Indians seek ride-hailing services mostly for mid-distance travel - 10-20-km - according to a new survey by Counterpoint Research which showed that two out of three ride-sharing users avail the service at least once a week.
Over 66 per cent users of shared mobility services consider ride-hailing more economical than owning a car, showed the findings of the survey involving over 800 consumers across tier-1, tier-2, and tier-3 cities in India.
Personal vehicles are considered more convenient and cost-effective for shorter distances.
For longer distances, people surveyed indicated their preference to use either their own vehicle or public transport, on account of the higher costs currently associated with ride-hailing services.
"10-20 kms per trip is the 'sweet spot' travel distance most favoured for considering ride-hailing options," Aman Madhok, Senior Analyst at Counterpoint Research, said in a statement.
The results showed that southern region has the highest awareness of ride-hailing services, followed by middle, western and north India. Eastern region has the lowest awareness of ride-hailing services, according to the report.
"The relatively lower penetration of shared mobility in tier-2 cities presents a significant opportunity for shared mobility providers to now expand into these towns and cities," said Vinay Piparsania, Research Director Smart Automotive at Counterpoint Research.
"Evidently, challenges of rapid urbanisation, traffic congestion, and affordability are the primary driving forces behind digital savvy Indians re-imagining their mobility requirements," Piparsania added.