Taxi Market: Global Industry Analysis and Forecast (2024 - 2030)

Taxi Market Overview

Taxis are solving a niche in public transport. Taxi provide a door- to- door service, flexible and available to the general public. But in contrast to most public transport it is not subsidized. Even though the service that they provide is very similar all over the world, taxis are regulated in very different ways.

 

The Taxi Market report provides an in-depth analysis within a specific industry or across various sectors through a detailed compilation of data tailored to a particular market segment. The report employs both qualitative and quantitative analyses to predict trends for the period from 2024 to 2030. It considers factors such as product pricing, the level of product or service penetration at national and regional scales, overall market dynamics and its submarkets, end-use industries, major market players, consumer behavior, and the political, social, and economic contexts of different countries are covered in the report. By segmenting the market meticulously, the report ensures a comprehensive analysis from multiple perspectives.

 

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Taxi Market Dynamics

Driving the Future of Transport

The transport industry is rapidly growing with the development of new airports, malls and other such places wherein transport means are not easily available. The taxi rentals are available in maximum localities leading transport industry towards its bright future. The taxi industry has been rapidly growing since a decade and its demand is even increasing at a higher pace. The adoption rate of taxi has risen owing to the comfortable to ride, stress free and relaxing as compared to driving own vehicle as a result it has driven the market growth. The taxi service providers immensely follow the approach to attract more customers towards their business as these companies ensure to provide high-satisfaction to their customers has accelerated the market growth.

Navigating the Taxi Industry in the Age of Ride-Hailing Services

There are numerous challenges faced by the taxi service provides such as lack of experience and professional drivers, regulatory hurdles and barrier in the app development has led to hinder the market growth. The lack of experience and profession behavior has resulted in customer reporting the drivers has negatively impacted the market growth. Ride-hailing platforms like Uber, Lyft, and DiDi have seized a significant portion of the market by providing convenience, flexibility, and competitive pricing that traditional taxis find hard to compete with. Traditional taxi companies often encounter strict licensing and permit requirements, which are both costly and time-consuming.

 

There's a notable regulatory disparity, with traditional taxis typically subjected to more stringent regulations compared to ride-hailing services. Additionally, traditional taxi services are usually slower to embrace new technologies such as app-based bookings, digital payments, and GPS tracking, placing them at a disadvantage against the more technologically advanced ride-hailing companies. Modernizing these systems necessitates substantial investment in technology and training, imposing a financial strain on many taxi companies. Furthermore, traditional taxis incur high costs for vehicle maintenance, fuel, and insurance, which hampers market growth. Ensuring competitive wages and retaining drivers is also challenging, particularly as ride-hailing companies offer more flexible working conditions.

 

Innovations and Trends Driving the Future of the Taxi and Ride-Hailing Market

The surged in the trend of ride hailing and taxi sectors are projected to increase demand in the taxi market owing to rapid development and innovation in the taxi services. The rise in the demand for the electric vehicles which are incorporated into the ride hailing services that has aligned with the global push towards sustainability has boosted the market growth. Market Leaders of taxi market are heavily investing in the development and testing of autonomous vehicle technology through strategic partnerships and significant funding. For instance, Aurora acquired Uber's Advanced Technologies Group (ATG) to accelerate progress in autonomous vehicle technology.

 

Along with this acquisition, Aurora announced a collaboration with Uber to integrate autonomous driving technology into Uber's ride-hailing service. The focus of ride-hailing services has also shifted from traditional car rides to multi-modal integration. By 2025, ride-hailing platforms are expected to seamlessly combine various modes of transportation, including short-haul flights, bikes, scooters, and public transportation. This integrated approach aims to offer users a diverse range of transportation options, enhancing daily commuting convenience and flexibility.

 

Taxi Market Segment Analysis

Based on Service Type, The ride hailing segment held the largest share and is expected to dominate through the forecast period owing to shift in the customer preference for ease to use  transportation has driven the market growth. On-demand mobility services, including transportation network companies (commonly known as ride-sourcing or ride-hailing), connect drivers with passengers via smartphone applications and these services have become extremely popular thanks  to their flexibility, convenience, and efficiency has propelled the market growth.

 

As a product of the mobile Internet era, ride-hailing platforms like Uber, Lyft, and DiDi have significantly enhanced vehicle utilization, increased the availability of transportation services, simplified the taxiing process, and boosted employment opportunities in sereval regions resulting in higher demand for rise hailing. Accordingly, these platforms have quickly gained popularity, disrupting the traditional taxi market by completing millions of trips daily. Unlike traditional taxi companies, ride-hailing platforms offer unique features. For instance, ride-hailing passengers has quickly access ride information, such as waiting times, the number of people in line, and the number of nearby drivers, and coordinate with drivers in real time has been influencing factors in the ride hailing market.

 

Taxi Market Regional Analysis

Asia Pacific dominated the market and is expected to maintain its dominance through the forecast period with an increasing CAGR. The major factors influencing market growth such as GDP growth, employment rates and increase in the easy to use transportation has surged the market growth in the Asia pacific region. China dominated the market followed by India owing to high population and surged in the transportation facilities present in the countries has boosted the market growth.

 

China's urban population has been growing rapidly, leading to a significant increase in demand for convenient transportation options. The influx of millions of people into cities has made taxis and ride-hailing services indispensable for meeting the urban populace's transportation needs. China's advancements in technology, particularly in mobile internet and smartphone usage, have facilitated the rise of ride-hailing platforms like Didi Chuxing. These apps dominate the market by providing easy access to on-demand taxi services through mobile devices. The Chinese government has generally supported the growth of the ride-hailing industry, although it enforces strict regulations to ensure safety and manage competition. Additionally, government policies often favor local companies, helping them secure and maintain their market dominance.

 

• Bike taxi aggregator Rapido has announced its strategic entry into the cab business - a space that is currently dominated by two major players - Ola and Uber. The cab launch represents the latest step in Rapido's mission to revolutionize urban mobility and ensure an affordable intra-city solution for all commuting needs, with a commanding 60% market share in bike taxis, Rapido expands its footprint with the pan-India launch of Rapido Cabs, introducing an initial fleet of 1 lakh vehicles.

Taxi Market Competitive Landscape

• In 2023, Rapido officially announced its entry into the cab aggregation space with the launch of ‘Rapido Cabs.’ The company already provides bike taxis and auto (three-wheeler) passengers to its customers. The addition of a cab service brings Rapido closer to competition with market leaders Ola and Uber. EV-based BluSmart and InDrive are also trying to tap into the market but have a relatively smaller presence in the market.
• In March 2024: After successfully launching services in Vientiane's Capital and the popular tourist destination of Vang Vieng, Xanh SM Laos officially extended its electric taxi operations to Savannakhet Province. This expansion not only signifies the next phase in Xanh SM's brand development but also underscores the company's ongoing dedication to the promotion of electric vehicles.
• In March 2024: Waymo secured approval on Friday from California regulators for offering paid robotaxi rides in the second-largest city in the United States, as well as expanding its services in more areas of the San Francisco Bay Area.
• In January 2024: Baayu, positioned as India’s inaugural app-based 100% electric and decentralized bike taxi service, was launched as a collaborative effort between the state government-run Assam State Transport Corporation and a startup company.

Taxi Market Scope
Market Size in 2023	USD 243.59 Bn.
Market Size in 2030	USD 440.19 Bn.
CAGR (2024-2030)	9 %
Historic Data	2018-2022
Base Year	2023
Forecast Period	2024-2030
Segments	By Booking Type Online Offline
	By Vehicle Type Motorcycles Cars Other
	By Service Type Ride Hailing Ride Sharing
Regional Scope	North America- United States, Canada, and Mexico Europe – United Kingdom, France, Germany, Italy, Spain, Sweden, Russia, and Rest of Europe Asia Pacific – China, India, Japan, South Korea, Australia, ASEAN, Rest of APAC Middle East and Africa - South Africa, GCC, Egypt, Rest of the Middle East and Africa South America – Brazil, Argentina, Rest of South America

 

 Taxi Market Key Players

1. Uber Technologies Inc.
2. Lyft Inc.
3. DiDi Chuxing Technology Co.
4. Ola Cabs
5. Bolt Technology OÜ
6. Grab Holdings Inc.
7. Gett
8. Cabify España S.L.U.
9. Beijing Xiaoju Technology Co., Ltd. (Didi)
10. Maxi Mobility Spain (Cabify)
11. Via Transportation Inc.
12. Wingz
13. Addison Lee
14. LeCab
15. BluSmart
16. ComfortDelGro
17. Easy Taxi
18. Transdev
19. AHA Taxis
20. XXX LTd.