Ride-hailing - Denmark | Statista Market Forecast

Denmark's Ride-hailing market is expected to witness a rise in revenue, with a projected value of US$234.50m in 2024.
The market is anticipated to grow annually at a rate of 3.21% between 2024 and 2029, resulting in a projected market volume of US$274.70m by 2029.
The number of users in this market is also expected to increase, reaching 970.50k users by 2029.
User penetration is projected to be 14.5% in 2024 and is expected to rise to 16.0% by 2029.
The average revenue per user (ARPU) is estimated to be US$272.90.
The Ride-hailing market is an online-only market.
It is noteworthy that in comparison to other countries, China is expected to generate the highest revenue in this market, with a projected value of US$60bn in 2024.
In Denmark, ride-hailing services have faced regulatory hurdles and strong competition from traditional taxi companies offering their services increasingly online.

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 Denmark has experienced significant growth in recent years, driven by changing customer preferences and the rise of digital platforms.

Customer preferences: One of the key factors driving the growth of the Ride-hailing market in Denmark is the increasing preference for convenience and flexibility among customers. Ride-hailing services offer a convenient and efficient way to travel, allowing customers to book a ride with just a few taps on their smartphones. This has resonated well with Danish consumers who value convenience and time-saving solutions. Additionally, the ability to track the location of the driver and estimated time of arrival has also contributed to the popularity of ride-hailing services in the country.

Trends in the market: The Ride-hailing market in Denmark has witnessed the emergence of new players, both local and international, which has intensified competition in the industry. This has led to innovative features and services being introduced to attract and retain customers. For example, some ride-hailing companies have introduced loyalty programs, offering discounts and rewards to frequent users. Others have expanded their services to include options such as luxury vehicles or shared rides, catering to a wider range of customer preferences. Another trend in the market is the increasing focus on sustainability and environmental impact. Danish consumers are known for their strong environmental consciousness, and this has influenced their choice of transportation. Ride-hailing companies have responded to this trend by introducing electric or hybrid vehicles into their fleets, reducing carbon emissions and offering a more sustainable transportation option.

Local special circumstances: Denmark has a well-developed public transportation system, with reliable buses, trains, and metros. However, there are certain circumstances where ride-hailing services offer a more convenient and efficient option. For example, during late-night hours when public transportation is limited, or in areas with limited accessibility, ride-hailing services provide a reliable alternative. Additionally, for tourists or visitors who are unfamiliar with the local transportation system, ride-hailing services offer a convenient and hassle-free way to get around.

Underlying macroeconomic factors: Denmark has a strong and stable economy, with a high level of disposable income among its population. This has contributed to the growth of the ride-hailing market, as consumers are willing to spend on convenient transportation options. Additionally, the high smartphone penetration rate in Denmark has made it easier for ride-hailing companies to reach and engage with customers. In conclusion, the Ride-hailing market in Denmark is experiencing significant growth due to changing customer preferences, including a preference for convenience and flexibility. The emergence of new players and the introduction of innovative features have also contributed to the market's development. Local special circumstances, such as limited late-night public transportation and the need for convenient options for tourists, further support the growth of the ride-hailing market. The country's strong economy and high smartphone penetration rate are underlying macroeconomic factors that have facilitated the market's expansion.

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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