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What is the total addressable market for on-demand ride sharing in the Saudi Arabia?
Hi! Thanks for letting Wonder help with your question about the total addressable market for on-demand ride sharing in Saudi Arabia. Statista's statistics aggregation and an article from UAE paper The National were most helpful in coming to an answer. Here's the short version: the TAM for 2017 is $157 million US. Read on for the long version! All figures are in US dollars unless otherwise noted.
FINDINGS
Ride sharing is on an upward trend in Saudi Arabia in general, thanks to strong commitment from the Saudi government to ridesharing services. Saudi Arabia invested 3.5 billion in Uber in 2016, and Saudi Telecom, a state-controlled company, purchased 10% of ride-sharing app Careem, "the global rival to Uber," in December. These purchases are part of an effort by the Saudi Ministry of Labour to bring more women into the workforce -- their goal is to add 1.3 million women by 2030.
According to Statista, 1.64 million users in Saudi Arabia will use a ride-sharing service in 2017. That number is expected to grow to 2.38 million by 2021. Current average revenue per user for ride-sharing apps is $95.22, which is expected to climb to just over $108 in the next four years.
Statista expects a total revenue for ride-sharing services of $157 million in 2017, growing to $257 million by 2021. That amounts to a CAGR of 13.2%.
CONCLUSION
The current TAM for ride-sharing services in Saudi Arabia is $157 million with 1.64 million users. As government support for and public use of ride-sharing services grows, that's expected to swell to $257 million and 2.38 million users by 2021 for a CAGR of 13.2%.
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