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South America is expected to witness a significant growth in the Ride-hailing market.
According to the latest research, revenue in this sector is projected to reach US$4.54bn by 2024, with an annual growth rate of 3.34% (CAGR 2024-2029).
This growth is expected to result in a projected market volume of US$5.35bn by 2029.
As for the user base, it is expected to reach 144.10m users by 2029, with the user penetration projected to be 30.3% in 2024 and 33.9% by 2029.
Moreover, the average revenue per user (ARPU) is expected to be US$36.20.
The Ride-hailing market is an online-only market.
Finally, in global comparison, China is projected to generate the most revenue in this sector, amounting to US$60bn in 2024.
In Brazil, ride-hailing companies face stiff competition from traditional taxi services due to strong consumer loyalty and regulatory restrictions.

Definition:

The Ride-hailing market encompasses on-demand transportation services facilitated through mobile apps or online platforms. This market covers both private vehicle rides and taxi services, all booked exclusively online. It includes Transportation Network Companies (TNCs), such as Uber and Lyft, traditional taxis booked via apps, such as Free Now or Cabify, and ride-pooling services, such as Moia and Via. This market excludes peer-to-peer ride-sharing, focusing on professionally operated transport services booked digitally for efficient and convenient urban mobility. Rides of traditional taxi services hailed on the street or booked via telephone are not included in this market.

Additional Information:

The main performance indicators of the Ride-hailing market are revenues, average revenue per user (ARPU), user numbers and user penetration rates. Additionally, online and offline sales channel shares display the distribution of online and offline bookings. The ARPU refers to the average revenue one user generates per year while the revenue represents the total booking volume. Revenues are generated through both online and offline sales channels and include exclusively B2C revenues and users for the mentioned market. User numbers show only those individuals who have made a reservation, independent of the number of travelers on the booking. Each user is only counted once per year.

The booking volume includes all booked rides made by users from the selected region, regardless of where the ride took place.

For further information on the data displayed, refer to the info button right next to each box.

Platforms that let users book rides offered by drivers using their private vehicles (e.g., Uber)
Taxi companies that offer their services through an app (e.g., Free Now)
Platforms that offer shared rides (ride-pooling) with other passengers (e.g., Moia, Via)

Traditional taxi rides booked offline with taxi companies (via street-hailing or by telephone)

The Ride-hailing market in South America has experienced significant growth in recent years, driven by changing customer preferences and favorable market conditions.

Customer preferences: Customers in South America have embraced ride-hailing services due to their convenience, affordability, and reliability. The ability to book a ride through a mobile app and track the driver's location in real-time has made ride-hailing a popular choice for both business and leisure travelers. Additionally, the availability of various vehicle options, such as economy or luxury cars, has catered to the diverse needs of customers in the region.

Trends in the market: One of the key trends in the South American ride-hailing market is the increasing competition among service providers. Local players and international giants have entered the market, offering customers a wide range of options to choose from. This competition has led to improved service quality and competitive pricing, benefiting the customers. Moreover, ride-hailing companies have been expanding their services beyond major cities, reaching smaller towns and rural areas. This expansion has not only increased accessibility for customers but has also created new employment opportunities in these regions.

Local special circumstances: South America has its own unique set of circumstances that have contributed to the growth of the ride-hailing market. One such circumstance is the inadequate public transportation infrastructure in many cities. Limited availability and reliability of public transport have made ride-hailing an attractive alternative for commuters. Additionally, safety concerns in some areas have also played a role in the popularity of ride-hailing services. Customers perceive ride-hailing as a safer option compared to traditional taxis, as the drivers and vehicles are registered and tracked by the service providers.

Underlying macroeconomic factors: The growth of the ride-hailing market in South America can also be attributed to underlying macroeconomic factors. Rising urbanization and increasing disposable incomes have resulted in a growing middle class with higher mobility needs. As more people can afford smartphones and internet access, the adoption of ride-hailing services has become easier. Furthermore, the region has witnessed a surge in tourism, with more international and domestic travelers opting for ride-hailing services for their transportation needs. This has created a steady demand for ride-hailing services, driving market growth. In conclusion, the ride-hailing market in South America has experienced significant growth due to changing customer preferences, increasing competition, local special circumstances, and underlying macroeconomic factors. As the market continues to evolve, ride-hailing companies are likely to focus on enhancing their services, expanding their reach, and adapting to the specific needs of customers in different countries within the region.

Data coverage:

The data encompasses B2C enterprises. Figures are based on bookings and revenues of ride-hailing services.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on a specific rationale for each market. As a basis for evaluating markets, we use financial reports, third-party studies and reports, federal statistical offices, industry associations, and price data. To estimate the number of users and bookings, we furthermore use data from the Statista Consumer Insigths Global survey. In addition, we use relevant key market indicators and data from country-specific associations, such as demographic data, GDP, consumer spending, internet penetration, and device usage. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, ARIMA, which allows time series forecasts, accounting for stationarity of data and enabling short-term estimates. Additionally, simple linear regression, Holt-Winters forecast, the S-curve function and exponential trend smoothing methods are applied.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change.

This report presents a comprehensive analysis and additional information on the Mobility market, in a PDF format.