Ride-hailing - LATAM | Statista Market Forecast

In LATAM, the Ride-hailing market is forecasted to achieve a revenue of US$7.30bn by 2024.
This projection indicates an annual growth rate of 3.21% (CAGR 2024-2029), leading to an estimated market volume of US$8.55bn by 2029.
By that time, the number of users in the LATAM Ride-hailing market is expected to reach 219.10m users.
Regarding user penetration, it is anticipated to be 30.2% in 2024 and remain steady at 30.2% by 2029.
The average revenue per user (ARPU) is projected to be US$38.03.
In a global perspective, China is expected to generate the highest revenue in the Ride-hailing market, reaching US$60bn by 2024.
In LATAM, ride-hailing services like Uber and Cabify are experiencing significant growth, with more and more people opting for convenient and affordable transportation options.

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 LATAM is experiencing significant growth and development. Customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors are all contributing to this expansion. Customer preferences in LATAM are driving the growth of the Ride-hailing market. Convenience and affordability are key factors that attract customers to these services. With the rise of smartphone usage and internet penetration in the region, more people have access to ride-hailing apps, making it easier for them to book a ride with just a few taps on their phone. Additionally, the competitive pricing and transparent payment systems offered by ride-hailing companies make them an attractive alternative to traditional taxis. Trends in the market further support the growth of the Ride-hailing industry in LATAM. One notable trend is the increasing number of partnerships between ride-hailing companies and local businesses. These partnerships allow customers to book rides directly from popular apps or websites, making it even more convenient for them to access transportation services. Another trend is the expansion of ride-hailing services beyond major cities. As ride-hailing companies establish a presence in smaller towns and rural areas, they are able to tap into previously untapped markets and reach a larger customer base. Local special circumstances also play a role in the development of the Ride-hailing market in LATAM. One such circumstance is the lack of reliable public transportation in many cities. In some cases, ride-hailing services are filling the gap left by inadequate public transportation systems, providing a convenient and reliable option for commuters. Additionally, safety concerns in certain areas have led to an increased demand for ride-hailing services, as customers feel more secure using these platforms compared to traditional taxis. Underlying macroeconomic factors are also driving the growth of the Ride-hailing market in LATAM. The increasing urbanization and growing middle class in the region have resulted in a higher demand for transportation services. As more people move to cities and have disposable income, they are more likely to use ride-hailing services for their daily commuting needs. Furthermore, the rise of the gig economy has created opportunities for individuals to become ride-hailing drivers, providing them with a flexible source of income. In conclusion, the Ride-hailing market in LATAM is experiencing rapid growth and development due to customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. The convenience, affordability, and expanding reach of ride-hailing services are attracting more customers in the region. As these factors continue to evolve, the Ride-hailing market in LATAM 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.

This report presents a comprehensive analysis and additional information on the Mobility market, in a PDF format.