Ride-hailing - GCC

The Ride-hailing market in GCC has been experiencing significant growth in recent years. Customer preferences for convenient and affordable transportation options, coupled with the region's unique local circumstances and underlying macroeconomic factors, have contributed to the development of this market.

Customer preferences: Customers in the GCC region have shown a strong preference for ride-hailing services due to their convenience and affordability. With the increasing urbanization and congestion in cities, customers are seeking alternatives to traditional transportation methods. Ride-hailing platforms offer a convenient solution by providing on-demand transportation at the touch of a button. Additionally, the transparent pricing and ease of payment through mobile applications have made ride-hailing services popular among customers.

Trends in the market: One of the key trends in the GCC ride-hailing market is the emergence of local players. While international ride-hailing companies initially dominated the market, local players have gained traction by catering to the specific needs and preferences of the local population. These local companies understand the local culture and have tailored their services accordingly, offering features such as female-only drivers and Arabic-speaking drivers. Another trend in the market is the expansion of ride-hailing services beyond major cities. Initially, ride-hailing services were primarily available in capital cities and major urban centers. However, with increasing demand from customers in smaller cities and towns, ride-hailing companies have expanded their services to these areas. This has not only increased the accessibility of transportation options for customers but has also provided opportunities for drivers in these regions.

Local special circumstances: The GCC region has several unique local circumstances that have contributed to the development of the ride-hailing market. One such circumstance is the high proportion of expatriate population in the region. Many expatriates do not own cars and rely on ride-hailing services for their daily transportation needs. This has created a large customer base for ride-hailing companies. Additionally, the region's hot climate and limited public transportation options have also played a role in the popularity of ride-hailing services. The convenience of air-conditioned vehicles and the ability to request a ride from any location have made ride-hailing services an attractive option for customers, especially during the scorching summer months.

Underlying macroeconomic factors: The GCC region has experienced rapid economic growth in recent years. This has resulted in an increase in disposable income for individuals, which has, in turn, led to higher demand for ride-hailing services. As people have more disposable income, they are more willing to spend on convenient transportation options. Furthermore, the region's growing tourism industry has also contributed to the development of the ride-hailing market. Tourists visiting the GCC region often rely on ride-hailing services for their transportation needs, as it provides them with a convenient and reliable way to navigate unfamiliar cities. In conclusion, the Ride-hailing market in GCC is developing due to customer preferences for convenience and affordability, the emergence of local players catering to the specific needs of the region, the expansion of services to smaller cities, unique local circumstances such as a high expatriate population and hot climate, and underlying macroeconomic factors such as rapid economic growth and a thriving tourism industry. These factors have created a favorable environment for the growth of the ride-hailing market in the GCC region.

Data coverage:

The data encompasses B2C enterprises. Figures are based on bookings and revenues of ride-hailing services.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on a specific rationale for each market. As a basis for evaluating markets, we use financial reports, third-party studies and reports, federal statistical offices, industry associations, and price data. To estimate the number of users and bookings, we furthermore use data from the Statista Consumer Insigths Global survey. In addition, we use relevant key market indicators and data from country-specific associations, such as demographic data, GDP, consumer spending, internet penetration, and device usage. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, ARIMA, which allows time series forecasts, accounting for stationarity of data and enabling short-term estimates. Additionally, simple linear regression, Holt-Winters forecast, the S-curve function and exponential trend smoothing methods are applied.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change.