Ride-sharing services utilising freelance drivers, like Uber and Lyft, will see their revenue double by 2020.
This is according to new data from Juniper Research, which shows shared transport platforms, that typically take just 20% of driver earnings, will see revenue grow from an estimated $3.3 billion in 2015, to $6.5 billion by 2020.
The report found that a combination of driver incentives, flexible working hours, and new business models will attract more drivers to these companies.
While Uber has struggled to gain a significant foothold in China, largely due to the dominance of taxi hailing service, Didi Kuaidi, Uber is not without the determination and means to force its way into new markets, according to Juniper.
"Uber has reportedly spent $1 billion per year on expansion in China alone. In addition, it has recently set its sights on disrupting the huge motorbike taxi industries of India and Thailand, displaying a willingness and drive to aggressively obtain market share," says research author, Lauren Foye.
Uber's February announcement that it is to launch its UberMOTO service in India opens it to an enormous potential market ? the city of Bangalore alone has 3.5 million registered motorbikes, and India already allows motorbike taxi bookings through applications in two states.
Uber South Africa hopes to bring UberPool, a car-pooling option, to the platform soon. UberPool allows passengers going from similar places to similar destinations to share a ride and split the cost.
The option is already operational in the US, China, India, London and Paris. Uber Sub-Saharan Africa GM, Alon Lits, says if UberPool was used by existing Uber customers, traffic into Johannesburg could be reduced by up to 800 000 cars.
Last week, Uber also announced it would drop fares on UberX in South Africa by up to 20%. The company is confident the price cuts will increase demand among customers, leading to driver-partners earning more money.
Shared manufacturing
Juniper's research also found that in general, the 'sharing economy' is set to branch into more markets and industries, with the most notable instance being the impact on manufacturing.
"Shared services in this industry will aid in drawing manufacturing back to western economies; which typically outsource such operations to the Far East and Asia Pacific," says Juniper.
Shared manufacturing, through the concept of collaborative innovation, alongside technologically advanced workshops such as 'TechShop', has the potential to reduce production times for prototypes and concepts, while aiding in the scaling-up of production projects designed by young start-up businesses.
Juniper Research provides research and analytical services to the global hi-tech communications sector, providing consultancy, analyst reports and industry commentary.
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