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Ride-hailing - Saudi Arabia

Saudi Arabia

Saudi Arabia's Ride-hailing market is expected to experience impressive growth in revenue, with a projected revenue of €0.84bn in 2024.
The segment's revenue is expected to grow annually at a rate of 5.92% between 2024 and 2029, resulting in a projected market volume of €1.12bn by 2029.
The number of users in this market is also expected to increase, reaching 16.45m users by 2029.
User penetration, which is the percentage of the total population that uses ride-hailing services, is projected to be 33.5% in 2024 and 41.1% by 2029.
The average revenue per user (ARPU) is expected to amount to €67.17.
The Ride-hailing market is an online-only market.
It is worth noting that China is expected to generate the most revenue in this market globally, with a projected revenue of €55,230m in 2024.
The Ride-hailing market in Saudi Arabia is dominated by local player Careem due to its tailored services and understanding of local customs.

Key regions: South America, Europe, China, Saudi Arabia, Malaysia

Marché

Région

Comparaison de régions

Monnaie

Analyst Opinion

The Ride-hailing market in Saudi Arabia is experiencing significant growth and development. Customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors are all contributing to this growth. Customer preferences in Saudi Arabia are shifting towards convenience and efficiency. With the rapid pace of urbanization and increased traffic congestion, consumers are looking for alternative transportation options that can save them time and provide a hassle-free experience. Ride-hailing services offer a convenient and reliable solution, allowing customers to book a ride with just a few taps on their smartphones. Trends in the market are also driving the growth of the Ride-hailing industry in Saudi Arabia. The increasing popularity of smartphones and the widespread availability of mobile internet have made it easier for ride-hailing companies to connect with customers. This has led to a surge in the number of ride-hailing platforms operating in the country, providing customers with more choices and competitive pricing. Local special circumstances in Saudi Arabia are also contributing to the growth of the Ride-hailing market. The country has a young and tech-savvy population, with a high smartphone penetration rate. This makes it an ideal market for ride-hailing companies to expand their services and attract a large customer base. Additionally, the government has been supportive of the ride-hailing industry, implementing regulations that ensure the safety and quality of service for customers. Underlying macroeconomic factors are also playing a role in the development of the Ride-hailing market in Saudi Arabia. The country has a strong economy and a high per capita income, which enables consumers to afford ride-hailing services. Additionally, the government's Vision 2030 plan, which aims to diversify the economy and reduce dependence on oil, has created opportunities for the ride-hailing industry to thrive. In conclusion, the Ride-hailing market in Saudi Arabia is experiencing significant growth and development due to customer preferences for convenience and efficiency, trends in the market such as the increasing popularity of smartphones, local special circumstances such as a young and tech-savvy population, and underlying macroeconomic factors including a strong economy and government support. This growth is expected to continue as more consumers embrace ride-hailing as a preferred mode of transportation.

Methodology

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.