The ride-sharing industry was one of the newest and fastest-growing industries in the world until the Coronavirus pandemic took hold in 2020. A year after the pandemic, the industry is starting to bounce back and looks poised to reclaim the momentum that it had lost.
According to data presented by TradingPlatforms, the ride-sharing industry in the US is projected to generate $1.9B in 2021, a 23% YoY increase from 2020.
Ride-Sharing Impacted By COVID-19 Pandemic in 2020; Recovery Expected in 2021
The global ride-sharing industry was badly hit as lockdowns were imposed all over the world, effectively halting global mobility. The US is the world’s largest ride-sharing market, generating almost $2B in 2019 but experienced a significant contraction in 2020. As a result of the pandemic, the US ride-sharing industry only generated $1.54B in 2020 – a 21% YoY decrease.
As of May 2021, the situation has improved in several areas in the US, albeit not to pre-pandemic levels yet. In 2021, the ride-sharing market in the US is projected to generate $1.9B in 2021 – a 23% YoY increase from 2020’s pandemic stricken revenue numbers.
Forecast For Ride-Sharing Industry Still Bright Despite 2020’s Pandemic Ravaged Year
The ride-sharing market is expected to pass 2019’s pre-pandemic revenue numbers by 2022 when it is expected to cross the 2B mark for the first time. Projections also have the US ride-sharing market generating at least $3B by 2025 on an impressive Compound Annual Growth Rate (CAGR) of 13.55% from 2021-2025.
The global ride-sharing market experienced a similar YoY revenue decrease to the US market as a result of the pandemic. In 2021 the global ride-sharing market is expected to bounce back by more than 27% and generate $9.37B. The industry is expected to surpass pre-pandemic levels and the $10B mark by 2022 when it is projected to generate $12.39B.
Globally, the ride-sharing market is projected to grow at a robust CAGR of 12.42% from 2021-2025, resulting in a projected market volume of just under $15B by 2025.
Rex Pascual, Editor at TradingPlatforms commented; “Despite the outlier that was 2020, the future of the ride-sharing industry still remains promising. While the pandemic situation still remains fluid in many parts of the world, there is strong confidence in the industry’s ability to pick up right where it left off once the global situation fully stabilizes.”