RIYADH – Saudi Arabia’s reliance on technology-driven transportation continues to grow, with ride-hailing apps facilitating over 43 million trips during the fourth quarter of 2025. This represents a significant surge in usage, marking a 54.26 percent increase compared to the same period in the previous year, according to a recent bulletin released by the Transport General Authority (TGA). The data underscores a broader shift in urban mobility patterns within the Kingdom.
The TGA’s quarterly statistical bulletin, published on Sunday, details the latest expansion in the sector, highlighting the popularity of these services across diverse regions of Saudi Arabia. This growth comes as the country invests heavily in infrastructure improvements and smart city initiatives, aiming to modernize its transportation network. The increasing convenience and accessibility offered by these platforms are undoubtedly contributing factors.
The Rise of Ride-Hailing in Saudi Arabia
The substantial increase in ride-hailing app usage points to a fundamental change in how people navigate Saudi cities. Previously, personal vehicles and traditional taxis were the dominant modes of transport. However, the convenience of booking a ride through a mobile phone, coupled with transparent pricing and the availability of services in previously underserved areas, has attracted a growing customer base.
Regional Disparities in Demand
The distribution of trips is not uniform across the Kingdom, with certain regions demonstrating significantly higher demand for these services. Riyadh accounted for the largest share of rides at 44.56 percent of the total, reflecting its status as the nation’s capital and most populous city. Makkah followed with 21.89 percent, likely driven by the constant influx of pilgrims and visitors.
The Eastern Province registered 14.20 percent of all trips, indicating substantial internal demand and potentially serving business travelers. Madinah saw 5.94 percent, and Asir, a popular tourist destination, accounted for 3.2 percent. This regional variation necessitates a tailored approach to transportation planning and service provision.
Further down the list, Al-Qassim recorded 2.95 percent of journeys, with Tabuk at 2.39 percent and Hail at 1.83 percent. Jazan (1.24 percent), Najran (0.67 percent), Al-Jouf (0.57 percent), the Northern Borders region (0.32 percent), and Al-Baha (0.23 percent) experienced the lowest levels of activity, suggesting potential infrastructure or service gaps.
This concentrated demand in major urban centers places strain on existing infrastructure and potentially exacerbates traffic congestion. The TGA and relevant stakeholders will likely need to focus on optimizing routes and increasing vehicle availability to meet the growing needs of these regions.
The growth of transportation network companies (TNCs) in Saudi Arabia mirrors global trends, but with unique characteristics shaped by the Kingdom’s specific demographics and urban development patterns. The availability of affordable data plans and high smartphone penetration rates have removed key barriers to adoption.
Additionally, the TGA’s regulatory framework, designed to balance innovation with passenger safety and fair competition, has played a crucial role in fostering the industry’s expansion. The authority has been actively working on initiatives to standardize service quality and protect passenger rights. This increased regulation is partially responsible for fostering trust in these new methods of travel.
The impact extends to the labor market. Ride-hailing platforms have created income-generating opportunities for Saudi citizens and residents, especially those seeking flexible work arrangements. However, concerns regarding driver wages and working conditions remain subjects of ongoing discussion.
Meanwhile, competition among ride-sharing services like Uber and Careem is increasing, driving down fares and improving service quality. This competitive landscape encourages innovation and benefits consumers. It also creates pressure on companies to maintain profitability and sustainability.
In contrast to the rapid growth of app-based rides, traditional taxi services have faced challenges adapting to the changing market. There are ongoing efforts to integrate taxi fleets into digital platforms and enhance their competitiveness, but their overall market share is declining.
The TGA’s commitment to improving urban mobility is evident in its ongoing investments in public transport systems, such as bus rapid transit and metro rail projects. These initiatives are designed to complement ride-hailing services and provide a more comprehensive transportation solution for the Kingdom’s growing population.
Looking ahead, the TGA is expected to release further data detailing passenger demographics, trip purposes, and service performance metrics. The authority is also anticipated to announce updates to its regulatory framework, potentially addressing issues related to driver safety, vehicle emissions, and data privacy. Monitoring these developments will be critical for understanding the future trajectory of the ride-hailing industry in Saudi Arabia and its impact on the broader transportation ecosystem.
