According to a new market research report, the global ride-sharing market is predicted to grow from US$61.3 billion in 2018 to $218 billion by 2025, at an annual growth rate of 19.87 per cent.
A report published by MarketsandMarkets reveals that the major drivers of growth in the ride-sharing market are increasing traffic congestion and the need for personal mobility in the wake of rising urbanisation and a drop in car ownership.
The rising use of smartphones and global CO2 reduction targets are also contributing to growth in the sector, which is dominated by key players such as Uber, Lyft, Gett, Ola, Didi, Grab and Hertz.
In particular, MarketsandMarkets found the demand for corporate car sharing is on the rise, with employees looking at various options for commuting to work and getting to meetings. By providing staff with car-sharing options such as access to car clubs, MarketsandMarkets says companies can reduce fleet management costs.
MarketsandMarkets points to mergers and acquisitions, as well as expansion, as the two most prevailing tactics for growing brand presence in the competitive market. For instance, US-based Lyft has recently purchased bike sharing company Motivate, while France-based Blablacar has expanded into Russia and Ukraine in recent months.
Earlier this year, Indian company Ola announced it would set up operations in the UK, with plans to expand into cities such as Manchester and London.
According to expense management solutions provider Certify, Uber was the most-expensed travel brand in the third quarter of 2018 in the US, having overtaken taxis in 2015, while Lyft reached the top ten most popular vendors for business travellers for the first time.