Assess the likely future growth of ridesharing businesses in an emerging economy, such as India. - Edexcel - A-Level Business - Question 2 - 2022 - Paper 1

With rising literacy rates, more individuals will have the capability to use technology, enabling them to download and navigate ridesharing apps. This accessibility can boost the number of customers using these services, further driving growth.

Emerging markets, like India, have a growing population of potential ridesharing users as companies like Ola and Uber increase their reach. The projected customer numbers are to reach approximately 539.49 million by 2021, which indicates substantial growth opportunities.

Despite opportunities, significant challenges remain. Large portions of rural India live in poverty, limiting their ability to engage with ridesharing. Additionally, varying levels of literacy and inconsistent infrastructure may hinder the effectiveness and reliability of these services.

Growth in ridesharing deeply relies on urban development and the demand for car ownership. If traditional transport modes like public transit or personal vehicles dominate, ridesharing growth may stagnate. Therefore, growth is not guaranteed and relies heavily on demographic and infrastructural changes.

Overall, ridesharing is likely to continue growing in India, given its potential to offer a viable alternative to car ownership. However, this growth will depend on mitigating challenges such as poverty and infrastructure issues, alongside leveraging technological advancements to expand accessibility.