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Ride-hailing - Guatemala

Guatemala

It is anticipated that the revenue of the Ride-hailing market in Guatemala will reach US$61.53m by 2024.
Furthermore, it is expected that the sector will exhibit a Compound Annual Growth Rate (CAGR) of 5.36% between 2024 and 2029, resulting in an estimated market volume of US$79.90m by 2029.
By 2029, the number of users in this market is estimated to be 6.21m users.
The user penetration rate is expected to remain constant at 26.8% between 2024 and 2029.
It is projected that the Average Revenue Per User (ARPU) will be US$12.52.
Additionally, it is estimated that 100% of the total revenue in the Ride-hailing market will be generated through online sales by 2029.
It is worth noting that, in global comparison, China is expected to generate the most revenue (US$59,560m in 2024) in this sector.
In Guatemala, ride-hailing services are gaining popularity due to safety concerns surrounding traditional taxis.

Key regions: South America, Europe, China, Saudi Arabia, Malaysia

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Region

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Analyst Opinion

Ride-hailing services have gained significant popularity in Guatemala in recent years. As more and more Guatemalans embrace the convenience and affordability of these services, the ride-hailing market in the country has experienced rapid growth.

Customer preferences: One of the main reasons for the growth of the ride-hailing market in Guatemala is the changing preferences of customers. Traditional taxi services in the country have long been plagued by issues such as unreliable service, high fares, and safety concerns. Ride-hailing platforms have addressed these concerns by offering a more convenient and reliable alternative. Customers can easily book a ride through a mobile app, track the driver's location, and make cashless payments. This level of convenience and transparency has resonated with Guatemalan customers, leading to a shift in their preferences towards ride-hailing services.

Trends in the market: The ride-hailing market in Guatemala has witnessed several key trends. Firstly, there has been a surge in the number of ride-hailing drivers in the country. Many individuals, including those who were previously unemployed or underemployed, have found ride-hailing to be a viable source of income. This has led to increased competition among drivers, resulting in shorter wait times for customers and lower fares. Additionally, ride-hailing companies in Guatemala have been expanding their services beyond just car rides. They have introduced options such as motorcycle taxis and delivery services, catering to a wider range of customer needs. This diversification of services has further contributed to the growth of the ride-hailing market in the country.

Local special circumstances: Guatemala has a large urban population, with many people residing in densely populated cities. The limited availability of parking spaces and the high cost of owning a car have made ride-hailing services an attractive option for many Guatemalans. Furthermore, the country has a relatively young population, with a high percentage of smartphone users. This has facilitated the adoption of ride-hailing apps and contributed to the growth of the market.

Underlying macroeconomic factors: The ride-hailing market in Guatemala has also been influenced by macroeconomic factors. The country has experienced steady economic growth in recent years, leading to an increase in disposable income for many Guatemalans. This has made ride-hailing services more affordable and accessible to a larger segment of the population. Furthermore, advancements in technology and the widespread availability of mobile internet have played a crucial role in the growth of the ride-hailing market. The ease of accessing ride-hailing apps and the seamless booking process have made these services more appealing to customers. In conclusion, the ride-hailing market in Guatemala has experienced significant growth due to changing customer preferences, key market trends, local special circumstances, and underlying macroeconomic factors. As ride-hailing services continue to evolve and expand their offerings, it is likely that the market will continue to thrive in the coming years.

Methodology

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.