Market Overview
The Saudi Arabia ride-hailing services market size reached USD 1.35 Billion in 2024 and is projected to expand to USD 6.54 Billion by 2033. The market is expected to grow robustly during 2025-2033, driven by increased urbanization, greater smartphone penetration, and supportive government policies. Enhanced regulatory frameworks and rising demand for convenient transport options are fueling market growth. This positions the industry for long-term development with opportunities for both local and international stakeholders.
How AI is Reshaping the Future of Saudi Arabia Ride-Hailing Services Market:
- AI-driven analytics enable ride-hailing apps to optimize pricing and route efficiency, enhancing user experience.
- Integration with digital payment platforms streamlines transactions, making AI a pivotal component in seamless payments.
- AI helps in compliance with regulatory requirements such as trip destination visibility and driver identification systems to boost safety.
- Adoption of AI in data-driven decision-making supports companies like Ego in their strategic planning and customer retention efforts.
- AI facilitates customer segmentation and personalized marketing campaigns, increasing engagement and loyalty.
- Through AI-powered autonomous and electric vehicle technologies, firms including Tasaru Mobility Investments are advancing towards sustainable and innovative mobility solutions.
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Market Growth Factors
The Saudi Arabia ride-hailing services market is primarily driven by rising smartphone ownership and expanding digital penetration. In 2024, approximately 33.55 million individuals in Saudi Arabia owned a smartphone, with continued growth anticipated. This increased digital connectivity supports mobile-first services like ride-hailing, providing convenient access through apps. Moreover, the integration of digital payment platforms facilitates seamless cashless transactions, making ride-hailing more attractive especially among the youth demographic. The government's emphasis on advancing digital infrastructure also aligns with nationwide digitalization goals, thus catalyzing sector expansion.
Government initiatives and regulatory transformations are significantly boosting the ride-hailing market in Saudi Arabia. The Transport General Authority (TGA) implemented updated regulations in February 2024, including mandatory subscription to the Interior Ministry's Shomoos system for inter-city rides and visibility of trip destinations prior to acceptance. These measures enhance service quality, operational efficiency, and safety standards. Such a structured framework encourages market competition and investment, fostering technological innovation and enhancing customer trust across the sector.
Growing environmental awareness is shaping consumer preferences towards flexible and sustainable transportation solutions in Saudi Arabia. High usage of transportation apps for ridesharing highlights a trend toward shared and environmentally friendly mobility. For example, 83.5% of men and 16.5% of women use ride-sharing services, showing active engagement. Firms respond by integrating electric and hybrid fleets and promoting carpooling to reduce carbon emissions. These efforts align with the kingdom's sustainability targets and open avenues for market players to expand offerings underscoring green mobility.
Market Segmentation
- Vehicle Type
- Two-Wheeler
- Three-Wheeler
- Four-Wheeler
- Others
- Service Type
- E-hailing
- Car Sharing
- Car Rental
- Others
- Payment Method
- Cash
- Online
- Location Type
- Urban
- Rural
- End User
- Personal
- Commercial
- Region
- Northern and Central Region
- Western Region
- Eastern Region
- Southern Region
Key Players
- Ego
- MoEngage
- Tasaru Mobility Investments
- Holon
- Benteler
- Uber
Recent Development & News
- February 2025: Ego, a Riyadh-based ride-hailing app, expanded its use of AI-powered platforms to enhance retention and optimize customer lifetime value, leveraging data-driven strategic planning that improves message timing and channels.
- March 2025: Tasaru Mobility Investments announced plans to increase electric and autonomous vehicle production in Saudi Arabia, supporting the local ride-hailing ecosystem and the country’s sustainability vision by opening a new facility.
- October 2025: Uber launched enhanced safety and account oversight features for teenagers in Saudi Arabia allowing parents to monitor teens aged 13-17 requesting rides independently, a move that caters to road safety and boosts market accessibility.
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