SharesPost Research: Global Ride-Sharing Bookings to Double in Next Three Years to $400 Billion

Uber, Lyft Execute Different Growth Strategies From DiDi, Ola,
Grab, and Careem

SAN FRANCISCO–(BUSINESS WIRE)–Annual gross bookings for the world’s major ride-sharing companies will
double to $400 billion by 2021, powered by triple-digit growth in Asia
and declining car ownership by Millennials, according to new research
from SharesPost.

In 2018, an estimated 800 million to 850 million users were spending an
average $20 to $25 per month on ride-sharing apps, generating annual
gross bookings of $175 billion to $225 billion. Over the next three
years, ridership will grow 50 percent and gross bookings are expected to
double to over $400 billion, based on SharesPost’s forecast.

The dynamic growth of ride-sharing is due to increasing smartphone usage
globally, a preference by Millennials to abandon car ownership and
strong adoption in regions with large urban populations, particularly in
India and China.

Lyft’s planned IPO, announced this week, is also likely to accelerate
the IPO timeline for other ride-sharing firms.

Lyft’s planned IPO will be closely watched by other ride-sharing
companies as institutional investors get a first look at the numbers
behind the fundamental value proposition of ride-sharing apps,” said
Managing Director Rohit
Kulkarni
, Head of Research for SharesPost, Inc. “Ride-sharing apps
work best in high-density areas with lots of drivers and riders – the
classic network effect. The Asia-Pacific region is home to the most
metro areas with populations over 10 million. At the same time, the
allure of car ownership is fading among Millennials, the world’s largest
demographic. All of this, along with continued venture capital
investment, will drive the growth of the category for the foreseeable
future.”

The 25-page report highlights the growth prospects for the major
ride-sharing companies – Uber, Lyft, Ola, DiDi, Careem, and Grab – and
estimates each company’s enterprise value. The analysis also highlights
the unique approach that Asian companies are pursuing by offering
ride-sharing in a “super app” that includes a supermarket of consumer
services in addition to transportation.

The report predicts that Asian ride-sharing firms will continue to grow
much faster in the medium term. However, American rideshare companies
still benefit from higher valuations relative to growth and scale than
Asian counterparts.

Our analysis suggests that investors are discounting Asian ride-sharing
firms compared to American companies,” Kulkarni said. “DiDi has a larger
footprint in terms of drivers and has raised a similar amount of capital
as Uber, but investors value DiDi less, even though the company has more
room to grow. Similarly, Lyft has a smaller base of drivers and fewer
rides completed till date as compared to Grab, but enjoys a higher
valuation.”

Today, the three largest Asian companies currently account for 40
million rides a day. DiDi alone will likely surpass 20 billion rides
annually by the end of 2018, more than double Uber’s ridership and 20
times more than Lyft’s. The Asia-Pacific region also has more
Millennials than North America and Europe combined. India, which is
expected to see the most growth in riding-sharing, boasts the largest
Millennial population in these countries, the report noted.

To download the full report, click
here
.

About SharesPost, Inc.

SharesPost is a FINRA-registered broker-dealer, SEC-registered
Alternative Trading System (ATS) and Registered Investment Advisor.
SharesPost helped launch the secondary market for private tech companies
in 2009 and has built the leading platform for secondary transactions
and digital securities. SharesPost provides the private tech asset class
with a suite of trading and lending solutions to facilitate shareholder
and option holder liquidity. With more than $4 billion in secondary
market transactions in the shares of more than 200 leading technology
companies, SharesPost provides the trading, research and online tools to
transact in the private market with confidence. For more information,
visit sharespost.com.

Any securities offered are offered by SharesPost Financial Corporation,
a member of FINRA/SIPC. SharesPost Financial Corporation and SP
Investments Management are wholly owned subsidiaries of SharesPost Inc.
Certain affiliates of these entities may act as principals in such
transactions.

Investing in private company securities is appropriate only for those
investors who can tolerate a high degree of risk and do not require a
liquid investment.

Cautionary Note Regarding Forward-Looking Statements

The matters described herein contain forward-looking statements. These
statements include, but are not limited to, statements about research on
late-stage, venture-backed companies. We caution that these statements
are not guarantees of future performance. Actual results may differ
materially from those expressed or implied in the forward-looking
statements. Forward-looking statements involve a number of risks,
uncertainties or other factors beyond SharesPost’s control. These
factors include, but are not limited to, factors detailed in the white
paper. We undertake no obligation to release any revisions to any
forward-looking statements.

Contacts

Greg Berardi, Blue
Marlin Partners

greg@bluemarlinpartners.com,
415.239.7826