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Ride-hailing - North America

North America

The Ride-hailing market in North America is poised to experience a substantial rise in revenue, with a projected figure of US$53.46bn in 2024.
Furthermore, the market is expected to demonstrate an annual growth rate (CAGR 2024-2028) of 2.74%, resulting in a projected market volume of US$59.57bn by 2028.
In terms of the number of users, the marketis estimated to reach 153.60m users by 2028.
The user penetration rate is projected to remain stable at 27.3% in 2024 and 29.4% by 2028.
The average revenue per user (ARPU) is anticipated to be US$384.30.
Additionally, it is expected that 100% of the total revenue generated in the Ride-hailing market will be generated through online sales by 2028.
When compared to other countries, the majority of revenue is predicted to be generated China, with an estimated revenue of US$63,280m in 2024.
In the competitive North American Ride-hailing market, companies like Uber and Lyft are facing increasing scrutiny from regulators and labor activists over driver classification and safety concerns.

Key regions: Malaysia, Thailand, United States, Indonesia, South America

Market

Region

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Analyst Opinion

The Ride-hailing market in North America has experienced significant growth in recent years, driven by changing customer preferences and the emergence of new market trends.

Customer preferences: Customers in North America have increasingly embraced ride-hailing services due to their convenience, affordability, and ease of use. The ability to request a ride with just a few taps on a smartphone has revolutionized the transportation industry and provided an attractive alternative to traditional taxis. Additionally, the availability of various ride options, such as shared rides and luxury vehicles, has catered to a diverse range of customer needs and preferences.

Trends in the market: One of the key trends in the North American ride-hailing market is the growing popularity of shared rides. Customers are increasingly opting for shared rides as a cost-effective and environmentally friendly transportation option. This trend has been further accelerated by the introduction of carpooling services, which allow multiple passengers traveling in the same direction to share a ride and split the cost. Another trend in the market is the integration of ride-hailing services with other transportation modes. Many ride-hailing companies have partnered with public transportation agencies to provide first and last-mile connectivity solutions. This integration allows customers to seamlessly combine ride-hailing services with other modes of transportation, such as buses or trains, to complete their journeys.

Local special circumstances: The North American ride-hailing market is characterized by intense competition among various players. Uber, Lyft, and other local and regional ride-hailing companies are constantly vying for market share through aggressive marketing campaigns, promotional offers, and driver incentives. This competition has led to a high level of innovation and customer-centricity, with companies constantly introducing new features and services to attract and retain customers.

Underlying macroeconomic factors: The growth of the ride-hailing market in North America can also be attributed to favorable macroeconomic factors. The region has a strong digital infrastructure, high smartphone penetration, and a large population of tech-savvy individuals, which has facilitated the widespread adoption of ride-hailing services. Additionally, the increasing urbanization and congestion in major cities have made ride-hailing an attractive option for commuters looking to avoid the hassles of driving and parking. In conclusion, the Ride-hailing market in North America has experienced significant growth due to changing customer preferences, the emergence of new market trends, intense competition among players, and favorable macroeconomic factors. As the market continues to evolve, ride-hailing companies will need to innovate and adapt to meet the evolving needs of customers and stay ahead in this highly competitive industry.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on bookings and revenues of ride-hailing services.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on a specific rationale for each market. As a basis for evaluating markets, we use financial reports, third-party studies and reports, federal statistical offices, industry associations, and price data. To estimate the number of users and bookings, we furthermore use data from the Statista Consumer Insigths Global survey. In addition, we use relevant key market indicators and data from country-specific associations, such as demographic data, GDP, consumer spending, internet penetration, and device usage. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, ARIMA, which allows time series forecasts, accounting for stationarity of data and enabling short-term estimates. Additionally, simple linear regression, Holt-Winters forecast, the S-curve function and exponential trend smoothing methods are applied.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change.