Mobility on Demand is rising

The global Mobility on Demand market is set to double in value, from the current $100 billion to over $200 billion by 2024, reports Global Market Insights, Inc. But what does that mean for you? 

Travel & tourism

First of all, travel and tourism will be one of the major drivers of the industry. The increase of mobility on demand in this sector can be explained by various challenges the sector seeks to address. There is, for instance, the increasing demand for sustainable transport, as well as for more individual freedom of movement, such as car rental and ridehailing. The latter trend can be seen in tourism and hospitality companies who are offering their own car rental and ridehailing services. 

Smart cities

Another major driving force behind the increasing mobility on demand market are the increasing initiatives of local and national governments as part of the broader developing smart city. Incentives to share rides while commuting, and/or electrification of public vehicles, and/or the combination of both. Such as the e-mobility on demand project of the city of Vienna (Austria), to integrate the transportation system with shared EVs. 

Corporate on demand mobility

The Mobility on demand market in business applications is also poised to grow at a significant pace according to the study. Especially because mobility on demand can reduce the dependency on private fleets, hence reduce fleet-related costs and optimise fleet management. There are several companies that provide tailor-made corporate mobility on demand services, such as Omoove and Ubeeqo.

Changing mindset, changing market

In addition to that, the changing mindset of riders is changing the market as well. Increasing environmental awareness – read air pollution and greenhouse gas emissions – and increasing openness to innovations among the consumers are cited by the study as driving factors as well. 

This changing mindset is reflected in the market as well. Several OEMs are moving into the shared and on demand mobility market, such as the recently announced joint venture of BMW and Daimler in Share Now, or the expansion of the rental companies Sixt and Europcar into a broader mobility service offer, respectively Sixt Share and the Europcar Mobility Group. 

Demand for Mobility on demand? 

Taking the above-mentioned factors into account, it should be no surprise that the market is set to double from the current $100 billion to $200 billion by 2024. In addition, the move of established mobility players – such as OEMs and car rental companies – into the market means that this is a trend that's here to stay, rather than a temporary one. 

In the long-term, the increasing market and increasing amount of investments and players moving into it, could expand the offer, make it more reliable and convenient and even more cost-efficient. 

The specific corporate offers such as the one of Omoove and Ubeeqo, make it even more convenient to find a tailor-made and cost-efficient solutions for your company to implement mobility on demand services in your fleet management.