Driving service brokerage has long been the most popular form of new mobility. However, only a few big players rule the hotly contested world markets. In our overview, you can find out who currently serves the best chauffeur service in Dubai.
It’s actually not a new idea: To get to the airport, I call to rent a chauffeur service in Dubai as an option plus a car for a certain fee, called a taxi in the analog world. The history of this simple service goes back to the beginning of human civilization. Today, the transport service business like TLT.AE is a core business of the digital age: Regardless of whether the call is for a taxi, ridesharing or chauffeur service, or an on-demand shuttle, the entire process is carried out via digital platforms, mostly via apps on the smartphone.
Statistics of Transportation and Chauffeur Business
The business with digital transport services has developed into a hotly contested market worth billions over the past ten years. According to PS Market Research, the global market volume for app-based driving services was around 50 billion US dollars in 2018 and could grow to 120 billion dollars by 2024. With more than 500 million users, China is by far the largest market, followed by Europe with 150 million and the USA with 100 million customers.
According to its own calculations, a study by Juniper Research even put the global ridesharing market at a volume of 937 billion US dollars in 2026, which would correspond to a growth of more than 500 percent over the next five years. The Juniper analysts see around two-thirds of the corresponding market in China and the USA. However, the majority of transports will continue to be carried out alone; according to the study, only 13 percent of mobilists will probably be able to warm to carpooling in 2026. Since users who are averse to carpooling are also willing to pay a surcharge for transport without passengers, corresponding services must be stimulated by non-financial incentives, such as shared use of bus lanes, according to the experts.
Who Are the Biggest Ride hailing Vendors?
The market for driving services has consolidated worldwide in recent years to a few big players. “Peel here two to five dominant players emerge, who are increasingly differentiating and dividing up the driving service business among themselves,” explains Stefan Bratzel, head of the Center of Automotive Management (CAM). These undoubtedly include Uber and Lyft in the US and Didi Chuxing in China. Other relevant players include Gett, Grab, Ola, Bolt and in Europe Free Now, the BMW and Daimler driving service joint venture. “The goal of these players is a comprehensive mobility ecosystem that can also be used to earn money at the end of the day,” explains Bratzel.
Because an economical operation is not yet a reality for the transport service providers. For example , top dog Uber has been making losses in the billions every year since the company was founded in 2009 – regardless of the exaggerated company valuation on the stock exchange. The same happened to Uber’s competitor Didi, which was able to report a net profit of a good 870 million US dollars for the first time in the first quarter of 2021. Despite being in the red, both companies have managed to build up a real oligopoly in the driving service business in recent years. In the Mobility Services Report 2021 by automotiveIT and CAM , which annually focuses on the performance of the relevant global mobility services, you can find out about all service types in the field of driver service(see info box) achieve the best results. In the CAM ranking, they are followed by Daimler as one of the few car manufacturers, Grab, Dida Chuxing and the Google mother company Alphabet.
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Types of Transport/Car-Rental Service in Dubai
These are the most important types of transport services:
The Mobility Services Report defines transport service providers as providers of paid transport services. Passengers are referred to drivers or autonomous shuttles on demand via an online application (app) or digital platform.
Taxi Portal: Platform for calling regular taxis with professional drivers
Chauffeur service: Luxurious taxi service with trained drivers
Ride hailing: Digitally bookable direct trips with mostly private cars
Ride sharing: Classic ridesharing in private cars
Ride pooling: Fleet vehicles without a fixed timetable bundle ride requests on fixed or individual routes
Nobody in China can get past Didi Chuxing
Didi Chuxing is the largest provider of transport services of all kinds. The Chinese company, founded in 2012, had almost 500 million active users per year with 41 million daily transactions despite the corona pandemic in the past financial year. At the same time Didi achieved a total turnover of 21.6 billion US dollars – more than 90 percent of it in the Chinese market.
There, the mobility provider offers a wide range of services on its platform, including taxi services with private and professional drivers, chauffeur service in Dubai and ridesharing. The driving service network, in which around 13 million drivers participate, now spans more than 4,000 cities in 15 countries. In China, Didi is a virtual monopolist after the company took over competitor Kuaidi in 2015 and a year later Uber’s business in China.
But the mega-corporation from the Middle Kingdom does not want to limit itself to the classic driving service business. Didi now operates the largest vehicle leasing network in China with around 3,000 partners and also wants to have a say in the industry trends of electro-mobility and autonomous driving. Two years ago, the company announced that it would expand its own electric car fleet from 200,000 vehicles to more than one million in 2020 – which it did. In addition, Didi has the largest charging network for electric vehicles in China, with a market share of over 30 percent of the total public charging volume. With OEM partner BYD, the D1, an electric car specially designed for shared mobility, was launched at the end of 2020.
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The mobility giant has also been involved in the field of autonomous driving since 2017. Didi has a test fleet of around 100 vehicles and, thanks to its passenger transport license, is already testing an on-demand robotic taxi service under real conditions in Shanghai. In spring 2021, the company announced a partnership with Volvo, under which the Swedish OEM will provide a range of XC90 vehicles for autonomous test drives. Integrated Level 4 software developed in-house in the SUVs as well as hardware such as sensors or cameras.