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Ride-Hailing Apps Benefit from Start-up Funding

Since 2005, 1,252 digital travel start-ups were given USD32.6 billion in financing, with mobile ride-hailing apps obtaining more than half of the total amount. Cathy Walsh, senior research analyst, Phocuswright, noted,

"The success of top funding recipients, including Uber and Airbnb, has also fuelled competitors across regions and inspired new start-up ecosystems supporting these and other marketplaces."

Despite the huge rise in investment in the sector, 68 percent of financial backing was limited to the 10 most-funded companies between 2005 and this year's first quarter.

Walsh added that nine of these provided ground transportation and private accommodation.

Amongst horizontal-focussed organisations, nearly 70 percent of monetary support was given to companies with booking at their core.