Ride-hailing - Kuwait | Statista Market Forecast

By 2024, the Ride-hailing market in Kuwait is expected to see a revenue of US$64.64m.
Moreover, the projected market volume is anticipated to reach US$77.01m by 2029, showing an annual growth rate (CAGR 2024-2029) of 3.57%.
The segment is estimated to have 1.40m users users by 2029, with a user penetration of 27.9% in 2024 and 31.0% by 2029.
The average revenue per user (ARPU) is expected to be US$53.31.
In the Ride-hailing market, online sales are expected to generate 100% of the total revenue by 2029.
It is noteworthy that in global comparison, China is anticipated to generate the most revenue (US$60bn in 2024).
Kuwait's Ride-hailing market is dominated by Careem and Uber, but local player Q8 Taxi has gained popularity due to its focus on safety and reliability.

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 Kuwait has witnessed significant growth in recent years, driven by changing customer preferences and local special circumstances. Customer preferences in Kuwait have shifted towards convenience and efficiency, leading to the increased adoption of ride-hailing services. With the rise of smartphone usage and the availability of user-friendly ride-hailing applications, customers are now able to easily book a ride with just a few taps on their phones. This has made ride-hailing a preferred mode of transportation for many residents in Kuwait, as it offers a convenient and hassle-free alternative to traditional taxis or public transportation. Additionally, the ability to track the location of the driver and estimated time of arrival provides customers with a sense of security and control over their journey. The trends in the ride-hailing market in Kuwait are in line with the global and regional market. The market has witnessed the entry of several international ride-hailing companies, which has led to increased competition and innovation. These companies have introduced various features and services to attract customers, such as cashless payments, carpooling options, and loyalty programs. This has further enhanced the customer experience and contributed to the growth of the market. Local special circumstances have also played a significant role in the development of the ride-hailing market in Kuwait. The country has a high population density, especially in urban areas, which has created a demand for efficient and reliable transportation services. Additionally, the hot climate in Kuwait makes walking or waiting for public transportation less desirable, further driving the demand for ride-hailing services. The presence of a large expatriate population, who may not have access to private vehicles, has also contributed to the growth of the market. Underlying macroeconomic factors have also influenced the development of the ride-hailing market in Kuwait. The country has a high per capita income and a strong consumer base, which has contributed to the affordability and demand for ride-hailing services. Moreover, the government has implemented favorable regulations and policies to support the growth of the ride-hailing industry, such as allowing ride-hailing companies to operate legally and providing incentives for the adoption of electric vehicles. In conclusion, the ride-hailing market in Kuwait has experienced significant growth due to changing customer preferences, local special circumstances, and underlying macroeconomic factors. The convenience, efficiency, and innovative features offered by ride-hailing services have made them a preferred mode of transportation for many residents in Kuwait. With the continued development of the market and the entry of new players, the ride-hailing industry is expected to further expand 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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