Saudi Arabia
Shared Mobility Market is anticipated to grow at a good CAGR in terms of value
during the forecast period, by 2030. In Saudi Arabia, people prefer to take
shared mobility as an alternate option for traveling for short distance, as it
is more cost effective for them. In Saudi Arabia’s cities, the shared economy
in general and vehicle sharing, in particular, are expanding quickly. The
government of Saudi Arabia is aggressively promoting it by creating the idea of
"smart city" and expanding the essential infrastructure, like parking
places for car-sharing. Saudi Arabia busiest cities like Riyadh, Maca, Jeddah,
Mecca, Medina, etc. are micro mobility centers and higher number of peoples are
using shared mobility in these cities. This also implies that many micro mobility
projects receive additional forms of government funding or partial funding from
local governments. Many shared mobility companies have seen an opportunity for
them as the number of share mobility user has increased with time in the
country, thus, the market for shared mobility is expanding and showing
significant investment acceleration. Shared mobility firms have already
garnered good funding investment amounts, placing the industry second behind
e-hailing players, despite of the entry of shared two wheeler, in the market.
This reflects the faster adoption of shared mobility trips as for different
cities in the country.
The
sales of Saudi Arabia’s total number of passenger car, in 2021, was around 4,75,837
making the passenger car segment own highest market share in the shared mobility
market. The sales of commercial vehicles, in 2021, was around 80,722, making
commercial vehicles have good presence in the shared mobility market. The
number of users in the shared mobility from the corporate sector is more than
50% in the market, and the online segment has more than 80% market share
compared to the offline user in the Shared Mobility Market.
Cost Effectiveness of Shared
Mobility
Taking a vehicle as shared
mobility can have several benefits over outright owning one because it can
reduce the enormous upfront expense of purchasing one. Many working employees
in the corporate sector have offices in the main city where the living cost is
high and most of the people don’t have their own private vehicle. They prefer
to take shared mobility for traveling, on the daily basis. People in Saudi
Arabia find difficulties in parking the vehicle at the office location. To the
benefit, shared mobility helps reduce parking needs, creating opportunities for
infill development to nonvehicular modes.
The Increasing Demand for
Online Shared Vehicles
Currently, online booking can be used for cashless transactions,
e-signing contracts, checking the validity of the renter's identification, and
providing the renter with vehicle information.
Over the past few years, people's preferred method of choosing their shared
vehicles have increased with the development of technology. Additionally, it
offers extra tools for real-time monitoring of a shared vehicle’s performance
and maintenance. These features are great advantages for fleet managers and
drivers because they help them in effectively spot issues and execute changes
to their shared vehicles services at the right moment.
Addition Of the New Market
Players in the Saudi Arabia Shared Mobility Market
Saudi Arabia is a tourist
destination place where every year, more than 20 million people come to visit
the country. Such increasing number of
tourists every year is leading the increase in the number of shared mobility. .
The shared mobility market in Saudi Arabia is expected to grow at a healthy
rate, owing to the increase in business and leisure tourism. By seeing this
opportunity, the shared mobility market players are focusing on keeping ahead
on the basis of value-added services provided to prospective users. The shared
mobility companies are now reducing the service cost and are adding premium and
well maintained vehicle models and they are increasing the fleet of the
vehicles to capture more market share in the Saudi Arabia.