Innovation is driving the growth of the global ride-sharing industry with service providers and operators likely to pull in an estimated US$11 billion in revenue this year, increasing to US$19 billion in 2022.
According a new report from Juniper Research, the global ride-sharing market is set to represent 47% of sharing economy platform revenues by 2022, as operators grow established markets through innovation, and as surge pricing events during times of high demand aid in boosting revenues.
The study noted that providers are increasingly relying upon these periods of high demand, with surge pricing events set to account for 30% of total revenues by 2022. The research cautioned against overuse which, Juniper says, could see “cries of extortion from consumers”.
“Players including BlaBlaCar, which is expanding its operations through car-pooling, and Lyft which is strengthening its partnerships towards the development of autonomous vehicles, are setting their sights on diversifying their business models in order to out-pace rivals,” said research author Lauren Foye.
{loadposition peter}But Juniper found that in established markets, currently regulatory approaches, coupled with increased wage pressures on workers, would see driver numbers fall.
The research also found that driver numbers in Western markets would peak at 390,000 in 2020, before falling to 322,000 by 2022, as changes to employment laws in a number of key markets are expected to come into play, including UK legislation post Brexit.
As such, Juniper says providers are encouraged to seek appeasement with their workers, whether through restructuring of wages, or through greater clarification of rights, as has been seen attempted by food delivery provider Deliveroo.