Buy the full study
Summary
The global VTC (Voiture de Transport avec Chauffeur) market, which experienced significant growth before the COVID-19 crisis, was impacted by the pandemic, leading to a downturn in household consumption of cab and VTC services in 2020. Despite this setback, the market continued to evolve, with a notable increase of over 100,000 TPPP vehicles—a 22% rise. The competitive landscape has seen increased rivalry not only between VTC services and traditional cabs but also within VTC platforms themselves and alternative transport modes. In Île-de-France, which represents the majority market share within France, the region accounted for 80% of total VTC activity in 2021, indicating a slight decrease from previous years as VTC services expand to other major French metropolises. The VTC sector continued to attract a predominantly young and affluent customer base and adapted to trends such as greener modes of transport. In terms of pricing, the minimum price for a VTC journey in 2023 rose to €7.65, with a typical journey costing €20, while platform commissions for drivers ranged from 15% to 25%. Despite the challenges of the COVID-19 crisis and regulatory changes, the VTC market is poised for future growth, particularly in regions outside Île-de-France and within the younger demographic.
Analyzing the Dynamics of Demand in the French VTC Market
In recent years, the French Voiture de Transport avec Chauffeur (VTC) market has experienced a surge in growth, indicative of the enhanced preference for private, app-based transportation services among locals, especially the youth and the more affluent. The appeal of services like Uber, Bolt, Heetch, and Kapten is conspicuous among the 25-34 age group, which utilizes these services at roughly two and a half times the rate of the general population. Notably, persons belonging to higher socio-professional categories exhibit about 40% more usage than their peers. Before the COVID-19 pandemic hit, the VTC market was flourishing with a market value reaching up to approximately between 750 and 850 million euros. However, the pandemic induced a significant downturn in 2020, with household consumption of cab and VTC services falling by 17%. Despite this, a recovery is observable in 2021, though the figures still remain below the pre-crisis level by about 2%.
The younger demographic is showing a marked preference for VTC services, with 18-24-year-olds exhibiting a tendency to use such services more frequently than older groups. For instance, 28% of individuals aged 18-24 used Uber’s services in the last three months compared to 20% for those aged 25-34.
The global VTC market has been growing at a notable rate, reaching a valuation of around 150 to 160 billion dollars in 2021 with expectations of continued growth. This upward trend reflects a keen global interest in app-based transportation, which France mirrors. However, the market is not just expanding, it's also evolving, seeing increased competition between the various VTC companies, and between VTC services and traditional cabs. This competition is fostering innovations and improvements across the board, leading to upscaling of services, price reductions, and technological advancements.
One crucial aspect influencing the purchasing decisions in the VTC sector is price sensitivity. The average cost of a VTC trip rings in at about 20 euros, somewhat lower than the average cab fare of 22 euros. Most of this cost – approximately 80% – is directed to the driver. However, different platforms have varied commission structures, with Uber taking around 25%, and other competitors like Heetch taking only about 15%. Moreover, seasonality affects the demand for VTC services, with the summer months, particularly July, often seeing less activity.
Leading Contenders in the VTC Landscape: A Synopsis of Market Giants
The ride-hailing sector, characterized by intense competition and service diversity, is home to several key players who have carved out substantial niches for themselves in the market. Below is an overview of the main companies that have made significant strides in the Voiture de Transport avec Chauffeur (VTC) arena.
- Uber: The Global Ride-Hail Juggernaut Uber, the world’s preeminent VTC service provider, offers a broad spectrum of vehicle choices to cater to varied customer needs. From luxury options like UberBERLINE to budget-friendly UberX and environmentally conscious offerings such as UberGREEN, Uber's extensive portfolio is designed to appeal to a wide audience. The company has even expanded its reach with services like UberEATS, underscoring its ambition to dominate not just ride-sharing but other commercial vertices as well.
- FreeNow (formerly Kapten): The European Challenger Initially established as Chauffeur Privé and later rebranded to Kapten, FreeNow is the brainchild of a strategic move by Daimler to take on its American competitor in the European landscape. This platform has a presence in significant French regions and is known for its customer-centric features like advance bookings, a loyalty program, and a suite of vehicle options including sedans and vans that highlight its user-friendly approach.
- Heetch: The Youth-Favored Night Rider Born in 2013, Heetch initially targeted a younger demographic with a model that diverged from traditional VTC services by employing non-professional drivers. Despite legislative hurdles in 2017 that forced a pivot in its business model, Heetch has made a commendable comeback and retains its popularity among young people and students, offering the additional convenience of booking cabs through its platform.
- LeCab: The Uniformed Fleet Innovator LeCab has distinguished itself with a standardized fleet consisting primarily of black Peugeot 508s and Mercedes Vianos, ensuring a consistent service experience. Apart from connecting passengers with drivers, LeCab extends a multitude of supplementary services, including driver training, vehicle rentals, and even a fixed rate for advance bookings. Its acquisition by SnapCar in 2019 marks a strategic consolidation in the sector.
- Bolt, Allocab, and Marcel: While not detailed as extensively as their counterparts, these services also contribute to the diversity and competitive dynamics within the French VTC market.
to understand this market
Detailed content
Inforamtion
- Number of pages : 30 pages
- Format : Digital and PDF versions
- Last update : 19/11/2021
Summary and extracts
1 Market overview
1.1 Definition and scope of study
The term VTC stands for "Voiture de Transport avec Chauffeur" and refers to " operators who make one or more chauffeur-driven transport vehicles available to their customers, under conditions agreed in advance between the parties " (Article L 3122-1 of the French Transport Code).
Previously, the profession was called "Exploitation de voitures de tourisme avec chauffeur", but it changed its name following the Thévenoud law in 2014. It is part of the "Transport public particulier de personnes" (TPPP or T3P) segment.
VTCs offer services similar to those of cabs, enabling customers to travel from point A to point B in a car driven by a driver ; the differences between the two services lie in the status of the driver, the pricing of journeys, comfort or even the conditions under which the customer is picked up.
The VTC sector is very recent in France: the first mobile applications to put VTC drivers in contact with customers appeared in December 2011, notably with Uber France, the French subsidiary of the American company Uber. The arrival of these platforms in France has completely disrupted the transport market, particularly in major cities where cabs previously had a monopoly on T3P.
On a global scale, the average annual growth rate is +19%, with VTC sales expected to exceed US$150 billion by 2021. [Market Insights] France has seen growth in its VTC activity between 2016 and 2021. Nevertheless, the Covid19 crisis has impacted this growth and, in 2021, household consumption of cabs and VTCs has not returned to its pre-crisis level. [INSEE]
There are two points of attention in the sector, which could drive change in the future: the difference in status between cabs and VTCs (which regulations are gradually trying to regulate) and the social protection of self-employed workers working on collaborative platforms.
Last but not least, the trend in VTC offerings is towards multimodality (with the recent integration of Taxi services and the rental of scooters and bicycles) and greener vehicles.
List of charts
- VTC market size by value and forecasts
- Growth in passenger cab sales
- Use of Uber's VTC services by age group
- Last use of Uber VTC for 18-34 year olds
- Growth in household consumption of cabs and VTCs
All our studies are available online in PDF format
Take a look at an example of our research on another market!
Latest news
BlaBlaCar to double revenues by 2022 - 06/07/2023
- BlaBlaCar sales in 2022: 197 million euros, in 2021: 100 million euros, in 2019: 130 million euros, in 2020: 80 million euros
- Organic growth target for 2023: 30%
- BlaBlaCar's sales represent around 20% of its total sales volume
- Offer available in 22 countries
- Number of bus operators integrated into the BlaBlaCar platform: over 4,000
- Growth rate in emerging markets such as Mexico, Brazil and India: between 50% and 100%
- Share of buses in total BlaBlaCar passengers worldwide: 20%
- Bus share of BlaBlaCar passengers in France: 35%.
Uberteens, Uber extends its reach into services - 22/05/2023
- "Uber Teens", a VTC ride-hailing service for 13-17 year-olds traveling alone.
- The service will open in a dozen U.S. cities and in Canada.
- Launch of a "family" profile for Uber Eats worldwide and for Uber in France.
BlaBlaCar acquires Klaxit to develop short-distance carpooling - 11/04/2023
- Acquisition of Klaxit by BlaBlaCar
- In 2017, BlaBlaCar launched a dedicated home-to-work service (BlaBlaLines, which later became BlaBlaCar Daily)
- Klaxit works with around 50 local authorities and 350 businesses and claims to be profitable.
- In 2022, more than 2.6 million journeys were made via the Klaxit platform.
- In February 2023, short-distance car-sharing reached a record level (814,000 journeys)
- The government has launched a €150 million "car-sharing plan" for 2023
- The aim is for around 3 million journeys a day to be made by carpooling by 2027.
BlaBlaCar acquires Klaxit for carpooling - 15/03/2023
- Klaxit works with some 50 local authorities and 350 companies, and claims to be profitable
- blaBlacar's third acquisition after Less and OuiBus
- - 2.6 million journeys made via the Klaxit platform in 2022
- - 814,000 short-distance carpooling journeys by February 2023
- - 3 million carpooling journeys per day by 2027
- - Rouen, Montpellier and Beauvais are the most popular cities for carpooling
BlaBlaCar strengthens its position in Brazil thanks to World Bank investment - 15/06/2022
- World Bank injects $15 million into car-sharing specialist via the International Finance Corporation (IFC)
- In 2021, the International Finance Corporation (IFC) injected $31.5 billion (loans, investments, etc.) into BlaBlaCar
- This investment is intended to help BlaBlaCar expand in Brazil, one of its main foreign markets (where it has been operating since 2015)
- Almost 60% of BlaBlacar's business is outside Europe
- In total, the unicorn operates in 22 countries, including emerging markets where Next40 nuggets are rare
- Blablacar works with 122 bus companies, as car-sharing and buses are likely to attract a vast public in search of low-cost modes of transport
Three years after acquiring Drivy, Getaround is preparing for its IPO. - 11/05/2022
- Getaround, the world's leading car-sharing company, is about to take a major step forward in its history by completing its initial public offering (IPO) on the New York Stock Exchange via a SPAC.
- In 2019, Getaround acquired Drivy , the French specialist in the sector, for $300 million.
- Following layoffs in the United States, the company had to raise $140 million to give itself some breathing space.
- The IPO enabled the car-sharing specialist to raise fresh money and set in motion a new dynamic.
- The company claims to have achieved sales of 167 million by 2021, has a fleet of 66,000 vehicles registered on its platform and asserts that it is profitable "in certain cities", without specifying which ones.
Companies quoted in this study
This study contains a complete overview of the companies in the market, with the latest figures and news for each company. :
Choosing this study means :
Access to more than 35 hours of work
Our studies are the result of over 35 hours of research and analysis. Using our studies allows you to devote more time and added value to your projects.
Benefit from 6 years' experience and over 1,500 industry reports already produced
Our expertise enables us to produce comprehensive studies in all sectors, including niche and emerging markets.
Our know-how and methodology enable us to produce reports that offer unique value for money.
Access to several thousand articles and paid-for data
Businesscoot has access to all the paid economic press as well as exclusive databases to carry out its market research (over 30,000 articles and private sources).
To enhance our research, our analysts also use web indicators (semrush, trends, etc.) to identify market trends and company strategies. (Consult our paying sources)
Guaranteed support after your purchase
A team dedicated to after-sales service, to guarantee you a high level of satisfaction. +44 238 097 0676
A digital format designed for our users
Not only do you have access to a PDF, but also to a digital version designed for our customers. This version gives you access to sources, data in Excel format and graphics. The content of the study can therefore be easily retrieved and adapted for your specific needs.
Our offers :
the VTC market | France
- What are the figures on the size and growth of the market?
- What is driving the growth of the market and its evolution?
- What is the positioning of companies in the value chain?
- Data from several dozen databases
Pack 5 études (-15%) France
- 5 études au prix de 75,6€HT par étude à choisir parmi nos 800 titres sur le catalogue France pendant 12 mois
- Conservez -15% sur les études supplémentaires achetées
- Choisissez le remboursement des crédits non consommés au terme des 12 mois (durée du pack)
Consultez les conditions du pack et de remboursement des crédits non consommés.
Our customer references
They have consulted our studies
Discover the opinions (+500)
Malcolm Vincent
Astoria Finance
Gregoire de Castelnau
Stags Participations
Timothé Huignard
PWC
Paul-Alexis Kebabtchieff
BCG
Aymeric Granet
Publicis Consultant
interviews & case studies
All interviews and case studies (45)
