You’ll discover Industry experts trying to deduce its origin. Such levels of adulation are possible only for businesses that are both globe-trotting and present high ROI. One such solution is the app-based on-demand taxi-hailing industry. Despite these general perceptions, an entrepreneur willing to take a shot at this business needs to know what the future of the cab-hailing sector will be and what was its past infer.
So, How well does the industry tackle the COVID rampage?
At a superficial level, anybody irrespective of their business knowledge can conclude that the cab-hailing industry is severely damaged by the Covid-19 induced restrictions on economic activities via Lockdowns and Travel curtailments. They cannot be wrong; Afterall, we’ve seen several businesses going bankrupt, unable to sustain during this turbulent period. But like a well-written plot twist, the market share and profitability of the on-demand app-based industry has increased with more customer loyalty. When the future of so-called major economic drivers of the world like electronic, banking, and automobile manufacturing sectors are in trouble, the escalation of revenue of the taxi industry comes as a pleasant surprise to trade pundits.
So, what exactly made the on-demand taxi business immune to COVID recession?
Before plunging into the possible reasons, let’s have a look at the market numbers.
- The cab-hailing industry’s overall revenue is set to cross the $200 Billion mark on or before 2025
- This is significant because the revenue and profitability of this particular industry skyrocket, indicating that a very favorable trade environment exists.
- The taxi ride industry is also forecasted to register a CAGR of 17.5% in 2025, a stark ascension from the earlier numbers.
- User penetration is also predicted to hit an all-time high at a percentage of 20.5 in 2025.
- It is also fascinating to know that countries’ market contribution in the Asia-Pacific has increased substantially with more customer loyalty.
- The Asia-Pacific region accounts for over 70% market share in the cab-hailing industry.
There are some solid reasons for this astounding growth of revenue and market share that mainly describe these companies’ approach.
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