The gross merchandise value of Indian shared mobility is likely to reach $42.85 billion by 2027 from $11.05 billion in 2021, expanding at a CAGR of 25.3%.
The rapidly increasing urbanization in India presents an opportunity for an integrated, multimodal transport system, according to a new report from Frost & Sullivan. Shared mobility presents promising solutions to meet India’s increasing demand for transportation services. With people relying on different modes of transportation since the outbreak of the COVID-19 pandemic, new business models of shared mobility solutions are gaining momentum.
Due to this, the gross merchandise value (GMV) of Indian shared mobility is likely to reach $42.85 billion by 2027 from $11.05 billion in 2021, expanding at a compound annual growth rate (CAGR) of 25.3%.
“The pandemic disrupted the traditional business model of the shared mobility market in India. Multiple factors, including familiarity with shared services, strong digital infrastructure, and a vibrant entrepreneurial culture, will drive India’s push to meet the booming demand for transportation services,” said Chanchal Jetha, Senior Research Analyst, Mobility Practice, Frost & Sullivan. “Of the various shared mobility modes, we expect corporate mobility and ride-hailing to drive growth in India. Companies like Yulu, Ola, etc., are considering new use cases, such as partnerships with eCommerce and food delivery services. The move will reduce dependency on traditional revenue-generation models and expedite the shared mobility market growth.”
Jetha added that factors such as the end of travel bans, the inclusion of electric vehicles in fleets, and increasing partnerships with OEMs will boost the sector. “Increasing traffic congestion and carbon emissions with the growing population size and density also creates the need for sustainable, accessible, safe, and reliable shared mobility fleets,” said Jetha.
Growing urbanization, electric vehicle (EV) integration, and rising disposable income signal growth opportunities in the Indian shared mobility market, presenting lucrative market prospects. Key players should: prepare for service flexibility, including integrations with new business avenues; focus on including EVs in their fleets to manage overall operating costs and boost electric mobility; and integrate with public transit modes to reduce traffic congestion and enhance the rider experience.