The Market Size of the Global Mobility-as-a-Service (MaaS) Market is estimated to be USD 40.1 Billion in 2019 and is expected to grow at a healthy CAGR of 36.2% to reach a Market size of USD 255.98 Billion in 2025.
- Definition / Scope
- Market Overview
- Key Metrics
- Market Risks
- Market Trends
- Industry Challenges
- Technology Trends
- Other Key Market Trends
- Market Size and Forecast
- Market Outlook
- Technology Roadmap
- Competitive Landscape
- Competitive Factors
- Key Market Players
- Strategic Conclusion
Definition / Scope
Mobility-as-a-Service is witnessing strong growth rate and adoption rate in the past few years and is expected to experience notable growth rate and adoption in the coming years. Currently, the Mobility-as-a-Service Market is experiencing staggering growth rate driven by several factors.
The most significant factors driving the growth of the segment are rapid urbanization, and consequently more number of passenger cars on the road leading to congestions and parking problems. Apart from Application platform providers, large automotive OEMs have expressed their interest in the growing business opportunity.
MaaS is expected to be one of the major factors driving the growth of the automotive sector outpacing the growth experienced with only manufacturing cars by these automakers.
This technology is witnessing significant growth due to the increasing investments made in the segment for effective traffic management and better public transportation system.
In the forecasted period, the Mobility-as-a-Service segment is expected to witness rapid growth rate. Some of the key players contributing to significant growth rate are Uber Technologies, Inc., Bridi, Moovel, whimm and Qixxit.
The Market size of the Global Mobility-as-a-Service market is estimated to be USD 40.1 Billion and is expected to grow at a CAGR of 36.2% to reach a market size of USD 255.98 Billion in 2025
The Market for ride-hailing services lead the segment based on Service Type holding a market share of 36% and garnering revenues of USD 14.43 Billion in 2019
On the basis of Solution Type, the insurance services hold the dominant market share of 32% to reach a market size of 12.83 Billion in 2019
Cars dominated the MaaS Market by Vehicle Type and hold the largest market share of 45% in the segment bolstering market size in 2019 totalling USD 18.04 Billion.
Based on the Application Platform, Android platform held the maximum market share of 57% to reach a market size of USD 22.85 Billion in 2019
On the basis of Application, Private usage far outstripped the Business usage holding a market share of 70% and garnering a market size of USD 28.07 Billion in 2019.
Europe held the dominant market share among all regions holding a market share of 40% and totaled a market size of USD 16.02 Billion in 2019.
High Capital Investments
There is a need for high capital investments for the procurement of automobiles for the transportation companies and for building complex software systems for the aggregators. The high capital investments in addition to the overall high cost of ownership, which includes maintenance and fuel charges, are acting as entry barrier for the new-entrants.
Fragmentation of the Market
The Mobility-as-a-Service (MaaS) is an ever evolving innovative segment hence new entrants flee rapidly into the market and is fragmented. There exist a large number of local players in the market and they offer products to the local markets at a much lower price when compared to the organized international players.
The factors leading to the fragmentation of the MaaS Market are no economies of scale and strong competition in the market. This market will offer businesses with lower margins and expensive logistics. They also have no advantage of scale when dealing with suppliers or buyers.
Top Market Opportunities
Strategic partnership among stakeholders
MaaS providers are focusing on expanding the breadth and modes of transportation services by partnering with transportation companies. Strategic partnerships will enable service providers to add city metro/trams, railways, and flight services to their portfolio.
Partnering with civic transportation authorities and large multimodal transportation companies has also resulted into seamless integration between public and private transportation services thereby improving the quality of transportation.
Rising investments in Autonomous Vehicle Technology
Autonomous Vehicle Technology is offering lucrative opportunities as many organizations such as Waymo and Uber are investing heavily. Autonomous Vehicles are using a combination of radar, light detection and ranging (LIDAR), and other sensory technology to sense their environment. These sensory devices are the ones that are used for accident prevention on many of current personal vehicles, paired with advanced programs; enable vehicles to operate independently of any driver or operator.
Data suggests that autonomous vehicles have the potential to disrupt the transportation industry. Autonomous Vehicles enable this change by reducing burden on riders, decreasing transportation costs and increasing safety.
Demands for a One-stop solution that offers seamless transportation service needs
Frequent travelers for inter-city, inter-state and inter-country face various hassles while planning and boarding various modes of transportation and thereby reach the intended last-mile. Some transportation modes provide node-to-node transportation while others provide last-mile connectivity.
Planning for travelling on three or more such transportation modes require much planning and involve time-based constraints. As a result of this there is a rising demand for integration among these modes and a need for seamless, efficient, hassle-free travels as well as hassle-free transportation.
MaaS enables end-users to make full payment for their entire trip beforehand and also offers subscription plans for frequent travelers. This factor has driven the growth of the Mobility-as-a-Service (MaaS) across several geographies over the years. Similar trend is expected to drive the growth of the MaaS market
Technological advancements and Ease of access to data
MaaS is a service-based business model that has witnessed high growth due to the penetration of smart phones and related devices in the global market. As the service is a digital data driven service it is anticipated to be benefitted by the advancements in digital technologies such as analytics.
Analytics would help the mobility service providers to identify preferences of the travelers thereby enabling them to send optimized routes and transport to the customer. The invasion of IoT and big data has added significant value to the service providers in terms of provisioning best service to the customers.
Rising Penetration of Internet and Smartphones
The penetration of smartphones and high-speed internet is the major factor influencing the growth of online technology platforms and services such as ride-hailing, online food-delivery and e-retail.
Access to the internet on-the-go has made it easier to find products services, and information in real time and easy access to payment platforms makes it convenient to end-users to make purchases or to carry out transactions is fueling the growth of the Mobility-as-a-Service sector.
Support from Government
Government Support for the usage of public transport is one of the major factors driving significant growth of the Mobility-as-a-Service market. The increasing concerns about pollution and traffic congestion in densely populated cities are emphasizing governments to promote public transport infrastructure through the implementation of MaaS platforms.
Mobility-as-a-Service Platforms efficiently use the public transport system such as car/bike sharing and private bus transport services to eliminate the hassles of separate payment or ticketing. As it is more convenient than owning a private vehicle, the preference for MaaS will significantly increase in the coming years.
The major factor driving the growth of the Mobility-as-a-Service market is that it is less expensive than other forms of transportation. Some factors expected to contribute to this shift include more affordable transportation options, the rise of autonomous vehicles and increased difficulty of automobile travel in cities.
With the advent of autonomous vehicles (a significant component of MaaS) the price of ride-hailing service is expected to be less than that of owning and operating a personal vehicle. It also eliminates operating costs such as fuel costs and other associated maintenance costs.
MaaS also offers benefits to the customer by offering unlimited inner-city transit without any extra charge.
Concerns regarding Passenger’s Safety
Passenger Safety is one of the major challenges in the global MaaS market. Over the last few years, there are frequent incidents of Passenger harassment in the commercial mobility services.
Such incidents occur due to the lack of due-diligence by the service aggregators / operators to verify drivers and the lack of passenger safety in commercial vehicles.
One of the main factors influencing the uptake of MaaS is the integration of all services including booking and payment under a single mobility account for the user. There exists a difference in the fare structure among the local agencies that share the systems.
Consumers are made to use multiple payment accounts for different modes of transportation such as bike share, ride share, tolling, parking and more. A platform where customers have to book and pay for each of the modes separately is rigid and inflexible and harms the image of mobility as an integrated entity.
It does not offer riders the ability to plan travel or the flexibility to change plans at the last minute. Integration of payment methods into a single, formally recognized, user-friendly platform is one of the major challenges affecting the mass implementation of MaaS.
Data and Ownership issues
The issue of personal identifiable information (PII) security and management is critical to the evolution of future MaaS solutions. There is a persistent issue of critical information of mobility users such as payment information, ride-sharing data and location tracking information being tracked by financial criminals.
Also that transportation agencies and mobility providers face issues related to ownership of the customer data. In MaaS both the public and private transportation companies integrate and offer services there arises an issue of who owns the consumer data between the public and the private transportation companies.
As these companies are accessing the private and critical information of the customers without the customer being aware of it can land them in trouble when these critical information are accessed inadvertently.
Lack of Standards or Regulation
In most of the countries there is a lack of regulations, legislations or even technical standards that support single payment accounts, multi-modal fare policies, multi-modal journey planning, or multi-modal analytics.
A data standard for certain modes doesn’t exist or are incomplete. Current commercially led MaaS solutions do not fall under the same non-discriminatory laws that bind public transit providers.
Non-existent standards and lack of regulation prevent the adoption of effective mobility solutions and makes it difficult for public and private transportation entities to find a common language in MaaS discussions.
Lack of Economic Models
There is a pre-requisite for all components of the transport network such as public and private transportation companies to integrate together for offering MaaS solutions for consumers. In many cities the transportation services are offered by public companies but with the entry of private players the trend is changing and raises questions about how to tally public good with commercial viability.
There is a challenge for private operators to turn profitable in tough conditions as public transit is heavily subsidized. Another key challenge is with finding the right pricing system, as most of the MaaS providers offer a subscription based model as consumers prefer pay-as-you-go model which charges them for the actual trips made rather than a monthly or weekly subscription.
Role of Big-Data Analytics
Big-Data analytics helps draw down conclusion and make informed decision based on information analyzed from data-sets. Big-Data analytics constitute several tools and techniques that help derive insights from actual data.
Some specific techniques include data mining, predictive analytics and text mining. For mobility, Big-Data analytics can help with planning and managing transportation networks and designing and optimizing services to meet transportation needs. Both the public and private sector can benefit from Big-Data analytics.
Some of the areas where Big-Data analytics can significantly impact the MaaS segment are:
- Optimization of transit schedules by analyzing demands and predict the importance of maintenance, roadwork, congestion and accidents.
- Increased safety and reduced environmental impact.
- Fleet optimization and predictive maintenance
- Freight movement and optimized routing
Blockchain is expected to change the face of the mobility sector forever as it allows for decentralized transactions through a shared, standardized ledger system, which could allow decentralized passenger and freight systems to improve their efficiency without the oversight of a central governing body. Some examples of this include:
Utilization of blockchain supports multiple technologies on a shared, distributed and transparent platform. Local startups can provide customized services or fleets, and they could be offered through smartphone applications.
This would allow companies to provide more unique, customized and localized services while allowing startups to take advantage of existing platforms and customer bases. Also it facilitates secure data logging and tracking.
Other Key Market Trends
There is an emerging trend of Car-Subscription model is gaining foot due to one of several benefits offered by it including pay-per-use subscription model. Expensive acquisition, maintenance costs and the associated long-term commitment reduce the attractiveness of buying a car.
One price for all costs including insurance, maintenance and taxes in one flexible contract is marketed as the unique selling point of car subscription models. Via an online platform or app, a car can be rented for a certain period of time (usually monthly) at a fixed rate, the vehicle model can be changed, and the contract can be cancelled or extended.
Also another trend coming out of the market is Micro-Mobility which gives rise to the adoption of micro commute via e-scooters, e-skateboards, hoverboards etc. which has come as a revolutionary solution for the traffic jam that occurs due to the preference of cars as the chosen vehicle for daily commute, as a data suggests that 57% of the traffic volume is constituted by cars in the developed world such as Germany.
Market Size and Forecast
North America mobility-as-a-service industry growth is owing to heavy investments made by major automakers, service providers, and investors. High support from the U.S. government for the promotion & adoption of various on-demand mobility services is adding up to market expansion.
For instance, in July 2019, IAC announced an investment of USD 250 million in Turo, a car sharing company. It will use the new investment to enhance the customer experience.
In July 2018, General Motors launched its new peer-to-peer car rental program, which will allow owners to rent their vehicles through its online platform. The company has launched this service to aid its customers in earning extra income through their vehicles.
USA MaaS Market Size
- USD 6.41 Billion – The estimated market size of the US MaaS Market in 2019
- 35.4% – The CAGR growth rate of the US MaaS market in the forecast period 2019 to 2025
- USD 39.5 Billion- The expected market size of the US MaaS Market in 2025
Canada MaaS Market Size
- USD 1.6 Billion – The estimated market size of the Canadian MaaS Market in 2019
- 35.6% – The CAGR growth rate of the Canadian MaaS market in the forecast period 2019 to 2025
- USD 9.95 Billion- The expected market size of the Canadian MaaS Market in 2025
The revenue generated from ride-hailing in Latin America in 2018 amounts to USD 518 million (USD) and is expected to grow to USD 1,017 million (USD) by 2023, which is why the region has become a new commercial hotspot for ridehailing companies, with companies such as Uber, 99, Easy Taxi, Cabify, Beat and Nekso battling it out for the regions number one provider.
The readiness of Latin Americans to try innovative transport solutions and the lack of efficient and accessible public transport systems has presented itself as the perfect opportunity for future business and growth of the MaaS segment within the region.
Mexico MaaS Market Size
- USD 2.4 Billion – The estimated market size of the Mexican MaaS Market in 2019
- 36.2% – The CAGR growth rate of the Mexican MaaS market size in the forecast period 2019 to 2025
- USD 15.32 Billion- The expected market size of the Mexican MaaS Market in 2025
Brazil MaaS Market Size
- USD 1.8 Billion – The estimated market size of the Brazilian MaaS Market in 2019
- 36.5% – The CAGR growth rate of the Brazilian MaaS market in the forecast period 2019 to 2025
- USD 11.64 Billion- The expected market size of the Brazilian MaaS Market in 2025
Argentina MaaS Market Size
- USD 1.26 Billion – The estimated market size of the Argentinian MaaS Market in 2019
- 36.8% – The CAGR growth rate of the Argentinian MaaS market in the forecast period 2019 to 2025
- USD 8.26 Billion- The expected market size of the Argentinian MaaS Market in 2025
The need for implementation of intelligent transport solutions in the Asia Pacific region is very high that also includes improved infrastructure in transportation system.
Rising needs of mobility systems are fully utilized in APAC region including Hong Kong, Australia, China, New Zealand, India, Japan, Malaysia, Taiwan, Singapore, and South Korea. Market of MaaS in APAC region is gaining momentum with growing disposable income and urban population and boosting the market domestically and regionally.
Implementation of car sharing is getting adopted rapidly in the developing countries.
In Asia Pacific, market penetration for car sharing services is high because of large number of potential users.
China MaaS Market Size
- USD 4.01 Billion – The estimated market size of the Chinese MaaS Market in 2019
- 37.4% – The CAGR growth rate of the Chinese MaaS market in the forecast period 2019 to 2025
- USD 26.98 Billion- The expected market size of the Chinese MaaS Market in 2025
India MaaS Market Size
- USD 2.8 Billion – The estimated market size of the Indian MaaS Market in 2019
- 37.6% – The CAGR growth rate of the Indian MaaS market size in the forecast period 2019 to 2025
- USD 19.01 Billion- The expected market size of the Indian MaaS Market in 2025
Japan MaaS Market Size
- USD 2.24 Billion – The estimated market size of the Japanese MaaS Market in 2019
- 37.7% – The CAGR growth rate of the Japanese MaaS market in the forecast period 2019 to 2025
- USD 15.27 Billion- The expected market size of the Japanese MaaS Market in 2025
Europe is the largest market owing to the dominance of some of the leading vendors such as Whim, Citymapper, Tranzer, and Moovel. Also, developed economies in Europe such as Finland, the Netherlands, and Germany are the early adopters of MaaS services.
Countries such as the UK, Germany, France, and the Netherlands have been investing in smart transportation infrastructure. The planned investments to improve urban transport and traffic infrastructure are expected to drive the European market.
UK MaaS Market Size
- USD 5.61 Billion – The estimated market size of the UK MaaS Market in 2019
- 36.6% – The CAGR growth rate of the UK MaaS market size in the forecast period 2019 to 2025
- USD 36.45 Billion- The expected market size of the UK MaaS Market in 2025
Germany MaaS Market Size
- USD 4.49 Billion – The estimated market size of the German MaaS Market in 2019
- 36.7% – The CAGR growth rate of the German MaaS market in the forecast period 2019 to 2025
- USD 29.3 Billion- The expected market size of the German MaaS Market in 2025
France MaaS Market Size
- USD 3.36 Billion – The estimated market size of the French MaaS Market in 2019
- 36.8% – The CAGR growth rate of the French MaaS market in the forecast period 2019 to 2025
- USD 22.02 Billion- The expected market size of the French MaaS Market in 2025
Middle East and Africa
Middle East & Africa MaaS market is projected to grow from around USD 3.2 billion in 2019 to USD 18.53 billion by 2025, exhibiting a CAGR of over 34% during the forecast period.
Key factors expected to drive demand for MaaS services in the region are increasing urbanization, growing young population, increasing investments by several major players in ride hailing services, and surging number of internet and smartphone users.
Moreover, ease of booking and enhanced passenger comfort offered by ride hailing services are likely to further propel growth in the Middle East & Africa MaaS market during the forecast period.
Saudi Arabia MaaS Market Size
- USD 1.1 Billion – The estimated market size of the Saudi Arabian MaaS Market in 2019
- 33.8% – The CAGR growth rate of the Saudi Arabian MaaS market in the forecast period 2019 to 2025
- USD 6.31 Billion- The expected market size of the Saudi Arabian MaaS Market in 2025
UAE MaaS Market Size
- USD 880 Million – The estimated market size of the UAE MaaS Market in 2019
- 33.5% – The CAGR growth rate of the UAE MaaS market in the forecast period 2019 to 2025
- USD 4.98 Billion- The expected market size of the UAE MaaS Market in 2025
South Africa MaaS Market Size
- USD 1.2 Billion – The estimated market size of the South African MaaS Market in 2019
- 34.6% – The CAGR growth rate of the South African MaaS market in the forecast period 2019 to 2025
- USD 7.14 Billion- The expected market size of the South African MaaS Market in 2025
Mobility-as-a-Service Market – Service Type Insight
By Service Type, the Mobility-as-a-Service Market is categorized into self-driving car service, ride-hailing service, car sharing service, bi-cycle sharing service and bus sharing services.
Of this, the ride-hailing service is expected to hold the dominant position in the segment due to the global acceptance of the service at all levels from Personal to Enterprise needs. The ease of booking and the comfort offered by ride hailing are the causes for its popularity.
The ride-hailing segment is expected to grow at a CAGR of 38% in the forecast period (2019 to 2025).
Mobility-as-a-Service Market – Solution Type Insight
Based on Solution Type, Mobility-as-a-Service is segmented into technology platforms, payment engines, navigation solutions, telecom connectivity providers, ticketing solutions and insurance services.
The insurance services is the fastest growing with CAGR of 42% among all sections in the segment as it has opened avenues for new forms of insurance services by replacing present model of insurance services with that of commercial insurance of fleets of MaaS vehicles.
Mobility-as-a-Service Market – Vehicle Type Insight
On the basis of Vehicle type, the Mobility-as-a-Service market is divided into micro mobility, four wheelers, bus and train.
The four wheelers are expected to be the largest segment as they have the largest landscape and is expected to grow at a CAGR of 34.5%.
Four wheelers find application in ride hailing, car sharing and car rental type services as these vehicles allow for long distance travels as well as short distance travels.
Mobility-as-a-Service Market – Application Platform Insight
The Application Platform segment in Mobility-as-a-Service (MaaS) market is android, IOS and others. The other operating systems include symbian, windows, and web-based platforms
The broad categorization of the application platforms can be categorized into open-source platforms and proprietary platforms.
The business factors leading to the selection of preferred application platform includes time-to-market, management of licenses, and intellectual properties, cost of the solution, maturity of the solution, supporting standards and future roadmap of the platform.
The Android segment in the Mobility-as-a-Service (MaaS) market is expected to grow at a rapid growth rate of 35%.
Mobility-as-a-Service Market – Regional Insight
Based on regions, Mobility-as-a-Service market is classified into North America, South America, Europe, Asia-Pacific and Middle-East & Africa.
Europe is expected to hold the largest market share in the forecasted period (2019 to 2025) owing to the dominance of the key market players such as Whimm, Citymapper, Tranzer and Moovel.
Also due to the fact that developed economies of Europe such as Finland, the Netherlands and Germany are the early adopters of the MaaS model.
Emergence of Low Emission Electric Vehicles (EVs)
EVs play a pivotal role in locking in the benefits of enhanced mobility, and consumers are rapidly adopting cleaner battery power replacing internal combustion engines. Global Sales of EVs have crossed one Billion mark (1.3 Million) in 2017 and is forecasted to cross 3 Million vehicles by 2020.
As production ramps-up automakers are churning out some 120 new models annually and more than 20 per cent of all new potential buyers now say they would consider an EV for their next purchase. Younger and Urban buyers are even more enthusiastic.
As batteries become more cost effective, mileage capability increase, and charging solutions multiply, sales of pure-play Battery Electric Vehicles (BEVs) are now surpassing those of Plug-in-Hybrid-Electric Vehicles (PHEVs).
The electrification gains are becoming more sustainable as well, evidenced by Mckinsey’s Electric Vehicle Index, which measures both consumer demand and production capabilities across nations. EV Sales have doubled annually in several countries with the help of subsidies and regulation that encourages adoption.
Distribution Chain Analysis
The Mobility-as-a-Service ecosystem includes the following key players:
Mobility management players: These are the technologists that provides the customers a one-stop solution for all their traveling and payment needs. These companies include the rail-hailing companies such as Uber and Lyft, the car-sharing companies such as blablacar. The mobility management players act as a link between the transportation companies and the end-users.
Telcos: This represents the telecom operators such as Vodafone, Verizon and AT&T who provide network connectivity such as internet access to both the end-users and the transportation providers.
Payment Processors: The payment processing companies such as Paypal, Stripe who facilitate the smooth processing of transactions between the subscribers of MaaS solution and the transportation companies act as the payment processors.
Public and Private transportation providers: Essential to any MaaS offering and its largest players, the public and private transportation operators. Demands to expand service delivery have driven many transportation agencies to introduce new modes of travel, such as bikesharing, or to join up with complementary modes, such as carsharing.
End users: The end-users are typically the consumers who use the mobility services offered by the providers either for personal or business use.
Prominent players operating in the Mobility-as-a-Service market include Uber Technologies, Lyft, Didi Chuxing, Turo, Car2Go, Autolib, Drivy, Grab, Hertz, Drive Now, etc. These companies and several automakers are involved in new on-demand mobility services in various regions..
North American and European countries are also experiencing the emergence of several small & locally based car sharing & ride-hailing service providers.
For instance, in June 2019, Free2Move, a car-sharing service from Groupe PSA, announced its expansion in Arlington. It will allow the users to pick & park cars in Arlington.
The market comprises several local & global players that offer various types of mobility services. The small & local companies have threats from global players owing to the huge fleet, advanced service packages, and high investment capabilities.
The industry participants have threats from new entrants owing to the provision of cheaper mobility options in various regions. Several companies are facing heavy debts and losses owing to the technical problems and fleet issues in the highly competitive industry. Companies are developing flexible mobility solutions to cater to various consumer needs and gain competitive strength.
Constant product innovation with easy-to-operate features is one of the major ways to expand the market share and sustain competition in the market.
Most top industry players are continuously investing large capital in research & development activities, forging partnerships, and acquiring other companies to gain a foothold in emerging economies.
Some of the Recent developments in the segment include:
- In April 2019, Whim and the Japanese real estate company Mitsui Fudosan announced their strategic partnership to incorporate MaaS Global’s ‘Mobility as a Service’ platform into urban development in Japan. The parties plan to collaborate with local transport service providers (TSPs) and to conduct a proof of concept in the Greater Tokyo area in 2019 and seek to accelerate the collaborative relationships.
- In January 2019, Moovit launched Moovit TimePro, the most accurate real-time vehicle location system.
Key Market Players
Uber Technologies, Inc. (USA) provides ride hailing services. The Company develops applications for road transportation, navigation, ride sharing, and payment processing solutions. Uber Technologies serves customers worldwide.
DiDi Chuxing (China) Incorporated operates passenger transportation platforms. The Company provides transportation services such as taxis, buses, drivers, car rentals, and more. DiDi Chuxing also offers technical advisory services.
Lyft, Inc. (USA) provides online ridesharing services. The Company offers ride booking, payment processing, and car transportation services. Lyft serves customers in the United States.
Gett Inc. (Israel) develops on-demand car service mobile application. The Company creates a mobile application that enables business clients and individuals to book taxis through their mobile phones. GetTaxi serves customers worldwide.
Comuto SA. (France) doing business as BlablaCar, hosts an online community for travel and local commuting. The Company connects drivers and passengers willing to carpool together. BlablaCar serves travellers in Europe.
Hailo Network Ltd. (UK) develops mobile applications for acquiring taxicab services. The Company’s location-enabled application allows customers to hale cabs from their current location and pay for services using their smart phone. Hailo Network serves customers in major cities in Ireland and the United Kingdom.
ANI Technologies Private Limited (India) doing business as Olacabs, operates as an online transportation network company. The Company offers cab booking, riding, and renting services. Olacabs serves customers worldwide.
The Mobility-as-a-Service model is a branchild of the sharing economy. The Mobility-as-a-Service segment offers commuters and travelers the facility to share their cabs, bike and scooters and also enables them to maintain a single payment account for all their trips.
The market is driven by factors such as Rising Penetration of internet, support from government and due to the inherent benefits offered by it including cost-savings and convenience. The consumers are moved by the fact that it helps them to save costs while using a public transport for their private needs.
The ride-hailing and the insurance services segments are set to witness highest CAGR growth rate. However exists risks in the form of privacy and security issues of the commuters. The ride-hailing service has become the poster child of the MaaS market in several countries such as Didi Chuxing in China and uber in USA.
Though the MaaS sector offers benefits both to the commuters and the transportation companies there arises challenges such as Safety issue of the passenger, Data ownership issue for the transportation companies among others.
The MaaS segment is in the growth stage and is expected to grow further at a CAGR of 36.2%. If some necessary reforms are made in the segment by the government such as Standardizing regulations and legislations for the sector, the MaaS industry is set to flourish and post a higher growth rate.
- MaaS – Mobility-as-a-Service
- CAGR – Compounded Annual Growth Rate