The popularity of ride hailing services continues to boom across the globe because it is a convenient, comfortable, and safe solution for door-to-door transportation. Another industry trending with a similar popularity trajectory is the global electric vehicle market. With many world’s leading car manufacturers launching their all-electric vehicles, as well as the growing environmental concerns towards air pollutions, the global ride hailing services market is expected to witness a new trend which increasing number of ride hailing service providers are shifting from hybrid cars to all-electric cars over the near future.
Ride Hailing Services Market Overview
Ride hailing services are known as the taxi booking services that use online platforms or mobile apps for taxi passengers to book with local vehicle owners. Such services are usually cheaper and more convenient to book with licensed taxicabs, therefore is growingly preferred by taxi passengers around the world. According to the latest market report from Technavio, the global ride hailing services market size is forecast to grow by USD 50.66 billion from 2019 to 2023, registering a significant growth of 19% in terms of CAGR.
The rising use of online on-demand transportation services is one of the major factors driving the growth of the ride hailing services market. World’s leading ride hailing service providers, such as Uber, Lyft, Gett, Grab and Ola have been penetrating to the untapped developed and developing markets due to a rise in investments by venture capitalists. Meanwhile, increasingly adopting electric vehicles in the ride hailing services is also one of the major trends that will help this market to grow further over the near future.
Electric Vehicles: Future of the Ride Hailing Services
Ride hailing service providers from around the world are facing increasingly strengthened laws and regulations focused on protecting the environment. These regulations encourage vendors and manufacturers to use solutions that can reduce the toxic emissions, including nitrogen oxides, carbon monoxide, and carbon dioxide. This challenge is expected to force the passenger cars used by ride hailing services shifting from hybrid vehicles to all-electric vehicles in the near future.
Electric vehicles work on electricity, they help in reducing harmful air pollution, leading to better quality of air and reducing health problems caused by air pollution in the city area, which is ideal to be used for ride hailing services in the major cities around the world.
For instance, in August 2018, Singapore-based ride hailing service provider Grab and SP Group announced a strategic partnership, in which Grab will introduce 200 new fast-charging electric vehicles (EVs). The new ride hailing fleet is expected to be launched in Singapore this year.
The benefits of using electric vehicles for ride hailing services are numerous. These cars work on electric engines, they do not require oil changes. They also have fewer moving parts, which rarely break down, thereby reducing the cost for repair and maintenance. In addition, electric cars can be serviced by customers using parts that can be purchased online or fixed remotely through over-the-air updates. With such benefits, the global ride hailing services market is expected to see more and more electric cars in service.
Check Technavio’s?Global Ride Hailing Services Market Report 2019-2023
Technavio has been closely monitoring the latest ride hailing service trends to create an in-depth portfolio of ride hailing services market research reports. These reports help our clients identify opportunities within the market and develop effective strategies to optimize their market positions. Take a look at Technavio’s Global Ride Hailing Services Market Report and download your free sample report today.