We can characterize the behaviour of the customers/users under the following categories:
The ride hailing economy is here to stay, and driven by a sense of perceived benefits, being affordable, convenient, efficient, and better for the environment, is building a stronger community based on trust between providers and users. The key factor for growth of global ride hailing market is increasing demand for personal mobility services, with surge in electric vehicles sales, rise in the industrialization and urbanization, rise in smartphone users, and increase in the number of ride sharing services platforms such as Ola, Lyft, and Uber. Ride hailing market is being occupied by the major players such as Uber, Ola, RideOs, Grab Lyft, Gett, DiDi, and many of the players have begun to implement electric vehicles for ride hailing. This has led to a demand surge in the electric vehicle market globally.
Ride-Hailing Service Market Size is expected to grow from $48,922.78 million in 2021 to $98,745.11 million by 2028; it is estimated to grow at a CAGR of 10.6%
The industry has grown at the above rate due to the following technological trends supplementing the economy:
- Influx of EV and self-driving cars in the ride hailing industry
- Directional growth towards creation of super apps
- Rise in demand for rental cars on demand
Though the industry has been growing with great speed and velocity over the past decade, it has not been a smooth ride. Companies like Uber, Grab, Gojek, Lyft have to be at pole position and avoid being one of the back markers. As the F1 driver has to deal with problems like flatspot and brake bias on the race track, the ride hailing industry deals with its own set of curves in the form of these challenges:
- Cost battles and highly price-sensitive market
- Driver loyalty to specific apps
- Profitability and developing a sustainable business model
- Customer’s expectation for high standards of service
All F1 teams are supported by the pit crew for all requirements, right from monitoring the conditions of the car to functional changes required between laps and competition analysis. It is imperative for the pit crew to support the driver and the car at all times of the journey to ensure it manages to optimize the lap time and zoom ahead in position.
Ride hailing companies like Uber, Grab, and Gojek also need this constant support to withstand the challenges they face in the industry. IT companies provide the “crew” and support their business needs, circumventing challenges, reducing costs, and increasing reach while digitally transforming and automating processes so that businesses can sustain in this new normal.
Some key offerings provided by IT companies are as follows:
- Customer services via web, chat, email, phone, and SMS for enhanced rider/traveler safety
- Unparalleled capabilities in geospatial Information systems (map services) covering end-to-end product/feature life cycle services, ranging from product evaluation and identification of scope, tools, and technology requirements to various stages of data collection, modelling, curation, and sustenance and maintenance to analytics and market research, product enhancement, and launch supports
- Trust and safety services spanning fraud management via social media monitoring, online sales transaction monitoring, transaction risk scoring, and assessment
- Enable a differentiated service proposition across the entire value chain and customer life cycle
- Analytics to understand consumer persona and drive hyper-targeted content for hyper-segmented audiences
Beyond the flag
Today Ride-sharing is quickly gaining momentum by harnessing the power of digitalization. There are tests and pilots being run by organizations to understand the viability of autonomous vehicles and self-driving. This idealistic world would soon become a reality since organizations like Google and Uber are actively working on technologies to deliver an autonomous riding experience. One of the most likely ride-sharing trends for 2022 is an increase in the electrification of ride-sharing fleets. Electric vehicles are becoming increasingly popular, and companies like Uber are already exploring EVs. As more customers demand clean, sustainable transportation services, it will be necessary for Uber to expand its fleet with electric or hybrid vehicles.