Urban mobility is the ride to book

EXPERTS ALSO SAY the Indian ride-hailing market is at an important inflection point.

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“Total gross merchandise value (GMV) of the market has grown to approx $7 billion at a CAGR of 6% since 2022. Around 2.4 billion rides were completed in 2024 alone. The top three players account for 70-80% of the market by GMV,” said Rajat Mahajan, partner, Deloitte India. Mahajan pointed out that three-wheelers (3Ws) remain the fastest-growing segment in terms of both volume and value — driven by affordability and last-mile connectivity. “In 3Ws, the last mile contributes to nearly 50% of total trips in many cities. However, there’s a white space for premiumisation in this segment. If operators can combine affordability with comfort and consistency, it will open up new demand pockets, especially in Tier 2 and Tier 3 towns.”

Deloitte’s insights also indicate that shared mobility players are introducing premium offerings and also reviving premium services that did not do well in the past. Customers are willing to pay more over standard rides when offered reduced cancellations, and other perks, reflecting in the average order value (AOV) increase of about 9% for premium rides and only about 3% in case of economy rides. Customers are also willing to pay 25-40% higher fee for an app-owned vehicle which is cleaner with a professional driver, resulting in premium offerings like Uber Black.