Nowadays, it is very easy to see the tough competition in the ride-sharing industry. In this it has been possible to see how each of the most outstanding aspects have been during this last decade. Although the competition started with Uber and Lyft, the market has now increased due to the entry of many new players in both international and regional markets.
It is also true that over time the number of competitors has decreased, leaving only a few notable names. Today, all of these are now seeking geographic expansion to serve as a benchmark for who will become the global leader in the ride-hailing services market.
The ride-sharing industry is predicted to skyrocket to a gigantic value by the year 2030. This may increase further as some experts in the area explain that many companies are giving Uber a lot of competition. In fact, some have already surpassed this as the most valuable startup in the world.
Is Latin America the land with the most opportunities for shared transportation?
America is considered one of the continents with the most urbanized areas in the world, and Latin America has more than 649 million people, of which 83% live in urban areas. For the next decade, the total urban population is estimated to increase to 711 million. That is, it will have a massive population, so urban planning will become a great challenge.
Population growth also means growth in traffic infrastructure, expansion of roads, public transportation, parking lots and many more. In fact, it is debated that almost 30% of traffic in large urban cities is due to frustrated drivers wandering around looking for a parking spot.
An ideal city to exemplify is Mexico City, which is one of the most congested cities in the world. Shared rides in this city last on average 66% longer than in other cities, and traffic adds an additional 227 hours to a typical traveler's total travel time.
Bike sharing and car sharing will surely become popular in these regions of Latin America. This without leaving aside the traditional form of public transportation such as trains, buses and subway systems. Online services such as ride -hailing services are currently app-based.
What are the market trends in Latin America?
The generation of millennials constitute a quarter of the total population of Latin America. It is rapidly adopting access to alternative modes of transportation and on-demand services instead of owning a car. Added to this, in addition to the growing demand for alternative transportation, one must also consider the fact that Latin America is the second fastest growing mobile market in the world.
Latin America's eagerness to adopt ride-sharing as alternative transportation solutions is due to the absence of accessible and efficient public transportation systems. This option represents a great opportunity for all taxi companies in Latin America.
What should the ridesharing market be like in a region?
As we have been mentioning, Latin America is a promising land for private transportation companies. This is due to the infinite opportunities that exist in the countries of this continent. Experts in the area indicate that this region's ride-sharing revenue is expected to exceed its previous transportation revenue.
Furthermore, revenue is expected to grow at an annual rate of 16.6%, resulting in an overall market volume of $16,459 million by 2023. Notably, a major factor that has skyrocketed the demand for ride-sharing It's the security that ride-sharing offers. We are aware that Latin America, unfortunately, does not have a good record when it comes to transportation security.
The Latin American community is migrating towards the use of ride-sharing services, as it provides functions such as GPS tracking and price transparency. Additionally, these services also provide personalized trips, such as women-only rideshares.
Transportation services take over the world.
The taxi market and taxi services have become ideal for Latin American regions.
Market trends and the ride-hailing market in the region present vital data that shows how big and lucrative the opportunity is for taxi companies. Along with that, we also discuss the current big players who are competing aggressively in the region to emerge as leaders.
Uber, in addition to many other transportation businesses, have been responsible for setting an important benchmark in the industry. From small to long-established companies, they will be able to stand out in this market regardless of any details. In addition to this, it is recommended that you stay informed about the latest updates on shared rides.
