Cracks in the ridesharing market—and how to fill them


Quick quiz: What percent of 2016 vehicle miles traveled (VMT) in the United States came from ridesharing? Given the hype, it would be reasonable if your estimate were higher than the right answer—1 percent. Currently, ridesharing does not apply in any significant way to the overwhelming majority of practical use cases. Car ownership is still more economical and convenient for most car owners and users, and for all of the buzz and excitement, when we count VMT in absolute terms, ridesharing’s share is almost a rounding error.

 

That’s not meant to belittle ridesharing’s impressive growth to date. In December 2013, Lyft and Uber combined for approximately 30 million VMT per month in the United States. Three years later, the two had reached 500 million US VMT per month—a compound annual growth rate of more than 150 percent, which resulted in over $10 billion in revenues for 2016. Read more about the Cracks in the ridesharing market...

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05 Jun 2018


By McKinsey Quarterly