Ride-hailing - Nepal | Statista Market Forecast

By 2025, Nepal's Ride-hailing market is predicted to generate a revenue of US$75.27m.
This revenue is expected to grow annually at a rate of 9.29%, leading to a market volume projection of US$107.37m by 2029.
Moreover, it is estimated that the number of users in this market will reach 7.01m users by 2029, with user penetration projected to rise from 16.9% in 2025 to 21.3% by 2029.
Additionally, the average revenue per user (ARPU) is also expected to increase to US$14.14.
It is noteworthy that 100% of the total revenue in this market will be generated through online sales by 2029.
When compared globally, China is expected to generate the highest revenue of US$64bn in 2025 among all other countries.
Ride-hailing services in Nepal, such as Tootle and Pathao, have gained popularity due to their ability to navigate the country's challenging road conditions and provide safe 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)

Ride-hailing: market data & analysis

The Ride-hailing market in Nepal has been experiencing significant growth and development in recent years.

Customer preferences: Customers in Nepal are increasingly choosing ride-hailing services over traditional transportation options due to several factors. Firstly, the convenience and ease of booking a ride through a mobile app have made ride-hailing services a popular choice. Additionally, the availability of various types of vehicles, such as cars, motorcycles, and bicycles, allows customers to choose the most suitable option for their needs. Furthermore, the transparent pricing and payment options provided by ride-hailing companies have also contributed to the growing preference for these services.

Trends in the market: One of the prominent trends in the ride-hailing market in Nepal is the increasing adoption of electric vehicles. Ride-hailing companies are actively promoting the use of electric vehicles as a sustainable and environmentally friendly mode of transportation. This trend is driven by both customer demand for eco-friendly options and government initiatives to reduce pollution and promote clean energy. The introduction of electric vehicles in the ride-hailing fleet is expected to continue to grow in the coming years. Another trend in the market is the expansion of ride-hailing services beyond major cities. Initially, ride-hailing services were primarily available in the capital city of Kathmandu. However, companies have recognized the potential in other cities and have expanded their operations to cater to the growing demand. This expansion has not only provided employment opportunities but also improved transportation options for residents in these areas.

Local special circumstances: Nepal's unique geography and infrastructure pose challenges for the ride-hailing market. The country's mountainous terrain and underdeveloped road network can make it difficult for drivers to navigate and reach remote areas. Additionally, the lack of proper street addressing systems can result in delays and confusion during pick-ups and drop-offs. Ride-hailing companies have had to adapt their operations to overcome these challenges by providing detailed instructions and using GPS technology to locate customers accurately.

Underlying macroeconomic factors: The growing middle class and increasing urbanization in Nepal have played a significant role in the development of the ride-hailing market. As more people move to urban areas and experience higher disposable incomes, the demand for convenient and affordable transportation options has risen. Ride-hailing services have emerged as a viable alternative to owning a private vehicle or relying on public transportation. Furthermore, the rapid growth of smartphone penetration in Nepal has also contributed to the expansion of the ride-hailing market. With the majority of the population now having access to smartphones, the adoption of ride-hailing apps has become more widespread. This has created a favorable environment for ride-hailing companies to thrive and expand their customer base. In conclusion, the ride-hailing market in Nepal is experiencing significant growth and development due to customer preferences for convenience, the adoption of electric vehicles, the expansion of services to new cities, and the underlying macroeconomic factors of a growing middle class and increased smartphone penetration. Despite the challenges posed by Nepal's unique geography and infrastructure, ride-hailing companies are adapting their operations to cater to the evolving needs of customers in the country.

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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Ride-hailing - Nepal

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