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 0.5% over the five years through 2013-14. Over the current year, revenue is forecast to improve by 1.8%, to total $5.4 billion.
The industry complements public transport and private vehicle transport by providing flexible door-to-door transport to consumers... purchase to read more
Industry Report - Industry Investment Chapter
The industry has a low level of capital intensity, with $0.03 spent on capital for every dollar spent on wages. The industry's major capital costs include the purchase of vehicle, the purchase of the taxi licence, the costs of telecommunications and tracking systems, electronic transactions equipment and navigation tools. Although there is a significant capital outlay, taxis are generally on the road 24 hours per day, with drivers rotating shifts. As a result, labour costs are high, comprising the largest share of industry revenue.
Vehicles are the major asset used in the industry. The relatively low value of passenger vehicles contributes to low capital expenditure within the industry, although additional costs may be incurred in the fit out of wheelchair access... purchase to read more