Ride-hailing - Iceland | Statista Market Forecast

By 2024, Iceland's Ride-hailing market is projected to reach a revenue of US$5.07m.
The revenue is expected to show an annual growth rate (CAGR 2024-2029) of 4.21%, resulting in a projected market volume of US$6.22m by 2029.
The number of users in this market is expected to reach 80.86k users by 2029, with a projected user penetration of 18.5% in 2024 and 20.8% by 2029.
The average revenue per user (ARPU) is expected to be US$72.48.
It is projected that 100% of the total revenue in this market will be generated through online sales by 2029.
It is interesting to note that in global comparison, China is expected to generate the most revenue in this market with US$60bn in 2024.
Icelandic Taxi market faces limited competition due to strict regulations on ride-hailing services, resulting in higher prices for consumers.

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 Iceland has experienced significant growth in recent years, driven by changing customer preferences and local special circumstances.

Customer preferences: In Iceland, customers have shown a strong preference for convenience and efficiency when it comes to transportation. The rise of ride-hailing platforms has provided an easy and convenient alternative to traditional taxi services. Customers appreciate the ability to request a ride with just a few taps on their smartphones, eliminating the need to wait on street corners or call a dispatch center. The availability of real-time tracking and digital payment options has further enhanced the customer experience, making ride-hailing an attractive option for many.

Trends in the market: One of the key trends in the Icelandic ride-hailing market is the increasing adoption of electric vehicles. Iceland has been at the forefront of electric vehicle adoption, with a high percentage of the population owning electric cars. This aligns well with the sustainability and environmental consciousness that many customers value. Ride-hailing companies have recognized this trend and have started to incorporate electric vehicles into their fleets, further contributing to the growth of the market. Another trend in the market is the expansion of ride-hailing services beyond urban areas. Initially, ride-hailing services were primarily available in major cities, but they have gradually expanded their coverage to include more rural areas. This has opened up new opportunities for both customers and drivers in previously underserved regions. The convenience and flexibility offered by ride-hailing platforms have made them a popular choice for residents in these areas.

Local special circumstances: Iceland's unique geography and climate present special circumstances that have influenced the development of the ride-hailing market. The country's relatively small population and scattered settlements make traditional taxi services less economically viable in many areas. Ride-hailing platforms have filled this gap by providing a more cost-effective and efficient transportation option. Additionally, Iceland's harsh winters and challenging road conditions make ride-hailing services particularly valuable, as customers can rely on experienced drivers who are familiar with navigating these conditions.

Underlying macroeconomic factors: The growth of the ride-hailing market in Iceland can also be attributed to underlying macroeconomic factors. The country has experienced a steady increase in tourism in recent years, with more visitors seeking convenient and reliable transportation options. Ride-hailing platforms have capitalized on this trend by offering services tailored to the needs of tourists, such as airport pickups and guided tours. The overall economic stability and high disposable income of Icelanders have also contributed to the growth of the market, as customers are willing to pay for the convenience and quality of ride-hailing services. In conclusion, the Ride-hailing market in Iceland has seen significant growth due to customer preferences for convenience and efficiency, the adoption of electric vehicles, expansion into rural areas, unique local circumstances, and underlying macroeconomic factors. As these trends continue to shape the market, ride-hailing platforms are likely to further establish themselves as a preferred mode of transportation in Iceland.

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.