Global contenders in the ride-hailing space take on Silicon Valley.
The transportation industry was revolutionized by the introduction of peer-to-peer ridesharing ten years ago. Now, as the market continues to grow, a host of new global platforms are stepping in to transform the market once again.
The ride-sharing market is booming, and – despite recent roadblocks – shows no signs of slowing down. The global ride-sharing market is predicted to reach $170 Billion by 2025, up from $43 billion in 2017, according to Adroit Market Research. This growth is making room for new players around the world, challenging market leaders and expanding the original ride-hailing model into a nimble, omnichannel suite of services.
Indian ride-hailing unicorn Ola is setting a stake in Uber’s backyard, with plans to establish a technology and research center in Silicon Valley later this year, which will be dedicated to autonomous vehicles and artificial intelligence. In July 2019, the company also secured a license to operate in London, Uber’s biggest market outside of the US. The company also recently received a $250 million investment from SoftBank to scale its fleet of electric vehicles.
In China, ride-hailing services are proliferating and pivoting to address a variety of offerings –attracting the attention of big investors in the process. In July 2019, Visa announced plans to invest in Indonesia-based ride-hailing startup Go-Jek to build out their in-app payment platform. This follows a $1 billion investment in January 2019 from a host of heavy-hitting tech companies including Google, Tencent and JD.com, aiding the Southeast Asian expansion of Go-Jek’s mobile payment and food delivery services.
Go-Jek started with a fleet of 20 motorcycle taxis in 2011 and has since expanded to offer a wide-ranging portfolio of services, including transportation and logistics – from the original taxis to shipping and moving services – food delivery and personal care services like on-demand massages, manicures and waxing. The company now serves over 500 cities across Southeast Asia, with over 2 million drivers, 400,000 merchants and 60,000 service providers under its network, and has seen a 1,100% growth in transactions on its platform from June 2016 to June 2019.
In April 2019, Singapore-based ride-hailing app Grab announced a new suite of services for seamless activity planning. The new services allow users to book hotels, purchase movie tickets and stream video on-demand through the Grab app. This rollout follows a collaboration with Chinese insurance giant Ping An in August 2018, making healthcare another potential enhancement of Grab’s omnichannel toolbox, building onto mobile payment, food delivery and online booking.
This rapid growth is not limited to Asia. InDriver first launched in Russia in 2012, but it’s found recent success in Africa; the company has experienced a rapid expansion over the past eight months and has announced ambitious plans to grow its operations across the continent. Since first launching in Arusha, Tanzania in November 2018, inDriver has expanded to Nairobi, Kenya, Uganda, Johannesburg and Cape Town. The company has set its sights on four additional countries, recently announcing plans to enter cities in Nigeria, Ghana, Zimbabwe and Namibia next.