The shared mobility market has faced many hurdles over the past few years, from regulatory issues and the gap between supply and demand to questionable profitability of companies providing these services. However, COVID-19 has had the worst impact on this transportation concept, slashing down revenue and users.
According to data presented by Augusta Free Press, even two years after the pandemic, the entire market still trails behind recovery, with revenue and users remaining deep below pre-COVID-19 levels.
Global Shared Mobility Revenues to hit $1.18T in 2022, 10% Less than Before Pandemic
The rideshare concept based on sharing a vehicle has become a trend in many urban cities worldwide. As an eco-friendly, mobile, and affordable transportation solution, it also helps deal with surging congestion and environmental problem.
A classic shared mobility example would be carpooling, but recent trends include car ride-sharing services from Uber and e-scooter ride-sharing services from Lime and Neuron.
Before the covid-19, the shared mobility industry was growing steadily, with revenues rising to $1.31trn in 2019, according to a Statista survey. However, the global pandemic was the last thing the market needed. With millions of people avoiding social contact, especially with strangers, revenues plunged by a massive 41% YoY to $760bn in 2020. Since then, the market has been struggling to get back on track.
Last year, global shared mobility revenues stood at $830bn, only 60% of the pre-pandemic figure. Although 2022 is set to witness a 41% year-over-year growth, with revenue rising to $1.18trn, that is still 10% less than in 2019. Shared vehicles account for 67% of total revenues this year, or $800bn, and shared rides make up the rest with $380bn in revenue.
Statista survey also showed more than half of total revenue comes from China, the United States, and India. China is set to witness the biggest year-over-year growth of the top three markets, with shared mobility revenues surging by 69% to $312.5bn in 2022.
Statista expects global shared mobility revenues to fully recover in 2023 and jump by 32% to $1.56. By 2025, the entire market is forecast to reach a $1.69trn value.
A Massive 335 million User Drop in Two Years
Besides losing revenues, the global shared mobility market has also witnessed a shocking user drop in the last two years.
According to Statista, before COVID-19, around 6.2 billion people worldwide were using some form of shared mobility, including long-distance bus and train travel, carpooling, ride-sharing, car rental hire, and e-scooter ride-sharing. After the pandemic hit, the number of users dropped to 5.54 billion.
Although the entire market is expected to hit 5.89 billion users in 2022, that is still 355 million less than before Covid-19. Statistics show that 1.5 billion or 25% of all users come from China, the world`s largest shared mobility market. India follows with over one billion users in 2022.
Statista expects the number of shared mobility users to fully recover and touch almost 6.8 billion in 2023, 561 million more than before the pandemic.
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