The rapid expansion of car-sharing, ride-hailing, and other mobility solutions has altered the ways people travel nowadays. With the growing trend of shared mobility, people now have a convenient & cost-effective alternative to vehicle ownership. With the rise of self-driving taxis, the future of shared mobility holds significantly promising opportunities.
Further, consumers drifting away from car ownership owing to the increasing costs of vehicles, their maintenance, projected upsurge in fuel prices, etc., is another prominent reason behind the success of shared mobility solutions. The adoption of shared mobility services can help city residents to cost-effectively plan & organize their trips just with a click on their mobile phones, without worrying about parking spaces or traffic congestions.
What will keep shared mobility services across the UAE growing in the future?
1. Reduced Traffic Congestions: Shared mobility helps in reducing traffic congestion in dense urban areas. Hence, this will be promoted as the best reason to adopt shared mobility services and reduce traffic congestions.
2. Environmental Benefits: The various initiatives of the UAE government toward promoting shared mobility services to reduce greenhouse gas emissions that arise from a large number of vehicles.
3. Increased Vehicle Fleet: With more vehicles likely to be available in the future, there would be enhanced convenience for consumers with lower travel costs.
Over a few years, the convenience of vehicle ownership in dense areas has gradually declined, principally due to the easy & better access to public transport that has become more reliable, coupled with the emergence of shared mobility solutions. As a result, consumers have accordingly changed their preferences.
Cross-Industry Perspectives for Shared Mobility Services
Shared mobility is adversely impacting different industry verticals like the automotive, travel & transport, & technology. Therefore, companies dealing with shared mobility must keep the following aspects in mind while entering this industry.
1. Automotive Industry: The growing trend of shared mobility would lead to changing ecosystems & their services, the emergence of new business models, collaborations, acquisitions, and competition from start-ups.
2. Travel & Transport: The reducing inclination of tourists & travelers toward taxis & car-rental services and with the advent of last-mile deliveries will impact the travel & transport industry and drive more adoption of shared mobility solutions.
3. Technology: Companies must make informed decisions considering that autonomous vehicles, platform technologies, shared fleets, and customer data ownership will gradually expand in the future.
A recent research report has cited that the Shared Mobility Market in the UAE is expected to exhibit around 25.1% CAGR during 2021-26. Dubai has the largest number of users of shared mobility services whose most prominent choices are:
1. Dubai Taxi Corporation: Official Taxi
2. Uber: A Mobility-as-a-Service (offers flat-rate)
3. Careem: Dubai- based Vehicle-for-Hire company
Currently, the transition from vehicle 'ownership' to 'usership' is being extensively witnessed. People often require vehicles in their everyday lives, but they do not necessarily need to own those. Through shared mobility, vehicles are well-utilized, serve numerous customers, and constantly earn profits for vehicle manufacturers. Hence, the demand for shared mobility services is projected to surge in the coming years.
Read more about UAE Shared Mobility Market here: https://www.marknteladvisors.com/query/request-sample/uae-shared-mobility-market.html
