Taxi apps emerged as a disruptive force in the ride-hailing sector. The emergence of Smartphones and the Internet accelerated this ride-hailing taxi app market significantly.
Uber in 2009 & Lyft in 2010 laid the foundation for on-demand taxi apps. Conventional yellow taxis were gradually replaced by on-demand taxis, and people found it highly convenient to avail of these taxis with just a few taps on their smartphones.
Today, there are innumerable taxi apps spread across the nook & corner of the world.
Moreover, there are indications where taxi apps have transformed into Super apps as well. For instance, Gojek and Grab in Southeast Asia initially began proceedings as a ride-hailing app before materializing the plan of transforming into a Super app.
With the mobility market soaring past the trillion-dollar mark, it becomes imperative for entrepreneurs to know the market projections before venturing into the sector.
Are you an entrepreneur who aims to launch a ride-hailing taxi app? If so, this blog provides a detailed overview of the ride-hailing market projections in different countries across the globe. Besides, the blog discusses the global forecast of the sector as well.
Top Taxi Apps Worldwide
Before looking into the market conditions, it is ideal to know some of the top-tier taxi apps that have successfully established their mark in the booming sector.
- Uber: Uber is undoubtedly the undisputed king of taxi apps. With a nearly $70 billion valuation last year, Uber currently operates in more than 60 countries and more than 900 metropolitan areas worldwide. The platform has 78 million monthly active users. The platform has successfully tackled and acquired numerous taxi apps worldwide in its more than a decade-long existence.
- Lyft: Arguably, one of the most formidable competitors of Uber in the US is Lyft. Occupying a significant 30% of the ride-hailing market in the US, the platform is spread across 644 cities in the US & 12 cities in Canada. Lyft generated $3.616 billion in revenue in 2019.
- Didi: Didi currently controls a majority of the Chinese ride-hailing segment. Backed by Tencent, the platform acquired Alibaba-backed ride-hailing app Kuaidi to successfully outplay Uber in China. With over 550 million users, the platform is spread across 400 cities around the globe.
- Bolt: Formerly known as Taxify, this Estonian-based ride-hailing app is spread across 200 cities in 40 countries. The platform currently houses 1 million drivers and 50 million customers globally. The taxi app generated net revenue of €150 million in 2019.
- Gojek: Valued at $10 billion in 2020, this multi-service app began proceedings as a two-wheeler ride-hailing platform. Today, the platform houses more than 20 on-demand services, gaining the ‘Super App’ status to its name. Gojek currently has 170 million active users.
After having identified the top taxi apps, it is time to analyze the big picture here. Let’s look at the ride-hailing taxi app market in the US. The leading players in the US taxi market include,
Here are some market stats that help you identify the vastness of the massive US market.
- The taxi market has been accelerating towards a positive trajectory for the past five years.
- The segment generated $3.7 billion in revenue in 2015. A massive growth propelled the revenue in subsequent years to reach $14.7 billion in 2019.
- The number of taxi app users in the segment has been on the rise as well. The US market had 72 million taxi app users in 2015.
- These numbers rose to approximately 100 million users in 2020.
- Uber occupied 85% in 2015 and currently occupies 71% of the market share in 2020.
- On the other hand, Lyft rose to the occasion in 2018, gaining 33% of the market share in 2018. Currently, the platform occupies a 29% market share.
Both Uber & Lyft experienced a 90% decline in demand since the onset of the pandemic. Due to the outbreak situation, the market’s revenue is expected to decline massively to generate $5.1 billion in 2020.
Similar to the US, the United Kingdom, too, has a fair share of taxi apps. With Uber dominating the market currently, there are numerous top players, including
- Free Now
Let’s look at the projections of the exponentially-growing UK market,
- In terms of revenue, the UK taxi app market generated £0.8 billion in 2015.
- With subsequent growth in taxi players and popularity, the market generated a revenue of £3.4 billion in 2019.
- There’s a steady rise in the number of users utilizing taxi apps. There were 14.4 million users in 2015.
- In 2020, these numbers have grown tremendously to reach 17.8 million in 2020.
- The market leader Uber, recently acquired Autocab, the SaaS platform operating in more than 20 countries globally.
- The COVID-19 pandemic situation has been challenging on the UK mobility segment, with the revenue declining from £3.4 billion in 2019 to £1.3 billion in 2020.
Although there are fluctuating regulatory policies in the UK, the market steers towards positive growth for years to come.
Unlike the US & the UK, the European Union’s stringent regulations make it difficult for Uber to dominate in Europe. Even after such limitations, Uber currently takes a commanding lead in a majority of the European countries. The top taxi apps in the segment include,
- Free Now
Let’s look at the European taxi app market growth,
- The taxi app market has witnessed unprecedented growth in recent years. The market was valued at $5.5 billion in 2015.
- These numbers grew massively to reach $16.6 billion in 2019.
- This massive rise in revenue is attributed to the stern growth in the number of users in the segment.
- The market, which had 120 million users in 2015, currently has 150 million users in 2020.
- When looking at the market distribution of different apps, Uber takes a massive lead of 60% in the segment.
- The taxi giant is followed by Free Now, occupying a 20% share in the market.
- Bolt, formerly known as Taxify, occupies 10% of the total market.
- Recently, Uber has eyed acquiring Daimler, BMW-backed taxi platform Free Now for a reported $1 billion fee.
A country with over 1.4 billion population is definitely a hunting playground for taxi apps. Didi is the undisputed king of ride-hailing apps in the Chinese market.
Here are the market projections of China’s taxi app market,
- The market revenue has been growing steadily with each passing year. In 2015, the market generated $13.3 billion in 2015.
- Poised with steady growth, the market generated $28.5 billion in 2019.
- The regular elevation in taxi app users is one of the core reasons for the positive turnaround in the market’s revenue.
- The market housed nearly 180 million taxi app users in 2015.
- By 2019, these numbers reached a whopping 550 million.
The COVID-19 pandemic situation has disrupted the market’s growth in 2020. While Didi announced that it has revived from the pandemic’s impact by reaching the pre-pandemic levels in June, revenue is expected to decline by $20.6 billion in 2020.
It appears that there is a drop in the number of taxi app users as well. The number fell short to reach 520 million in 2020.
Didi has acquired Uber in China in 2016, and since then, the taxi app is responsible for 95% of the ride-hailing app users in China. Top investors, like Tencent, Alibaba, etc., have heavily invested in the platform.
Following China closely in terms of population, India currently stands at 1.3 billion. Top taxi apps like Uber, Ola, etc., have made the best use of the unexplored market in this regard.
Let’s crunch some numbers to understand the Indian market projections,
- The market has been quite competitive ever since the introduction of on-demand apps. The market generated $3.8 billion in revenue in 2015.
- By 2019, these numbers have grown 2x to reach $7.5 billion in revenue.
- In the subsequent users, the market experienced new users due to enhanced smartphone penetration, reaching 100 million in 2020.
- There’s a neck-to-neck competition between Uber & Ola Cabs in the segment. As of 2020, Uber occupies 44% of the market share, and Ola Cabs leads the race with a 52% market share.
It is to be noted that Uber rose to the occasion rather heroically, starting from less than 10% in 2015 to occupy nearly half of the market in 2020.
The global ride-hailing taxi app market
With entrepreneurs increasing interests to roll out an Uber clone app, here are the global projections to help you reassure your decision,
- The taxi app market has never been short of funding. 2017 recorded the highest funding amount, with taxi apps generating $18.1 billion in the year.
- In 2019, the funding amount stood at $9.9 billion.
- In terms of valuation, Didi leads the race with a whopping $80 billion valuation.
- The pioneer of taxi apps, Uber, is currently valued at $60 billion.
- This is followed by Grab & Ola Cabs with $14 billion and $9 billion valuations, respectively.
- The global taxi app market forecasts a healthy CAGR between 2021 & 2026, growing all the way from $70 billion in 2021 to $150 billion in 2026.
Even after such negative implications, the on-demand taxi app market stands tall, resurrecting from the damages in no time. As an entrepreneur, you needn’t have second thoughts about foraying into this evergreen segment.
The online medium provides a ‘level-playing’ field for even budding startups to compete with the giants of the sector. Initiate your taxi app development today and emerge as the next big thing on the Internet.