Ride-hailing - Cyprus | Statista Market Forecast

By 2024, it is projected that the Ride-hailing market in Cyprus will reach a revenue of US$8.04m.
Moreover, it is anticipated that the market will exhibit a Compound Annual Growth Rate (CAGR 2024-2029) of 4.65%, resulting in an estimated market size of US$10.09m by 2029.
The number of users in this market is also expected to increase to 285.70k users by 2029.
Furthermore, the user penetration rate is projected to rise from 18.7% in 2024 to 21.9% by 2029.
The average revenue per user (ARPU) is expected to remain at US$33.92.
It is also projected that 100% of the total revenue in the Ride-hailing market will be generated through online sales by 2029.
In comparison to other countries, China is expected to generate the most revenue in this market, with a projected revenue of US$60bn in 2024.
Despite the presence of popular ride-hailing services, Cyprus still heavily relies on traditional taxis for transportation.

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 Cyprus is experiencing significant growth and development. Customer preferences are shifting towards on-demand transportation services, leading to an increase in the demand for ride-hailing platforms. This trend is driven by various factors, including convenience, affordability, and a desire for a more personalized transportation experience.

Customer preferences: Customers in Cyprus are increasingly opting for ride-hailing services due to their convenience. With just a few taps on their smartphones, they can request a ride and have a driver pick them up at their desired location. This eliminates the need to wait for taxis or rely on public transportation schedules. Additionally, ride-hailing services often offer shorter wait times compared to traditional taxis, making them a preferred choice for time-sensitive individuals. Affordability is another key factor driving the popularity of ride-hailing services. Many ride-hailing platforms offer competitive pricing, often lower than traditional taxi fares. This makes them an attractive option for budget-conscious customers who are looking for cost-effective transportation solutions. Furthermore, customers appreciate the personalized experience provided by ride-hailing platforms. They can choose the type of vehicle they prefer, such as economy or luxury, and even select specific drivers based on their ratings and reviews. This level of customization allows customers to tailor their transportation experience to their individual preferences and needs.

Trends in the market: One trend in the ride-hailing market in Cyprus is the increasing adoption of ride-hailing services by business travelers. These individuals often require reliable transportation options to navigate unfamiliar cities or to attend meetings and events. Ride-hailing platforms offer a convenient and efficient solution for business travelers, allowing them to focus on their work without the hassle of finding parking or navigating through traffic. Another trend is the integration of ride-hailing services with other platforms and services. Many ride-hailing companies are partnering with food delivery services, allowing customers to order meals and have them delivered directly to their location. This integration of services provides added convenience and expands the range of offerings available to customers.

Local special circumstances: Cyprus has a relatively small population and limited public transportation infrastructure, which makes ride-hailing services an attractive alternative for both residents and tourists. The island's popular tourist destinations, such as beaches and historical sites, often require transportation options beyond the reach of traditional taxis or buses. Ride-hailing platforms fill this gap by providing accessible and convenient transportation options for visitors.

Underlying macroeconomic factors: The growth of the ride-hailing market in Cyprus can be attributed to several underlying macroeconomic factors. The country has experienced steady economic growth in recent years, leading to an increase in disposable income and consumer spending. This has resulted in a higher demand for transportation services, including ride-hailing. Additionally, advancements in technology and the widespread use of smartphones have made ride-hailing services more accessible to a larger segment of the population. The ease of use and convenience offered by ride-hailing platforms have contributed to their growing popularity. In conclusion, the Ride-hailing market in Cyprus is witnessing significant growth and development due to shifting customer preferences, including the desire for convenience, affordability, and a personalized transportation experience. The integration of ride-hailing services with other platforms and services, as well as the unique local circumstances in Cyprus, further contribute to the market's expansion. These trends are supported by underlying macroeconomic factors, such as economic growth and technological advancements.

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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