Hitching a ride: The growing popularity of car-sharing constrains industry revenue growth

IBISWorld’s Taxi and Limousine Transport market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.


Market Share of Companies
There are no companies with a dominant market share in this industry
Industry Statistics & Market Size
Annual Growth
2012 - 2017
Annual Growth
2017 - 2022

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 such as UberX, which is currently excluded from the industry. 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...

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Industry Report - Industry Investment Chapter

The Taxi and Limousine Transport industry exhibits a low level of capital intensity. IBISWorld estimates that for every dollar spent on capital costs, $31.10 is spent on wages. The industry is highly labour-intensive, as drivers are required to operate passenger vehicles. 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..

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Industry Products

What is the Taxi and Limousine Transport Industry?

Participants in this industry primarily operate taxicabs or private hire cars, or provide specialty road transport services such as wedding cars. The industry currently excludes ride-sharing services, such as UberX, as this service is yet to be fully legalised and regulated in all states and territories of Australia.

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 care 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

About this Industry

Industry Definition
Main Activities
Similar Industries
Additional Resources

Industry at a Glance

Industry Performance

Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle

Products & Markets

Supply Chain
Products & Services
Demand Determinants
Major Markets
International Trade
Business Locations

Competitive Landscape

Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
industry Globalisation

Major Companies

Operating Conditions

Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance

Key Statistics

Industry Data
Annual Change
Key Ratios

Jargon & Glossary

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