Ride-hailing - EU-27 | Statista Market Forecast

The Ride-hailing market in the EU-27 is predicted to experience a rise in revenue, with a projected value of US$7.75bn in 2024.
The market is expected to exhibit an annual growth rate of 3.08% (CAGR 2024-2029), with a projected market volume of US$9.02bn by 2029.
Moreover, the number of users in this market is expected to reach 82.94m users by 2029, with user penetration projected to be 16.6% in 2024 and 18.7% by 2029.
The average revenue per user (ARPU) is expected to be US$104.30.
Additionally, approximately 100% of the total revenue in this market will be generated through online sales by 2029.
It is noteworthy that in the global comparison, China is expected to generate the most revenue in this market, with a projected value of US$60bn in 2024.
In France, traditional taxi companies are collaborating with ride-hailing services to compete with Uber.

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 EU-27 has been experiencing significant growth and development in recent years.

Customer preferences: Customers in the EU-27 region have shown a strong preference for ride-hailing services due to their convenience and affordability. The ease of booking a ride through a smartphone application and the ability to track the driver's location in real-time have made ride-hailing a popular choice for many consumers. Additionally, the availability of various vehicle options, such as economy cars, luxury vehicles, and even electric scooters, has further enhanced the appeal of ride-hailing services.

Trends in the market: One of the key trends in the EU-27 ride-hailing market is the increasing competition among different service providers. With the entry of new players and the expansion of existing companies, consumers now have a wider range of options to choose from. This has led to improved service quality and lower prices as companies strive to attract and retain customers. Another trend in the market is the growing popularity of ride-sharing services. Many consumers are now opting to share their rides with others going in the same direction, which not only helps reduce costs but also contributes to reducing traffic congestion and carbon emissions. Ride-sharing services have gained traction particularly in densely populated urban areas where traffic congestion is a major issue.

Local special circumstances: The EU-27 region consists of diverse countries with varying levels of urbanization and transportation infrastructure. This has led to different levels of adoption and growth of ride-hailing services across the region. In highly urbanized areas with limited parking spaces and high traffic congestion, ride-hailing has become an attractive alternative to owning a car. On the other hand, in less urbanized areas with better public transportation options, the demand for ride-hailing services may be lower. Furthermore, regulatory frameworks and government policies play a crucial role in shaping the ride-hailing market in each country. Some countries have embraced ride-hailing services and implemented supportive regulations, while others have imposed restrictions or even banned these services altogether. These local regulations and policies can significantly impact the growth and development of the ride-hailing market in each country.

Underlying macroeconomic factors: The growth of the ride-hailing market in the EU-27 can also be attributed to underlying macroeconomic factors. The region has seen steady economic growth in recent years, which has led to an increase in disposable income and consumer spending. As a result, more people are willing to spend on transportation services, including ride-hailing, as a convenient and reliable means of getting around. Additionally, the rise of the gig economy and flexible working arrangements has contributed to the growth of the ride-hailing market. Many individuals, including freelancers and part-time workers, rely on ride-hailing services for their daily commute or to reach their work locations. This trend has further fueled the demand for ride-hailing services in the EU-27 region. In conclusion, the ride-hailing market in the EU-27 is developing rapidly due to customer preferences for convenience and affordability, increasing competition among service providers, the growing popularity of ride-sharing services, local special circumstances such as urbanization and regulatory frameworks, and underlying macroeconomic factors such as economic growth and the rise of the gig economy. These factors combined have created a favorable environment for the expansion and evolution of the ride-hailing market in the EU-27 region.

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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