Taxi Market Research, 2027
The global taxi market was valued at $69.18 billion in 2019, and is projected to reach $120.89 billion by 2027, registering a CAGR of 12.3% from 2020 to 2027.
Taxi is a type of vehicle leasing service, which includes hiring the service of a driver along with the vehicle. It can be availed by a single or multiple passenger on basis of sharing and non-sharing option. A passenger can book or hail a taxi ride via a call & message, or going to service provider’s physical location and with the help of a smartphone application or website using internet, which is also known as e-hailing. Passengers can book or hire a taxi for a decided route, which would be pre-defined by the passenger. Generally, passenger car, motorcycle, scooters, minivan, van, buses & coaches, auto rikshaw, bicycles, and tricycles are the type of vehicles used for taxi services. In several countries, various human-powered vehicles such as rickshaw or pedicab, animal-powered vehicles such as the Hansom cab and water taxies or air taxies are also used for taxi service.
The factors such as rise in demand for ride-hailing and ride-sharing services, increase in demand from online taxi booking channels and increase in cost of vehicle ownership are anticipated to drive the taxi market growth. However, improvement of public transportation and varying government regulations on taxi services in different countries across the world hinder the market growth. Further, development of robo-taxies and emergence of eco-friendly electric cab services are some of the factors expected to offer lucrative opportunities for the market growth during the forecast period.
By Booking Type
Online Booking is projected as the most lucrative segments
The taxi market is segmented on the basis of booking type, service type, vehicle type, and region. By booking type, it is bifurcated into online booking and offline booking. By service type, it is divided into ride hailing and ride sharing. By vehicle type, it is categorized into cars, motorcycles & scooters, and others. By region, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.
The key players operating in the taxi market are ANI Technologies Pvt. Ltd., Beijing Xiaoju Technology Co, Ltd., Bolt Technology OU, Careem, Curb Mobility, Dubai Taxi Corporation, FREE NOW, Gett, Gojek Tech, Grab, Lyft, Inc, Maxi Mobility Spain, S.L., Nihon Kotsu Co., Ltd., Uber Technologies Inc., and Yandex.
By Service Type
Ride Sharing is projected as the most lucrative segments
Rise in demand for ride-hailing and ride-sharing services
The significant rise in the preference for carpool and bike pool services among the regular office commuters is the primary factor contributing toward the growth of the ride hailing and ride sharing services. In addition, increase in the services offered by the leading market players, including Uber and Ola, and the option to choose convenient pick-up and drop locations is encouraging the consumers to opt for ride hailing and ride sharing services. Moreover, significant rise in the number of multiple ride-hailing and ride-sharing services such as bike sharing and auto sharing services even for short distance travel fuels the growth of the taxi market. Furthermore, the ride sharing service providers are offering advantages such as affordable doorstep pick-up and drop, co-passenger information, and higher convenience as compared to the traditional transport service providers. This is expected to propel the demand for ride share services. In addition, several service providers offer various facilities, offers, and discounts such as monthly pass on shared ride to reduce the expenses of daily commuters.
Increase in cost of vehicle ownership
There is an increase in the cost of owning a personal vehicle owing to the rise in fuel prices and increase in financing, insurance, and car registration rates. Maintenance expenses, including replacement of parts & components and labour fees, have also increased. This in turn contributes toward the total cost of ownership. Furthermore, with the introduction of strict emission norms, vehicles need better, advanced, and costly aftertreatment devices. These factors are collectively increasing vehicle ownership cost is, which in turn, expected to propel the growth of the ride taxi market.
By Vehicle Type
Motorcycle is projected as the most lucrative segments
Improvement of public transportation
Increase in government investments in public transport infrastructure, especially in emerging countries such as India, Indonesia, China, and others restrict the growth of the taxi market. The developments of public transportation services such as metro trains, monorails, and local bus transport services are expected to affect the growth of taxi services, as they provide cheaper ways of transport when compared with private taxis and cabs.
Varying government regulations on taxi services in different countries across the world
In many countries, the operations of app-based mobility services are not regulated by a legal authority. therefore, their operation is not defined and regulated by the government. In addition, taxi services are required to obtain separate licenses and registration in most of the countries across the world. This makes it difficult for app-based taxi services to operate as many app-based companies do not own the vehicles. Moreover, stringent government norms on the taxi industry especially in countries such as Australia and Vietnam further hinder the market growth. For instance, in 2018, the Department of Transportation in Vietnam decided to stop licensing operators under a pilot program, as the app-based taxis have been putting pressure on local traffic infrastructure and create unhealthy competition with the traditional taxi and transportation firms.
By Region
LAMEA would exhibit the highest CAGR of 19.30% during 2020-2027.
Covid-19 Scenario Analysis
- Social distancing norms and regulations implemented by government and healthcare authorities has restricted the usage of taxi services for daily commute.
- Users prefer to travel in their own vehicles due to health and safety concerns, hampering the market size during pandemic.
- The nature of the virus being active on surfaces for a long period of time as well as the fear of infection raised in the minds of people has compelled them to avoid traveling. Thus, the people are more likely to avoid traveling by taxies.
- Many leading market players are changing their offerings such as groceries, meals, and medical supplies deliveries in the COVID -19 pandemic, which is expected to heal the growth of taxi market.
- The increasing vehicle ownership cost and reducing trust in the ride-hailing services such as Ola, Uber, is expected to develop growth opportunities for bike sharing, carpooling and ridesharing services in post COVID situation
Key Benefits For Stakeholders
- This study presents analytical depiction of the global taxi market analysis along with current trends and future estimations to depict imminent investment pockets.
- The overall taxi market opportunity is determined by understanding profitable trends to gain a stronger foothold.
- The report presents information related to the key drivers, restraints, and opportunities of the global taxi market with a detailed impact analysis.
- The current taxi market is quantitatively analyzed from 2019 to 2027 to benchmark the financial competency.
- Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the industry.
Taxi Market Report Highlights
| Aspects | Details |
 By Booking Type |
|
 By Serving Type |
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 By Vehicle Type |
|
 By Region |
|
 Key Market Players | Yandex, Grab, Beijing Xiaoju Technology Co, Ltd., Nihon Kotsu Co., Ltd, Careem, Maxi Mobility Spain, S.L., Uber Technologies Inc, Bolt Technology OU, Gett, Lyft, Inc, Dubai Taxi Corporation, ANI Technologies Pvt. Ltd., FREE NOW, Gojek Tech, Curb Mobility |
Analyst Review
The taxi market is projected to witness considerable growth, owing to rise in the preference for carpool and bike pool services among the regular office commuters, drastic increase in the services offered by the leading players, including Uber and Ola and rise in demand for ride-hailing and ride-sharing services.
The factors such as surge in demand for ride-hailing and ride-sharing services, increase in demand from online taxi booking channels, and rise in cost of vehicle ownership are anticipated to drive the market growth. However, improvement of public transportation and varying government regulations on taxi services in different countries across the world hinder the market growth. Further, development of robo-taxies and emergence of eco-friendly electric cab services are some of the factors expected to offer lucrative opportunities for market growth during the forecast period.
Among the analyzed regions, Asia-Pacific is the highest revenue contributor, followed by Europe, North America, and LAMEA. On the basis of forecast analysis, LAMEA is expected to maintain its lead during the forecast period, owing to the technological advancements, rise in preference amongst the people for ride-sharing services which would reduce traffic congestion, and supportive government policies for taxi services.
The global taxi market was valued at $69,187.00 million in 2019, and is projected to reach $120,890.00 million by 2027, registering a CAGR of 12.3% from 2020 to 2027.
In most of the countries across the world, shops and businesses have shuttered and offices have emptied out, and this has resulted in decrease in demand for taxi services. Social distancing norms and regulations implemented by government and healthcare authorities encourage citizens to maintain a two-meter distance from other persons for safety. This has restricted the usage of ride sharing services for daily commute. Users prefer to travel in their own vehicles due to health and safety concerns, hampering the market size in 2020.
The sample for global taxi market report can be obtained on demand from the AMR website. Also, the 24*7 chat support and direct call services are provided to procure the sample report.
There are certain upcoming trands in taxi such as development of Robo-Taxies and emergence of eco-friendly electric cab services
The key growth strategies adopted by the taxi industry players includes collaboration, product launch, agreement and partnership. These strategies opted by various industry players is leading to the growth of the taxi services market as well as the players.
The company profiles of the top market players of taxi service industry can be obtained from the company profile section mentioned in the report. This section includes analysis of top ten player’s operating in the taxi market.
Asia-Pacific region is leading the market presently in terms of revenue. However, LAMEA and Europe region is expected to provide more business opportunities for the key players operating in the global taxi market.
By vehicle type, motorcycle segment is expacted to gain traction over the forecast period as well as domainate the market share in the global taxi market
Mexico, Africa and Middle East has wirnessed as a key matured markets growing in the global taxi market
Development of Robo-Taxies and emergence of eco-friendly electric cab services have strong impact on the global taxi market
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