The Investment Potential of On-Demand Mobility in Emerging Markets: A Catalyst for Tech-Driven Tourism Innovation

The on-demand mobility (MOD) market in emerging economies is undergoing a seismic shift, driven by urbanization, smartphone proliferation, and a growing appetite for flexible, affordable transportation. For investors, this represents a golden opportunity to align with trends reshaping tourism and urban infrastructure. By 2035, the global MOD market is projected to balloon to $556 billion, up from $214.4 billion in 2025, with emerging markets accounting for a disproportionate share of growth due to their untapped potential and rapid digitization Mobility On Demand (MOD) Market | Global Market^[1]. This expansion is not just about moving people—it's about redefining how tourism operates in cities where traditional transit systems lag behind demand.

The Urban Tourism Revolution

Emerging markets are urbanizing at unprecedented rates. By 2050, nearly 6.75 million people will migrate to cities in developing regions each month The case for impact investment in Sustainable Mobility^[2]. For tourists, this means navigating sprawling metropolises with inadequate public transit. On-demand mobility bridges this gap. Ride-hailing platforms like Uber, Bolt, and regional players such as Gojek and Ola are not only filling first-mile/last-mile connectivity voids but also enabling tourists to explore destinations with ease. In Ghana, for instance, Uber's entry contributed $88 million in tourist spending between 2013 and 2024 by providing reliable transport in cities like Accra and Kumasi The Influence of Uber on the Tourism Industry in Sub-Saharan Africa^[3].

Micro-mobility solutions—e-scooters, e-bikes—are further enhancing accessibility. In Southeast Asia, companies like Grab have integrated these options into their apps, allowing tourists to navigate dense urban areas without the hassle of traffic or parking. This shift is particularly impactful in cities like Jakarta and Ho Chi Minh City, where traffic congestion historically deterred visitors.

Sustainability as a Competitive Edge

Investors are increasingly prioritizing sustainability, and on-demand mobility in emerging markets is no exception. The sector is seeing a surge in electric vehicle (EV) adoption, driven by government subsidies and environmental mandates. For example, India's FAME II initiative has incentivized ride-hailing firms to electrify fleets, while Indonesia's push for EVs aims to cut emissions from its tourism-dependent islands On-Demand Mobility Services Competitive Strategies: Trends and ...^[4].

The financial returns are compelling. A 2025 Shell Foundation report notes that impact investments in sustainable mobility can yield double-digit returns while addressing climate goals. In Kenya, e-mobility startups like Twende have attracted $15 million in funding by offering solar-powered bike-sharing systems in Nairobi's tourist hubs, reducing carbon footprints by 30% compared to traditional taxis Sustainable mobility solutions in Sub-Saharan Africa^[5].

Tourism ROI and Scalable Models

The tourism ROI of on-demand mobility is quantifiable. In sub-Saharan Africa, Uber's presence has increased tourist expenditures by an average of $99 per visitor, primarily by enabling access to off-the-beaten-path attractions The Influence of Uber on the Tourism Industry in Sub-Saharan Africa^[3]. Similarly, in Bali, Indonesia, the Gili Ecotrust's partnership with electric boat services has boosted eco-tourism revenue by 20% while preserving marine ecosystems Case Studies for Sustainable Tourism^[6].

Mobility-as-a-Service (MaaS) platforms are amplifying these gains. By integrating ride-hailing, public transit, and micro-mobility into single apps, MaaS reduces friction for tourists. In Nairobi, Kenya, the MaaS app “M-Tiba” has streamlined travel for 500,000 users annually, with 30% reporting increased spending on local experiences due to improved mobility Mobility-on-demand: An empirical study of internet-based ride ...^[7].

Challenges and the Path Forward

Despite the promise, challenges persist. Regulatory hurdles, such as licensing disputes and safety concerns, remain significant. In 2024, Jakarta temporarily banned e-scooters after accident reports spiked, highlighting the need for balanced policy frameworks. Infrastructure gaps also hinder scalability—only 40% of emerging-market cities have real-time transit data systems On-Demand Mobility Services Market Analysis- Industry Size^[8].

However, the sector's resilience is evident. The 2025 Mobility Investment Radar notes a 89% surge in funding for emerging-market MOD projects in 2024, with $54 billion allocated globally 2025’s Mobility Investment Radar Shows Surge In Funding^[9]. This capital is flowing toward AI-driven route optimization, which reduces operational costs by 15–20%, and partnerships with local governments to co-design sustainable transit corridors.

Conclusion: A Win-Win for Investors and Tourism

On-demand mobility in emerging markets is more than a tech trend—it's a tourism infrastructure revolution. For investors, the rewards are twofold: robust financial returns and alignment with global sustainability goals. As cities in Asia, Africa, and Latin America continue to urbanize, the demand for flexible, eco-friendly mobility will only grow. Those who act early—whether by backing EV startups, MaaS platforms, or micro-mobility networks—stand to reap significant gains while helping redefine how the world travels.