Ride sharing services to see driver numbers double by 2022
A new study from Juniper Research (www.juniperresearch.com) has found that a surge in shared transport will continue, with driver and passenger numbers seeing substantial growth over the next five years.
The new 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%. Juniper found that operators in ride sharing, a market set to represent 47% of sharing economy platform revenues by 2022, are growing established markets through innovation.
“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,” says research author Lauren Foye.
Juniper Research found platform providers can expect revenues to almost double across the period; from an estimated $11 billion this year, to $19 billion in 2022, as surge pricing events during times of high demand aid in boosting revenues. 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.