Ride-hailing - Southern Africa | Statista Market Forecast

Southern Africa is expected to witness a substantial growth in the Ride-hailing market as the revenue is projected to reach US$356.20m by 2024.
The market is expected to grow at an annual growth rate (CAGR 2024-2029) of 5.33%, resulting in a projected market volume of US$461.70m by 2029.
By 2029, the number of users is expected to amount to 17.44m users, with a user penetration projected to be 20.3% in 2024 and 23.7% by 2029.
The average revenue per user (ARPU) is expected to amount to US$25.09.
Additionally, it is projected that 100% of total revenue will be generated through online sales by 2029.
Despite the growth in Southern Africa, it is noteworthy that in the global comparison, the highest revenue is expected to be generated China, with a projected revenue of US$60bn in 2024.
Ride-hailing services are gaining popularity in South Africa due to the country's high crime rates and unreliable public transportation.

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 Southern Africa is experiencing significant growth and development in recent years. This can be attributed to changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors. Customer preferences in Southern Africa have shifted towards convenience and affordability, which has contributed to the rise of ride-hailing services. Customers are increasingly looking for transportation options that are easily accessible, reliable, and cost-effective. Ride-hailing platforms offer these advantages by providing on-demand services through mobile applications, allowing customers to book rides quickly and conveniently. Additionally, the competitive pricing models of ride-hailing services have made them more affordable compared to traditional taxi services. Trends in the ride-hailing market in Southern Africa are also driving its development. One of the key trends is the increasing adoption of ride-hailing services by younger generations. Millennials and Gen Z, who are more tech-savvy and open to new experiences, are embracing ride-hailing as a preferred mode of transportation. This demographic shift is contributing to the overall growth and expansion of ride-hailing platforms in the region. Furthermore, ride-hailing companies are continuously innovating and introducing new features to enhance the customer experience. These include options for shared rides, cashless payments, and loyalty programs, which are attracting more customers and increasing their loyalty to specific platforms. Local special circumstances in Southern Africa, such as limited public transportation infrastructure and safety concerns, have also played a role in the development of the ride-hailing market. Many cities in the region face challenges in terms of inadequate public transportation systems, making ride-hailing services a viable alternative for commuters. Additionally, safety concerns associated with traditional taxis have led to increased demand for ride-hailing services, as customers perceive them to be safer and more reliable. Underlying macroeconomic factors have further contributed to the growth of the ride-hailing market in Southern Africa. The region has experienced rapid urbanization and population growth, leading to increased demand for transportation services. Ride-hailing platforms have been able to capitalize on this demand by providing efficient and accessible transportation solutions. Moreover, the rise of the digital economy and increased smartphone penetration have created a conducive environment for the growth of ride-hailing services. In conclusion, the ride-hailing market in Southern Africa is developing rapidly due to changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. The convenience, affordability, and innovative features offered by ride-hailing platforms have made them increasingly popular among customers in the region. As these factors continue to evolve, the ride-hailing market is expected to further expand and transform the transportation landscape in Southern 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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