Ride-hailing - Canada | Statista Market Forecast

By 2024, the Ride-hailing market in Canada is predicted to generate revenue of US$1.37bn.
Furthermore, the market is expected to exhibit a Compound Annual Growth Rate (CAGR) of 3.20% between 2024 and 2029, resulting in a projected market volume of US$1.60bn by 2029.
As for the number of users in the Canadian Ride-hailing market, they are predicted to reach 10.04m users by 2029.
User penetration, i.e., the percentage of the total population using the service, is anticipated to be 23.0% in 2024 and 24.7% by 2029.
The average revenue per user (ARPU) is expected to be US$152.20.
The Ride-hailing market is an online-only market.
Finally, it is worth noting that China is expected to generate the highest revenue in this market globally, with a projected revenue of US$60bn in 2024.
Despite regulatory challenges, ride-hailing continues to grow in Canada with major players like Uber and Lyft dominating the 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)

The Ride-hailing market in Canada has experienced significant growth in recent years, driven by changing customer preferences and local special circumstances.

Customer preferences: Customers in Canada are increasingly turning to ride-hailing services due to their convenience and affordability. Ride-hailing platforms offer a seamless booking experience and shorter wait times compared to traditional taxi services. Additionally, the ability to track the driver's location in real-time and pay through digital platforms has further enhanced the customer experience.

Trends in the market: One of the key trends in the Canadian ride-hailing market is the increasing adoption of electric vehicles (EVs) by ride-hailing companies. This trend is driven by the growing concern for the environment and the need to reduce carbon emissions. Many ride-hailing platforms in Canada are actively promoting the use of EVs by offering incentives and discounts to drivers who use electric vehicles. This not only helps in reducing the carbon footprint but also lowers operating costs for drivers. Another trend in the market is the expansion of ride-hailing services in smaller cities and rural areas. Initially, ride-hailing services were primarily concentrated in major cities, but they have now expanded their operations to cater to customers in smaller towns and rural areas. This expansion has been facilitated by the increasing availability of drivers and the growing demand for transportation options in these areas.

Local special circumstances: The Canadian ride-hailing market is unique due to the presence of strong regulations and licensing requirements. Each province in Canada has its own set of regulations governing ride-hailing services, which has resulted in a fragmented market with different rules in different regions. This has posed challenges for ride-hailing companies looking to expand their operations across the country. However, these regulations also ensure the safety and security of both drivers and passengers.

Underlying macroeconomic factors: The growth of the ride-hailing market in Canada is also influenced by underlying macroeconomic factors. The strong economy and high employment rates in the country have contributed to increased consumer spending and disposable income. This has allowed more people to afford ride-hailing services and contributed to the overall growth of the market. In conclusion, the ride-hailing market in Canada is experiencing significant growth due to changing customer preferences, such as convenience and affordability. The adoption of electric vehicles and the expansion of services in smaller cities and rural areas are key trends in the market. The presence of strong regulations and licensing requirements, along with the underlying macroeconomic factors, also play a significant role in shaping the market dynamics.

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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