Cab Aggregators MarketSize and Trends

Increasing demand for commuting means for business and leisure activities is expected to drive market growth

Increasing urbanization across all major economies, rampant economic development especially in the highly promising markets of India and China, and increased investments in the development of road infrastructure is expected to present strong growth prospects for the cab aggregator market participants. Other emerging economies such as India, Indonesia, Thailand, the Philippines, and Malaysia are expected to present significant growth potential over the forecast period.

Increasing requirements for daily commuting favored by inconsistency of public transport means in emerging countries will present as a growth prospect over the forecast period. Industry participants are increasingly innovating offerings such as providing competitive service costs, availing premium and luxury cars at the consumers’ doorstep, and proving services at the required time. Increasing focus of key players in the market to further enhance user experience by providing low-cost traveling options in these price-sensitive countries is expected to propel growth the cab aggregators market. However, in the recent past, significant issues regarding surge in prices and impolite driver behavior of the cabs have significantly impacted these businesses. For instance, Competition Commission of India (CCI) had reported a probe of the country’s leading cab aggregator services, Uber and Ola over surge pricing, according to the Business Standard report in 2017.

Asia Pacific is expected to witness highest growth rates over the forecast period

Market in countries such as China, Indonesia, India, and Malaysia is expected to witness significant growth over the forecast period. Consumers in these countries are inclined towards mobile solutions, which is still in its nascent stage. Moreover, companies are increasingly focusing on capitalizing opportunities through considerable investments and enhancing their offerings in these regions. For instance, in May 2017, Ola announced plans to invest US$ 2 billion in India to ply one million e-vehicles on the Ola platform by 2020. In May 2017, Uber announced plans to enhance its offerings by enabling offline booking options through SMS, WhatsApp and calls; and enhance consumer safety by providing car safety related information.

Global cab aggregators industry is consolidated with the presence of few major participants such as Uber, Lyft, Hailo, Ola, Grab Taxi, Didi Dache, Gett, LeCab, Cabify, and Bitaksi. Owing to low initial investments and large growth opportunity, large number of new entrants are expected to enter the market. New industry participants include Cabby, TenZillionCabs, HiCabs, DropTaxi and Baxi Taxi. These are expected to present considerable challenge to major players and create a competitive atmosphere in the market over the forecast period.