Global Ridesharing: 40 Billion Rides and Counting
The United States birthed the ridesharing industry and by extension the global on-demand economy. Companies like Uber and Lyft enjoy some of the highest valuations among any unicorn. The companies’ pending IPOs will likely be some of the biggest stock offerings Wall Street has ever seen.
Uber and Lyft have benefited from the same trends: the prevalence of smartphones, the decentralized nature of existing transportation systems, and demographic shifts. Consumers seem less willing to own cars, preferring instead alternative (and less costly) options for transportation.
The future of the industry, though, appears to lie with Asia. Countries like China and India boast enormous markets populated by young, smartphone users with growing incomes and discretionary dollars. Asian governments are racing to upgrade roads, bridges, and highways.
Companies like Grab, Ola, and DiDi have also been much more aggressive than their U.S. counterparts in exploiting new technology like contactless, electronic payments and expanding their products and services beyond mere taxi service.
Despite this, investors are discounting Asian rideshare firms compared to U.S. companies.
In this report, we describe the major players, trends, product offerings, strategies, and investments. Specifically, the report focuses on six key areas:
Understanding the $400 billion ridesharing market: Can we accurately estimate the overall market potential for ridesharing companies? What do current spending trends tell us about future opportunities?
Secular trends affecting ridesharing in the United States and overseas: How fast are regional incomes growing as defined by GDP? How does the condition of a country’s roads and highways impact rideshare adoption? How are demographic shifts affecting the market?
Evolution of ridesharing product footprint: How has ridesharing changed over the years? How do innovative new companies compete against well-established giants in this rapidly evolving environment?
Regulatory trends and concerns in ridesharing: What areas are most likely to see increased regulation? What forces are prompting regulators to more closely scrutinize the industry? How does the regulatory environment in the United States differ from China and India?
Role of big tech in ridesharing in the United States and Asia: How active are big tech in adjacent opportunities? Are there key differences in investment focus in the rideshare space?
Benchmarking valuations of leading ridesharing players: Are investors applying a premium to U.S. rideshare firms? How much money have companies raised? Do the companies’ current growth rates justify their valuations?
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