Mature ridehailing segment to be offset by emerging ridesharing, car rental, and bikesharing segments offering strong growth potential.
By Ming Lih Chan, Research Manager – Mobility
Rapid urbanization and evolving consumer behavior will underpin the continued expansion of China’s shared mobility market. As Chinese Tier I and Tier II cities grapple with increasing traffic congestion and rising parking costs, flexible mobility solutions have become increasingly attractive. Younger consumers, in particular, are prioritizing convenience and affordability over car ownership, opting for shared mobility services as a cost-effective alternative to private vehicles.
Despite strong market potential, however, profitability remains a key challenge for market participants. Many companies are struggling with high operational costs, limited bargaining power, and a reliance on subsidies. Such pressures are being aggravated by government policies promoting new car sales.
An Evolving Market
In 2023, China’s shared mobility market had over 1,155 competitors with leading players such as Didi, Dida Chuxing, Hellobike, Mobike, Wukong Car Rental, and eHi dominating the market. By 2030, the total fleet size is projected to reach 43.1 million, growing at a compound annual growth rate (CAGR) of 4.2%. Among the four key segments of the overall shared mobility market— ridehailing, ridesharing, bikesharing, and car rentals—ridesharing is expected to experience the highest growth, followed by car rentals, ridehailing, and bikesharing.
Stable growth and intense competition characterize the mature ridehailing segment. Operators are enhancing service quality to maintain their market position, even as they focus on electric vehicle (EV) adoption and fleet renewals. Government oversight is, meanwhile, facilitating a more regulated market environment.
High profit margins and an expanding user base are highlighting the emergence of the ridesharing segment as a formidable competitor. Despite restrictions imposed by the platforms themselves, many drivers register on multiple platforms to maximize earnings. Moreover, the lack of mandatory operational licenses complicates government oversight, further fueling the segment’s rapid expansion.
The expansion of electric bikesharing services and improved urban infrastructure is propelling growth in the nascent bikesharing segment. Technological advances and supportive government policies are supporting the long-term sustainability of this segment.
The car rental segment is experiencing robust growth spurred by the recovery of domestic tourism and economic resurgence. Such trends are being bolstered by a shift in consumer preferences from ownership to usage-based models.
Leading car rental companies are increasingly forming strategic partnerships with automotive manufacturers, financial service providers, and travel agencies to offer customized rental solutions that cater to diverse consumer needs.
To learn more, please access: Shared Mobility Market, China, 2023-2030, China Electric Vehicles (EV) Market, Unit Shipment Forecast and Growth Opportunities, 2024–2030, Shared Mobility in Rural Areas in Europe, 2024-2030 and Growth Opportunities in Global Traditional Carsharing, 2024-2030, or contact sathyanarayanak@frost.com for information on a private briefing.
Our Perspective
As mobility needs become more diverse, there will be rising demand for personalized services. Consumers will be prepared to pay premium prices for efficient and tailored mobility experiences. Accordingly, shared mobility companies will need to develop intelligent user profiling systems that analyze travel habits, spending patterns, and time preferences that, in turn, support customized service options.
While Tier I and Tier II cities are nearing market saturation, lower-tier cities present significant growth potential. Strong demand for cost-effective mobility solutions in these cities will make them attractive expansion targets. Market players will need to develop targeted service offerings that align with local mobility preferences and infrastructure constraints.
Rising cost pressures and demands for innovation will require shared mobility operators to forge strategic partnerships that address market pain points and help create sustainable business models that balance profitability with innovation. Collaborating with technology firms, automotive manufacturers, and public transportation providers will promote operational efficiency and enhance service offerings. The integration of data across mobility platforms will set the groundwork for seamless Mobility-as-a-Service (MaaS) solutions.
With inputs from Amrita Shetty, Senior Manager, Communications & Content – Mobility
