Market Research Report

UAE Shared Mobility Market Research Report: Forecast (2021-2026)

By Service Type (Two-Wheeler Sharing, Ride-Hailing, Ridesharing, Car Rental, Car Sharing, Bus/Shuttle Service), By Region (Dubai, Sharjah & North Emirates, Abu Dhabi & Ain), By Com...muting Pattern (Daily Commuting, Last-Mile Connectivity, Occasional Commuting, Others), By Model Type (P2P, B2B, B2C), By Company (Uber, DiDi Chuxing, Drive Now, Lyft, Ekar, Udrive, Arabia Taxi, Car Tax, City Taxi, Dubai Taxi, Metro Taxi, National Taxi, One Road) Read more

  • ICT & Electronics
  • Dec 2021
  • 112
  • IT77003

Market Overview

The automotive industry of the UAE is undergoing rapid transformations. Trends like electrification of public transport, shared mobility, autonomous vehicles, etc., are positively influencing the UAE automotive sector. People across the country are now opting for more cost-effective & convenient alternatives to car ownership. It shall help relocate road space, make driving less stressful, and lead to fewer road accidents. Hence, to move forward in a better future, there is a desperate need to change the urban mobility system by adopting shared mobility.

According to MarkNtel Advisors, the UAE Shared Mobility Market is anticipated to grow at a CAGR of around 25.1% during the forecast period, i.e., 2021-26. The growth of the market attributes primarily to the increasing focus of the UAE government on implementing environment-friendly mobility solutions and mounting adoption of connected technologies. Shared Mobility is gaining immense popularity across the UAE since it is a cost-effective solution that eliminates problems associated with traffic congestions & parking spaces.

Strict regulations toward controlling the carbon emissions in the country, coupled with massive investments by the automotive companies in green mobility solutions, are also driving the market. Moreover, the increasing consumer preference toward electric vehicles for cost-effective, comfortable, & clean traveling is likely to create lucrative growth opportunities for the UAE Shared Mobility Market in the coming years, further states the research report, “UAE Shared Mobility Market Analysis, 2021.”

Report Coverage Details
Study Period Historical Data: 2016-19
Base Year: 2020
Forecast Period: 2021-26
CAGR (2021-2026) 25.1%
Region Cover Dubai, Sharjah & North Emirates, Abu Dhabi & Ain
Key Companies Profiled Uber, DiDi Chuxing, Drive Now, Lyft, Ekar, Udrive, Arabia Taxi, Car Tax, City Taxi, Dubai Taxi, Metro Taxi, National Taxi, One Road
Unit Denominations USD Million/Billion

Impact of Covid-19 on the UAE Shared Mobility Market

  • Due to the Covid-19 pandemic in 2020, the overall transportation sector of the UAE witnessed adverse effects, and the Shared Mobility Market was no exception.
  • The restricted number of tourists, reduced mobility, & and the introduction of remote working in offices severely impacted the demand for shared mobility services in the UAE.
  • Moreover, social distancing protocols set by the local authorities to minimize the virus spread further dampened the market dynamics and caused considerable losses to the market players.
  • Lately, in 2021, the market started reviving itself. However, the precautionary approach of citizens and reduced inflow of tourists would continue to haunt the companies operating in this industry over the coming years.
  • In addition, the gradually reducing impact of Covid-19, coupled with various measures taken by the companies to ensure passenger safety, is likely to propel the market growth in the coming years.

UAE Shared Mobility

Market Segmentation

By Service Type:

  • Two-Wheeler Sharing
  • Ride-Hailing
  • Ridesharing
  • Car Rental
  • Car Sharing
  • Bus/Shuttle Service

Among all services, Car Sharing & Ride-Hailing are the most prominent services used by UAE customers. As a result, various companies like Udrive are well-utilizing this opportunity by expanding their services across the UAE to fulfill additional consumer demands.

In 2018, Udrive launched a car-sharing service in Abu Dhabi. The benefits like time & money savings, being easy to use, providing comfort, etc., are encouraging individuals across the country to opt for ride-hailing services. However, on the other front, the demand for Car Rental services is expected to be astronomically growing in the coming years owing to the flourishing tourism sector in the UAE.

By Commuting Pattern:

  • Daily Commuting
  • Last-Mile Connectivity
  • Occasional Commuting

Here, Daily Commuting dominates the UAE Shared Mobility Market with a 53.71% share registered in 2021. Over the past few years, the surging car ownership costs have been compelling consumers to switch to other mobility options in the country.

As a result, seeing the increasing traffic congestions across the UAE, people are drawn increasingly toward shared mobility services for their daily commute. According to the TomTom Traffic Index, Dubai & Abu Dhabi ranked 230 & 399 respectively in world traffic rankings. Therefore, the revenue share of daily commuting is expected to continue increasing in the coming years.

Key Trends in the UAE Shared Mobility Market:

  • Ongoing technological developments in the internet technology, social networking, and location-based services
  • Substantial investments from investors in encouraging service providers to launch new startups in the country
  • Recent mergers & acquisitions in the UAE like Careem acquired Cyacle in 2019 and Uber’s acquisition of Careem completed in 2020.

Regional Landscape:

  • Dubai
  • Sharjah & North Emirates
  • Abu Dhabi & Ain

Of them all, Dubai dominates the UAE Shared Mobility Market with a 45.98% share. It owes to the increasing demand for ride-sharing services arising from corporate workers as Dubai is the commercial hub of the UAE. In addition to this, various government initiatives toward promoting alternative transportation modes to reduce traffic congestions & greenhouse gas emissions also contribute to the overall market growth in Dubai. Hence, the shift towards eco-friendly mobility solutions is expected to boost the shared mobility market in the coming years, states MarkNtel Advisors in their research report, “UAE Shared Mobility Market Analysis, 2021.”

Market Dynamics:

Key Drivers

Increasing Traffic across the UAE to Drive Customers toward Using Shared Mobility Solutions

With growing population, the problem of traffic congestion is increasing astronomically. According to the TomTom Traffic Index, Abu Dhabi ranked 399 in terms of traffic congestion levels. Morning hours rush in the UAE leads to extra traveling hours. Hence, traffic congestion adds extra cost to economies due to the loss of working hours. Hence, more usage of shared mobility services is expected to help eliminate the problems cited above. Cited-below is a few other aspects expected to drive the market:

  • Convenience & cost-effectiveness of shared mobility services
  • Various government initiatives to encourage the adoption of shared mobility services across the UAE owing to environmental concerns & lack of parking spaces

Growth Challenges

  • No proper infrastructure for shared mobility deployment
  • Unauthorized carpooling affecting customers' faith

Competitive Landscape

According to MarkNtel Advisors, the leading players in the UAE Shared Mobility Market are Uber, DiDi Chuxing, Drive now, Lyft, Ekar, Udrive, etc.

Key Questions Answered in the Market Research Report:

  1. What are the overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares) of the UAE Shared Mobility Market?
  2. What is the region-wise industry size, growth drivers, & challenges?
  3. What are the key innovations, opportunities, current & future trends, and regulations in the UAE Shared Mobility Market?
  4. Who are the key competitors, their key strengths & weaknesses, and how do they perform in the UAE Shared Mobility Market based on a competitive benchmarking matrix?
  5. What are the key results derived from surveys conducted during the UAE Shared Mobility Market study?   

Market Outlook, Segmentation, and Statistics

  • Impact of COVID-19 on UAE Shared Mobility Market
  • Market Size & Analysis
    • By Revenue
  • Market Share & Analysis
    • By Service Type
      • Two-Wheeler Sharing
      • Ride-Hailing
      • Ridesharing
      • Car Rental
      • Car Sharing
      • Bus/Shuttle Service
    • By Commuting Pattern
      • Daily Commuting
      • Last-Mile Connectivity
      • Occasional Commuting
      • Others
    • By Model Type
      • P2P
      • B2B
      • B2C
    • By Region
    • By Competitors
      • Competition Characteristics
      • Market Share & Analysis
      • Competitive Matrix
  • UAE Shared Mobility Market Hotspots & Opportunities
  • UAE Shared Mobility Market Regulations & Policy
  • Key Strategic Imperatives for Success and Growth

Frequently Asked Questions

   A. The UAE Shared Mobility Market is projected to grow at a CAGR of around 25.1% during 2021-26.

   A. Daily Commuting holds the largest share of the UAE Shared Mobility Market and is projected to create profitable opportunities for the leading players operating in the market during 2021-26.

   A. Increasing road congestions, carbon emissions, & mounting customer inclination toward convenient & cost-effective mobility services are the key factors expected to drive the Shared Mobility Market in the UAE during 2021-26.

   A. Various measures by companies to ensure passenger safety, coupled with stringent government regulations to curb carbon emissions & encourage people toward using green mobility solutions, are likely to boost the shared mobility market in the coming years.

  1. Introduction
    1. Market Segmentation
    2. Product Definition
    3. Research Process
    4. Assumptions
  2. Executive Summary
  3. UAE Transportation Market Overview
    1. Customer Choice for Taxi
    2. Taxi Fares
    3. Key Trends in UAE
    4. Customer Opinion
    5. Key Factors Impacting Usage of Public Transport
  4. UAE Shared Mobility Market Analysis, 2016-2026F
    1. Market Size & Analysis
      1. Revenues
    2. Market Share & Analysis
      1. By Service Type
        1. Two-Wheeler Sharing
        2. Ride Hailing
        3. Ride Sharing
        4. Car Rental
        5. Car Sharing
        6. Bus/Shuttle Service
      2. By Commuting Pattern
        1. Daily Commuting
        2. Last-Mile Connectivity
        3. Occasional Commuting
        4. Others
      3. By Booking Type
        1. On-Line
        2. Off-Line
      4. By End User
        1. Leisure
        2. Business
        3. Others (Emergency etc.)
      5. By Region
        1. Dubai
        2. Sharjah & North Emirates
        3. Abu Dhabi & Ain
      6. By Company
        1. Revenue Shares
        2. Strategic Factorial Indexing
        3. Competitor Placement in MarkNtel Quadrant
    3. Market Attractiveness Index
      1. By Service Type
      2. By Commuting Pattern
      3. By Booking Type
      4. By End Users
      5. By Region
  5. UAE Shared Mobility Market Policies, Regulations, Product Standards
  6. UAE Shared Mobility Market Trends & Insights
  7. UAE Shared Mobility Market Dynamics
    1. Growth Drivers
    2. Challenges
    3. Impact Analysis
  8. UAE Shared Mobility Market Hotspot & Opportunities
  9. UAE Shared Mobility Market Key Strategic Imperatives for Success & Growth
  10. Competition Outlook
    1. Competition Matrix
      1. Target Markets
      2. Research & Development
      3. Strategic Alliances
      4. Strategic Initiatives
    2. Company Profiles of top companies (Business Description, Product Segments, Business Segments, Financials, Strategic Alliances/ Partnerships, Future Plans)
      1. Uber
      2. DiDi Chuxing
      3. Drive Now
      4. Lyft
      5. Ekar
      6. Udrive
      7. Arabia Taxi
      8. Car Tax
      9. City Taxi
      10. Dubai Taxi
      11. Metro Taxi
      12. National Taxi
      13. One Road 
  11. Disclaimer

UAE shared mobility market segmentation