A new report forecasts no end in sight for the growing popularity of ride-sharing services such as Uber and Lyft with revenues expected to double over the next four years.
“Uber and Lyft, are to increasingly see returns from their aggressive market strategies,” says Juniper Research in a report titled “Sharing Economy: Opportunities, Impacts & Disruptors 2016-2020.”
Revenues were $3.3 billion in 2015, but look for those to hit $6.5 billion by 2020, Juniper says.
Plus, look for more people to sign on as ride-sharing drivers.
“[A] combination of driver incentives, flexible working hours, and new business models will draw in more drivers for these companies,” Juniper says.
Uber already is popular in North Carolina with services available from the beaches to Charlotte. And the company routinely advertises for more drivers.
The report looks at other aspects of the sharing economy as well, but ride-sharing is a key part.
“[O]ne segment which has lent itself well to this disruptive trend is transport, where the desire for cheap, efficient and easy access to transport mechanisms has seen demand soar,” Juniper says in a whitepaper about the report.
“Juniper believes that we will see a move for current transport sharing services, such as Uber, to integrate new and future technologies. This step has already been taken to some extent by GM (General Motors) and Lyft, under a new deal whereby GM invested $500 million in Lyft in an attempt to create a taxi service which uses autonomous vehicles.”
Plus, look for Uber to continue to expand in China and India.
Juniper’s Lauren Foye notes: “Uber has reportedly spent $1 billion per year on expansion in China alone. In addition, it has recently set its sights on disrupting the huge motorbike taxi industries of India and Thailand, displaying a willingness and drive to aggressively obtain market share.”
Helping growth in India could be Uber’s decision to embrace motorbikes.
“Uber’s February announcement that it is to launch its UberMOTO service in India, opens it to an enormous potential market – the city of Bangalore alone has 3.5 million registered motorbikes, and India already allows motorbike taxi bookings through applications in two states,” Juniper says.
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