The ride-sharing economy continues to beat expectations as ABI Research forecasts global bookings to exceed USD 100 billion by 2020 and USD 300 billion by 2030 at an average growth rate of 18%.
However, ABI Research finds that ride-sharing growth will slow as it becomes more challenging to recruit users. Its business model of aggressive marketing and subsidized driver recruitment will result in huge losses, as well as fundamental cost structure limitations.
To adapt to the changing competitive landscape, many car OEMs recently announced partnerships and/or investments in ridesharing brands. Wall Street Journal reported that U.S. automaker GM teamed up with Lyft to test self-driving electric taxis, posing competition with not just Tesla, but also Didi and Uber.
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