Ride-sharing spend to see growth of 537% over the next 5 years: research

It’s driven by strong COVID-19 recovery and reduced private vehicle usage

ride-sharing

Ride-sharing spend to see growth of 537% over the next 5 years: research. Source: pexels.com

The spend on ride-sharing is likely to surpass $930 billion worldwide by 2026, Juniper Research has found.

This comes with the increased use of ride-sharing services due to the coronavirus pandemic. With the pandemic, consumers reduced the usage of private vehicles. The significant estimate increase is comparable to 50 times the annual transport for London, Beijing Metro and New York City MTA in 2021. This is also a $147 billion increase in 2021 and a 537% growth over the next 5 years.

Often coordinated by ride-sharing platforms such as Uber and Lyft, travelers are now taking advantage of carpool-style services. Consumers in China and the US spend more on ride-sharing services, making up for 65% of market value in 2026. Authorities will also have initiatives to minimize the usage of private vehicles in urban centers.

However, only about 13% of consumers will be open to ride-sharing services, with most choosing single-occupancy services. Most consumers are willing to pay extra to travel alone.

There are multiple strategies that ride-sharing platforms must leverage to drive adoption of carpool services, but these will need to be implemented carefully to avoid the perception of prioritising carpool users over non-carpool ones. If implemented poorly, this will generate a negative reaction from users and lead to increasing competing services
Adam Wears, research author 

But with the emissions that single-occupancy rides account for, the platforms should look into non-financial incentives that will increase the use of carpool services. For instance, the platforms can collaborate with authorities to allow carpool vehicles access to lanes set aside for public transport. This will make carpooling more efficient and cost-effective.

We’ve reported that Mastercard and ConsenSys announced collaboration.

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