Transportation Aggregators Market size and Key Trends in terms of volume and value 2016-2026
With multiple ways to reach destination, it is very difficult at times for a passenger to find out the most economical and convenient way to travel. Transportation aggregators are shortening the gap between traveler and transportation service providers. Taxi hailing mobile applications are creating disruption in the transportation aggregators market as these companies are serving day to day commuting need of passengers with very reasonable cost and additionally providing features such as payments options, car sharing, and fare splitting. There are more than 30 mobile applications available for taxi aggregation across the world. Uber Technologies Inc. (Uber), Beijing Xiaoju Keji Co., Ltd. (Didi Dache), Lyft Inc, ANI Technologies Pvt. Ltd. (Ola Cabs), GrabTaxi Pte Ltd Block (Grab Taxi), Bla Bla Car, and Gett are some of the leading taxi aggregators in the world.
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Stockholders of Transportation Aggregation
Transport Service Providers
Software Developers and IT Companies
Mobile Wallet and Payment Gateways
Third Party Vehicle Owners
Transportation Aggregators Market: Drivers and Challenges
The inexorable technological advancements in the space of smartphones and internet is driving the growth of the global transportation aggregators market. Several online portal and mobile applications of transportations are providing ease of booking tickets in train, and airplane, booking taxi and delivery of goods to consumers. These transportation aggregators provide various payment options such as secure online payment and cash on delivery. Another driving factors of transportation aggregator market is huge reduction in cost of commuting and delivery of goods. It is due to increasing competitive rivalry in the transportation aggregators market. Increasing venture capitalist investments in the transportation aggregators market is one of the primary factors which has enabled the transportation providers to offer huge discounts to the consumers/passengers in order to retain them. However, the market is currently witnessing cash churning which is expected to be one of the major issue for the companies backed by venture investments in the future.
Transportation aggregation rules and regulation vary from country to country, making operations very complex for transportation aggregators. Transportation aggregators are more or less only present in metro cities of the world. Entering to tier 3, tier 4 and tier 5 cities of the world is still a significant challenge for the transportation aggregators.
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Transportation Aggregators Market: Segmentation
Transportation aggregators market on the basis of mode of transportation:
Roads are main mean of transportations. Majority of the companies in transportation aggregators market are providing the roadways transport aggregation services. Road transportation is used to transmit goods over short and medium distances by motor vehicles. Several taxi hailing companies including Uber and Ola are funded with millions of dollars to run their operations, making roadways the biggest transportation aggregation market. Roadways transportation aggregation services are provided by both private and public entities.
High volumes of heavy cargos are generally transported through railways over long distance. Railways are more convenient and secure mode of transportation within a country. Generally, railways transportation aggregation service is provided by country’s national government; however, in certain regions, railways transportation service is also handled by private entities, especially for intercity transportation.
Airways are more prominent ways of transportation for intra-country transportation. Airways are used for both transportation of passengers and goods. For passenger transportation, various online portals are available which aggregate the airlines services. Air Transport International provides separate online services for transportation of goods.
Seaways include carrier, seaports, terminals, and labor involved in the movement of cargo and passenger by water. Seaways segment accounts for largest percentage share in terms of value for transportation of cargo amongst the 4 modes of transportation of goods.
The transportation and logistics industry is highly competitive in North America. Silicon Valley is witnessing success of taxi aggregator Uber across the world which is currently ranked world’s top startup and valued around US$ 51 billion in 2016, according to Business Insider. The highly integrated supply chain network of countries such as U.S. and Canada are paving the way for growth of transportation aggregators market.
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With increasing awareness about supply chain innovations, transportation and logistics service providers are looking to redesign the supply chain network and are intensively focusing on calculating the security risk associated with passengers and goods which is also contributing in the growth of transportation aggregators market.
Global dynamics change, and change in trending patterns are putting direct impact on transportation aggregators market in the European region. Middle East and Africa and Latin America region are at the nascent stage; however, transportation aggregators are slowly and gradually expanding their business and paving the way for revenue growth in these regions.
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