Middle East & Africa Ride Hailing Market By Service Type (Single, Rental), By Fare Type (Economy, Premium), By Vehicle Type (ICE, Electric), By Country, Competition, Forecast & Opportunities, 2020-2030F

Market Overview:

Middle East & Africa Ride Hailing Market was valued at USD 1.6 Billion in 2024 and is expected to reach USD 3.8 Billion by 2030 with a CAGR of 15.54% during the forecast period. The Middle East & Africa ride hailing market is witnessing a transformation driven by evolving urban mobility patterns and digital integration across transport services. Mobile app-based ride bookings have become central to commuting in metro cities, supported by increasing access to internet connectivity and growing usage of smartphones. The shift from car ownership to shared mobility is being shaped by cost-efficiency and ease of availability, especially among the younger population and working professionals. Governments are also pushing forward with smart city initiatives that promote digital and integrated transport systems, further supporting this market's expansion.

Consumer expectations for seamless, safe, and flexible urban mobility are accelerating technological innovations within ride hailing platforms. Features like real-time tracking, digital payments, and AI-enabled routing are becoming standard offerings. Electrification of ride hailing fleets is also gaining traction as sustainability and emission reduction become policy and consumer priorities. Investors are eyeing the sector's long-term potential, which is leading to increased funding and app development targeted toward regional needs and linguistic preferences.

Despite growth prospects, the market faces barriers linked to regulatory inconsistencies, traffic congestion, and infrastructure challenges in several countries. Informal taxi networks, fragmented urban planning, and limited charging infrastructure for electric vehicles can hamper seamless service delivery. To overcome these challenges, collaboration between private operators and governments will be vital. Enhanced vehicle safety protocols, efficient driver onboarding processes, and user-friendly interfaces will be key to building customer trust and market stability in the long term.

Market Drivers

Urban Population Growth

Increasing migration toward urban centers is leading to a surge in demand for on-demand transportation. According to the International Energy Agency (IEA), the Middle East’s passenger car fleet reached around 40 million vehicles in 2023, with urban centers like Riyadh, Dubai, and Cairo driving rising demand for ride-hailing services. Urban congestion and young populations are key factors behind the region’s appetite for shared mobility solutions. The influx of people into cities puts pressure on public transit systems, making ride hailing an attractive alternative due to its convenience and responsiveness. With limited parking spaces and congestion in metro areas, the appeal of accessing transport on a per-use basis continues to grow. Ride hailing apps are catering to this need by offering scalable and reliable mobility options, helping bridge the gap left by traditional taxi services or underdeveloped public networks. As cities expand both horizontally and vertically, the need for flexible transport solutions that offer last-mile connectivity grows more urgent, making ride hailing a strategic mobility partner in urban planning.

Mobile Connectivity and Smartphone Penetration

Widespread smartphone adoption and mobile internet availability are enabling users to access ride hailing platforms easily. With mobile-first user behavior becoming common across demographics, the app-based ride booking experience has become increasingly intuitive. Riders are now able to schedule rides, share trip information in real time, and make contactless payments with minimal effort. The rise of affordable smartphones and localized app development has expanded the market reach, especially among younger and middle-income populations. According to Saudi Arabia’s Transport General Authority (TGA), ride-hailing app revenue reached SAR 2.3 billion in 2024, marking a 22% rise from SAR 1.9 billion in 2023. Trips surged to 80.5 million, up 26% year-on-year, while active drivers climbed 27% to 332,100, including 21,800 female drivers, a 48% jump. Riyadh led with 31.8 million trips (39% share), followed by Makkah (24%) and the Eastern Province (16%). The market benefited from relaxed vehicle-age rules, adding 35,000 new drivers and five million trips. 

• The World Bank (2023) emphasizes that ride-hailing in Sub-Saharan Africa is expanding rapidly, driven by mobile penetration exceeding 50% across many nations. In cities like Nairobi, Lagos, and Johannesburg, ride-hailing apps have become vital for both passenger transport and logistics services such as food and parcel delivery.

The digital payment ecosystem is also maturing, facilitating smoother transactions across ride hailing services and reducing the friction traditionally associated with cash-based economies.

Digital Payment Ecosystem Growth

Integration of mobile wallets, online banking, and fintech platforms is transforming ride hailing services into cashless, seamless experiences. These payment methods not only increase operational transparency but also enhance safety and trust among users. The convenience of paying without handling cash aligns well with the increasing demand for secure and hygienic transactions. Payment partnerships and loyalty programs are further boosting user retention and incentivizing frequent ride bookings. As financial inclusion broadens and digital financial services expand, the accessibility of ride hailing services for underbanked populations improves, reinforcing the connection between fintech development and mobility evolution.

Growing Tourism and Business Travel

Tourism and short-term business travel in key cities are fueling demand for easy-to-use ride hailing apps that offer predictable pricing and service quality. Travelers unfamiliar with local transport systems find app-based ride hailing a more secure and transparent option. The availability of multilingual support, fare estimation, and navigation guidance is particularly helpful for tourists. Business travelers benefit from features like ride scheduling, digital invoicing, and corporate travel solutions. As airport pick-up services and hotel partnerships become more integrated into ride hailing offerings, the convenience for domestic and international travelers continues to grow.

Sustainability Goals and Emission Reduction Efforts

Environmental policies and climate change concerns are pushing ride hailing operators to adopt cleaner mobility solutions. The transition toward electric vehicles within ride hailing fleets is being encouraged through incentives, awareness programs, and emissions regulations. Consumers are becoming more environmentally conscious, opting for services that align with sustainability values. Ride hailing platforms are also introducing eco-friendly ride options, shared rides, and carbon-offset features. This alignment with green mobility is not only a compliance strategy but also a competitive differentiator as consumers gravitate toward brands with climate-focused practices.

Download Free Sample Report

Key Market Challenges

Regulatory and Licensing Barriers

Varying regulations across countries and cities create operational uncertainties for ride hailing services. Differences in licensing, driver background checks, fare limits, and vehicle requirements complicate compliance efforts. Regulatory gaps or sudden policy changes can lead to service disruptions, fines, or even bans. Navigating these bureaucratic landscapes requires significant legal expertise and local engagement, particularly in regions where transport laws are still evolving. A lack of standardization limits scalability and can increase operational costs for platforms aiming to expand.

Traffic Congestion and Infrastructure Constraints

Inadequate urban infrastructure often hampers ride efficiency and increases operational costs. Congested roads lead to delays, fuel wastage, and customer dissatisfaction. Cities without designated ride hailing zones or adequate drop-off points complicate the pickup and drop-off process. Poor road conditions also contribute to vehicle wear and tear, impacting service quality. These issues reduce driver productivity and earnings, leading to higher turnover and driver dissatisfaction. Infrastructure investment and city planning coordination are essential to unlock the full potential of ride hailing.

Driver Retention and Labor Issues

High driver attrition is a persistent challenge due to low margins and inconsistent income. Many drivers switch between platforms or exit the sector entirely due to high competition, fuel costs, or policy changes. The absence of long-term contracts or employment benefits discourages loyalty. Labor classification debates and worker rights movements add complexity to the gig economy model, potentially increasing legal risks for operators. Maintaining a motivated and professional driver base requires better onboarding, incentives, and transparent income structures.

Market Competition from Informal Transport Services

Unregulated taxis, informal carpooling, and minibus services continue to serve large segments of the population. These alternatives often operate without adherence to quality standards or insurance coverage but offer lower costs. Their widespread availability and local familiarity pose competition to app-based services. In areas with low smartphone penetration or digital literacy, these services remain dominant. Bridging this gap requires ride hailing providers to introduce entry-level solutions that can compete on price and access while still offering reliability and safety.

Key Market Trends

Integration with Public Transport Networks

Ride hailing platforms are increasingly integrating with city transport systems to enable multimodal journey planning. This includes linking app services with metro, bus, or light rail networks for first and last-mile connectivity. Users benefit from a single platform that maps out entire commutes, enabling smoother transitions between modes. Such integration supports city-wide transport optimization, reduces road congestion, and enhances commuter convenience. Partnerships with municipal authorities and the adoption of Mobility-as-a-Service (MaaS) platforms are central to this trend.

Adoption of AI and Predictive Analytics

Artificial Intelligence is being deployed to optimize route planning, match riders with drivers faster, and predict demand peaks. This enhances efficiency for both users and drivers, reducing idle time and improving response accuracy. Predictive analytics also helps operators forecast maintenance needs, manage fleets more efficiently, and tailor promotions based on user behavior. AI-powered customer support features such as chatbots further streamline service delivery and responsiveness. These intelligent systems improve operational performance and drive better user engagement.

Electric Vehicle Integration

Electric vehicles are making their way into ride hailing fleets due to environmental mandates and cost-saving benefits. Governments are supporting this trend through EV infrastructure expansion, subsidies, and policy frameworks. Ride hailing platforms are testing EV-centric ride categories and creating charging partnerships. Although challenges remain in battery range and charging availability, early adoption is growing. This trend is reshaping vehicle procurement strategies and branding as platforms align themselves with cleaner transport solutions.

Subscription-Based and Loyalty Programs

Subscription models offering flat monthly rates for multiple rides are gaining traction, especially among daily commuters. These programs encourage frequent usage while providing users with budget predictability. Loyalty rewards and gamification are also being used to enhance customer retention. Offering discounts, ride credits, and referral incentives contributes to sustained user engagement. These features deepen customer relationships and differentiate services in a crowded market.

Enhanced Safety and Verification Features

New app updates are focusing on user verification, trip recording, and safety alerts to boost confidence. Features like biometric login, panic buttons, and real-time trip monitoring are becoming more widespread. Driver verification through facial recognition or document revalidation is also being implemented. These updates address long-standing concerns over personal safety and fraudulent behavior. The emphasis on security continues to influence app design and user satisfaction metrics.

Segmental Insights

Vehicle Type Insights

The ride hailing market across the Middle East and Africa is characterized by the coexistence of internal combustion engine (ICE) vehicles and electric vehicles (EVs) within the shared mobility space. ICE vehicles remain prevalent due to their widespread availability, existing fueling infrastructure, and relatively low upfront costs. Many ride hailing drivers opt for ICE vehicles as they are easier to procure and maintain in regions where electric vehicle support systems are still developing. These vehicles also benefit from established service networks, which ensure consistent uptime and reliability for daily operations. On the other hand, the push for cleaner urban transportation and government sustainability initiatives are fostering growing interest in EVs within the ride hailing ecosystem. Ride hailing operators are experimenting with limited-scale EV deployments to assess economic viability, influenced by rising fuel costs and pressure to reduce carbon emissions. Infrastructure development, such as public charging stations and battery swapping solutions, is starting to appear in urban areas, making EVs a gradually viable choice. Although adoption rates differ across cities and countries, there is a clear trajectory toward diversifying ride hailing fleets. As technology and cost curves improve, the equilibrium between ICE and electric vehicle usage is expected to evolve, driven by environmental goals and long-term economic incentives. Users are also showing interest in environmentally friendly ride options, which encourages platforms to offer greener alternatives alongside conventional ICE fleets.

Download Free Sample Report

Country Insights

The ride hailing sector in GCC nations like Saudi Arabia, UAE has evolved significantly, supported by high urbanization and digital infrastructure. Users are accustomed to mobile-first services, and demand for premium, reliable transport solutions continues to grow. Regulatory frameworks are increasingly formalizing ride hailing operations, ensuring safety and compliance standards are upheld. Efforts to localize ride hailing platforms through language, cultural customization, and integration with public services are enhancing user experience. The market is also seeing early movement toward electric fleet integration due to government sustainability goals.

In North Africa, ride hailing adoption is being driven by growing youth populations, digital literacy, and a surge in urban commuting. Major cities are becoming hubs for app-based transportation, offering affordable mobility solutions for middle-income users. Informal transport systems still dominate in rural areas, but urban users are shifting toward app-based models for reliability and security. Payment innovations and targeted promotions are helping convert cash-dependent users into digital ride hailing customers, particularly through mobile wallets and localized pricing strategies.

Sub-Saharan African countries are seeing a gradual rise in ride hailing activity as smartphone usage and internet coverage improve. Urban centers are becoming experimental grounds for tech-enabled mobility, with two-wheeler and three-wheeler ride options being integrated into platforms. The diversity of urban layouts and transport preferences is leading to unique app customizations suited for short distances and congested routes. Challenges related to driver onboarding and safety remain critical areas of focus, but increased access to smartphones and digital payments is unlocking new user segments.

Recent Developments

• In May 2025, WeRide launched autonomous taxis and buses in Saudi Arabia, marking a major milestone in the region’s autonomous vehicle deployment. Robotaxi trials through Uber are expected soon, with full commercial operations by late 2025. The expansion includes Level-4 Robobuses at key locations like King Fahad Medical City and AlUla. These deployments support Saudi Vision 2030 goals for smart, tech-driven mobility. WeRide’s move also aligns with the country’s growing tourism sector and long-term urban transport needs.
• In December 2024, Uber and WeRide launched an autonomous mobility service in Abu Dhabi, marking the first time AVs are available on the Uber platform outside the U.S. This partnership introduces the largest commercial robotaxi operation beyond the U.S. and China. Eligible riders can now access WeRide vehicles in areas like Saadiyat Island, Yas Island, and routes to Zayed International Airport. Tawasul will manage the fleet, with safety operators onboard during the initial phase. The launch is supported by Abu Dhabi Mobility and paves the way for fully driverless services by late 2025.
• In November 2024, Bolt partnered with Dubai Taxi Company (DTC) to launch the UAE’s largest e-hailing platform, aiming to reduce reliance on private vehicles. This marks Bolt’s debut in Dubai, expanding its presence after Saudi Arabia and Egypt. The collaboration will leverage DTC’s 8,900-vehicle fleet and Bolt’s global mobility tech. It aligns with Dubai’s goal to shift 80% of taxi trips to e-booking. The move promises reduced congestion and pollution, with improved transport efficiency across the Emirate.
• In November 2024, DiDi Egypt expanded its operations to four new cities, Hurghada, Ismailia, Suez, and Port Said, strengthening its presence in the country. This move supports its vision of enhancing connectivity and access to smart, affordable mobility services. The newly added cities are economically significant, including key industrial and tourism hubs. DiDi aims to boost local employment, improve transportation infrastructure, and offer advanced safety features. The expansion reflects DiDi’s broader commitment to sustainable, tech-driven urban mobility solutions across Egypt.

Key Market Players

• Uber Middle East FZ LLC (Uber)
• Careem Networks FZ LLC
• Bolt Technology OU
• Soul Innovations Ltd (inDrive)
• Didi Global Inc
• Kayan Rehla Information Technology Company (Kaiian)
• KOI Ride
• Sixt Ride GmbH & Co. KG
• XXRIDE For Electronic Transport Services
• Cloud World Trading LLC – Otaxi

Report Scope:

In this report, the Middle East & Africa Ride Hailing Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

•         Middle East & Africa Ride Hailing Market, By Service Type:

o    Single

o    Rental

•         Middle East & Africa Ride Hailing Market, By Vehicle Type:

o    ICE

o    Electric

•         Middle East & Africa Ride Hailing Market, By Fare Type:

o    Economy

o    Premium

•         Middle East & Africa Ride Hailing Market, By Country:

o    Saudi Arabia

o    UAE

o    Egypt

o    Qatar

o    Oman

o    South Africa

o    Turkey

o    Nigeria

o    Rest of Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Middle East & Africa Ride Hailing Market.

Available Customizations:

Middle East & Africa Ride Hailing Market report with the given market data, TechSci Research offers customizations according to the company’s specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).