TMCnet News

Implosion in Demand for Personal Mobility Collapses New Vehicle Sales and Ride Hailing Trips in 2020
[December 15, 2020]

Implosion in Demand for Personal Mobility Collapses New Vehicle Sales and Ride Hailing Trips in 2020


LONDON, Dec. 15, 2020 /PRNewswire/ -- COVID-19 and the resultant measures taken by government across the world to contain the spread of the virus have collapsed the demand for personal transit, with all mobility modes at the consumer's disposal contracting significantly in the first half of 2020. Following robust growth of 14% in 2019, the ridehailing market has faced its first significant disruption this year, with strict controls on personal mobility, combined with a growing concern over shared spaces resulting in a contraction of over 59% in 1H 2020, finds global tech market advisory firm, ABI Research.

ABI Research www.abiresearch.com

"While it might have been expected that growing consumer concerns around shared spaces would push them back into privately owned cars, this has done little to offset the collapse in new vehicle sales. With the near-total disruption of the bricks and mortar retail channel for new vehicles further compounded by a worsening macroeconomic situation it's a bleak outlook going into 2021," says James Hodgson, Principal Analyst at ABI Research.

Meanwhile the ridehailing market has effectively come to a standstill, with numerous platforms competing for a larger share of an imploding market. After a brief conceding ground to local competitors, Uber has begun to consolidate its position global position, retaining a market share of around 70% in the US and Western Europe, and over 85% in MEA, made possible by the 2019 Careem acquisition. Similarly, Didi and Grab have maintained commanding market position in their key markets, with Didi having well over 90% of the Chinese market, and Grab holding 63.5% of the Indonesian market, and almost 75% percent of the Vietnamese market.

Nevertheless, despite their dominance of the ridehailing markets in key regions, all these platforms have had to pivot aggressively towards non-ridehailing use-cases, with food and grocery elivery providing some much-needed revenue. Didi launched delivery services in 21 Chinese cities, while Uber reinforced their existing food delivery services via the acquisition of Postmates in July 2020. Food delivery services now account for over half of Grab's 2020 revenues, with Grab also expanding their GrabMart grocery delivery service from 2 countries to 8 of the countries in which they operate.



This pivot toward delivery services has helped ride hailing platforms maintain driver engagement with their mobility platforms. "In the longer term, ride hailing platforms must accommodate consumer and regulator concerns over the integrity of shared public spaces in order to return the core ride hailing use-case to growth," Hodgson advises.

Alongside the usual host of measures in the "physical" domain, such as distributing hand sanitizer, mandating masks, and protective screens, ride hailing platforms also have considerable "digital levers" at their command. For example, Uber has introduced a requirement for riders to send a selfie to prove that they are wearing a mask before their trip request is accepted. More fundamentally, ride hailing platforms can deliver robust contact tracing, combining their digitized dispatch with their biometrics-based driver ID to systematically record all contact between their drivers and riders.


These findings are from ABI Research's Vehicle and Mobility market data report. This report is part of the company's Smart Mobility & Automotive research service, which includes research, data, and ABI Insights. Market Data spreadsheets are composed of deep data, market share analysis, and highly segmented, service-specific forecasts to provide detailed insight where opportunities lie.

About ABI Research
ABI Research provides strategic guidance to visionaries, delivering actionable intelligence on the transformative technologies that are dramatically reshaping industries, economies, and workforces across the world. ABI Research's global team of analysts publish groundbreaking studies often years ahead of other technology advisory firms, empowering our clients to stay ahead of their markets and their competitors. 

ABI Research?????????????,?????????????? ?1990???,????????????????,????,?????????????????????????? ???????????????? 

For more information about ABI Research's services, contact us at +1.516.624.2500 in the Americas, +44.203.326.0140 in Europe, +65.6592.0290 in Asia-Pacific or visit www.abiresearch.com.

Contact Info                                              

Global                                                             
Deborah Petrara                                                           
Tel: +1.516.624.2558                                                    
pr@abiresearch.com     

Logo - https://mma.prnewswire.com/media/276887/abi_research_logo.jpg  

SOURCE ABI Research


[ Back To TMCnet.com's Homepage ]