Ride-hailing - Cuba | Statista Market Forecast

Cuba is expected to witness a significant growth in the Ride-hailing market with the projected revenue to reach US$16.68k in 2024.
The market is anticipated to grow at an annual growth rate (CAGR 2024-2029) of 0.21%, culminating in a market volume of US$16.85k by 2029.
The number of users is expected to rise to 3.19m users by 2029, with a projected user penetration of 28.6% in 2024 and 28.9% by 2029.
The average revenue per user (ARPU) is expected to be US$0.01.
By 2029, 100% of the total revenue in the Ride-hailing market will be generated through online sales.
It is noteworthy that, in global comparison, China is expected to generate the highest revenue of US$60bn in 2024.
Despite the growing popularity of ride-hailing services in other countries, Cuba's strict regulations and limited internet access have hindered the growth of this 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 Cuba has been steadily developing in recent years, driven by various factors such as changing customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: In Cuba, customers have shown a growing preference for ride-hailing services due to the convenience and flexibility they offer. With the rise of smartphone usage and increased internet penetration, customers are increasingly turning to ride-hailing platforms to easily book transportation and avoid the hassle of traditional taxi services. The ability to track the location of the driver and estimated arrival time has also been a key factor in attracting customers to ride-hailing services.

Trends in the market: One major trend in the Cuban ride-hailing market is the emergence of local ride-hailing platforms. These platforms cater specifically to the needs and preferences of the Cuban market, offering services that are tailored to the local context. This trend has been fueled by the Cuban government's efforts to promote entrepreneurship and the development of local businesses. Another trend in the market is the integration of ride-hailing services with other platforms and services. For example, some ride-hailing platforms in Cuba have partnered with local food delivery services, allowing customers to order food and have it delivered to their location along with their ride. This integration of services provides added convenience for customers and helps to differentiate ride-hailing platforms in a competitive market.

Local special circumstances: Cuba has unique circumstances that have influenced the development of the ride-hailing market. One such circumstance is the limited availability of private vehicles. Due to government restrictions and high import costs, private car ownership is relatively low in Cuba. As a result, ride-hailing services have filled a gap in the transportation market, providing an alternative to traditional taxis and public transportation. Another special circumstance is the country's tourism industry. Cuba has seen a significant increase in tourism in recent years, with visitors from around the world flocking to explore the country's rich history and vibrant culture. Ride-hailing services have become a popular choice for tourists, offering a convenient and reliable way to navigate the unfamiliar streets of Cuba.

Underlying macroeconomic factors: The development of the ride-hailing market in Cuba is also influenced by underlying macroeconomic factors. The Cuban government has been implementing economic reforms aimed at opening up the country to foreign investment and promoting entrepreneurship. These reforms have created an environment that is conducive to the growth of ride-hailing platforms and other tech-based startups. Additionally, the gradual improvement of internet infrastructure in Cuba has played a role in the development of the ride-hailing market. As internet access becomes more widespread and reliable, more people are able to access ride-hailing platforms and take advantage of their services. In conclusion, the ride-hailing market in Cuba is developing in response to changing customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. The convenience and flexibility offered by ride-hailing services, along with the unique circumstances of the Cuban market, have contributed to the growth of this industry. As the Cuban economy continues to evolve and internet access expands, the ride-hailing market is likely to continue its upward trajectory.

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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