Innovative business models and software advancements are fueling strong growth opportunities, finds Frost & Sullivan’s Global Mobility team

LONDON – 12 December, 2016 – Investors are racing to claim a stake in the potential multibillion-dollar ridesharing market. Advances in Technology that aid in  the adoption of ridesharing, and governmental policy support, such as high-occupancy vehicle (HOV) lanes and toll-fee waivers, are bolstering market evolution. The North American and European ridesharing market will see strong growth, with rideshare operators rolling out new business models to target niche customer segments. And in the European market a fixed ridesharing is expected to dominate by 2025, although dynamic ridesharing is also picking up pace.

Frost & Sullivan’s Automotive & Transportation Growth Partnership Service programme, which offers, among other things insights into powertrains, carsharing and smart mobility management has recently released the following analyses of ridesharing:

  • North American Ridesharing Market Opportunities
  • European Ridesharing Market Opportunities

For complimentary access to more information on this market and to register for a Growth Strategy Dialog, a free interactive briefing with Frost & Sullivan’s thought leaders, click here or send an email to Jana Schoeneborn (jana.schoeneborn@frost.com).

“Ridesharing has emerged as a smart, clean and powerful tool to deal with the fallouts of urbanisation and the development of mega cities,” said Mobility Research Analyst Albert Geraldine Priya. “Ridesharing can reduce the number of cars needed on urban roads globally by up to 2.49 million vehicles, decrease vehicle kilometres travelled by 40.19 billion and lower the corresponding end-of-life (EOL) emissions by 15.9 megatons.”

As business models continue to evolve in this new market, the most popular ones like RidewithVia and Matchrider combine the benefits of ridesharing and taxi hailing activity in this space, vehicle original equipment manufacturers (OEMs) are interested in partnering with or in investing in ridesharing ventures. Some prominent deals in the ridesharing market include BMW’s investment in Scoop, GM’s investment in Flinc and Daimler’s investment in Via. Technology companies have also joined in Facebook, for example, recently announced plans to add a ridesharing option to its events page.

In Europe  France is the biggest market for ridesharing holding almost 26 percent of it though this spot may well be  relinquished   to Germany by 2025.

  • Germany, France, the UK, Italy and Spain together make up 85 percent of the ridesharing market;
  • The largest player in France is BlaBlaCar, which serving  almost 10 percent of the population;
  • New dynamic ridesharing operators like HeetchKarosCitygoo are testing the waters in major countries like France and Germany only. With support from local governments other players such as Carma are also expanding their presence;
  • Corporate ridesharing is the most popular in the UK. The country boasts major corporate ridesharing players like Liftshare and Faxi. Corporate ridesharing is also picking up in  other countries with players such as  Wayzup and Twogo offering customized solutions to corporates.

However, large sections of prospective users are still relatively unaware of the ridesharing concept or the actual differences between ridesharing, hailing and carsharing.

“Nevertheless, the growing synergies among various ridesharing stakeholders will bring about a sea change in the shared mobility ecosystem,” noted Priya. “Ridesharing is expected to become a mainstream mode of mobility in cities by 2025 and is likely to expand to include different models on the same platform. Autonomous vehicles are expected to disrupt ridesharing models by merging ‘self-driven’ and ‘to-drive’ options beyond 2025.”

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Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today’s market participants. For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Contact us: Start the discussion

North American Ridesharing Market Opportunities / European Ridesharing Market Opportunities

K127-18/MAC6-18

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Jana Schoeneborn
Corporate Communications
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jana.schoeneborn@frost.com

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About Frost & Sullivan

For six decades, Frost & Sullivan has been world-renowned for its role in helping investors, corporate leaders and governments navigate economic changes and identify disruptive technologies, Mega Trends, new business models and companies to action, resulting in a continuous flow of growth opportunities to drive future success.

Frost & Sullivan

For six decades, Frost & Sullivan has been world-renowned for its role in helping investors, corporate leaders and governments navigate economic changes and identify disruptive technologies, Mega Trends, new business models and companies to action, resulting in a continuous flow of growth opportunities to drive future success.

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