Industry Analysis & Industry Trends
Stagnant revenue and heavy regulation have characterised the Taxi and Limousine Transport industry over the past five years. While industry services are well accepted across most demographics, they are discretionary and easily substituted. Low business and consumer confidence after the global financial crisis has suppressed demand for taxi services, as consumers flocked to cheaper public transport providers. Industry revenue is forecast to rise marginally, by an annualised 0.4% over the five years through 2014-15. Over the current year, revenue is forecast to improve by 1.6%, to total $5.5 billion.
The industry complements public transport and private vehicle transport by providing flexible door-to-door transport for consumers... purchase to read more
Industry Report - Industry Investment Chapter
The industry is labour-intensive and operators are estimated to spend $30.56 on wages for every dollar spent on capital. The industry's major capital costs include the purchase of vehicles, the purchase of taxi licences, the costs of telecommunications and tracking systems, electronic transactions equipment and navigation tools. Taxis are generally on the road 24 hours per day, as operators use their capital intensively, with drivers rotating shifts. As a result, labour costs are high, comprising the largest share of industry revenue.
Vehicles are the major assets used in the industry. The relatively low value of passenger vehicles contributes to low capital expenditure within the industry... purchase to read more