Rise in Digitization to Bolster Ride-Hailing Companies Growth in 2022

Ride-hailing is the act of requesting a car and driver to come and take one to the desired destination. Ride-hailing apps on smartphones have revolutionized public transportation and the ease of traveling to places with a click of a button. Furthermore, it ensures that passengers have a comfortable and safe ride by allowing them to share details of their route with their friends and family to keep track of the journey in real-time. It also replaces traditional taxi services by providing door-to-door service. According to the market research report published by Fortune Business Insights^TM, the rising necessity for a safe journey is anticipated to augment ride-hailing in the coming years.

The rise of this sector is being fueled by on-demand transportation services and a decreased rate of automobile ownership among millennials. On-demand transportation services are defined by flexible routing and ad-hoc scheduling of private vehicles that provide a personalized transportation experience to the general public by picking up and dropping off passengers at their preferred places. Customers can accurately identify vehicles, track their journeys, and provide safety to the occupants using on-demand ride-hailing services. Thus, this feature is predicted to considerably fuel the market growth. Furthermore, these transportation services are expected to supplant traditional taxis. According to a study, 15 million such rides occur every day, which is predicted to skyrocket to 100 million by 2030.

COVID-19 Impact: People to Expect a Rise in Fare Post Pandemic

The COVID-19 lost around 50–60% of the car-sharing market share in 2020. Furthermore, new strategies, such as providing partitions to keep distance between the driver and the passenger, equipping the vehicle with sanitizers, and installing devices to measure the body temperature of passengers to eliminate the threat of infections in the future, are anticipated to increase the market share by 70–80% by 2021. However, due to additional cautious measures, it is projected that rates would rise, affecting the expansion of the ride-sharing sector to some extent.

Fortune Business Insights Identifies the Following as the Top 5 Ride-Hailing Companies in 2022:

1. Uber Technologies Inc.

Uber Technologies Inc., based in California, U.S., is one of the world's renowned ride-hailing companies. It provides ride-hailing and food delivery services in over 85 countries worldwide. Uber's app is famous for its ease of booking rides. With 12.5 million installs in January 2020, Uber was the most downloaded ride-sharing and taxi app worldwide. Uber has used a range of business tactics to achieve sustained growth throughout the years.

For instance, it increased convenience and improved the ride service experience by implementing digitization early in the ride-hailing and payment processes. Additionally, it expanded its presence in emerging economies to capitalize on revenue growth prospects in previously unexplored major markets. The organization focuses on electrification and pays special attention to it.

In January 2021, Uber Green services were made available in over 1400 towns and cities across North America. The Uber Green project will supply passengers with electric and hybrid trips, which will help Uber achieve its goal of becoming a zero-emission platform by 2040.

2. Lyft, Inc.

Lyft, Inc. is the second-largest and fastest-growing ride-hailing app provider in the U.S. The corporation is located in San Francisco, California, and operates one of the largest multimodal transportation networks in the U.S. and Canada. By the end of 2017, it expanded rapidly in the U.S. from 60 cities to 300 cities. Lyft uses its technology platform, user network density and scale, and data from many rides to continuously improve its marketplace efficiency and develop new offers.

In May 2020, the wait & save function was made more widely available by the company. Riders will pay less in this mode than in conventional Lyft rides, and the longer they have to wait, the more they will save.

In the first quarter of 2020, Flexdrive, LLC, one of Lyft's long-standing Express Drive partners, was bought by the company. Riders can hire automobiles to perform ride-sharing services on the Lyft Platform through this initiative.

3. Didi Chuxing Technology Co.

Didi Chuxing Technology Co., established in Beijing, China, is among the top 5 ride-hailing app developers around the globe. In Australia, Asia, and Latin America, the corporation has over 550 million users. The organization provides various transportation options, including bus, taxi, luxury, bike, e-bike sharing, and others. The company will have a major market share in China's by 2020. Didi develops its offering and expands its global footprint through partnerships with automakers, legislators, and the taxi industry.

In July 2019, Toyota, a Japanese automaker, formed a deal with Didi. Toyota committed to investing USD 600 million in Didi to build a joint venture in China as part of this arrangement. Furthermore, Didi has spent the last few years modernizing its fleet for autonomous transportation.

In April 2021, Volvo, a Swedish automaker, agreed to supply cars for Didi's global autonomous driving development.

4. ANI Technologies Pvt. Ltd.

Ola is a leading transportation network located in Bangalore, India, owned by ANI Technologies Pvt. Ltd., Olacabs. The startup connects riders and drivers via an online ride-hailing platform. The company also serves customers in India, New Zealand, Australia, and the U.K. To improve its global market, it is expanding its operations globally.

For example, the business launched its services in London in February 2020. The corporation is primarily focused on deploying an electric car fleet on its platform. Ola Electric Mobility, ANI Technologies Pvt. Ltd.'s new electric two-wheeler manufacturing company, was launched in 2017.

In August 2021, Ola Electric Mobility revealed that it wants to build a 100,000-strong network of electric vehicle chargers called the Hypercharger Network, spanning 400 Indian cities in the next five years.

5. Gojek

Gojek is a multi-service on-demand platform established in Jakarta, Indonesia. Gojek began offering services such as motorcycle ride-sharing (GoRide), shopping (GoMart), and delivery (GoSend) in 2015. Since the app's inception, it has been steadily extending its service offerings. It currently offers over 20 services through its app. Furthermore, it connects consumers with over 2 million driver-partners to provide reliable services. It is currently focusing on electromobility to make its fleet emission-free.

In May 2021, Gojek aimed to convert every automobile and motorcycle on its platform to an electric vehicle by 2030.

Digitalization made Transportation Accessible

The rise of firms with ride-hailing platforms is gaining traction globally. The ease of access through digitalization has made transportation easy for people. On the other hand, adding policies in favor of consumers and initiatives to reduce carbon footprints makes the business a sustainable choice.