SharesPost Research: Global Ride-Sharing Bookings to Double in Next Three Years to $400 Billion

Uber, Lyft Execute Different Growth Strategies From DiDi, Ola,
Grab, and Careem

SharesPost Research: Global Ride-Sharing Bookings to Double in Next Three Years to 0 Billion
SharesPost Research: Global Ride-Sharing Bookings to Double in Next Three Years to 0 Billion

SAN FRANCISCO–(BUSINESS WIRE)–Annual gross bookings for the world’s major ride-sharing companies will

double to $400 billion by 2021, powered by triple-digit growth in Asia

and declining car ownership by Millennials, according to new research

from SharesPost.

In 2018, an estimated 800 million to 850 million users were spending an

average $20 to $25 per month on ride-sharing apps, generating annual

gross bookings of $175 billion to $225 billion. Over the next three

years, ridership will grow 50 percent and gross bookings are expected to

double to over $400 billion, based on SharesPost’s forecast.

The dynamic growth of ride-sharing is due to increasing smartphone usage

globally, a preference by Millennials to abandon car ownership and

strong adoption in regions with large urban populations, particularly in

India and China.

Lyft’s planned IPO, announced this week, is also likely to accelerate

the IPO timeline for other ride-sharing firms.

“Lyft’s planned IPO will be closely watched by other ride-sharing

companies as institutional investors get a first look at the numbers

behind the fundamental value proposition of ride-sharing apps,” said

Managing Director

Rohit

, Head of Research for SharesPost, Inc. “Ride-sharing apps

work best in high-density areas with lots of drivers and riders – the

classic network effect. The Asia-Pacific region is home to the most

metro areas with populations over 10 million. At the same time, the

allure of car ownership is fading among Millennials, the world’s largest

demographic. All of this, along with continued venture capital

investment, will drive the growth of the category for the foreseeable

future.”

The 25-page report highlights the growth prospects for the major

ride-sharing companies – Uber, Lyft, Ola, DiDi, Careem, and Grab – and

estimates each company’s enterprise value. The analysis also highlights

the unique approach that Asian companies are pursuing by offering

ride-sharing in a “super app” that includes a supermarket of consumer

services in addition to transportation.

The report predicts that Asian ride-sharing firms will continue to grow

much faster in the medium term. However, American rideshare companies

still benefit from higher valuations relative to growth and scale than

Asian counterparts.

“Our analysis suggests that investors are discounting Asian ride-sharing

firms compared to American companies,” Kulkarni said. “DiDi has a larger

footprint in terms of drivers and has raised a similar amount of capital

as Uber, but investors value DiDi less, even though the company has more

room to grow. Similarly, Lyft has a smaller base of drivers and fewer

rides completed till date as compared to Grab, but enjoys a higher

valuation.”

Today, the three largest Asian companies currently account for 40

million rides a day. DiDi alone will likely surpass 20 billion rides

annually by the end of 2018, more than double Uber’s ridership and 20

times more than Lyft’s. The Asia-Pacific region also has more

Millennials than North America and Europe combined. India, which is

expected to see the most growth in riding-sharing, boasts the largest

Millennial population in these countries, the report noted.

To download the full report,

click

here

.

About SharesPost, Inc.

SharesPost is a FINRA-registered broker-dealer, SEC-registered

Alternative Trading System (ATS) and Registered Investment Advisor.

SharesPost helped launch the secondary market for private tech companies

in 2009 and has built the leading platform for secondary transactions

and digital securities. SharesPost provides the private tech asset class

with a suite of trading and lending solutions to facilitate shareholder

and option holder liquidity. With more than $4 billion in secondary

market transactions in the shares of more than 200 leading technology

companies, SharesPost provides the trading, research and online tools to

transact in the private market with confidence. For more information,

visit sharespost.com .

Any securities offered are offered by SharesPost Financial Corporation,

a member of FINRA/SIPC. SharesPost Financial Corporation and SP

Investments Management are wholly owned subsidiaries of SharesPost Inc.

Certain affiliates of these entities may act as principals in such

transactions.

Investing in private company securities is appropriate only for those

investors who can tolerate a high degree of risk and do not require a

liquid investment.

Cautionary Note Regarding Forward-Looking Statements

The matters described herein contain forward-looking statements. These

statements include, but are not limited to, statements about research on

late-stage, venture-backed companies. We caution that these statements

are not guarantees of future performance. Actual results may differ

materially from those expressed or implied in the forward-looking

statements. Forward-looking statements involve a number of risks,

uncertainties or other factors beyond SharesPost’s control. These

factors include, but are not limited to, factors detailed in the white

paper. We undertake no obligation to release any revisions to any

forward-looking statements.

Contacts

Greg Berardi,

Blue

greg@bluemarlinpartners.com ,

415.239.7826

SharesPost Research: Global Ride-Sharing Bookings to Double in Next Three Years to 0 Billion
SharesPost Research: Global Ride-Sharing Bookings to Double in Next Three Years to 0 Billion

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