Shared Mobility - Ethiopia

Ethiopia

Highlights

The Shared Mobility market in Ethiopia is expected to witness a significant growth in revenue in the coming years.
It is projected to reach US$1.80bn by 2024 and show an annual growth rate (CAGR 2024-2029) of 12.87%.
This will result in a projected market volume of US$3.31bn by 2029.
The largest market in the Ethiopian Shared Mobility market is Public Transportation and is expected to reach a market volume of US$698.30m by 2024.
The number of Public Transportation users is expected to increase to 70.13m users by 2029.
The user penetration of 53.1% in 2024 is expected to be 73.8% by 2029.
The average revenue per user (ARPU) is expected to be US$26.16.
By 2029, online sales are expected to generate 48% of the total revenue in the Shared Mobility market.
In comparison with other countries, China is projected to generate the most revenue in the Shared Mobility market with a revenue of US$365bn in 2024.
Shared mobility services, such as ride-sharing and bike-sharing, are still largely underdeveloped in Ethiopia, but the government is taking steps to promote their growth.

Key regions:

Definition:

The Shared Mobility market encompasses a diverse range of long- and short-distance mobility services. As the world moves towards a more connected and digital era, the Shared Mobility market is central to driving innovation, collaboration, and the development of intelligent transportation systems.

Structure:

The market consists of eleven further markets. These include the following markets:

The Car Rentals market contains vehicle rentals that have been booked in person, by telephone via the internet or an app.
The Car-sharing market includes professionally run car-sharing services that provide on-demand access vehicles, allowing users to rent cars for short periods, e.g., by minute or hour.
The Bike-sharing market contains short-term bike-sharing services. Bicycles can be found in the provider’s business zone where they are either parked at designated stations or freely distributed without fixed docks.
The Ride-hailing market encompasses on-demand transportation services facilitated through mobile apps or online platforms. This market covers both private vehicle rides and taxi services, all booked exclusively online.
The Taxi market covers exclusively traditional taxi services booked offline, typically via street hailing or phone calls.
The Flights market contains air travel bookings regardless of the purchase channel, such as an airline's website or a travel agency.
In the Public Transportation market, revenues generated by ticket sales from public transportation companies are considered.

Additional Information:

The main performance indicators of the Shared Mobility market are revenues, average revenue per user (ARPU), user numbers and user penetration rates. Additionally, online and offline sales channel shares display the distribution of online and offline bookings. The ARPU refers to the average revenue one user generates per year while the revenue represents the total booking volume. Revenues are generated through both online and offline sales channels and include exclusively B2C revenues and users for the above-mentioned markets. User numbers show only those individuals who have made a reservation, independent of the number of travelers on the booking. Each user is only counted once per year. Additional definitions for each market can be found within the respective market pages.

The booking volume includes all booked rides made by users from the selected region, regardless of where the ride took place.

For further information on the data displayed, refer to the info button right next to each box.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Shared Mobility market in Ethiopia is experiencing significant growth and development, driven by various factors unique to the region.

Customer preferences: Customers in Ethiopia are increasingly seeking convenient and cost-effective transportation options, leading to a growing demand for shared mobility services. The younger population, in particular, is more inclined towards flexible and on-demand transportation solutions, aligning with global trends in urban mobility preferences.

Trends in the market: One of the key trends shaping the Shared Mobility market in Ethiopia is the rise of ride-hailing services, offering a convenient alternative to traditional taxis. The increasing penetration of smartphones and improved internet connectivity have further fueled the adoption of ride-hailing platforms in urban centers. Additionally, the emergence of bike-sharing and car-sharing services is gaining traction, providing environmentally friendly options for short-distance travel.

Local special circumstances: Ethiopia's rapidly expanding urban population, coupled with infrastructural challenges and traffic congestion in major cities, has created a conducive environment for shared mobility services to thrive. The government's efforts to improve transportation infrastructure and promote sustainable mobility solutions are also contributing to the growth of the Shared Mobility market in the country.

Underlying macroeconomic factors: The growing middle class and rising disposable incomes in Ethiopia are driving consumer spending on transportation services. As more people migrate to urban areas in search of better opportunities, the demand for efficient and affordable transportation options continues to increase. Moreover, the government's focus on promoting digital innovation and entrepreneurship is creating a favorable ecosystem for shared mobility service providers to expand their operations in the country.

Data coverage:

The data encompasses B2C enterprises. Figures are based on bookings, revenues, and online shares of car rentals, ride-hailing, taxi, car-sharing, bike-sharing, e-scooter-sharing, moped-sharing, trains, buses, public transportation, and flights.

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.