The COVID-19 pandemic has brought significant changes and challenges for the taxi and car rental industries. Lockdown restrictions, canceled flights, and people working from home have dried up revenues in both sectors, and fears over their future have been raised due to the cost of personal protective equipment and a lack of customers.
According to data presented by Stock Apps, car rentals, taxi and ride-hailing revenues are expected to reach $325bn in 2021, a $68bn plunge compared to pre-COVID-19 figures.
Before the pandemic, both sectors have witnessed steady growth in revenues and the number of users, revealed the Statista survey. In 2017, the global ride-hailing and taxi industry hit $281.3bn value. Over the next two years, this figure rose to $302.2bn. However, the coronavirus pandemic caused a massive hit to the entire sector, with revenues plunging by 42% year-over-year to $162.8bn in 2020.
Although 2021 is set to witness a recovery with revenues rising by almost 60% YoY to $260.1bn, this value still represents a $42bn drop compared to 2019 figures. However, statistics show the entire segment is expected to recover in the following years, with revenues rising to $360.5bn by 2023.
The Statista survey revealed that the car rentals industry had also witnessed a colossal revenue drop amid the COVID-19 crisis, with the figure plunging from $91.1bn in 2019 to $40.6bn in 2020. The Statista data also indicate it will take years for the market to recover from the effects of the coronavirus pandemic. In 2021, revenues are projected to grow by 59.6% year-over-year to $64.8bn, 29% less than in 2019. By 2023, the car rentals segment is forecast to reach a $93.6bn value.
In 2019, more than 1.85 billion people worldwide had been using car rentals, taxis and ride-hailing services. Statistics show this figure plummeted to 1.6 billion in 2020, as the countries across the globe imposed restrictions to curb the spread of the virus.
Although the number of users is expected to rise to 1.8 billion in 2021, it still represents a 50 million plunge compared to pre-COVID-19 figures.
The number of people using car rentals services is set to reach 331.4 million this year, 117 million less than in 2019. However, the ride-hailing and taxi sector is expected to reach 1.47 billion users in 2021, a 70 million increase in two years.
Analyzed by geography, the United States represents the world’s largest car rentals market, forecast to generate $18.2bn in revenue this year. China, Brazil, and Germany follow with $12.7bn, $2.5bn, and $2.3bn, respectively.
On the other hand, China ranked as the leading market in the ride-hailing and taxi industry, with a $78.9bn valuation in 2021. The United States, India, and the United Kingdom follow, with $52.2bn, $35bn, and $9.5bn market values, respectively.
Jastra has written for many other sites including BuyShares.co.uk, The Business Mogul, Inside Business, Business Today, Startups Magazine, and TradingPlatforms.com.
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