Industry Report

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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DISCLAIMER: This report does not contain a complete analysis of every material fact regarding any issuer, industry, or security. The opinions expressed in this report reflect our judgment at this date and are subject to change. The information contained in this report has been obtained from sources we consider to be reliable; however, we cannot guarantee the accuracy of all such information.

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Contact

For information on research and analysis

Rohit Kulkarni
Managing Director
Private Investment Research Group
(650) 300-5128Email

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PLEASE READ THESE IMPORTANT LEGAL NOTICES AND DISCLOSURES

CONFLICTS: This report is being published by SharesPost Research LLC, and distributed by SharesPost Financial Corporation, a member of FINRA/SIPC. SharesPost Research LLC and SharesPost Financial Corporation are wholly owned subsidiaries of SharesPost, Inc.

Recipients who are not market professionals or clients of SharesPost Financial Corporation should seek the advice of their own personal financial advisors before making any investment decisions based on this report. None of the information contained in this report represents an offer to buy or sell, or a solicitation of an offer to buy or sell, any security, and no buy or sell recommendation should be implied, nor shall there be any sale of these securities in any state or governmental jurisdiction in which said offer, solicitation, or sale would be unlawful under the securities laws of any such jurisdiction. This report 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 advisability 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.

ANALYST CERTIFICATION: The analyst(s) certifies that the views expressed in this report accurately reflect the personal views of such analyst(s) about any and all of the subject securities or issuers, and that no part of such analyst compensation was, is, or will be, directly or indirectly related to the specific views contained in this report.

Analyst compensation is based upon various factors, including the overall performance of SharesPost, Inc. and its subsidiaries, and the performance and productivity of such analyst, including feedback from clients of SharesPost Financial Corporation and other stakeholders in our ecosystem, the quality of such analyst’s research and the analyst’s contribution to the growth and development of our overall research effort. Analyst compensation is derived from all revenue sources of SharesPost, Inc., including brokerage sales.

DISCLAIMER: This report does not contain a complete analysis of every material fact regarding any issuer, industry, or security. The opinions expressed in this report reflect our judgment at this date and are subject to change. The information contained in this report has been obtained from sources we consider to be reliable; however, we cannot guarantee the accuracy of all such information.

Any securities offered are 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 and involves a high degree of risk. It should only be considered as a long-term investment. You must 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 you should complete your own independent due diligence regarding the investment, including obtaining additional information about the company, opinions, financial projections and legal or other 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, SharesPost Index, SharesPost Investment Management, SharesPost 100 Fund, and SharesPost 100 List are all registered trademarks of SharesPost, Inc. All other trademarks are the property of their respective owners.

Copyright SharesPost, Inc. 2018. All rights reserved.

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