The global taxi market was worth $69.18 billion in 2019 and is expected to grow to $120.89 billion by 2027, with a CAGR of 12.3% from 2020 to 2027.
The Heart of the Taxi Industry
A taxi is a form of vehicle leasing service that comprises both the vehicle and the driver’s services. It can be used by a single or numerous passengers, with the option of sharing or not sharing. A passenger can book or hail a taxi trip by calling or texting the service provider, or by traveling to the service provider’s physical location and utilizing a smartphone application or website that uses the internet, often known as e-hailing. Passengers can order or rent a cab for a certain route that they have pre-determined. Taxi vehicles typically include passenger cars, motorcycles, scooters, minivans, vans, buses & coaches, auto rickshaws, bicycles, and tricycles. Various human-powered vehicles, such as the rickshaw or pedicab, animal-powered vehicles, such as the Hansom cab, and water or air taxis are also utilized for taxi service in different nations.
Factors that will influence the taxi industry
The taxi market is expected to grow due to reasons such as an increase in demand for ride-hailing and ride-sharing services, an increase in demand from online taxi booking channels, and an increase in the cost of vehicle ownership. However, industry growth is hampered by improvements in public transit and differing government laws on taxi services in different nations throughout the world. Furthermore, the development of Robo-taxis and the rise of environmentally-friendly electric cab services are likely to provide the attractive potential for market expansion over the research period.
There are Several Types of Taxi Markets
The taxi market is divided into four categories: booking, service, vehicle, and geography. It is divided into two types of bookings: online booking and offline booking. It is divided into two types of services: ride-hailing and ride-sharing. Cars, motorcycles and scooters, and other vehicles are divided into three categories. The market is examined in four regions: North America, Europe, Asia-Pacific, and Latin America, and the Caribbean.
In the taxi industry, there are a few key players.
ANI Technologies Pvt. Ltd., Beijing Xiaoju Technology Co., Ltd., Bolt Technology OU, Careem, Curb Mobility, Dubai Taxi Corporation, FREE NOW, Gett, Gojek Tech, Grab, Lyft, Inc, Maxi Mobility Spain, S.L., Nihon Kotsu Co., Ltd., Uber Technologies Inc., and Yandex are some of the major players in the taxi market.
Demand for ride-hailing and ride-sharing services is increasing.
The key element driving the expansion of ride-hailing and ride-sharing services is the huge increase in the choice for carpool and bike pool services among regular office commuters. Furthermore, the expansion of services provided by prominent market players such as Uber and Ola, as well as the ability to select convenient pick-up and drop-off locations, are pushing customers to use ride-hailing and ride-sharing services. Furthermore, the growth of the taxi business is fueled by a considerable increase in the number of multiple ride-hailing and ride-sharing services such as bike-sharing and auto-sharing services, even for short-distance travel. Furthermore, when compared to traditional transportation service providers, ride-sharing service providers give advantages such as economical doorstep pick-up and drop-off, co-passenger information, and greater convenience. The demand for ride-sharing services is projected to rise as a result of this. In addition, a number of service providers give various amenities, incentives, and discounts, such as a monthly pass on a shared transport, to help daily commuters save money.
The expense of owning a car is rising.
The cost of owning a personal automobile has risen as a result of rising gasoline prices and rising financing, insurance, and registration rates. Maintenance costs, such as parts and component replacement and labor fees, have also risen. This, in turn, adds to the overall cost of ownership. Furthermore, severe emission regulations necessitate the use of better, more complex, and more expensive after-treatment systems. These variables are conspiring to raise the cost of vehicle ownership, which is likely to fuel the growth of the ride-hailing sector.
Public transit is being improved.
Government investments in public transportation infrastructure, particularly in rising markets like India, Indonesia, China, and others, are limiting the growth of the taxi sector. The growth of taxi services is projected to be influenced by the development of public transportation services such as metro trains, monorails, and local bus transportation services, as they provide cheaper modes of transportation than private taxis and cabs.
Different countries around the world have different government rules on taxi services.
The activities of app-based mobility services are not controlled by a legal authority in many nations. As a result, the government does not define or regulate its operations. In most nations around the world, taxi services are also needed to obtain separate licenses and registration. Because many app-based taxi firms do not own vehicles, this makes it difficult for them to function. Furthermore, government regulations governing the taxi sector, particularly in countries like Australia and Vietnam, stifle market expansion. For example, in 2018, Vietnam’s Department of Transportation decided to end a pilot programme to discontinue licensing app-based taxis because they were putting strain on local traffic infrastructure and creating unhealthy competition with traditional taxi and transportation companies.
Stakeholders’ Key Benefits
- This report provides an analytical depiction of the worldwide taxi market, as well as current trends and future projections, in order to identify potential investment opportunities.
- Understanding profitable trends to get a firmer foothold determines the entire taxi industry opportunity.
- With a complete impact analysis, the study gives information on the key drivers, restraints, and opportunities of the worldwide taxi industry.
- To measure financial capability, the existing taxi market is quantitatively analyzed from 2019 to 2027.
- Porter’s five forces model shows how powerful buyers and suppliers are in the sector.
- It is critical to have a plan in place before entering a new company sector to structure the operations of key participants. The riders, drivers, and administrators are the main players in an on-demand app business.
- Understanding the needs of each of these entities will help you establish how your app should work. It becomes much easier to design an app once you have a clear notion of how it will work.
What effect would the post-COVID-19 situation have on the taxi market?
In most nations around the world, shops and businesses have closed and offices have been evacuated, resulting in a drop in demand for taxi services. Government and healthcare officials have adopted social distancing norms and rules that encourage citizens to keep a two-meter distance from other people for safety reasons. As a result, the use of ride-sharing services for daily commuting has been limited. Due to health and safety concerns, users prefer to travel in their own automobiles, which will limit the market size in 2020.
How can I obtain company profiles for the top 10 taxi industry players?
The company profiles of the leading market players in the taxi service industry can be found in the report’s company profile section. This section examines the top ten cab companies in the United States.
Which region currently provides and will continue to provide greater business prospects for the taxi industry?
In terms of revenue, the Asia-Pacific region now leads the industry. The LAMEA and Europe regions, on the other hand, are likely to present additional commercial prospects for the global taxi market’s major players. If you want a Taxi Dispatch Software you can reach to a good software development firm.