Ride-hailing - Iran | Statista Market Forecast

It is expected that the revenue in Iran's Ride-hailing market will reach US$168.70m by 2024.
The projected annual growth rate (CAGR 2024-2029) is 23.95%, which will result in a market volume of US$493.60m by 2029.
The number of users in this market is expected to reach 36.37m users by 2029, and the user penetration is projected to increase from 23.2% in 2024 to 39.3% by 2029.
The average revenue per user (ARPU) is expected to be US$8.10.
By 2029, 100% of the total revenue in this market will be generated through online sales.
In comparison to other countries, China will generate the most revenue (US$60bn in 2024) in the Ride-hailing market.
Despite regulatory challenges and the dominance of local player Snapp, ride-hailing services continue to see growth in Iran.

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 Iran has been experiencing significant growth in recent years, driven by changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors. Customer preferences in Iran have shifted towards more convenient and efficient transportation options, leading to the rise in popularity of ride-hailing services. With increasing urbanization and a growing middle class, there is a greater demand for reliable and affordable transportation solutions. Ride-hailing platforms offer a convenient way for customers to book rides and avoid the hassle of finding parking or dealing with traffic congestion. Additionally, the ability to track the location of the driver and estimated arrival time provides customers with a sense of security and peace of mind. Trends in the ride-hailing market in Iran include the adoption of new technologies and the expansion of services. Ride-hailing platforms are leveraging advancements in mobile technology to enhance the user experience, such as integrating with digital payment systems and offering real-time tracking of drivers. Furthermore, ride-hailing companies are diversifying their services to cater to different customer needs, such as offering shared rides or luxury options. These trends are aimed at attracting a wider customer base and increasing market share. Local special circumstances in Iran have also contributed to the development of the ride-hailing market. The country has a large population and a high rate of car ownership, resulting in congested roads and limited parking spaces in urban areas. Ride-hailing services provide a solution to these challenges by offering a more efficient use of existing transportation infrastructure. Additionally, the relatively low cost of labor in Iran allows ride-hailing companies to offer competitive prices, making their services more attractive to customers. Underlying macroeconomic factors have also played a role in the growth of the ride-hailing market in Iran. The country has experienced economic reforms and increased foreign investment, leading to improvements in infrastructure and transportation networks. This has created a favorable environment for ride-hailing companies to operate and expand their services. Furthermore, the rise of the gig economy and flexible working arrangements has increased the number of potential drivers for ride-hailing platforms, ensuring a steady supply of drivers to meet the growing demand. In conclusion, the Ride-hailing market in Iran is developing rapidly due to changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors. As ride-hailing platforms continue to innovate and expand their services, it is expected that the market will continue to grow and evolve in the coming years.

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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