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Ride-hailing - Central America

Central America

Central America is expected to experience a significant increase in revenue within the Ride-hailing market in the coming years.
It is projected that by 2024, the revenue will reach a staggering US$193.50m and will continue to grow annually at a rate of 4.57%, resulting in a projected market volume of US$242.00m by 2029.
In the same period, the number of users is expected to increase to 17.96m users, with a projected user penetration of 27.8% in 2024 and 32.0% by 2029.
The average revenue per user (ARPU) is expected to be US$13.16.
Moreover, it is estimated that by 2029, 100% of the total revenue within the Ride-hailing market will be generated through online sales.
However, in a global comparison, China is expected to generate the most revenue in this market, with a projected revenue of US$59,560m in 2024.
In Central America, ride-hailing companies like Uber and Didi face competition from traditional taxi services due to lower prices and cultural preferences in countries such as Guatemala and Honduras.

Key regions: South America, Europe, China, Saudi Arabia, Malaysia

Market

Region

Region comparison

Currency

Analyst Opinion

The Ride-hailing market in Central America is experiencing significant growth and development. Customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors all contribute to this expansion. Customer preferences in Central America are shifting towards convenience and affordability. Ride-hailing services offer a convenient and reliable alternative to traditional transportation options such as taxis or public transportation. Customers appreciate the ease of booking a ride through a smartphone app and the ability to track their driver's location in real-time. Additionally, ride-hailing services often offer competitive pricing, making them an attractive option for cost-conscious consumers. Trends in the market indicate a growing demand for ride-hailing services in Central America. The region's urban centers are experiencing rapid population growth, leading to increased traffic congestion and longer commuting times. Ride-hailing services provide a solution to these challenges by offering efficient transportation options that can navigate through congested roads. Furthermore, the rise of the sharing economy and the increasing popularity of smartphone usage have created a favorable environment for ride-hailing services to thrive. Local special circumstances also contribute to the development of the ride-hailing market in Central America. Many countries in the region face challenges in terms of public safety and security. Ride-hailing services provide an added layer of security for passengers, as they can easily share their ride details with friends or family members and rate their drivers based on their experience. This increased sense of safety and accountability has contributed to the popularity of ride-hailing services among both locals and tourists. Underlying macroeconomic factors further support the growth of the ride-hailing market in Central America. The region has experienced steady economic growth in recent years, leading to an expanding middle class and increased disposable income. As a result, more people are able to afford the convenience and comfort of ride-hailing services. Additionally, the proliferation of smartphones and improved internet connectivity have made ride-hailing services more accessible to a larger portion of the population. In conclusion, the Ride-hailing market in Central America is developing due to customer preferences for convenience and affordability, trends in the market such as population growth and traffic congestion, local special circumstances including safety concerns, and underlying macroeconomic factors such as economic growth and increased smartphone usage. This combination of factors has created a favorable environment for ride-hailing services to flourish in the region.

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.