ridehailing

Ridehailing is an on-demand transportation service that uses digital platforms to connect passengers needing a ride with drivers using their own vehicles. Users request a trip through a mobile app or website, a nearby driver accepts, and the app provides real-time routing, fare estimates, and in-app payment. Fares are typically charged automatically, and riders can rate drivers after the trip.

The modern ridehailing industry emerged in the late 2000s and early 2010s with platform-based services that offered an alternative to traditional taxi dispatch. Leading providers expanded globally and diversified their offerings with additional apps and markets. Beyond prominent brands, many regions host local or regional ridehailing services, often competing on price, reliability, and service options.

Business models rely on a two-sided marketplace where drivers earn commissions from fares and the platform retains a portion of revenue. Many drivers are classified as independent contractors, a status that has attracted regulatory and labor debates in some jurisdictions. Pricing typically uses dynamic or surge pricing during periods of high demand. Service options may include economy, premium, carpool or pooling, and business or scheduled rides.

Technology underpins ridehailing through GPS, routing algorithms, real-time traffic data, secure payments, driver-passenger matching, and rating systems that influence service quality. Safety features, insurance coverage, background checks, and regulatory compliance are common concerns for riders, drivers, and authorities. The industry continues to influence urban transportation, labor law discussions, and urban planning, while exploring future developments such as autonomous vehicles and integrated mobility services.