Car E-Hailing Market: Current Analysis and Forecast (2023-2030)

Car e-hailing refers to the process of the use of a mobile software or online platform to book, track, and pay for a car or taxi provider. It permits customers to request a trip from their contemporary place and get picked up by using a nearby driver. The idea eliminates the need to physically hail a taxi or wait at a designated taxi stand. Car e-hailing services have received popularity due to their convenience, real-time tracking, and cashless fee options.

The car e-hailing market is expected to grow at a steady rate of around 7.20% owing to the burgeoning adoption of electric vehicles in the car e-hailing industry. In recent years, there has been a significant demand for electric vehicles in the e-hailing industry. The demand for electric vehicles has rapidly increased in recent years due to the increased price of gasoline, cost-effectiveness, and government support by providing rebates and incentives to adopt electric vehicles. As increasingly people are getting aware of their carbon footprint and looking for eco-friendly transportation options, the demand for EVs as a mode of transport has soared. For example, companies like Uber and Lyft have begun introducing alternatives for customers to in particular request an electric car for their trip. Moreover, there are rising startups entirely committed to imparting e-hailing offerings with electric vehicles such as Blu Mobility. Those organizations enjoy the lower running charges of EVs compared to conventional fossil-fueled cars, further contributing to the reduction of greenhouse fuel emissions. For instance, in February 2023, Uber Technologies Inc, a ride-sharing company having a presence worldwide signed a Memorandum of Understanding (MoU) with Tata Motors to bring 25,000 electric vehicles (EVs) onto the Uber platform in India. Furthermore, the partnership aims to provide drivers on the Uber platform access to affordable EVs, which will help reduce their operating costs improve their earnings, and propel the growth of the car e-hailing market. Therefore, the burgeoning adoption of electric vehicles drives the car e-hailing market.

Based on car type, the market is divided into micro cars, sedans, premium cars, and SUVs. The micro car segment dominated the market in 2022 and is expected to show the same trend in the forecast period. Micro cars are properly-suited for navigating via congested urban areas with limited parking spaces. Their compact size permits for less difficult maneuverability and parking, making them best for short-distance journey in densely populated areas where brief pick-up and drop-offs are essential. Due to the smaller length of micro cars, vehicle e-hailing service carriers can operate a better variety of vehicles within a given fleet length, leading to increased sales potential. additionally, the lower initial investment required to purchase and keep micro cars can make it less difficult for new entrants to establish e-hailing services, thereby contributing to their dominance.

Based on distance, the market is segmented into short distance, and long distance. The short distance is currently the leading segment and is expected to dominate the segment in the forecast period. The major factor for the growth of the segment as it gives comfort and time efficiency for customers who are searching for quick transportation within their immediately location. For example, individuals commuting to work or running errands regularly opt for e-hailing services for short journeys in place of relying on public transportation or the use of their personal vehicles. Moreover, e-hailing services provide a price-effective alternative to taxi services for shorter distances. users can save money through buying only the space traveled, as opposed to a flat charge for a whole ride. Additionally, e-hailing structures have leveraged advanced algorithms and AI technologies to optimize their services for shorter rides. They ensure brief response times, efficient direction-making plans, and seamless matching of passengers and drivers in near proximity. This has made e-hailing services notably efficient for short journeys, contributing to their dominance in this market segment.

For a better understanding of the market adoption of the shipbuilding industry, the market is analyzed based on its worldwide presence in the countries such as North America (U.S., Canada, Mexico, Rest of North America), Europe (Germany, U.K., France, Italy, Spain, Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Rest of Asia-Pacific), Rest of World. The Asia Pacific is projected to be the fastest-growing region in the forecast period due to rapid industrialization, increasing population, and urbanization. The Asia Pacific region has seen consistent growth in the automotive industry, with increasing electric car sales and production. This leads to a higher demand for car e-hailing service providers. Moreover, the Asia-Pacific region, especially countries such as Japan, South Korea, and China, has a long history of technological innovation. These countries are investing heavily in research and development, which has led to the development of economical electric vehicles and supports startups by providing suitable funds and loans at very low-interest rates further supporting the growth of the car e-hailing market. Consequently, ride-sharing services offer very reasonable prices to move from one place to another with the best quality cars, feeling consumers to owing a vehicle at a fraction of the cost, which drives the consumer psychologically to adopt car e-hailing services.

Some of the major players operating in the market include: Ola Electric Mobility Pvt. Ltd., Lyft Inc., Didi Global Inc, Cabify Espana S.L.U., Uber Technologies, Inc., Gett, Grab, Curb Mobility, BlaBla Car, Careem.