Ride-hailing in the Oceania Region: Market Share, Trends, Competitive Landscape, and In-depth Analysis

Driven by convenience and growing urban populations, ride-hailing is becoming a preferred way to travel in Oceania.

Customers now expect reliable rides at their fingertips, and the demand continues to rise every year.

Oceania covers many regions, but the demand for the ride-hailing market is increasing in each of those regions, but the most active regions are Australia and New Zealand, making them the core focus for businesses looking to grow.

Australia alone has seen a sharp increase in ride-hailing usage, with millions of trips booked each month.

In New Zealand, the trend is similar, as more people shift from traditional taxis to app-based ride services. This growth has attracted several players, creating a highly competitive space.

As customer expectations evolve, ride-hailing businesses in these countries must innovate to stay ahead.

In this blog, we will understand the market share, emerging trends, competitive landscape, and in-depth analysis of ride-hailing.

Market overview of ride-hailing in Oceania (Australia and New Zealand)

The ride-hailing industry in Oceania has seen strong growth in recent years, with Australia and New Zealand leading the way. Both markets are witnessing rising demand as customers prefer quick, convenient, and app-based transport services over traditional taxis.

Below is an in-depth look at each country’s ride-hailing market, highlighting growth trends, challenges, and key drivers shaping the industry.

Ride-Hailing Market Overview in Australia

The ride-hailing businesses in Australia have grown rapidly and is now a vital part of the country’s transport network. It has not only changed how people travel but also contributed significantly to the economy.

According to a report commissioned by Uber:

• UberX alone benefits customers by approximately $81 million per year.
• More than 60% of new UberX rides have expanded the point-to-point transport market, showing a clear shift in customer preference.
• On average, UberX rides are 20% cheaper than traditional taxis, even when surge pricing is included.

Revenue and growth:

As per Statista, the Australian ride-hailing segment generated US$1,895 million in 2020. It is projected to grow at a 14.8% CAGR (2020-2025), reaching a market volume of US$3,778 million by 2025.

The demand is fueled by several customer benefits, such as:

• Easy booking through mobile apps
• Multiple payment options
• GPS-enabled tracking
• 24/7 customer support
• Transparent and electronic fare meters

Key drivers of growth:

• The rise of ride-sharing services
• Increasing adoption of taxi booking apps
• Entry of new ride-hailing players

However, a few challenges may slow growth, such as:

• The abolishment of taxi licenses
• Additional levies and taxes on rides
• Vehicle reliability and regulatory issues

Geographical insights:

New South Wales (NSW) represents the largest ride-hailing market in Australia. By April 2020, 6,992 taxi licenses were issued in the state, with 5,572 licenses in Sydney alone. This reflects strong demand, boosted by tourism and the growing popularity of app-based ride services.

But the COVID-19 pandemic caused a temporary 80% drop in taxi bookings as people worked from home. Average fares fell from USD 25 to USD 19, and around 30% of the network went offline.

To adapt, companies like 13Cabs introduced services like grocery delivery, offering customers additional value during lockdowns.

Ride-Hailing Market Overview in New Zealand

The ride-hailing market in New Zealand is smaller than Australia’s but growing steadily. With its urban centers and increasing tourism, app-based ride services are becoming a preferred choice for both locals and visitors.

Industry growth and demand:

New Zealanders are embracing ride-hailing services for their convenience and affordability. Major cities like Auckland, Wellington, and Christchurch are leading in terms of adoption. The increasing number of smartphones and reliable internet access has accelerated the shift from traditional taxis to modern ride-hailing platforms.

Key players in New Zealand’s market:

• Uber remains the dominant player with a strong nationwide presence.
• Ola has expanded aggressively in recent years, challenging Uber with competitive pricing.
• Local operators such as Zoomy are also part of the growing competitive landscape.

Challenges in the New Zealand market:

• Regulatory changes and compliance requirements for ride-hailing operators.
• Competition among global and local players is leading to price wars.
• Temporary drop in demand due to COVID-19, which affected tourism and daily commuting.

Trends driving growth in the ride-hailing market of Oceania

The ride-hailing industry in Oceania (Australia and New Zealand) is changing fast, driven by two major shifts: technology and electric vehicles (EVs).

• Technology shift: With high smartphone and internet use, riders expect easy booking, live tracking, and cashless payments. To meet these needs, companies must use ride-hailing business software for smart routing and data analytics to make rides faster and more efficient.
• Rise of EVs: Growing fuel costs and government support for green transport are pushing taxi operators to switch to EVs. This move helps cut costs and attract eco-conscious riders.

These changes are reshaping the market. Taxi companies that adopt modern tech and sustainable practices will stay ahead, offering smarter and greener services that riders prefer.

Competitive landscape of ride-hailing in the Oceania region

The ride-hailing market in Oceania, especially in Australia and New Zealand, is highly competitive. Global players like Uber, Ola, Didi, and Bolt dominate most of the market share. Uber continues to lead, thanks to its wide network, strong brand presence, and advanced tech features. These companies have transformed the industry by making rides more accessible, affordable, and reliable.

However, local players still have room to grow. They can compete by focusing on:

• Personalized services tailored to local communities.
• Better driver support, including fair commission rates and training.
• Superior customer service to build loyalty.

To stay relevant and attract more riders, businesses can explore diverse models and services, such as:

• Ride-pooling to offer cheaper shared rides.
• Luxury or premium rides for high-end customers
• Corporate ride packages for businesses and offices.
• Eco-friendly EV fleets to appeal to sustainability-focused users.

By combining local market knowledge with smart strategies, smaller operators can carve out a niche, compete effectively, and expand their customer base in this fast-growing industry.

Tabular analysis of the ride-hailing market in the Oceania region

Conclusion

The ride-hailing industry in Oceania, especially in Australia and New Zealand, is evolving at a rapid pace. With growing urban populations, rising customer demand for convenience, and the shift toward eco-friendly transportation, the market is full of opportunities.

Global players have already reshaped the industry, but there’s still plenty of room for local businesses to thrive by focusing on personalized services, sustainable practices, and innovative business models.

In the coming years, the ride-hailing sector will not just be about moving people from one point to another. It will be about building smarter, greener, and more connected transportation networks that meet the evolving needs of Oceania’s riders.

Ride-hailing businesses can start shaping their future by hopping onto the trends and adopting the latest tech, such as the best ride-hailing solution, as soon as possible.