Ride Sharing Cab Revenue to Reach $19b by 2022

REVENUES of ride sharing cab is estimated to increase from $11 billion this year, to $19 billion in 2022, as surge pricing events during times of high demand aid in boosting revenues.
A new study also revealed that a surge in shared transport that will continue, with driver and passenger numbers seeing substantial growth over the next 5 years.
The new research, Sharing Economy: Opportunities, Impacts & Disruptors 2017-2022, from Juniper Research forecasts that the number of ride sharing drivers will increase from an estimated 4.3 million in 2017, to 8.6 million by 2022, representing an annual average growth of 14.8%.
The research found out that the operators in ride sharing, a market set to represent 47% of sharing economy platform revenues by 2022, are growing established markets through innovation.
Research author Lauren Foye explained: “Players including BlaBlaCar, which is expanding its operations through carpooling, 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.”
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, yet the research cautions against overuse, which could see cries of extortion from consumers.
However, Juniper found that in established markets, currently regulatory approaches, coupled with increased wage pressures on workers, will see driver numbers fall. The research found that driver numbers in Western markets will 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 providers are encouraged to seek appeasement with their workers, whether that is through restructuring of wages, or through greater clarification of rights, as we have seen attempted by food delivery provider Deliveroo.
Maureen Akello, East Africa