Saudi Arabia's ride-hailing sector is experiencing significant growth, with driver earnings exceeding SAR2bn (around $533mn) in 2024, according to Deputy Transport Minister Rumaih Al-Rumaih, Al Eqtisadiah reported on February 18.

Speaking at an Uber briefing in Riyadh, Al-Rumaih revealed that over 300,000 citizens, including 22,000 women, are currently working in the ride-hailing industry, with further expansion expected.

Despite these impressive figures, the market for app-based ride-hailing services in Saudi Arabia experienced some turbulence in 2023.

Data from the Financial Analysis Unit at Al-Eqtisadiyah indicates an 18% decline in the number of active vehicles, down to 206,800, and a 10% drop in total trips, reaching 63.8mn.

Analysts suggest that rising service prices and the launch of the public transport bus project in Riyadh are key factors contributing to this downturn.

The Royal Commission for Riyadh City launched the first phase of the Riyadh bus service in March 2023, as part of the King Abdulaziz Public Transport Project. The city also recently launched its first train trips in December 2024. These developments appear to have impacted the ride-hailing market.

However, Al-Rumaih noted the overall positive trajectory of the sector, highlighting a 20% growth in participatory transport through ride-hailing apps in 2024, with a total of 80mn trips recorded.

The National Strategy for Transport and Logistics plays a crucial role in fostering the growth of ride-hailing services.

By creating a flexible regulatory environment that supports the sharing economy and promotes integration between different modes of transport, the strategy aims to enhance the sector's development.

It also focuses on expanding smart infrastructure, providing advanced technological solutions, and empowering Saudi drivers through flexible job opportunities.

These efforts are all geared towards building a modern and sustainable transport system in line with national objectives.