(MENAFN- P&S Market Research Reports) “By 2050, it is projected that India will have added 416 million urban dwellers.”, the United Nations (UN) had said in its 2018 World Urbanization Prospects report. With such an influx of people from rural areas into cities and the latter’s own increasing population, urban areas are becoming increasingly crowded. Cities like Mumbai, Delhi, and Bengaluru are already notorious for their alarming traffic congestion due to an increasing number of vehicles on the limited road area.
Apart from merely causing road congestion, automobiles have also made these cities some of the most polluted in the world. A CNN report published in February 2020 had said that India is home to 21 out of the 30 most-polluted cities in the world. As a result of the dual problems caused by automobiles, P&S Intelligence expects the Indian shared mobility market revenue to increase to $3,952.8 million by 2025 from $1,025.8 million in 2019, at an explosive 56.8% CAGR between 2020 and 2025.
Of the numerous shared mobility services available in the country — two-wheeler sharing, ride hailing, ride sharing, car rental, bus/shuttle service, and carsharing — ride hailing services witness the highest demand. They are being heavily used for traveling from the home to the office/college and markets and visiting family members and acquaintances. Moreover, the entry of automakers into the ride hailing space has widened the access to these services. Another service that is gaining widespread popularity in the country is two-wheeler sharing, as itis convenient, fast, and cost-effective.
Seeing the rising adoption of both these services, shared mobility companies, especially ride hailing companies, are investing in scooter and motorcycle sharing companies and expanding their service portfolio. For instance, Uber, one of the largest ride hailing companies in the world and India, invested in Neutron Holdings Inc. (Lime), an electric scooter and bike sharing company, in 2018. With this move, the scooters offered by Lime can be directly booked on Uber’s app.
Currently, the Indian shared mobility market is most prosperous in the southern region of the country owing to the presence of numerous urban areas here, including Bengaluru, Chennai, and Hyderabad. All these cities have a huge working population, which uses shared mobility almost daily for the commute between the home and office. Similarly, North India also witnesses a high usage of these services, which are especially popular in the Delhi/National Capital region, which also includes Gurgaon, Noida, Ghaziabad, and Faridabad.
Therefore, with the rising demand for cost-effective urban transit, along with the increasing awareness on saving the environment, more people in the country are expected to adopt these services and shun their private vehicles.
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