Ride-hailing - Laos | Statista Market Forecast

Laos is expected to see a revenue of US$6.35m in the Ride-hailing market by 2024.
The revenue is forecasted to exhibit a Compound Annual Growth Rate (CAGR 2024-2029) of 7.22%, which will lead to a market volume of US$8.99m by 2029.
The Ride-hailing market is expected to have 1.88m users users by 2029, with a projected user penetration of 22.9%, up from 18.7% in 2024.
The Average Revenue Per User (ARPU) is estimated to be US$4.39.
In the Ride-hailing market sector, 100% of the total revenue is expected to be generated through online sales by 2029.
When compared globally, China is projected to earn the highest revenue of US$60bn in 2024.
Despite the rapid growth of ride-hailing services in neighboring countries, Laos' underdeveloped transportation infrastructure continues to hinder the market's potential.

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.

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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 Laos has been experiencing significant growth in recent years, driven by changing customer preferences and local special circumstances.

Customer preferences: Laos, like many other countries in the region, has seen a shift in customer preferences towards on-demand services. The convenience and affordability of ride-hailing platforms have made them popular among urban dwellers who are looking for a reliable and efficient mode of transportation. Additionally, the younger generation, who are more tech-savvy, are embracing ride-hailing as a preferred mode of transport.

Trends in the market: One of the key trends in the ride-hailing market in Laos is the increasing competition among different service providers. As the market grows, more companies are entering the space, offering a wide range of services to cater to different customer needs. This competition has led to innovation and improved services, with ride-hailing platforms introducing features such as cashless payments and loyalty programs to attract and retain customers. Another trend in the market is the integration of ride-hailing services with other platforms. Many ride-hailing companies are partnering with local businesses, such as hotels and restaurants, to offer additional services to their customers. This integration not only enhances the customer experience but also creates new revenue streams for ride-hailing platforms.

Local special circumstances: Laos is a country with a rapidly growing economy and an increasing urban population. The rise in urbanization has led to a higher demand for transportation services, especially in major cities like Vientiane. The limited public transportation options and the increasing traffic congestion have made ride-hailing an attractive alternative for residents and tourists alike. Additionally, the government of Laos has taken steps to support the growth of the ride-hailing market. They have implemented regulations to ensure the safety and quality of services provided by ride-hailing platforms. This has increased consumer confidence in these services and has contributed to the growth of the market.

Underlying macroeconomic factors: The growth of the ride-hailing market in Laos can be attributed to several underlying macroeconomic factors. The country's improving economic conditions have led to an increase in disposable income, allowing more people to afford ride-hailing services. Additionally, the proliferation of smartphones and the availability of affordable mobile data plans have made it easier for people to access ride-hailing platforms. Furthermore, the increasing urbanization and the rise of the middle class in Laos have created a larger customer base for ride-hailing platforms. As more people move to cities and experience higher incomes, the demand for convenient and reliable transportation options is expected to continue growing. In conclusion, the ride-hailing market in Laos is experiencing significant growth due to changing customer preferences, local special circumstances, and underlying macroeconomic factors. As the market continues to evolve, it is expected that ride-hailing platforms will play an increasingly important role in the transportation landscape of Laos.

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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