Industry Analysis & Industry Trends
Intensifying external competition has 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. Weak discretionary income growth, fluctuating consumer sentiment and high household savings rates over the past five years have suppressed overall demand for taxi services, with consumers flocking to cheaper transport providers. Industry revenue is forecast to rise modestly by an annualised 1.6% over the five years through 2016-17. Over the current year, revenue is forecast to drop by 0.9%, to $5.6 billion, as competitive threats from ride-sharing services increase... purchase to read more
Industry Report - Industry Analysis Chapter
The Taxi and Limousine Transport industry provides premium road transport services, transporting customers door to door. Taxi operations accounts for the majority of industry revenue. The taxi segment of the industry is highly regulated, which limits how the industry can respond to demand variations. Industry revenue is expected to grow by an annualised 1.6% over the five years through 2016-17, to reach $5.6 billion. However, revenue is forecast to fall by 0.9% in the current year, due to intensifying competition from external player UberX.
Over the past five years, a sustained period of economic uncertainty has strongly affected consumer behaviour... purchase to read more