Saudi Arabia Ride Hailing Market: Urban Mobility Demand & Platform Growth

According to IMARC Group's latest research publication, Saudi Arabia ride hailing market size reached USD 1.9 Billion in 2025. The market is projected to reach USD 5.6 Billion by 2034, exhibiting a growth rate of 13.03% during 2026-2034.

How AI is Reshaping the Future of Saudi Arabia Ride Hailing Market

• Autonomous Robotaxi Integration: WeRide launched Saudi Arabia's first autonomous robotaxi service in Riyadh partnering with Uber, covering King Khalid International Airport and major city locations with Level 4 self-driving technology.
• Smart Route Optimization: AI-powered demand forecasting and route planning systems reduce wait times and optimize driver allocation across platforms, improving service efficiency by analyzing real-time traffic and passenger patterns.
• Pick-Up/Drop-Off Intelligence: Advanced machine learning eliminates fixed location lists, automatically analyzing rider positions to recommend three optimized nearby pickup points, mirroring traditional ride-hailing convenience while boosting operational efficiency.
• Safety and Fraud Detection: Integrated AI systems monitor driver behavior, predict accident hotspots using predictive analytics, and detect fraudulent activities in real-time to enhance passenger safety and platform integrity.
• Digital Payment Innovation: AI-driven fintech solutions like Careem Pay enable seamless transactions, remittance services with 77% user retention, and 15-minute average processing times, supporting financial inclusion across the Kingdom.

How Vision 2030 is Revolutionizing Saudi Arabia Ride Hailing Industry

Vision 2030 has fundamentally transformed the ride-hailing landscape by creating an ecosystem where digital mobility thrives. The government's licensing reforms have attracted global players like Uber and regional leaders like Careem, while mega-projects such as NEOM and The Line are driving unprecedented demand for smart transport solutions. Female workforce participation has surged dramatically—women drivers increased 48% year-over-year to reach 22,000 in 2024, representing a cultural shift that's opening new economic opportunities. The Transport General Authority reported 80.5 million app-enabled trips in 2024, up 26% from the previous year, with 332,000 registered drivers supporting this growth. Smart city initiatives like the Heart of Khobar project ($1.6 billion investment) and Madinah's 220 km bike lane network by 2025 demonstrate how infrastructure development is seamlessly integrating ride-hailing into daily urban life, positioning Saudi Arabia as a regional mobility innovation hub.

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Saudi Arabia Ride Hailing Market Trends & Drivers:

The ride-hailing sector is experiencing explosive growth powered by a perfect convergence of demographic shifts, technological readiness, and government support. Saudi Arabia boasts one of the Middle East's highest smartphone penetration rates, with widespread 4G coverage and expanding 5G networks enabling frictionless access to ride-hailing apps. The young, tech-savvy population drives consistent adoption, while integrated payment options including e-wallets and digital cards facilitate seamless cashless transactions. Major urban centers like Riyadh, Jeddah, and Dammam are seeing rapid expansion—Riyadh's New Murabba project alone represents a $13 billion investment creating mixed-use zones that generate substantial short-distance travel demand. With traditional public transport still developing and parking challenges mounting, ride-hailing platforms offer scalable solutions without straining infrastructure. The 61% surge in international tourist arrivals through early 2024 compared to 2019 levels further amplifies demand, as visitors rely heavily on accessible, transparent app-based transportation to navigate unfamiliar cities.

Female empowerment is reshaping market dynamics in profound ways. Since the 2018 driving ban lift, women's mobility patterns have transformed dramatically—ride-hailing usage has dropped 17% as more women take the wheel themselves, while three-quarters of licensed female drivers use their vehicles regularly. This shift has created dual opportunities: women are both customers exercising newfound independence and drivers generating income. Platforms responded with culturally sensitive features like Uber's "Women Drivers" option, allowing female passengers to request female drivers exclusively, addressing safety concerns while creating inclusive earning opportunities. The 27% increase in registered drivers to 332,000 includes significant female participation, supporting Vision 2030's goal of raising women's workforce participation from 22% to 30%. This cultural evolution is generating economic momentum—Bloomberg Economics estimates the driving ban lift could add $90 billion to Saudi Arabia's economy by 2030.

Infrastructure and regulatory frameworks are accelerating market maturation. The Saudi Road Code introduced in early 2025 provides essential guidelines for autonomous vehicle integration, with the government targeting 15% of public transport running autonomously by 2030. The Transport General Authority actively fosters competitive, safety-focused regulation while keeping markets open to new entrants—evidenced by inDrive receiving licensing to operate in Jeddah in April 2025, offering a unique peer-to-peer price negotiation model. Public-private partnerships are flourishing: Lucid, Nuro, and Uber announced plans to launch 20,000 autonomous vehicles by late 2026, while WeRide secured Saudi Arabia's first autonomous driving permit in July 2025. These collaborations, supported by the Public Investment Fund's strategic investments, are positioning the Kingdom at the forefront of next-generation mobility. With tourism projected to reach $110.1 billion by 2033 and urban infrastructure projects creating connected, digital-ready environments, ride-hailing platforms are essential connectors bridging gaps in transportation networks while capitalizing on the Kingdom's ambitious transformation agenda.

Saudi Arabia Ride Hailing Market Industry Segmentation:

The report has segmented the market into the following categories:

Vehicle Type Insights:

• Two-Wheeler
• Passenger Car

Booking Type Insights:

• Online
• Offline

End-Use Insights:

• Personal
• Commercial

Regional Insights:

Northern and Central Region

• Western Region
• Eastern Region
• Southern Region

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Recent News and Developments in Saudi Arabia Ride Hailing Market

• July 2025: Lucid Motors, Nuro, and Uber announced a partnership backed by Saudi Arabia's Public Investment Fund to launch next-generation autonomous robotaxi service by late 2026, featuring 20,000 self-driving Lucid vehicles powered by Nuro's Level 4 technology across major cities.
• May 2025: Elon Musk expressed interest in launching robotaxis in Saudi Arabia during the US-Saudi Investment Forum, while Uber confirmed plans to introduce self-driving cars in collaboration with Pony.AI by 2025.
• April 2025: inDrive, a global ride-hailing service, was granted operational license to launch in Jeddah, offering a unique passenger-driver price negotiation model with lower service fees than traditional platforms, expanding market competition.

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