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Ride-hailing - Nigeria

Nigeria

By 2024, the Ride-hailing market in Nigeria is anticipated to generate a revenue of €244.80m.
This sector is expected to exhibit an annual growth rate (CAGR 2024-2029) of 12.80%, leading to a projected market size of €447.10m by 2029.
Moreover, it is anticipated that the number of users in this market will escalate to 42.88m users by 2029.
In 2024, the user penetration rate is predicted to be 13.7%, which will decrease to 16.7% by 2029.
The average revenue per user (ARPU) is expected to be €7.78.
The Ride-hailing market is an online-only market.
Furthermore, China is expected to generate the most revenue (€55,230m in 2024) in the Ride-hailing market in comparison to other countries.
Despite challenges posed by poor infrastructure and security concerns, ride-hailing services in Nigeria continue to grow due to high demand for affordable transportation options.

Key regions: South America, Europe, China, Saudi Arabia, Malaysia

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Analyst Opinion

The ride-hailing market in Nigeria has witnessed significant growth and development in recent years. Customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors have all contributed to the expansion of this industry. Customer preferences in Nigeria have played a crucial role in the development of the ride-hailing market. With the increasing urbanization and congestion in major cities, customers are seeking convenient and efficient transportation options. Ride-hailing services provide a solution to these challenges by offering a reliable and affordable alternative to traditional taxis. Additionally, the rise of smartphone penetration in Nigeria has made it easier for customers to access and use ride-hailing apps, further driving the demand for these services. Trends in the market have also contributed to the growth of the ride-hailing industry in Nigeria. One notable trend is the increasing popularity of motorcycle ride-hailing services, also known as "okadas. " These services have gained traction due to their ability to navigate through traffic congestion and provide quick transportation options for customers. The convenience and affordability of motorcycle ride-hailing services have made them a preferred choice for many Nigerians, especially in densely populated areas. Local special circumstances have also shaped the ride-hailing market in Nigeria. The country's inadequate public transportation system and the unreliability of traditional taxis have created a gap in the market that ride-hailing services have been able to fill. Additionally, the high unemployment rate in Nigeria has led to many individuals seeking employment opportunities as ride-hailing drivers, further fueling the growth of the industry. Underlying macroeconomic factors have also played a role in the development of the ride-hailing market in Nigeria. The country's growing middle class and increasing disposable income have contributed to the demand for convenient transportation options. As more Nigerians have the financial means to afford ride-hailing services, the market has expanded to cater to this growing customer base. Furthermore, the government's efforts to improve the ease of doing business and promote entrepreneurship have created a favorable environment for ride-hailing companies to operate and thrive. In conclusion, the ride-hailing market in Nigeria has experienced significant growth and development due to customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. As the country continues to urbanize and face transportation challenges, ride-hailing services are expected to play an increasingly important role in providing convenient and efficient transportation options for Nigerians.

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.