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Ride-hailing - Slovakia

Slovakia

Slovakia is expected to witness a significant boost in the Ride-hailing market, with revenue projected to reach US$21.35m by 2024.
The market is expected to show an annual growth rate (CAGR 2024-2028) of 1.73%, resulting in a projected market volume of US$22.87m by 2028.
As for the number of users, it is expected to reach 1.09m users in the same year.
The user penetration rate is also projected to increase from 17.9% in 2024 to 19.5% by 2028.
The average revenue per user (ARPU) is expected to remain at US$20.94.
It is projected that 100% of the total revenue generated in this market by 2028 will be generated through online sales.
When looking at the global market, China is expected to generate the most revenue in this market, with a projected revenue of US$63,280m by 2024.
Despite the presence of international ride-hailing companies, traditional taxi services still dominate the market in Slovakia.

Key regions: Malaysia, Thailand, United States, Indonesia, South America

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Analyst Opinion

Ride-hailing services have gained significant popularity in Slovakia in recent years, with an increasing number of people opting for this convenient and efficient mode of transportation.

Customer preferences: Customers in Slovakia are increasingly drawn to ride-hailing services due to their convenience, affordability, and ease of use. The ability to book a ride with just a few taps on a smartphone has greatly appealed to tech-savvy consumers. Additionally, the competitive pricing offered by ride-hailing companies has made them an attractive alternative to traditional taxis. Furthermore, the availability of various vehicle options, including economy, luxury, and shared rides, allows customers to choose the service that best suits their needs and budget.

Trends in the market: One of the key trends in the ride-hailing market in Slovakia is the growing adoption of ride-hailing services by younger generations. Millennials and Gen Z individuals, who are more comfortable with technology and are always on the lookout for convenient and cost-effective transportation options, have been quick to embrace ride-hailing services. This demographic shift has contributed to the rapid growth of the market. Another trend in the market is the increasing focus on sustainability and environmental consciousness. Many ride-hailing companies are incorporating electric and hybrid vehicles into their fleets, providing customers with a greener option for transportation. This trend aligns with the global push towards reducing carbon emissions and promoting sustainable practices.

Local special circumstances: Slovakia is a country with a high internet penetration rate and a tech-savvy population. This has created a favorable environment for the growth of ride-hailing services. The widespread use of smartphones and the availability of reliable internet connectivity have made it easy for customers to access and use ride-hailing apps. Additionally, the relatively small size of the country and the dense urban areas make ride-hailing an attractive option for both residents and tourists.

Underlying macroeconomic factors: The growth of the ride-hailing market in Slovakia can also be attributed to several macroeconomic factors. The country has experienced steady economic growth in recent years, leading to an increase in disposable income and a higher standard of living. This has resulted in a greater willingness among consumers to spend on convenient and efficient transportation options. Furthermore, the rise of the gig economy and flexible work arrangements has created a larger pool of potential ride-hailing drivers. Many individuals are turning to ride-hailing as a source of additional income or as a full-time occupation. The availability of flexible working hours and the opportunity to earn a decent income have attracted a significant number of drivers to the industry. In conclusion, the ride-hailing market in Slovakia has witnessed significant growth due to customer preferences for convenience and affordability, trends such as the adoption of ride-hailing by younger generations and the focus on sustainability, local special circumstances such as high internet penetration and a tech-savvy population, and underlying macroeconomic factors including economic growth and the rise of the gig economy.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on bookings and revenues of ride-hailing services.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on a specific rationale for each market. As a basis for evaluating markets, we use financial reports, third-party studies and reports, federal statistical offices, industry associations, and price data. To estimate the number of users and bookings, we furthermore use data from the Statista Consumer Insigths Global survey. In addition, we use relevant key market indicators and data from country-specific associations, such as demographic data, GDP, consumer spending, internet penetration, and device usage. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, ARIMA, which allows time series forecasts, accounting for stationarity of data and enabling short-term estimates. Additionally, simple linear regression, Holt-Winters forecast, the S-curve function and exponential trend smoothing methods are applied.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change.