The COVID-19 pandemic has hit the transportation sector hard thereby bringing down opportunities for taxi and other ride-hailing businesses for the time being.
Drastic impact of COVID-19 on the market
The global market value of the ride-hailing industry which was previously projected to be 26,153m in 2020 is expected to witness a compound annual growth rate (CAGR) of -43.7% chiefly due to the COVID-19 outbreak and the social distancing measures that follow.
Current situation of app usage
Despite the drop in business prospects, the industry players especially the ones providing app-based ride-hailing services strongly believe that the target customers are curtailing the use of their services or just taking a break for the time being given the anxiety created by the global pandemic. Even if there is a decline of about 40% active taxi app usage, not many users have uninstalled taxi apps from their smartphones which means the commuters are looking forward to using ride-hailing services once the transportation restrictions are eased. Besides, ride-hailing is still a top priority for commuters who travel on account of essential purposes in the course of the lockdown.
Now is the time for you to strengthen your online presence by creating social media campaigns, building your customized ride-hailing app or upgrading the existing one and much more to achieve brand awareness among your target audience so that your business can bounce back in time.
Other verticals for business growth
Ride-hailing service providers can still create job opportunities for their workforce and build pipelines for revenue generation even during unpredictable times such as these with one right move. It is time to think out of the box and explore the other verticals where transportation can benefit end customers. This way, the ride-hailing service providers can transform their businesses in the days to come while improving prospects at the moment.
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