Automologist MAC reports on a number many of us helped achieve.
…that is how many ride-hailing trips were taken last year, according to a recent mobility study published by ABI Research. But what is more, they are forecasting that some 24 billion will be taken this year (2018), of which some 70% will be in Asia. The next biggest markets were Latin America and North America, with Europe coming a very distant last, with only 5% of trips completed there.
The phenomenal size of the Asian market has, of course, any number of companies trying to establish themselves. These markets are typified by relatively low car ownership and somewhat creaky public transportation system. This has encouraged the growth of very dynamic ride-sharing services, which cost can be as low as 10 cents per mile as competing services try to ‘buy’ market share.
It is not all success stories, though. Uber has struggled in the region and after prompting from one of its main shareholders, Softbank, has sold its interests in most Asian countries to Grab and Didi Chuxing. This has been a major benefit for Didi, who now commands more than a 90% share of what is the world’s largest ride-hailing market.
South East Asia is currently witnessing one of the world’s fiercest battles for market share between Go-Jek and Grab in Indonesia, which is the world’s fourth-largest ride-hailing market after China, India and the US of A. Grab acquired the assets of Uber in most of South East Asia and has gone on a spending spree to gain market share. In Indonesia, this has seen them drive their share of the market from about 30% at the start of 2017 up to 63% by the end of the year, all of which has been at the expense of Go-Jek’s dwindling share.
Uber has of course quite famously pulled out of the Chinese and South East Asian markets, and as I discovered to my horror last week, do not really exist in South Korea. But they are still present in India, the world’s second-largest market, where Ola Cabs is currently in first place. India’s home-grown Ola Cabs is currently looking at entering the market in the UK, which is one of Uber’s strongest markets, perhaps in a bid to get them to exit the Indian market in exchange for a future share of the business, in much the same way as Uber left China to Didi Chuxing.