Rough ride: Strong competition from ridesharing services has constrained revenue growth

The Taxi and Limousine Transport industry has faced intensifying external competition over the past five years. While industry services are well accepted across most demographics, they are often considered discretionary and are easily substituted. Weak discretionary income growth and consumer sentiment over the past five years have suppressed overall demand for taxi services, with consumers increasingly using cheaper transport providers such as Uber, which is excluded from the industry. Industry revenue is expected to increase at an annualised 0.3% over the five years through 2018-19, to $5.7 billion. This includes an anticipated decline of 2.7% in the current year, as competition from ridesharing services more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • New technologies have placed pressure on the industry’s established structure
  • Taxi fares have remained higher than many consumers are willing to pay, reducing travel volumes
  • As industry services are saturated, sporadic regulatory changes can cause revenue volatility
  • Industry Report - Industry Key Buyers Chapter

    The Taxi and Limousine Transport industry is characterised by a low level of market share concentration, with no player accounting for more than 5% of revenue. Most of the industry comprises individual licence holders, and small operators that own a small number of licences. Substantial regulation and the homogenous nature of industry services are barriers to high concentration. Additionally, firms have little incentive to consolidate as economies of scale are hard to achieve once cabs are running frequently.However, revenue does not capture the full influence of various industry players. In the industry, depot owners, licence owners and licence operators stand between the customer and the taxi driver, often in overlapping roles. As ...purchase to read more.

    Additional Insights for the Taxi and Limousine Transport Industry

    IBISWorld has determined the most important Key Success Factors for the Taxi and Limousine Transport are:

  • Having links with suppliers
  • Effective cost controls
  • Highly trained workforce
  • IBISWorld analysts also discuss how external factors such as Air passenger movements through capital city airports and Total tourist visitor nights in the Taxi and Limousine Transport industry impact industry performance..

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    What's in this report

    What is the Taxi and Limousine Transport Industry?

    Industry participants primarily operate taxicabs or private hire cars, or provide specialty road transport services such as wedding cars. The industry excludes ridesharing services, such as Uber.

    Industry Products
  • Non-booked taxi services
  • Booked taxi services
  • Limousine and wedding car services
  • Silver service and luxury sedan services
  • Wheelchair-accessible taxi services
  • Industry Activities
  • Hire car service (with driver)
  • Road passenger transport (except bus)
  • Taxi cab management service
  • Taxi cab service
  • Taxi radio base operation
  • Leasing, hiring or renting of licensed taxi cabs
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Air passenger movements through capital city airports
  • Total tourist visitor nights
  • Business confidence index
  • Real household discretionary income

  • Current Performance
  • Taxi markets
  • Taxi regulation
  • Other segments
  • Chart: Revenue Growth

  • Industry Outlook
  • Technology
  • Regulation
  • Table: Taxi and Limousine Transport Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Taxi and Limousine Transport Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Travel Agency and Tour Arrangement Services
  • Consumers

  • Key Selling Industries
  • Communication Equipment Manufacturing
  • Motor Vehicle Manufacturing
  • Motor Vehicle New Parts Wholesaling
  • Motor Vehicle Wholesaling
  • Telecommunications and Other Electrical Goods Wholesaling

  • Products & Services
  • Non-booked taxi services
  • Booked taxi services
  • Silver service and luxury sedan services
  • Wheelchair-accessible taxi services
  • Limousine and wedding car services
  • Chart: Taxi and Limousine Transport Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Households
  • Businesses
  • Tourists
  • Chart: Major Market Segmentation for the Taxi and Limousine Transport Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Taxi and Limousine Transport

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Taxi and Limousine Transport Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Taxi and Limousine Transport Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Taxi and Limousine Transport Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)
  • Wages (2010-2024)
  • Purchases (2010-2024)
  • Profit (2010-2024)
  • Depreciation (2010-2024)
  • Rent (2010-2024)
  • Utilities (2010-2024)
  • Other (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • Stands for global positioning system, which is a satellite navigation system.
  • Maxi Taxi
  • Taxis that can be wheelchair accessible on request, have extra rear luggage space and up to 13 seats.
  • Special Purpose Vehicle License
  • Licenses allowing the provisions of booked vehicles for a specific purpose such as tours and formal events.
  • Wheelchair-Accessible Taxis
  • Vehicles that have been modified to accommodate at least one wheelchair or mobility device.
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    Why buy this report?

    IBISWorld’s Taxi and Limousine Transport market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Taxi and Limousine Transport:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Taxi and Limousine Transport market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Taxi and Limousine Transport, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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