Ride-hailing - United Kingdom

United Kingdom

Highlights

It is anticipated that the Ride-hailing market in the United Kingdom will experience significant growth, with revenue projected to reach US$4.79bn by 2024.
The market is expected to exhibit a Compound Annual Growth Rate (CAGR) of 5.42% between 2024 and 2029, resulting in a projected market volume of US$6.23bn by 2029.
Moreover, it is predicted that the number of users in this market will increase to 22.26m users by 2029, with the user penetration rate expected to be 27.4% in 2024 and 32.3% by 2029.
Additionally, the average revenue per user (ARPU) is projected to be US$257.50.
The Ride-hailing market is an online-only market.
Finally, in comparison to other countries, the highest revenue is expected to be generated China, with a projected revenue of US$60bn in 2024.
The United Kingdom's Ride-hailing market is highly competitive, with a strong presence of both global players and local startups.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Ride-hailing market in United Kingdom has experienced significant growth in recent years, driven by changing customer preferences, market trends, and local special circumstances.

Customer preferences: One of the main reasons for the development of the Ride-hailing market in United Kingdom is the changing preferences of customers. With the rise of smartphone usage and the increasing need for convenient transportation options, more and more people are turning to ride-hailing services to get around. The ability to book a ride with just a few taps on a mobile app and the convenience of cashless payments have made ride-hailing services a popular choice among customers in United Kingdom.

Trends in the market: The Ride-hailing market in United Kingdom has also been shaped by various market trends. One of the key trends is the increasing demand for sustainable transportation options. As concerns about climate change and environmental sustainability grow, more customers are opting for ride-hailing services that offer electric or hybrid vehicles. This trend has prompted ride-hailing companies to invest in eco-friendly vehicles and promote their sustainability initiatives. Another trend in the Ride-hailing market in United Kingdom is the integration of ride-hailing services with other modes of transportation. Many ride-hailing companies have partnered with public transportation providers to offer seamless multimodal journeys. This integration allows customers to easily combine ride-hailing services with buses, trains, and other modes of transportation, providing them with a more convenient and efficient travel experience.

Local special circumstances: The development of the Ride-hailing market in United Kingdom is also influenced by local special circumstances. One such circumstance is the high population density in major cities like London. With a large number of people living and working in these cities, there is a high demand for transportation services. Ride-hailing companies have capitalized on this demand by providing a reliable and efficient alternative to traditional taxis and public transportation. Another special circumstance in United Kingdom is the strong regulatory framework for ride-hailing services. The government has implemented regulations to ensure the safety and quality of ride-hailing services, which has helped to build trust among customers. These regulations include background checks for drivers, vehicle inspections, and insurance requirements. The presence of such regulations has contributed to the growth of the Ride-hailing market in United Kingdom by assuring customers of a safe and reliable service.

Underlying macroeconomic factors: The development of the Ride-hailing market in United Kingdom is also influenced by underlying macroeconomic factors. The strong economy and high disposable income levels in United Kingdom have contributed to the growth of the ride-hailing industry. Customers are willing to spend on convenient transportation options, and ride-hailing services provide a viable alternative to car ownership or traditional taxis. Furthermore, the increasing trend of flexible working arrangements and the rise of the gig economy have also contributed to the growth of the Ride-hailing market in United Kingdom. Many people are now working as ride-hailing drivers as a part-time or full-time job, attracted by the flexibility and earning potential offered by these services. This has led to an increase in the number of available drivers and a wider availability of ride-hailing services for customers. In conclusion, the Ride-hailing market in United Kingdom has experienced significant development due to changing customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. The convenience, sustainability, and integration with other modes of transportation have made ride-hailing services a popular choice among customers in United Kingdom, while the high population density, strong regulatory framework, strong economy, and flexible working arrangements have created a favorable environment for the growth of the industry.

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.