Ride-hailing - Africa | Statista Market Forecast

According to recent projections, the Ride-hailing market in Africa is expected to see a significant increase in revenue in the coming years.
By 2025, the revenue is anticipated to reach US$2.26bn, and with an annual growth rate (CAGR 2025-2029) of 10.68%, the revenue is expected to reach US$3.39bn by 2029.
Moreover, the number of users in this market is expected to reach 268.16m users by 2029.
It is projected that the user penetration will increase from 14.8% in 2025 to 18.5% by 2029, indicating a growing market.
Furthermore, the average revenue per user (ARPU) is estimated to be US$11.46, which is expected to contribute to the overall revenue growth.
Additionally, 100% of the total revenue in the Ride-hailing market is projected to be generated through online sales by 2029.
It is worth noting that in the global comparison, China is expected to generate the most significant revenue in this market, with the revenue projected to be US$64bn in 2025.
However, in the context of Africa, the Ride-hailing market is showing promising growth and potential.
The rise of motorcycle taxis in Nigeria has disrupted traditional taxi services and led to increased competition in the Ride-hailing market.

Definition:

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. It includes Transportation Network Companies (TNCs), such as Uber and Lyft, traditional taxis booked via apps, such as Free Now or Cabify, and ride-pooling services, such as Moia and Via. This market excludes peer-to-peer ride-sharing, focusing on professionally operated transport services booked digitally for efficient and convenient urban mobility. Rides of traditional taxi services hailed on the street or booked via telephone are not included in this market.

Additional Information:

The main performance indicators of the Ride-hailing 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 mentioned market. 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.

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.

Platforms that let users book rides offered by drivers using their private vehicles (e.g., Uber)
Taxi companies that offer their services through an app (e.g., Free Now)
Platforms that offer shared rides (ride-pooling) with other passengers (e.g., Moia, Via)

Traditional taxi rides booked offline with taxi companies (via street-hailing or by telephone)

Ride-hailing: market data & analysis

The Ride-hailing market in Africa has been experiencing significant growth and development in recent years.

Customer preferences: Customers in Africa have shown a strong preference for ride-hailing services due to several reasons. Firstly, the convenience and ease of booking a ride through a mobile app have made it a popular choice among consumers. Additionally, the safety and security features offered by ride-hailing platforms have helped to build trust among customers. Moreover, the affordability of these services compared to traditional taxis has also contributed to their popularity.

Trends in the market: One of the key trends in the ride-hailing market in Africa is the increasing competition among different platforms. Local and international ride-hailing companies are entering the market, leading to a wider range of options for customers. This competition has also resulted in innovations and improvements in service quality, such as shorter waiting times and better customer support. Another trend is the expansion of ride-hailing services beyond major cities. Initially, these services were mostly available in urban areas, but they are now expanding to smaller towns and rural areas. This expansion is driven by the increasing demand for transportation services in these areas and the potential for business growth.

Local special circumstances: Africa has a unique set of circumstances that have contributed to the growth of the ride-hailing market. One of the main factors is the lack of reliable public transportation infrastructure in many African countries. This has created a gap in the market that ride-hailing companies have been able to fill. Additionally, the rapid urbanization and population growth in Africa have increased the demand for transportation services, further driving the growth of the ride-hailing market.

Underlying macroeconomic factors: Several macroeconomic factors have played a role in the development of the ride-hailing market in Africa. The increasing penetration of smartphones and internet connectivity has made it easier for customers to access ride-hailing services. Additionally, the rise of the middle class in many African countries has increased disposable income and the ability to afford ride-hailing services. Furthermore, the growing digital economy in Africa has created opportunities for ride-hailing platforms to thrive and expand their services. In conclusion, the ride-hailing market in Africa has been growing rapidly due to customer preferences for convenience, safety, and affordability. The market is characterized by increasing competition, expansion into smaller towns and rural areas, and the unique circumstances of the African continent. The underlying macroeconomic factors, such as smartphone penetration, rising middle class, and the digital economy, have also contributed to the growth of the market.

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.

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Ride-hailing - Africa

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