Ride-hailing - Ethiopia | Statista Market Forecast

It is projected that the revenue in Ethiopia's Ride-hailing market will reach US$248.70m by 2024.
Furthermore, a yearly growth rate of 19.40%, resulting in a projected market volume of US$603.50m by 2029, is expected to be observed.
By 2029, the number of users in this market is expected to amount to 31.10m users.
In 2024, the user penetration rate is projected to be 12.5%, which will increase to 21.3% by 2029.
The average revenue per user (ARPU) is expected to be US$15.37.
By 2029, it is estimated that 100% of the total revenue will be generated through online sales.
In comparison to other countries worldwide, China is expected to generate the most revenue in this market with US$60bn in 2024.
Ride-hailing services are gaining popularity in Ethiopia due to the growing urban population and increasing smartphone penetration.

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 Ethiopia is experiencing significant growth and development, driven by changing customer preferences and local special circumstances.

Customer preferences: In Ethiopia, customers are increasingly turning to ride-hailing services as a convenient and reliable mode of transportation. With the rise of smartphone usage and improved internet connectivity, customers are embracing the ease of booking rides through mobile applications. The ability to track the location of the driver and estimated time of arrival has also become an appealing feature for customers, ensuring a seamless and efficient experience.

Trends in the market: One of the key trends in the ride-hailing market in Ethiopia is the emergence of local players. These homegrown companies understand the unique needs and challenges of the Ethiopian market, and have tailored their services accordingly. This localization strategy has allowed them to gain a competitive edge over international ride-hailing giants. Another trend is the expansion of ride-hailing services beyond major cities. Initially concentrated in urban areas, ride-hailing companies are now expanding their operations to secondary cities and even rural areas. This expansion is driven by the growing demand for transportation options in these areas, as well as the potential for untapped market opportunities.

Local special circumstances: Ethiopia has a large and growing population, with a significant portion of the population residing in urban areas. The rapid urbanization and increasing middle class have created a demand for convenient and affordable transportation options. Ride-hailing services have filled this gap by providing a reliable alternative to traditional taxis, which often suffer from issues such as lack of availability and price haggling. Furthermore, the Ethiopian government has been supportive of the ride-hailing industry, recognizing its potential to improve transportation infrastructure and create employment opportunities. This support has included the development of regulations and policies that promote the growth of the sector, as well as partnerships between ride-hailing companies and local authorities.

Underlying macroeconomic factors: Ethiopia has been experiencing steady economic growth in recent years, which has contributed to the expansion of the ride-hailing market. The increasing disposable income and changing consumer behavior have created a favorable environment for the adoption of ride-hailing services. Additionally, the growing middle class and urbanization have led to an increase in the number of people commuting for work and leisure, further driving the demand for ride-hailing services. In conclusion, the ride-hailing market in Ethiopia is witnessing significant growth and development, fueled by changing customer preferences, local special circumstances, and underlying macroeconomic factors. As the market continues to evolve, it is expected to play a crucial role in improving transportation infrastructure and providing employment opportunities in the country.

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.