Ride-hailing - South Africa | Statista Market Forecast

South Africa is projected to witness a significant rise in revenue in the Ride-hailing market in the coming years.
By 2024, the revenue is expected to touch US$343.00m, with an annual growth rate (CAGR 2024-2029) of 5.26%.
As a result, the projected market volume is estimated to reach US$443.30m by 2029.
The number of users in this market is also expected to rise, with an estimated count of 15.50m users by 2029.
User penetration is projected to be 20.8% in 2024 and 24.2% by 2029.
The average revenue per user (ARPU) is expected to be US$26.97.
The Ride-hailing market is an online-only market.
It is interesting to note that in global comparison, China is expected to generate the most revenue in this market, with an estimated revenue of US$60bn in 2024.
South Africa's Ride-hailing market is highly competitive with strong local players such as Uber, Bolt, and Zebra Cabs.

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 South Africa has been experiencing 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 South Africa have shifted towards on-demand transportation services, with an increasing number of people opting for ride-hailing platforms over traditional taxis. This can be attributed to the convenience, affordability, and reliability offered by ride-hailing services. Customers appreciate the ease of booking a ride through a mobile app, the ability to track the driver's location in real-time, and the cashless payment options. The rise in smartphone penetration and internet connectivity has also contributed to the popularity of ride-hailing services among South African consumers. Trends in the ride-hailing market in South Africa include the emergence of local players that cater specifically to the needs and preferences of the South African market. These homegrown ride-hailing platforms understand the local culture, infrastructure, and regulatory environment, allowing them to provide tailored services and solutions. Additionally, there is a growing trend towards the integration of other transportation options, such as public transit and bike-sharing, into ride-hailing platforms. This multimodal approach aims to provide customers with a seamless and comprehensive transportation experience. Local special circumstances in South Africa, such as high crime rates and safety concerns, have also contributed to the growth of the ride-hailing market. Ride-hailing platforms offer customers a sense of security and peace of mind, as they can easily identify the driver and vehicle they are getting into. Furthermore, ride-hailing companies often implement safety features, such as driver background checks and real-time tracking, to ensure the safety of both drivers and passengers. Underlying macroeconomic factors have played a role in the development of the ride-hailing market in South Africa. The country has a large urban population, with many people relying on public transportation or owning a car. However, factors such as traffic congestion, limited parking space, and the high cost of car ownership have led to an increased demand for alternative transportation options. Ride-hailing services provide a convenient and cost-effective solution for urban residents who want to avoid the hassles of driving and parking. In conclusion, the ride-hailing market in South Africa is experiencing growth due to changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. The convenience, affordability, and safety offered by ride-hailing platforms have made them a popular choice among South African consumers. As the market continues to evolve, we can expect to see further innovations and developments in the ride-hailing industry in South Africa.

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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