Ride-hailing - Dominican Republic

The Dominican Republic is set to experience a rise in revenue within the Ride-hailing market, with an estimated projection of US$41.75m in 2024.
This figure is expected to increase by an annual growth rate of 5.36%, resulting in an anticipated market volume of US$54.20m by 2029.
In terms of user traffic, this market is expected to attract approximately 3.61m users users by 2029, with a user penetration rate of 25.8% in 2024 and 30.3% by 2029.
The average revenue per user (ARPU) is expected to be US$14.15.
The Ride-hailing market is an online-only market.
While in the Dominican Republic is expected to experience growth in this sector, it is worth noting that China will generate the most revenue, with an estimated US$60bn in 2024, in global comparison.
The Ride-hailing market in the Dominican Republic is dominated by local companies due to government regulations limiting foreign competition.

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 Dominican Republic has been experiencing significant growth in recent years, driven by changing customer preferences and favorable market conditions.

Customer preferences: Customers in the Dominican Republic have shown a strong preference for ride-hailing services due to their convenience and affordability. With the increasing urbanization and congestion in major cities, people are looking for alternative transportation options that can help them navigate through traffic more efficiently. Ride-hailing services provide a convenient solution by allowing customers to book a ride with just a few taps on their smartphones. Additionally, the competitive pricing offered by ride-hailing companies has made them an attractive option for customers, especially compared to traditional taxis.

Trends in the market: One of the key trends in the ride-hailing market in the Dominican Republic is the growing popularity of motorcycle taxis. Motorcycle taxis, also known as "motoconchos," have been a common mode of transportation in the country for many years. However, ride-hailing companies have started to tap into this market by offering motorcycle taxi services through their platforms. This trend is driven by the high demand for quick and affordable transportation options, particularly in congested urban areas. Motorcycle taxis provide a faster and more agile way to navigate through traffic, making them a popular choice for short-distance trips. Another trend in the ride-hailing market is the increasing focus on safety and security. Ride-hailing companies are implementing stricter driver screening processes and safety features in their apps to ensure the well-being of both drivers and passengers. This trend is in response to the growing concerns about safety in the transportation industry, particularly in the wake of high-profile incidents involving ride-hailing platforms. By prioritizing safety, ride-hailing companies aim to build trust and confidence among customers, ultimately driving further growth in the market.

Local special circumstances: The Dominican Republic is a popular tourist destination, attracting millions of visitors each year. This presents a unique opportunity for ride-hailing companies to cater to the transportation needs of tourists. Ride-hailing services offer tourists a convenient and reliable way to get around the country, especially in areas where public transportation options may be limited. By providing services tailored to the needs of tourists, ride-hailing companies can tap into this lucrative market segment and further expand their operations.

Underlying macroeconomic factors: The Dominican Republic has been experiencing steady economic growth in recent years, which has contributed to the development of the ride-hailing market. As the economy grows, more people have disposable income to spend on transportation services, leading to increased demand for ride-hailing. Additionally, the government has implemented policies to promote entrepreneurship and innovation, creating a favorable environment for ride-hailing companies to operate and thrive. These macroeconomic factors, combined with changing customer preferences, have fueled the growth of the ride-hailing market in the Dominican Republic.

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.

This report presents a comprehensive analysis and additional information on the Mobility market, in a PDF format.