The crash happened at about 23:35 on Thursday on the eastbound carriageway of the A720, between Sheriffhall and the Dalkeith junction.
The man, who was driving a Renault Clio, sustained serious injuries and was pronounced dead at the scene by paramedics.
The road was closed for six hours while investigations were carried out.
Police have appealed for witnesses to come forward.
Sgt Andy Miller said: "Sadly this collision resulted in the death of a young man and our sympathies are with his family and friends at this time.
"We are still trying to establish the full circumstances surrounding this incident and I would ask any motorists who were on the city bypass at the time and witnessed what happened to contact police immediately.
"In addition, anyone with any further information relevant to this investigation should also get in touch."
A 19-year-old man has died after his car hit a barrier on the Edinburgh city bypass.