Global Ride-Hailing Industry Growing

Ride hailing, which uses app-based ride services, didn’t exist 10 years ago, but is now valued at  $61.3 billion worldwide. That number is expected to grow to $218 billion by 2025.

Increasing urbanization and slowing car ownership rates are leading to a boom in the trend. A report from research firm Marketsandmarkets said not only are cab alternatives like Uber and Lyft growing, but also “micro mobility” options like bike- and scooter-sharing services.

The report said “corporate car sharing” is expected to grow — when companies provide cars for employees who commute or travel for business. It’s being hailed as a more economical alternative to keeping a fleet of company cars.

“The demand for corporate car sharing is expected to grow as people riding to offices are likely to travel on the same route,” according to the report. “Thus, it is much easier to find co-passenger with ease and less waiting time.”

The biggest growth in the ride-hailing business is anticipated to come in the Asia/Oceana market “due to a growing population and rising urbanization in emerging economies such as China and India,” the report said. “Factors such as increasing urbanization and rising traffic congestion are likely to drive the demand for ride-sharing services.”