Skip to main content

How Ride-Sharing Apps Changed Local Transport

Building on significant advances in disruptive mobile app technology, ride-sharing services have emerged to become a popular means of urban mobility. This is unsurprising given the advantages of ride-sharing options over traditional transport modes, such as buses and more expensive taxis.

Innovative ride-sharing platforms enable app users to customize their journeys according to real-time phenomena, such as nearby traffic conditions, time of day, and rider demand. However, this is not to say that ride-sharing services are perfect.

The popularity of ride-sharing has resulted in some additional traffic congestion in major cities already struggling to control this issue, while the widespread disruption caused by the pandemic affected most stakeholders within the local transportation value chain.

Ride-Sharing App Market Development

According to the latest worldwide market study by Juniper Research, ride-sharing spending by consumers globally will exceed $937 billion by 2026 -- that's comparable to 50 times the combined annual revenue of Transport for London, New York City’s MTA, and the Beijing Metro in 2021.

This spending on ride-sharing represents an increase from $147 billion in 2021 and rapid total growth of 537 percent over the next 5 years. Regardless of attempts by some city government officials and their local legacy taxi company owner complaints, they won't stop competition and innovation.

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 mobile-enabled app platforms such as Lyft and Uber.

Juniper analysts identified people in the U.S. and China markets as leading global spend on ride-sharing services -- accounting for 65 percent of market value in 2026.

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

However, Juniper has cautioned that only 13 percent of potential riders are set to use carpool-style ride-sharing services in 2026, with the remainder opting for single-occupancy services -- reflecting that the majority of people are willing to pay a small premium for the privilege of traveling alone.

Juniper also noted that while this is understandable given the ongoing pandemic, the emissions generated by single-occupancy services mean that platforms must explore non-financial incentives to drive increased 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.

Outlook for Ride-Sharing Applications Growth

"There are multiple strategies that ride-sharing platforms must leverage to drive adoption of carpool services, but these will need to be implemented carefully to avoid the perception of prioritizing carpool users over non-carpool ones. If implemented poorly, this will generate a negative reaction from users and lead to increasing competing services," said Adam Wears, research analyst at Juniper Research.

That said, I'm very optimistic about the upside opportunities for additional ride-sharing services growth. And, I'm eager to see other sectors of local commerce disrupted by new ideas from entrepreneurs who imagine better ways to complete routine everyday tasks, such as local transportation ride scheduling.

Typically, incumbent players within legacy industries lack imagination and can't seem to see past their decades-long status quo operating environment. They cling to the old ways and when new entrants offer alternatives their initial response is to protest the better methods and then seek partners that will help them block the implementation of progressive thinking. My point: the ensuing disruption is inevitable.

Popular posts from this blog

Why Healthcare and Smart City Apps Drive 5G IoT

Fifth-generation (5G) wireless technology for cellular networks is a successor to fourth-generation (4G) wireless technology. By 2023, Juniper Research anticipates that there will be over 1 billion 5G connections globally. The technology will provide the data infrastructure for the advancement of wireless communications and for new developments in the Internet of Things (IoT) -- including smart cities and healthcare. 5G IoT Market Development According to the latest worldwide market study by Juniper Research, 5G IoT connections will reach 116 million globally by 2026 -- that's increasing from just 17 million connections in 2023. Juniper analysts predict that the healthcare sector applications and government or other smart city services will drive this outstanding 1,100 percent growth over the next three years. Juniper examined 5G adoption across key industry sectors -- such as the automotive, mobile broadband, and smart homes -- and forecasts healthcare and smart cities will accoun

How Savvy Leaders Re-Imagine Work in 2023

As we look to the year ahead, there will be significant challenges and opportunities facing the Chief Human Resource Officer (CHRO) role. In order to be successful, savvy HR leaders must be prepared to take proactive steps that adapt and evolve. "HR leaders have faced an increasingly unpredictable environment amid many organizations mandating a return to office, permanently higher turnover and burnt out employees," said Emily Rose McRae, senior director at Gartner . HR Innovation Market Development One of Gartner's key predictions for 2023 is that the use of artificial intelligence (AI) and automation will continue to increase within the enlightened digital workplace. This transition will require HR leaders to develop new skills and competencies in order to effectively manage and lead teams that are increasingly relying on these enabling technologies. Additionally, HR leaders will need to ensure that their organizations are investing in the necessary infrastructure and re

Top 10 CFO Priorities Require Rethinking Finance

The Chief Financial Officer (CFO) role is essential to digital business growth. While CFOs do not get closely involved in the tactical details of the digital transformation of their functions, they still recognize its strategic importance. According to the latest survey by Gartner, CFOs are faced with the challenge of balancing the need for substantive digital business innovation with financial cost control and risk management. "CFOs will be stretched thinly across many activities in 2023. The survey revealed a wide range of actions CFOs plan to either lead or be significantly involved with," said Marko Horvat, vice president at Gartner. Survey Findings: The Top Ten Priorities Cost Optimization - Cost reduction remains the top priority for CFOs as they look for ways to cut costs and improve efficiency in their operations. This includes identifying cost-saving opportunities through automation, outsourcing, and business process improvement. Business Continuity - The global C