The size of Africa’s shared mobility market is forecast to double by 2030, to reach $8 billion (R147 billion), and create an additional 550 000 income-earning opportunities on the continent.
This is according to a new report from global management consultancy Oliver Wyman, titled ‘Shared Mobility’s Global Impact’, supported by data made available by global e-hailing operator, Bolt.
The study highlights the current and potential economic, social, and environmental impact of the evolving shared mobility sector globally.
According to the report, Africa’s shared mobility sector – which includes services like ride-hailing, scooter or e-bike rentals, and car-sharing – is set to see the second fastest growth after Asia, driven by rapid urbanisation and a rising middle class.
The study highlights the sector’s growing impact on city economies. Currently worth $4.2 billion, the sector is set to be worth $7.8 billion by 2030. That growth will help drive important income opportunities on the continent, the majority of which are within ride-hailing driving, it says.
African e-hailing drivers earn well above wages in comparable jobs in Africa (up to +130% in South Africa and Nigeria), it states.
The study also highlights the sector’s role in supplying affordable and accessible transport, particularly in African countries where car ownership remains inaccessible to many.
“Shared mobility is set to rise from 3% to 7% of global journeys by 2030,” says Dr Andreas Nienhaus, partner, automotive and mobility, climate and sustainability at Oliver Wyman.
“The African market is the most interesting we study. It retains significant challenges, but shared mobility can support ongoing infrastructure development to radically change the journey mix. Beyond its economic and social impacts, the report also highlights the key role that shared mobility could play in building a sustainable future, particularly in the urban environments where shared mobility services are most prevalent.”
Above minimum wage
Over the last few years, ride-hailing services in Africa gained popularity, with more customers ditching their private or public modes of transport due to mobility-sharing advantages such as convenience, reduced travel costs, less traffic congestion and lower emissions.
According to the study, more than nine million people globally are estimated to earn an income from shared mobility services in 2023, and the number is forecast to grow to 16 million by 2030.
Asia (including the Middle East) accounts for 71% of the jobs, while Africa has the strongest growth: jobs are expected to increase by 113% from 2023 to 2030.
Ride-hailing drivers typically earn above the minimum wage in Europe (+37% in Berlin and +91% in Tallinn) and above the wages for jobs with comparable skill levels in Africa (up to +130% in South Africa and Nigeria).
The study further underlines the need for shared mobility to complement continued improvement in transport infrastructure in African cities.
“Some of the improvements recommended include data sharing between operators and authorities, investment in road infrastructure to enable the launch of bike sharing, and the opportunity for shared mobility operators to support vehicle purchasing schemes and electrification of fleets.”