Ride-hailing - Pakistan | Statista Market Forecast

Pakistan's Ride-hailing market is expected to witness significant growth in revenue over the next few years.
By 2024, revenue is projected to reach US$246.20m, with an annual growth rate of 8.77% (CAGR 2024-2029).
This growth trajectory is expected to result in a market volume of US$374.80m by 2029.
Additionally, the number of users in this market is expected to reach 44.36m users by 2029, with user penetration projected to be 13.0% in 2024 and 16.5% by 2029.
The average revenue per user (ARPU) is expected to be US$7.71.
The Ride-hailing market is an online-only market.
In comparison to other countries, China is expected to generate the most revenue in the Ride-hailing market, with a projected revenue of US$60bn in 2024.
Pakistan's Ride-hailing market is dominated by Careem and Uber, but local players like Bykea and Airlift are gaining traction.

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 Pakistan has witnessed 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 Pakistan, customers are increasingly favoring ride-hailing services over traditional modes of transportation. This shift can be attributed to several factors. Firstly, ride-hailing offers convenience and ease of access, allowing customers to book a ride with just a few taps on their smartphones. Secondly, the competitive pricing of ride-hailing services compared to traditional taxis has made them more attractive to cost-conscious consumers. Additionally, the safety and security features provided by ride-hailing platforms, such as driver background checks and real-time tracking, have instilled a sense of trust among customers.

Trends in the market: One of the key trends in the ride-hailing market in Pakistan is the growing popularity of motorbike-hailing services. This trend can be attributed to the high traffic congestion in major cities, where motorbikes offer a faster and more agile mode of transportation. Motorbike-hailing services have gained traction among young professionals and students who are looking for affordable and convenient transportation options. Another trend in the market is the increasing adoption of cashless payment methods, such as mobile wallets and digital payment platforms. This shift towards cashless transactions has not only improved the overall customer experience but also helped in reducing the reliance on physical currency.

Local special circumstances: Pakistan's ride-hailing market has been influenced by the country's unique socio-economic conditions. The rapid urbanization and population growth in major cities have resulted in increased demand for transportation services. Furthermore, the lack of a well-developed public transportation system has created a gap in the market, which ride-hailing services have been able to fill. Additionally, the high rate of smartphone penetration in Pakistan has played a crucial role in the growth of the ride-hailing market, as it has provided a platform for customers to access and utilize these services.

Underlying macroeconomic factors: Several macroeconomic factors have contributed to the development of the ride-hailing market in Pakistan. Firstly, the country's growing middle class and rising disposable incomes have increased the affordability of ride-hailing services for a larger segment of the population. Secondly, the government's focus on promoting entrepreneurship and digital innovation has created a conducive environment for ride-hailing platforms to operate and expand their services. Lastly, the increasing rate of female participation in the workforce has created a demand for safe and reliable transportation options, which ride-hailing services have been able to cater to. In conclusion, the ride-hailing market in Pakistan has experienced significant growth due to changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. The convenience, competitive pricing, safety features, and cashless payment options offered by ride-hailing services have made them a preferred mode of transportation for many customers in Pakistan. As the market continues to evolve, it is expected that ride-hailing services will play an increasingly important role in the country's transportation landscape.

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.