Saudi Arabia Ride Hailing Market Overview

Market Size in 2024 : USD 1.6 Billion

Market Size in 2033: USD 5.5 Billion

Market Growth Rate 2025-2033: 12.90%

According to IMARC Group's latest research publication,"Saudi Arabia Ride Hailing Market Size, Share, Trends and Forecast by Vehicle Type, Booking Type, End-Use, and Region, 2025-2033", The Saudi Arabia ride hailing market size reached USD 1.6 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 5.5 Billion by 2033, exhibiting a growth rate (CAGR) of 12.90% during 2025-2033.

Growth Factors Driving the Saudi Arabia Ride Hailing Industry

• Urbanization and Traffic Congestion

The cities of Saudi Arabia (such as Riyadh and Jeddah) are developing rapidly, and millions of people come to the cities to get employed and to live there. This outgrowth has astronomically increased the desire on easy methods of transport since the public transportation cannot keep up in most cases. The gap is being filled by ride sharing applications such as Uber and Careem which provide app based solutions at short notice. The mark is up by 12 per cent (or 51.8 million more trips) in the first nine months of 2024 on the same period in 2023. With an increase in traffic congestion in the cities, citizens are opting to use the ride-hailing services to avoid parking difficulties and long distances in commuting. Transport General Authority (TGA) facilitates this change, which goes in line with the Vision 2030 and agile but smarter urban mobility. This is how Saudis are changing their way of movement and the ride-hailing service has become the technology of first choice on the daily transportation and business travel.

• Government Support and Vision 2030

Vision 2030 in the United States of Saudi Arabia transforms the game of ride-hailing, and its purpose is to diversify the economy in the country, as well as increase employment rates. Its government has also implemented policies to promote this industry such as removing the ban on ladies taxi driving ushering a population of female taxi drivers, the thousands. In 2024, the ride-hailing platforms gave Saudi drivers more than SAR 1,1 billion (approximately $293 million). These services are regulated by the TGA to offer safety and quality and develop confidence among the users. Foreigners limitation in the taxi industry has also created an opportunity to other local taxi drivers, which is in line with the reduction of unemployment. Using the idea of tech-driven solutions, the government is turning ride-hailing into one of the primary aspects of transport modernization and the boost of the economy.

• Smartphone Penetration and Digital Adoption

Ride-hailing is growing due to the broad use of smart phones in Saudi Arabia. Booking a ride is as simple as few taps since the internet access is high and more than 70 percent of the populace own smart phones. This is a tech-savvy culture particularly by the young Saudis who are more than 60 per cent under the age of 30 and require the application of these applications such as Cureem that provides such customized services such as the female-driven rides. In 2024, the user penetration will reach 33.5 percent, and 10.6 million users are likely to be reached by 2027. The ride-hailing is convenient and safe since it has moved to cashless payment that is supported by 70% non-cash transactions advocated by Vision 2030. Together with convenient user-friendly apps, this digital boom is turning ride-hailing into a popular solution to convenient on-demand transport within the Kingdom.

Emerging Trends in the Saudi Arabia Ride Hailing Market

• Rise of Female Drivers and Gender-Specific Services

Female participation in the Saudi Arabian ride-hailing industry is by far another significant trend, fueled by the dramatic choice to end the driving ban on women in 2018. Ridesharing services such as Uber and Careem now have female-driven cabs; in case women feel more comfortable and safe with vehicles operated by their gender. In 2020, there were more than 800,000 female drivers, and their ranks are constantly increasing, as most of them are part-time drivers who have to take care of families or studies. This transition is in line with the vision of 2030 on empowering women and increasing the number of workforce participation of women. Such services are particularly well received in the city of Riyadh and all the other cities of the Middle East where women renters appreciate the extra level of security and the cultural awareness. This is changing the face of the industry by making it more open and user friendly to most users.

• Integration with Tourism and Intercity Travel

Ride-hailing services are leveraging the thriving tourist destination market in Saudi Arabia that has witnessed 18 million visitors in 2022. Applications such as Careem are merging tourism services in such a way that you are connected to ride to a place like AlUla or a business district such as the King Abdullah Financial District without so much hassle. In 2024, there was a boom of intercity taxi passenger journeys with Careem adding services during the 2022 Qatar world cup. The trend serves the tourists and business people who need a source of reliable transport between cities. Carpooling and premium services are available now in platforms and diversify traveling. This is because 68 per cent of intra-city passengers need ride-hailing services; thereby increasing ease of movement and alignment with Vision 2030 to increase non-oil revenue by promoting tourism.

• Adoption of Electric Vehicles

Sustainability is contributing the move to make ride-hailing services use electric vehicles (EVs). Although EVs remain a novelty in Saudi Arabia, companies such as Careem are betting on environmental-friendly fleets to reduce emissions in-line with the global trend and the environmental vision of 2030. The Kingdom has a goal of 1-2 million EVs in the road by 2030. Ride-hailing companies are experimenting with electric vehicles in such cities as Riyadh, where traffic jams make the issue of sustainable transportation even more urgent. This transition is attractive to the environmentally friendly users and saves money on fuel consumption by drivers. When the sustainable infrastructure has the government support, EVs will play a significant role, and thus ride-hailing will become a pioneer in the Saudi green mobility revolution.

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Saudi Arabia Ride Hailing Industry Segmentation:

The report has segmented the market into the following categories:

Vehicle Type Insights:

• Two-Wheeler
• Passenger Car 

Booking Type Insights:

• Online
• Offline

End-Use Insights:

• Personal
• Commercial

Regional Insights:

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

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Future Outlook

Saudi ride-hailing has an excellent growth opportunity, as urbanization, and technological progress, as well as the interest in economic diversification under the vision 2030, back it up. Because of 51.8 million trips in 2024 and an estimated user penetration of 41.1 percent in 2029, platforms such as Uber and Careem will probably increase accessed services, including intercity transport and sustainability fleets. They will keep the industry inclusive, given the emergence of more female drivers and gender-specific rides. The AI-driven functionalities, such as an improved route, will increase efficiency. The issues such as compliance with regulations and the threat posed by traditional taxis are still present, yet the governmental support and digitalization will ensure that the industry remains prosperous. With the development of tourism and modernization of the city, use of ride-hailing will continue to be an icon of the developing transport system, providing accessible, sustainable travel in Saudi Arabia.

Research Methodology:

The report employs a comprehensive research methodology, combining primary and secondary data sources to validate findings. It includes market assessments, surveys, expert opinions, and data triangulation techniques to ensure accuracy and reliability.

Note: If you require specific details, data, or insights that are not currently included in the scope of this report, we are happy to accommodate your request. As part of our customization service, we will gather and provide the additional information you need, tailored to your specific requirements. Please let us know your exact needs, and we will ensure the report is updated accordingly to meet your expectations.

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