Market Overview
Shared mobility is a mode of transportation where people share a vehicle either together as a group or overtime as private rentals. They also share the cost of the journey, and hence, build a hybrid between private vehicle, mass & public transportation.
According to the MarkNtel Advisors’ research report, “UAE Shared Mobility Market Analysis, 2021,” the market is likely to grow at a CAGR of around 25.1% in the forecast period of 2021-26. The shared mobility services enable customers to cancel or modify bookings spontaneously. Moreover, these services are gaining exponential popularity due to their less expensive transportation modes. Besides, they also help eliminate problems like limited parking space. Furthermore, multiple governments are actively introducing initiatives to encourage the growth of the UAE Shared Mobility Market to reduce traffic congestion on roads.
Impact of COVID-19
The outbreak of the Covid-19 pandemic made a severe impact on the overall transportation industry. The demand for ride-hailing and car-sharing services had decreased exponentially amidst the pandemic in the previous years. Besides, the ride-sharing industry observed a drop in revenue generation, owing to the lockdown. Passengers were reluctant to use ride-sharing services even after lockdown restrictions got lifted. Ride-sharing firms are continuously working to gain the trust between drivers & passengers about safety & sanitation. Furthermore, likely, the short-term concerns about car-sharing/e-hailing services will eventually become offset due to the users being more comfortable with strict cleanliness protocols.
Moreover, the governments are raising mandates like compartmentalization, vehicle sanitization practices, and careful measures. With the growing preference of commuters toward ridesharing over public transport to maintain social distance with strong vaccination rates, the market shall recover from the losses in the forecast years.
Market Segmentation
Daily Commuting to Dominate with the Largest Market Share
Based on the Commuting Pattern, the UAE SHared Mobility Market segments into Daily Commuting, Last-Mile Connectivity, Occasional Commuting, and Others. Here, the Daily Commuting segment is likely to dominate the UAE Shared Mobility market in the forecast period attaining the largest share. It owes to the surging costs of car ownership and encouraging consumers to shift toward a better option. Besides, the increasing traffic congestion in the cities is further accelerating the demand for shared mobility services. Therefore, the market share of the Daily Commuting segment is likely to attain the largest share in the forecast period.
B2B Model to Attain the Largest Market Share
Based on the Model Type, the UAE Shared Mobility Market segments into P2P, B2B, and B2C. Of all, the B2B model is more likely to witness the fastest market growth in the forecast years. It enables shared mobile service providers to address businesses seeking cost-effective ways to get their employees back on the move safely & sustainably with the most advanced service available in the UAE market. Hence, all these initiatives by market players and governments are likely to drive the Shared Mobility market growth at the fastest pace in the forecast period, states MarkNtel Advisors in their research report, “UAE Shared Mobility Market Analysis, 2021.”
Regional Landscape
Dubai to hold the Largest Market Share
The UAE Shared Mobility Market is growing at an astronomical pace, where Dubai is likely to witness the largest share in the forecast years. It owes prominently to the surging demand for shared transportation solutions due to the increasing number of corporate passengers in various areas across Dubai. Besides, the rising focus of the government on providing alternative mobility schemes to reduce traffic congestion issues & greenhouse gas (GHG) emissions is likely to propel the regional market in the forecast period. The pay-per-minute model, operated by Ekar and Udrive, is the fastest growing shared mobility segment in the UAE, further aided by the government through free RTA parking, thus boosting the growth of the Shared Mobility market.
Market Driver
The UAE Shared Mobility Market is likely to drive exponentially in the forecast period of 2021-26. It owes to the ownership of a vehicle accumulating several prominent factors like fuel, finance, maintenance, maintenance & repair, and registration/taxes, with depreciation. Fuel prices & maintenance costs are likely to increase multifold in the forecast years without any decline. Furthermore, as the cities are getting cramped with people & cars, owning an automobile is becoming more of a liability than an asset. Hence, it is likely to increase the trend of adopting shared mobility in the UAE.
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:
Market Outlook, Segmentation, and Statistics
Frequently Asked Questions
A. UAE Shared Mobility Market is likely to grow at a CAGR of around 25.1% in the forecast period of 2021-26.
A. Uber, DiDi Chuxing, Drive now, Lyft, Ekar, Udrive, etc., are a few leading players in the UAE Shared Mobility Market. The pay-per-minute model, operated by Ekar and Udrive, is the fastest growing shared mobility segment in the UAE, further aided by government support through free RTA parking, thus boosting the growth of the Shared Mobility market.
A. Daily Commuting is likely to attain the highest CAGR during the forecast period and maintain its significant market share.
A. Dubai continues to grow at the highest CAGR in the forecast period of 2021-26, presenting immense opportunities for market players of the UAE Shared Mobility Market.
A. Fuel prices & maintenance costs are likely to increase multifold in the forecast years without any decline. Furthermore, as the cities are frequently getting cramped with people & cars, owning an automobile is becoming more of a liability than an asset. Hence, it is likely to increase the trend of adopting shared mobility in the UAE.
A. The governments are raising several mandates like compartmentalization, vehicle sanitization practices, and prudent measures. With the growing preference of commuters toward ride-sharing over public transport to maintain social distance with strong vaccination rates, the market shall recover from losses and attain significant growth in the forecast years.
