Global Ridesharing: 40 Billion Rides and Counting
December 6, 2018

Global Ridesharing: 40 Billion Rides and Counting

Executive Summary

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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Securities referenced in this article may be offered by SharesPost Financial Corporation, member FINRA/SIPC. SharesPost Financial Corporation and SP Investments Management are wholly owned subsidiaries of SharesPost, Inc. Certain affiliates of these entities may act as principals in such transactions.

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Copyright SharesPost, Inc. 2020. All rights reserved.

PLEASE READ THESE IMPORTANT LEGAL NOTICES & DISCLOSURES

This article does not constitute an offer to provide investment advice or service. Registered representatives of SharesPost Financial Corporation do not (1) advise any member on the merits or prudence of a particular investment or transaction, or (2) assist in the determination of fair value of any security or investment, or (3) provide legal, tax, or transactional advisory services.

Securities referenced in this article may be offered by SharesPost Financial Corporation, member FINRA/SIPC. SharesPost Financial Corporation and SP Investments Management are wholly owned subsidiaries of SharesPost, Inc. Certain affiliates of these entities may act as principals in such transactions.

Investing in private company securities is not suitable for all investors. An investment in private company securities is highly speculative, involving a high degree of risk, and investors should be prepared to withstand a total loss of your investment. Private company securities are also highly illiquid and there is no guarantee that a market will develop for such securities. Each investment also carries its own specific risks and investors should conduct their own, independent due diligence regarding the investment, including obtaining additional information about the company, opinions, financial projections and legal or investment advice.

Accordingly, investing in private company securities is appropriate only for those investors who can tolerate a high degree of risk and do not require a liquid investment.

SharesPost, the SharesPost logo, My SharesPost, the SharesPost Index, and SharesPost Investment Management are all registered trademarks of SharesPost, Inc. All other trademarks are the property of their respective owners.

Copyright SharesPost, Inc. 2020. All rights reserved.