOR MAINTAINING MULTIPLE DATA SERVICES

5 IMPACT OF COVID-19 ON RIDE SHARING MARKET, BY COUNTRY (Page No. - 38)
    5.1 INTRODUCTION
    5.2 ASIA PACIFIC
           5.2.1 CHINA
                    5.2.1.1 Relatively quicker recovery will help the Chinese market stabilize
           5.2.2 INDIA
    5.3 EUROPE
           5.3.1 GERMANY
           5.3.2 FRANCE
           5.3.3 ITALY
           5.3.4 SPAIN
    5.4 US

6 BUSINESS OPPORTUNITIES FOR MOBILITY SERVICE PROVIDERS (Page No. - 49)
    6.1 INTRODUCTION
    6.2 NEW BUSINESS OPPORTUNITIES
           6.2.1 STATION-BASED MOBILITY
           6.2.2 E-COMMERCE AND HOME DELIVERY
           6.2.3 PHARMACY & OTHER DAILY NECESSITIES
           6.2.4 BUSINESS OPPORTUNITIES IN ADJACENT MARKET
                    6.2.4.1 Electrification in Ride Sharing
                    6.2.4.2 Autonomous Vehicles in Ride Sharing
           6.2.5 TOP GAINERS VS TOP LOSERS, BY SERVICES
           6.2.6 TOP PLAYERS AND THEIR POSSIBLE TOP VENTURES

7 COMPETITIVE LANDSCAPE AND COVID-19 (Page No. - 53)
    7.1 INTRODUCTION
           7.1.1 RIDE SHARING COMPANIES & IMPACT ON THEIR ECOSYSTEM
    7.2 PRECAUTIONARY MEASURES FOR COVID-19 BY KEY MOBILITY SERVICE PROVIDERS
           7.2.1 RIGHT-TO-WIN – DURING COVID-19 PERIOD

8 APPENDIX (Page No. - 58)
    8.1 KNOWLEDGE STORE: MARKETSANDMARKETS SUBSCRIPTION PORTAL
    8.2 AUTHOR DETAILS


LIST OF TABLES (30 TABLES)

TABLE 1 CRITERIA IMPACTING THE GLOBAL ECONOMY
TABLE 2 SCENARIOS IN TERMS OF RECOVERY OF THE GLOBAL ECONOMY
TABLE 3 IMPACT OF COVID-19 ON RIDE SHARING SERVICES, 2018 VS. 2021 (USD BILLION)
TABLE 4 E-HAILING - TOP PLAYERS
TABLE 5 IMPACT OF COVID-19 ON E-HAILING MARKET, BY REGION, 2018–2021 (USD BILLION)
TABLE 6 CAR SHARING - TOP PLAYERS
TABLE 7 IMPACT OF COVID-19 ON CAR SHARING MARKET, BY REGION, 2018–2021 (USD BILLION)
TABLE 8 IMPACT OF COVID-19 ON CAR SHARING MARKET, BY TYPE, 2018–2021 (USD BILLION)
TABLE 9 P2P CAR SHARING - TOP PLAYERS
TABLE 10 IMPACT OF COVID-19 ON P2P CAR SHARING MARKET, BY REGION, 2018–2021 (USD BILLION)
TABLE 11 CORPORATE CAR SHARING - TOP PLAYERS
TABLE 12 IMPACT OF COVID-19 ON CORPORATE CAR SHARING MARKET, BY REGION, 2018–2021 (USD BILLION)
TABLE 13 TOP PLAYERS
TABLE 14 IMPACT OF COVID-19 ON CAR RENTAL MARKET, BY REGION, 2018–2021 (USD BILLION)
TABLE 15 STATION-BASED MOBILITY - TOP PLAYERS
TABLE 16 IMPACT OF COVID-19 ON STATION-BASED MOBILITY MARKET, BY REGION, 2018–2021 (USD BILLION)
TABLE 17 IMPACT OF COVID-19 ON RIDE SHARING DATA SERVICE, 2018–2021 (USD BILLION)
TABLE 18 IMPACT OF COVID-19 ON INFORMATION SERVICE MARKET, BY REGION, 2018–2021 (USD BILLION)
TABLE 19 NAVIGATION SERVICE: IMPACT OF COVID-19 ON RIDE SHARING MARKET, BY REGION, 2018–2021 (USD BILLION)
TABLE 20 IMPACT OF COVID-19 ON PAYMENT SERVICE MARKET, BY REGION, 2018–2021 (USD BILLION)
TABLE 21 IMPACT OF COVID-19 ON OTHER RIDE SHARING SERVICES MARKET, BY REGION, 2018–2021 (USD BILLION)
TABLE 22 IMPACT OF COVID-19 ON ASIA PACIFIC RIDE SHARING MARKET, BY COUNTRY, 2018–2021 (USD BILLION)
TABLE 23 IMPACT OF COVID-19 ON CHINESE RIDE SHARING SERVICES MARKET, 2018–2021 (USD BILLION)
TABLE 24 IMPACT OF COVID-19 ON INDIAN RIDE SHARING SERVICES MARKET, BY SERVICE TYPE, 2018–2021 (USD BILLION)
TABLE 25 IMPACT OF COVID-19 ON EUROPEAN RIDE SHARING SERVICES MARKET, BY COUNTRY, 2018–2021 (USD BILLION)
TABLE 26 IMPACT OF COVID-19 ON GERMAN RIDE SHARING SERVICES MARKET, BY SERVICE TYPE, 2018–2021 (USD BILLION)
TABLE 27 IMPACT OF COVID-19 ON FRENCH RIDE SHARING SERVICES MARKET, BY SERVICE TYPE, 2018–2021 (USD BILLION)
TABLE 28 IMPACT OF COVID-19 ON ITALIAN RIDE SHARING SERVICES MARKET, BY SERVICE TYPE, 2018–2021 (USD BILLION)
TABLE 29 IMPACT OF COVID-19 ON SPANISH RIDE SHARING SERVICES MARKET, BY SERVICE TYPE, 2018–2021 (USD BILLION)
TABLE 30 IMPACT OF COVID-19 ON US RIDE SHARING SERVICES MARKET, BY SERVICE, 2018–2021 (USD BILLION)


LIST OF FIGURES (12 FIGURES)

FIGURE 1 COVID-19 THE GLOBAL PROPAGATION
FIGURE 2 COVID-19 PROPAGATION: SELECT COUNTRIES
FIGURE 3 COUNTRIES BEGIN WITH SIMILAR TRAJECTORIES BUT CURVES DEVIATE BASED ON MEASURES TAKEN
FIGURE 4 REVISED GDP FORECASTS FOR SELECT G20 COUNTRIES IN 2020
FIGURE 5 IMPACT OF COVID-19 ON RIDE SHARING SERVICE MARKET, 2020 VS. 2021 (USD BILLION)
FIGURE 6 IMPACT OF COVID-19 ON RIDE SHARING SERVICE TYPES, WITH & WITHOUT THE OUTBURST 2020 (USD BILLION)
FIGURE 7 IMPACT OF COVID-19 ON CAR SHARING MARKET, BY TYPE, 2018 VS. 2021 (USD BILLION)
FIGURE 8 IMPACT OF COVID-19 ON RIDE SHARING DATA SERVICE MARKET, 2020 VS. 2021 (USD BILLION)
FIGURE 9 IMPACT OF COVID-19 ON RIDE SHARING SERVICES, BY COUNTRY - WITH & WITHOUT THE OUTBURST 2020 (USD BILLION)
FIGURE 10 IMPACT OF COVID-19 ON ASIA PACIFIC RIDE SHARING MARKET, BY COUNTRY, 2020 VS. 2021 (USD BILLION)
FIGURE 11 IMPACT OF COVID-19 ON EUROPEAN RIDE SHARING MARKET, BY COUNTRY, 2020 VS. 2021 (USD BILLION)
FIGURE 12 COVID-19 IMPACT ON RIDE SHARING COMPANIES AND THEIR SERVICES, 2020

The study involves four main activities to estimate the current size of the ride sharing market. Exhaustive secondary research was done to collect information on the market, such as service type, data service type, and the impact of COVID-19. The next step was to validate these findings, assumptions, and market analysis with industry experts across value chains through primary research. Bottom-up and top-down approaches were employed to estimate the complete market size for different segments considered under this study.

Secondary Research

The secondary sources referred for this research study include annual reports, press releases and investor presentations of companies, white papers, certified publications, articles from recognized authors, directories, databases, and articles from recognized associations and government publishing sources. Some of the sources include Ride Share Drivers' Association of Australia, Association of Internet Users, and United RideShare Driver Association, among others. Various data points have been collected through secondary research such as key company’s revenues, gross booking, number of rides, average cost per ride, and number of drivers.

Primary Research

Extensive primary research has been conducted after acquiring an understanding of the ride sharing market scenario through secondary research. Several primary interviews have been conducted with market experts from both the demand- and supply-side players across four major regions, namely, North America, Europe, the Asia Pacific, and the rest of the world (RoW—Latin America, the Middle East, and Africa). Primary data has been collected through questionnaires, emails, and telephonic interviews. In the canvassing of primaries, we have strived to cover various departments within organizations, such as sales, operations, and administration, to provide a holistic viewpoint in our report. The primary validations include the base market size, forecasted market size, CAGR, segment level data, and trends of each segment.

After interacting with industry experts, we have also conducted brief sessions with highly experienced independent consultants to reinforce the findings from our primaries. This, along with the in-house subject-matter experts’ opinions, has led us to the findings as described in the remainder of this report.

COVID-19 Impact on Ride Sharing Market

To know about the assumptions considered for the study, download the pdf brochure

Market Size Estimation

The bottom-up and top-down approaches have been used to estimate and validate the size of the global market. The market size, by value, of the ride sharing market, has been derived by identifying the country-wise usage pattern of service (e-hailing, car sharing, station-based mobility, car rental) based on the number of companies existing in each service type and estimating their revenues based on the average number of rides, number of users, and average cost per ride.

 All percentage shares, splits, breakdowns, and COVID-19 impact estimation have been determined using secondary sources and verified through primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data.

 This data is mapped for each country under the scope of the study. The booked value of the major ride sharing service providers in each country is added to derive the regional market size, in terms of value. The country-level data is added to obtain the total size, in terms of value, of the market in that region. For the top-down approach, the ride sharing market obtained through bottom-up approach was broken down to make segments such as data service, as obtained through secondary research and insights from industry experts.

Data Triangulation

All percentage shares, splits, and breakdowns have been determined using secondary sources and verified through primary sources. All parameters that are said to affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data. The data has been consolidated, enhanced with detailed inputs and analysis from MarketsandMarkets, and presented in this report. The following figure is an illustrative representation of the overall market size estimation process employed for this study.

Report Objectives

  • To define, describe, and forecast the ride sharing market based on service type, car sharing type, data service, and country
  • To forecast the market size of the ride sharing market, by value, based on service type (e-hailing, car sharing, station-based mobility, and car rental)
  • To forecast the market size of the ride sharing market, in terms of value, based on car sharing type (P2P and corporate)
  • To assess the impact of COVID-19 on each of the above segments and country
  • To forecast the market size of the ride sharing market, in terms of value, based on data service (navigation, information service, payment service, and others)
  • To forecast the market size of the ride sharing market, in terms of value, with respect to key impacted countries (US, China, India, France, Germany, Spain, and Italy),
  • To provide detailed information about the major factors influencing the growth of the market (drivers, restraints, opportunities, and industry-specific challenges)
  • To strategically analyze the market with respect to individual growth trends and prospects, and determine the contribution of each segment to the total market
  • To analyze the opportunities in the market for stakeholders and provide details of the competitive landscape for market leaders
  • To strategically profile the key players and comprehensively analyze the impact of COVID-19 on their respective lines of businesses

Available Customizations

With the Given market data, MarketsandMarkets offers customizations according to the company’s specific needs.

The following customization options are available for the report:

  • Ride Sharing Market, By Country
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  • Singapore
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  • UK
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Report Code
AT 7620
Published ON
Apr, 2020
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