Ride sharing, an industry that didn’t even exist a decade ago, is now valued at $61.3 billion and expected to grow to $218 billion by 2025.
Rising urbanization and declining car ownership are helping to fuel the trend, according to a report from the B2B research firm Marketsandmarkets.
The report encompasses not just automotive alternatives to hailing cabs from companies like Uber (founded in March 2009) and Lyft, but also “micro mobility” solutions like bicycle and scooter sharing services.
The report predicted growth in “corporate car sharing,” whereby companies provide vehicles for employees who commute or travel for business. It is seen as a more affordable alternative to maintaining a fleet of owner or leased company vehicles.
“The demand for corporate car sharing is expected to grow as people riding to offices are likely to travel on the same route,” according to the report. “Thus, it is much easier to find co-passenger with ease and less waiting time.”
The largest growth in ride sharing is expected in the Asia/Oceana market “due to a growing population and rising urbanization in emerging economies such as China and India,” the report predicted.
“Factors such as increasing urbanization and rising traffic congestion are likely to drive the demand for ride sharing services.”