Virus Attack To Wipe Off $450bn Global Mobility Service’s Earnings
OMOTAYO ARAOYE
Earnings of the operators in the global mobility service are expected to plunge by $50 billion, year-on-year, crashing to $616 billion value in 2020 owing to the Coronavirus attack that has left businesses crippled according to data gathered and published by BuyShares.co.nz
Following the coronavirus crisis, public life in all countries is grinding to a halt as social distancing rules have forced millions of people worldwide to change their daily routine, including the way they travel or use mobility services.
The mobility services market includes flights, ride-hailing, taxi services, long-distance bus travel and train tickets, car rental hires and car-sharing services, booked online and offline. Of these, operators in the flights and taxi services alone will experience $395.3 billion drop in earnings
In 2017, the revenue of the global mobility services segment amounted to $975 billion, revealed Statista Global Consumer Survey. Over the next two years, this figure rose to $1.06 trillion. Flights, taxi, and ride-hailing services, as the two leading segments, generated nearly 80 percent of that value.
However, the COVID-19 crisis came as a new shock to the market already faced with growing environmental concerns, new regulatory trends, and changing customer preferences. Statistics show the flight segment is expected to lose 47 percent of revenue in a year, falling from $538.6 billion in 2019 to $285.3 billion in 2020.
Ride-hailing and taxi services are set to witness a 37 percent drop, with the revenues plunging by $37.8 billion and reaching $53.3 billion this year. The combined revenues of the train and bus segment are forecast to plummet by $46.7 billion, reaching $77.4 billion in value in 2020.
Car rental services are expected to witness a 41percent drop year-on-year, reaching $53.3 billion in revenue by the end of the year. The incomes of the market’s smallest segment, the car-sharing services, is expected to drop to $2.1 billion in 2020, representing a 22 percent fall year-on-year.
Statista data also revealed the recovery of the mobility services market after the coronavirus crisis is expected to last at least three years, with the revenue reaching $1.17 trillion in 2023, only a 10 percent increase compared to pre-COVID 19 figures. By the end of 2024, this figure is forecast to touch $1.3 trillion.
Online sales accounted for 68 percent of the total mobility services revenues in 2020, a 1 percent increase year-on-year. This figure is expected to rise to 72 percent by 2024.
Statistics also show the entire market is set to witness a substantial drop in the number of users amid the COVID-19 crisis, falling from 4.2 billion in 2019 to almost 3.6 billion in 2020.
Flights and car-rental segments are expected to have the most significant share in that negative trend. Statista Global Consumer Survey revealed that in 2019, the number of users in the flight segment amounted to 993.7 million. This figure is forecast to stumble to 511.5 million in 2020, a 48 percent drop year-on-year. The number of people using car rental services worldwide is expected to plunge to 266.1 million this year, a 40% decrease compared to 2019 figures.
Comments are closed.