Skip to main content

Ride-Sharing Services Revenue will Reach $6.5 Billion

Today, the sharing economy represents numerous and varied services and business models, which have branched from a core group of offerings. Ride-sharing services that utilize independent drivers -- such as Uber and Lyft -- are seeing significant returns from their ongoing market development strategies.

These shared transport online platforms, who typically take 20 percent of driver earnings, will see their revenues grow from an estimated $3.3 billion in 2015 to reach $6.5 billion by 2020, according to the latest global market study by Juniper Research.

Their worldwide study found that a combination of promotional incentives, flexible working hours, and new business models will potentially attract more new freelance drivers to these companies.

Service Expansion to Drive Future Growth

While Uber has struggled to gain a significant foothold in China -- apparently due to the dominance of Taxi hailing service Didi Kuaidi -- Uber is not without the determination and the means to force its way into previously untapped markets.

"Uber has reportedly spent $1 billion per year on expansion in China alone. In addition, it has recently set its sights on disrupting the huge motorbike taxi industries of India and Thailand, displaying a willingness and drive to aggressively obtain market share," said Lauren Foye, analyst at Juniper Research.

The announcement in February that Uber is to launch its "UberMOTO" service in India, opens it to an enormous potential new market -- the city of Bangalore alone has 3.5 million registered motorbikes, and India already allows motorbike taxi bookings through applications in two states.


Expanding the Sharing Economy to Manufacturing

Additionally, the research found that the Sharing Economy is set to branch into more global markets and vertical industries, with the most notable instance being the impact on Manufacturing.

Shared services launched within this low-cost oriented industry will aid in drawing manufacturing back to western economies -- which have typically outsourced most forms of manufacturing operations to the Far East and the Asia-Pacific region.

Shared Manufacturing, through the concept of collaborative innovation, alongside technologically advanced workshops such as TechShop, has the potential to reduce production times for prototypes and concepts.

According to the Juniper assessment, this transition could aid in the process of scaling-up of production projects designed by young start-up businesses within North America and Europe.

Popular posts from this blog

Digital Transformation Investment at $3.4 Trillion

Business technology leadership matters. Across the globe, more leaders have been pursuing bold Digital Transformation (DX) initiatives with the goal of creating new sources of business value through digital products, services, and experiences. As an additional benefit, the COVID-19 pandemic revealed that digital transformation efforts improve an organization's resilience against global market disruptions. Global DX investment is forecast to reach $3.4 trillion in 2026 with a five-year compound annual growth rate (CAGR) of 16.3 percent, according to the latest worldwide market study by International Data Corporation (IDC). Digital Transformation Market Development "Despite strong headwinds from global supply chain constraints, soaring inflation, political uncertainty, and an impending recession, investment in digital transformation is expected to remain robust," said Craig Simpson, senior research manager at IDC . The benefits of investing in DX technology -- including aut

Artificial Intelligence for National Border Security

National border protection agencies are under pressure to provide the highest level of security in the face of growing threats, such as increasing illegal migration and international terrorism. Now, government agencies are embracing advanced border security technologies to aid in effectively and reliably securing national borders. These solutions look to detect and identify potential threats and prevent them from escalating to a point that may jeopardize security. Security Surveillance Market Development Traditional border security patrols and Closed-circuit Television (CCTV) surveillance systems aren't adequate protection, and agencies must increasingly deploy new solutions to stay ahead of criminals and other potential threats to ensure the safety of a country’s borders. According to the latest market study by Juniper Research, the value of the border security technology market will exceed $70 billion globally in 2027 -- that's rising from $48 billion in 2022. Growing by 47 p

How to Apply Sustainability to Drive Value Creation

Global climate change policy initiatives have been an emerging topic for CEOs and their leadership teams, as they look to the future. Many organizations are preparing to play their part and help reduce carbon emissions. Eighty-seven percent of business leaders expect to increase their organization’s investment in sustainability over the next two years, according to the latest worldwide market study by Gartner. Customers are the stakeholder group creating pressure for these organizations to invest or act on sustainability issues -- selected by 80 percent of executives, followed by investors (60 percent) and regulators (55 percent). Sustainability Market Development "Sustainability enables businesses to cope with disruption," said Kristin Moyer, VP analyst at Gartner . "Economic uncertainty, geopolitical conflict and escalating materials and energy costs are forcing businesses to reexamine all forms of expenditure." According to Gartner, this focus on essentialism --