Ride-hailing - Zambia | Statista Market Forecast

By 2024, the projected revenue in the Ride-hailing market in Zambia is expected to reach US$8.91m.
Moreover, the market is anticipated to grow at an annual growth rate (CAGR 2024-2029) of 9.78%, which will result in a projected market volume of US$14.21m by 2029.
As per the estimation, the number of users in this market will increase to 3.38m users by 2029, with a projected user penetration rate of 14.0% in 2029 and 10.5% in 2024.
The Average Revenue Per User (ARPU) is expected to be US$4.00.
In addition, 100% of the total revenue is projected to be generated through online sales by 2029.
It is worth noting that globally, the highest revenue generated in the Ride-hailing market is China, which is expected to reach US$60bn in 2024.
Despite the growing popularity of ride-hailing services in other African countries, traditional taxis remain the dominant mode of transportation in Zambia.

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 Zambia has been experiencing significant growth and development in recent years.

Customer preferences: Customers in Zambia are increasingly turning to ride-hailing services due to the convenience and affordability they offer. With the rise of smartphone usage in the country, more people have access to ride-hailing apps, making it easier for them to book a ride whenever they need one. Additionally, the ability to track the driver's location and estimated time of arrival provides customers with a sense of safety and security.

Trends in the market: One of the key trends in the ride-hailing market in Zambia is the increasing competition among different service providers. As more companies enter the market, customers have a wider range of options to choose from, leading to improved service quality and lower prices. This competition has also led to the introduction of new features and services, such as cashless payments and loyalty programs, to attract and retain customers. Another trend in the market is the expansion of ride-hailing services beyond urban areas. Initially, ride-hailing services were primarily available in major cities like Lusaka and Kitwe. However, as the demand for these services has grown, companies have started to expand their operations to smaller towns and rural areas. This expansion has not only increased access to transportation for people in these areas but has also created new income-generating opportunities for drivers.

Local special circumstances: Zambia's ride-hailing market is also influenced by local special circumstances. One of these circumstances is the country's inadequate public transportation system. Many areas in Zambia lack reliable and efficient public transportation options, making ride-hailing services a more attractive alternative for both urban and rural residents. Additionally, the country's high population density in urban areas contributes to the demand for ride-hailing services, as it can be challenging to find parking and navigate congested roads.

Underlying macroeconomic factors: Several macroeconomic factors contribute to the development of the ride-hailing market in Zambia. The country's growing middle class and increasing disposable income levels have made ride-hailing services more affordable and accessible to a larger portion of the population. Additionally, the government's efforts to improve internet connectivity and promote digitalization have created an enabling environment for ride-hailing companies to operate and expand their services. In conclusion, the ride-hailing market in Zambia is experiencing significant growth and development due to customer preferences for convenience and affordability. The increasing competition among service providers, expansion to rural areas, and the country's inadequate public transportation system are driving the market's trends. Furthermore, underlying macroeconomic factors such as the growing middle class and government support for digitalization are contributing to the market's development.

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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