Navigant: Global ride-hailing revenue expected to hit $1.2T in 2026

Tuesday January 23, 2018 Tags: Boulder, Navigant Research, Sam Abuelsamid

BOULDER -- Global revenue generated by ride-hailing services is expected to grow to almost $1.2 trillion in 2026, according to a new report from Navigant Research.

The report examines the global market for mobility as a service (MaaS) solutions, including carsharing, ride-hailing, micro transit, automated mobility, and peer-to-peer (P2P) rental services.NavigantNEWlogoUSE

As more people move from rural areas to cities, an influx of personally owned vehicles is contributing to issues such as congestion, air quality, and traffic accidents. MaaS solutions can provide more flexibility than mass transit while also enabling the replacement of individually owned vehicles. 

“During the next decade, ride-hailing provided by human drivers will lead services in the MaaS field, enabled by platform providers like Uber, Lyft, Didi, and Ola,” said Sam Abuelsamid, Navigant senior research analyst.

“The convenience of summoning a vehicle through an app and paying electronically makes this service appealing and gives it a distinct advantage over carsharing.”

However, while global ride-hailing services revenue will be enormous, transportation network companies (TNCs) must drive a lot of cost out of their platforms to reach sustainable profitability, something none have done so far.

According to the report, as automated driving supplants human drivers, existing TNCs will find themselves challenged by services provided directly by the companies that manufacture vehicles.

There is still significant room for growth before the MaaS market is saturated, but low switching costs for riders are expected to make it a challenging business, the report notes.

The reportMobility as a Service, examines the global market for MaaS solutions such as carsharing, ride-hailing, micro transit, automated mobility, and peer-to-peer (P2P) rental services.

The study provides an analysis of the market issues, including drivers, challenges, and business and operational models, associated with MaaS. Global market forecasts, segmented by service and region, extend through 2026.

The report also examines the key technology issues related to MaaS, as well as the competitive landscape.

An Executive Summary of the report is available for free download on the Navigant website.