Shared Mobility Market – Snapshot
Shared mobility is a type of service in which a vehicle is shared based on the time and distance it is used in return for money. In shared mobility, a vehicle owner or the owner of a large fleet provides the vehicle on a rental basis to consumers and other companies. Shared mobility comprises sharing a car, a ride, a two-wheeler, and sharing trucks and buses.
Key driver of the global shared mobility market is low per capita income of people in developing nations. Shared mobility services provide short-term ownership to consumers at a significantly lower price, and hence, consumers prefer shared vehicles instead of owning one. A vehicle, if not shared, is only utilized for up to 5% of its total life; it remains parked for 95% of its life. Considering this, several vehicle owners are readily sharing their vehicles. Increase in number of vehicle owners has led to increased traffic congestion and rise in global emission levels. Consequently, governing bodies are promoting alternative fuel powered vehicles and alternative modes of transportation that are capable of limiting the global temperature rise. Shared mobility services are effectively capable of reducing the number of vehicle owners and hence, governing bodies are implementing regulations in favor of shared mobility services. Consumers who do not own a vehicle are preferring a shared vehicle, as a shared vehicle provides vehicle ownership without having to invest in owning one, which is further compounded by the increased interest rates on vehicle loans. Increased tourism, rise in number of family outings, and raised per capita income are fueling the demand for shared mobility services. Increase in number of working class people is prominently fueling the demand for shared mobility services across the globe. Availability of faster internet connectivity, increased mobile ownership, availability of mobility sharing apps, and increased consumer awareness are fueling the global shared mobility market.
Get Sample Copy:
Incorporation of electric and autonomous vehicles is likely to reduce the cost of shared mobility services. Electric vehicles reduce fuel expenses, which reduces the overall cost of utilizing mobility sharing services, such as ride sharing and ride sourcing. This, in turn, is likely to fuel the demand for such on-demand services across the globe. Autonomous vehicles are expected to eliminate the driver and subsequently, expenses over the driver. Lower number of vehicles per capita across several nations is fueling the demand for shared mobility services, which in turn is likely to offer lucrative opportunities to the global shared mobility market. Forward integration of vehicle manufacturers in the shared mobility market is likely to offer considerable opportunities to the market.
Taxi fleet operators across several nations are opposing on-demand sharing services, which in turn is restraining the global shared mobility market, especially for ride sharing and ride sourcing services. Several nations, such as Germany and France, have banned peer-to-peer taxi services, which is marginally restraining the global shared mobility market. Several negative incidents, such as murder of a passenger by a driver of DiDi Chuxing and rape of a female passenger by a driver of Uber, are hampering the global shared mobility market.
Grab an exclusive PDF Brochure of this report:
A large share of passenger transportation services across the global is accounted by the unorganized sector, which comprises services provided by local taxi fleet operators and non-internet based service providers. Lack of adoption of smartphone-based apps, lack of awareness among consumers, and unavailability of service providing companies across several countries are fueling the demand for unorganized services. However, the economic benefits of organized services are attracting consumers and hence, the unorganized segment of the market is anticipated to contract in the near future.
The private segment accounts for a major share of the market, in terms of revenue, followed by the vehicle rental or vehicle leasing services. Vehicle leasing services are significantly popular across families and companies willing to provide transportation services to their employees. Long family tours, outings with friends, and increased tourism activities are fueling the demand for vehicle sharing and leasing services. Subscribing vehicle is another term being used in the vehicle rental and leasing industry in which consumers can lease the vehicle for a specific time period, such as one month to a year or may be longer. Demand for ride sharing and ride sourcing services is rising due to the increase in congestion across urban areas. Rapid urbanization, increase in vehicle ownership, and expansion of urban areas are fueling the demand for transportation services within urban areas. Longer routes and longer time of travel for public transportation services, increased crowd in modes of public transportation, lack of proper connectivity, and lack of punctuality of public transportation services are fueling the demand for ride sourcing and ride sharing services.
Request For Customization:
The passenger car segment of the market accounts for a major share of the market, in terms of revenue, as passenger cars are being widely preferred for ride-sharing, sourcing, and rental services. Cars are preferred for ride sharing and sourcing services due to their easy maneuverability and higher mileage. Light commercial vehicles are extensively preferred across countries in North America and Latin America. Carpool and ride-sharing services are prominently provided by vehicle owners; therefore the P2P segment accounts for a prominent share of the market, in terms of revenue. However, vehicles utilized for rental and leasing services are owned by service providing companies, thus the B2C segment accounts for a notable share of the market, in terms of revenue. Shared mobility services are preferred for passenger transportation; however, there are several companies that provide light and heavy trucks for goods transportation. Demand for sharing services and micro-mobility, such as scooters, bikes, and other small vehicles, is rising. These are highly popular in crowded tourist places.
The adoption of electric vehicles is rising at a steady pace, which is primarily attributed to the considerable government support, expansion of the electric vehicle charging infrastructure, extended range of electric vehicles, and decline in prices of the electric vehicle battery. Surge in fuel prices and implementation of stringent emission norms are fueling the demand for electric vehicles across the globe. Shared mobility service providing companies are eagerly adopting electric vehicles in their fleets. Increased preference for environment-friendly transportation and raised awareness about global warming are prompting service providers to adopt electric vehicles. Autonomous vehicles have cleared the testing phase and are likely to be introduced in services in the next couple of years. Several shared mobility service providers have formed alliances with auto manufacturers in order to incorporate autonomous vehicles in their fleets. The vehicles with ADAS systems are highly popular for shared mobility services, which is primarily attributed to the heavy consumer demand for in-vehicle safety and comfort.
Ride sharing and ride sourcing services are significantly popular across countries in Asia Pacific such as China, India, and ASEAN. DIDI Chuxing, OLA, Uber, and Grab are major mobility sharing service providers operating in Asia Pacific. Rapid rise in urban population, increase in working class population, rise in the number of daily commuters, crowded public transits, lower number of vehicles per 1000 people, and surge in fuel prices are propelling the demand for shared mobility services across Asia Pacific. Large number of population and presence of globally leading mobility sharing service providers led Asia Pacific to hold a major share of the global shared mobility market.
Key players operating in the global shared mobility market include Uber Technologies Inc., ANI Technologies Pvt. Ltd. (OLA), Lyft, Inc., Grab, Careem, Taxify OÜ, Gett, Beijing Xiaoju Technology Co, Ltd. (Didi Chuxing), BlaBlaCar, Wingz, Inc, Curb Mobility, Cabify, Europcar, The Hertz Corporation, Avis Budget Group, Inc., and Enterprise Holdings, Inc. The global shared mobility market is witnessing an increase in merger and acquisition as well as integration activities. Several auto manufacturers have entered the shared mobility market. The global shared mobility market is considered as a niche market, despite the high level of competition.
Read Our Latest Press Release:
Transparency Market Research is a next-generation market intelligence provider, offering fact-based solutions to business leaders, consultants, and strategy professionals.
Our reports are single-point solutions for businesses to grow, evolve, and mature. Our real-time data collection methods along with ability to track more than one million high growth niche products are aligned with your aims. The detailed and proprietary statistical models used by our analysts offer insights for making right decision in the shortest span of time. For organizations that require specific but comprehensive information we offer customized solutions through ad-hoc reports. These requests are delivered with the perfect combination of right sense of fact-oriented problem solving methodologies and leveraging existing data repositories.
Transparency Market Research State Tower,
90 State Street,
Albany NY – 12207
USA – Canada Toll Free: 866-552-3453
Email: [email protected]