U.S. Ride Sharing Market Size

The U.S. ride sharing market size was valued at USD 28.5 billion in 2024 and is estimated to register a CAGR of 6.9% between 2025 and 2034. The support from the government and the enhancement of the infrastructure are positively impacting the development of the market. The ridesharing contract is also considered a solution for urban transportation, and so local and state authorities enact ridesharing policies to foster its growth.

 

Other cities are also allocating resources to improving the infrastructure for the ridesharing providers by creating drop-off and pick-up zones and charging stations for electric vehicles, thereby lowering the bar for the drivers and passengers.

The Biden-Harris Administration, through the National Association of State Energy Officials, the US Department of Energy, and the Department of Energy, announced USD 521 million in grants for 29 states for the construction of electric vehicle charging stations and alternative fuels infrastructure in August of 2024. The new EV infrastructure will enhance communities across the country by improving access and building stations along highways, interstates, and major roads. Welfare measures such as these serve to offer governments the ability to advocate for more sustainable urban transport, thus further aiding the growth of the ridesharing market.

 

The estimated rapid urbanization that America is subject to is expected to boost the ridesharing market. The increasing number of people in urban areas translates into an increasing need for effective modes of transportation. At the same time, New York, Los Angeles, and San Francisco are characterized by heavy populations relative to small space and congestion, which prevents car ownership from being a viable option.

 

An alternative to this is the ride-sharing services, which don’t require one to own separate vehicles and make economic sense. As the extent of urbanization expands, particularly in overpopulated cities, ridesharing businesses will only flourish as effective smart transport options are in demand.

 

U.S. Ride Sharing Market Trends

• The proliferation of mobile and AI technologies, as well as GPS, now allows ridesharing companies to better serve their customers. Clients have also improved their use of mobile applications by being able to book rides, track drivers and pay for the service within the application itself. Algorithms like GPS and route optimizing allow for better accuracy as well as speed, which lowers fuel consumption, shortens wait times, and increases overall efficiency.
  
   
• Additionally, many firms are now equipped with AI to assist with predictive analytics and demand forecasting which helps companies change their pricing models on the go. Furthermore, electric vehicles are beginning to be incorporated into ridesharing fleets which endorses the sustainability effort due to the introduction of technological innovations. Apart from electric vehicles, autonomous vehicles are also expected to aid in the development of the market as a result of technological advances.
  
   
• Even though ridesharing systems continue to develop and broaden their horizons, regional and niche competitors are providing alternatives for the users. Such businesses are targeting specific customer types, for example, electric vehicles or luxury rides, making the competition stronger for both the passengers as well as the drivers, which subsequently leads to a decrease in the pricing structure – thus affecting the profit margins of an Uber or Lyft.
  
   
• Additionally, when there are new competitors in market, users or drivers can expect their experience to be disrupted. Stronger companies slowly weaken because they have to spend more on marketing and technology to compete in a crowded marketplace.
  
   

U.S. Ride Sharing Market Analysis

Based on booking mode, the market is divided into online and offline. In 2024, the online segment held a U.S. ride sharing market share of over 85% and is expected to cross USD 49.5 billion by 2034.

 

• The factors influencing this growth in the online segment relate to rising patronizing for convenience and sophisticated digital experiences. With a greater dependence of consumers on smartphones and digital services, the use of ride-hailing applications is on the upward trend.
  
   
• The fast booking, real-time tracking, and seamless payment with a few taps that they offer surely bring convenience. In-app ride scheduling, split fare options, and ride preferences are some of the modern functionalities which help in improving user experience.

Based on commute, the U.S. ride sharing market is categorized into intracity and intercity. The intracity segment held a market share of around 85% in 2024.

 

• The urban areas will encourage the growth of intracity due to the rising need for cost-effective and flexible modes of transport. With the increase in congestion of cities, ridesharing is becoming a common and cost-friendly way for consumers to travel short distances in the city.
  
   
• These ride-sharing services provide an on-demand, flexible solution that does not require car ownership, the need to find a parking space, or even wait for public transport for long periods.
  
   
• Furthermore, the emergence of electric scooters and bikes as micro-mobility alternatives will further enhance the appeal of the intracity ride-sharing model by providing users with affordable transport options for short journeys.

California dominated the U.S. ride sharing market with a major share of over 20% in 2024 and the California leads the market in the region.

 

• California continues to dominate the region because of its clean and energy-conscious approach. The state is vision oriented as it seeks to cut its greenhouse gas emissions, which include policies on ZEVs. Because of these policies, California-based ride-share companies must adapt to customer needs by implementing the use of electric vehicles (EVs).
  
   
• Additionally, shared mobility-friendly policies implemented in San Francisco and Los Angeles on carpool lanes together with the development of EV recharging stations add to the state’s competitive edge. Such support for policies contributes to the infrastructure growth of ride-sharing businesses while increasing demand for such services.
  
   
• Orlando, Miami, and Tampa are some of the places that are visited by millions of tourists that Florida attracts all year round. Most of these tourists do not wish to hire cars or drive on new roads, hence the use of ride-share services. This has resulted in ridesharing becoming better in those regions which were overcrowded with tourists, airports, hotels, and major attractions.
  
   
• The economic development of the region, along with tourism and a desire for more services, drives growth in the online taxi market.
  
   

U.S. Ride Sharing Market Share

In the U.S., Uber and Lyft have more than 40% market share in the ride-sharing industry.

 

• Uber, a ridesharing company, has put the expansion of services as a priority as it provides ridesharing, food delivery, freight, and even self-driving cars.
  
   
• Indeed, it has a competitive advantage with its international activities and investments in technologies such as advanced mapping and AI. Moreover, Uber seeks to penetrate cities and suburbs, and by using promotions and partnering with businesses, they are able to cultivate customer loyalty.
  
   
• Lyft is aiming at affordable rides along with great customer service experience. The business has gone carbon neutral, which attracts earth-friendly riders due to their sustainability efforts, which are reasonable and agreeable to make.
  
   
• Lyft has underscored the importance of local strategic associations and synergies with transit agencies for extending their service area.
  
   

U.S. Ride Sharing Market Companies

Major players operating in the U.S. ride sharing industry include:

• Bird Rides
• Bolt
• Chariot
• Curb Mobility
• Gett
• Gogoro
• inDriver
• Lyft
• Uber
• Wingz
  
   

Intense competition exists in the U.S. ride sharing market as key players fight for dominance and name recognition in the industry across the globe as well as locally due to changing customer needs, new policy implementation, and a greater embrace of modern technologies. Global corporations lead in this market by providing integrated platforms for ride services, which involve ridesharing, integration of electric vehicles, and the cross-selling of pooling and micro-mobility services.

 

The use of electric and self-driving cars is having an impact on ride-hailing in the U.S. Ridesharing businesses are starting to replace their regular cars with electric vehicles to meet new regulations and for environmental reasons. Moreover, future ride-sharing concepts are being developed as autonomous vehicle technology advances, and self-driving cars are being aimed at being sold commercially by the industry leaders in partnership with technology providers and automotive manufacturers.

 

U.S. Ride Sharing Industry News

• In July 2024, Uber Technologies and BYD revealed a partnership aimed at adding 100,000 new BYD electric vehicles to the Uber platform. This collaboration is expected to provide Uber drivers with access to competitive pricing and financing options for BYD vehicles.
  
   

• In July 2024, Triple J acquired Stroll to expand its ridesharing offerings. This strategic move will create a new division operating under the Stroll name, further strengthening Triple J’s diverse portfolio and reinforcing its commitment to delivering innovative transportation solutions.
  
   

The U.S. ride sharing market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue ($Bn) and Fleet Size from 2021 to 2034, for the following segments:

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Market, By Business Model

• Peer-to-Peer (P2P)
• Business-to-Business (B2B)
• Business-to-Customer (B2C)

Market, By Propulsion

• ICE
• CNG/LPG
• Electric
• Others

Market, By Booking Mode

Market, By Commute

Market, By Vehicle

The above information is provided for the following regions and countries:

• Arizona
• California
• Colorado
• Florida
• Georgia
• Illinois
• Indiana
• Maryland
• Massachusetts
• Michigan
• Minnesota
• Missouri
• Nevada
• New Jersey
• New York
• North Carolina
• Ohio
• Oregon
• Pennsylvania
• Tennessee
• Texas
• Utah
• Virginia
• Washington
• Wisconsin