Ride sharing spending to cross $930 bn globally by 2026: Report

Driven by strong COVID-19 recovery and reduced private vehicle usage amid rising fuel prices and a call to shift to electric vehicles (EVs), the ride sharing spending by consumers globally is set to exceed $937 billion by 2026, a new report said on Monday.

This spend represents an increase from $147 billion in 2021 and total growth of 537 per cent over the next five years, according to data provided by Juniper Research.

“There are multiple strategies ride sharing platforms must leverage to drive adoption of carpool services, but these will need to be implemented carefully to avoid the perception of prioritising carpool users over non-carpool ones,” said research author Adam Wears.

“If implemented poorly, this will generate a negative reaction from users and lead to increasing competing services,” he added.

The concept of ride sharing involves users accessing single-occupancy and shared carpool-style services provided by private drivers operating their own vehicles, coordinated by platforms such as Lyft and Uber.

The research identified consumers in the US and China as leading global spend on ride sharing services, accounting for 65 per cent of market value in 2026.

It highlighted future government initiatives to reduce private vehicle usage in cities, allied with a strong pandemic recovery, as key to these countries’ positions as leaders.

The emissions generated by single-occupancy services mean platforms must explore non-financial incentives to drive adoption of carpool services.

“This could include collaborating with city authorities to allow carpool vehicles to use public transport-only lanes, to make these services attractive in terms of both cost and efficiency,” the report noted.