China’s market for ride-hailing services, whose growth has slowed to less than 5% this year from 25% in 2018, will rebound to at least 10% in 2021, predicts Bain & Co.
The consultancy’s annual mobility report forecasts that ridership will rise as service quality improves and the government steps up regulations to offset concerns over a spate of vehicle crashes last year.
Bain estimates that the on-demand mobility market in China will reach about $60 billion in two years. The firm anticipates renewed growth in other Asian markets too.
Self-driving vehicles will have a major impact on mobility in emerging Asian markets, according to the report. It suggests that service providers could lower operating costs by reducing incentives for riders and shifting to electric vehicles.
New York City has approved a one-year freeze on new licenses for ride-hailing services such as Lyft and Uber, USA Today reports.
General Motors Co.’s Maven mobility unit has launched a peer-to-peer car-sharing pilot program in Chicago, Detroit and Ann Arbor, Mich.
Ride-hailing firm Lyft Inc. is launching a pilot program in Chicago that will offer participants financial incentives not to drive their own vehicles for a month.