Taxi Market is predicted to reach USD 394.8 billion at a CAGR of 6.2% during the forecast period 2023-2030

Market Research Future (MRFR) has published on the “Global Taxi Market”.

Global Taxi Market

The industry that offers passenger transportation services using taxis or cabs is referred to as the worldwide taxi market. Taxi service, a form of vehicle leasing, entails the employment of both a driver and a vehicle. Depending on the sharing or non-sharing option, a single or numerous passengers may use a taxi service. It transports passengers to and from destinations of their choice. A passenger who hires a cab has more freedom to choose the pick-up and drop-off places than a person who uses public transit. It is suitable for time-constrained travelers.

Market Synopsis

Global Taxi Market Size was valued at USD 246.3 billion in 2022. The Taxi Market industry is projected to grow from USD 246.3 billion in 2022 to USD 394.8 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 6.2% during the forecast period (2023- 2030). The global taxi market refers to the sector of the economy that provides passenger transportation services utilizing taxis or cabs. The hiring of a driver and a vehicle together constitutes taxi service, a type of vehicle leasing. A single passenger or several passengers may use a taxi service, depending on the sharing or non-sharing option. Passengers are transported to and from preferred destinations. Compared to someone who utilizes public transport, a passenger who hires a cab has more flexibility in selecting the pick-up and drop-off locations. It is appropriate for travelers with limited time.

Browse In-depth Details [Table of Content, List of Figures, List of Tables] of Global Taxi Market trends

Competitive Landscape

The international taxi industry is home to a number of regional and local service providers. In this intensely competitive market, every company is competing for a larger market share. Service providers compete on factors like price, service quality, dependability, and supplemental services. Therefore, suppliers must offer reasonable and efficient services in order to thrive and compete in this fiercely competitive market climate. Significant participants in the worldwide taxi industry include Uber Technologies Inc., DiDi worldwide Inc., Grab Holdings Inc., and Ola Cabs. In the taxi industry, these companies compete on a number of levels, including service accessibility, viability, price, and technological advancements. 

Their primary goal is to provide innovative features and services that will encourage more adoption and accelerate the industry's development. Even though international companies dominate the market, a number of regional and local players stand out despite having a modest market share. The key players in the taxi industry are anticipated to engage in mergers and acquisitions of local and regional players in order to strengthen their worldwide footprint and increase the scope of their solutions. They will be able to increase their presence and product offerings in other countries thanks to this strategic plan over the projection period.

Segmentation

By Booking Type

1. Online booking: Making a taxi reservation online, or through a website or app, is a common practice in the taxi industry. Customers can utilised a specialized mobile application or website to book a taxi by inputting their pick-up and drop-off locations, selecting the preferred vehicle type, and indicating any additional needs. Customers may book taxis anytime, anyplace, and online taxi booking gives ease and accessibility. Online payment processing is secure; therefore, customers spend less money in cash. Various payment methods are available on online booking platforms, including credit/debit cards, mobile wallets, and online payment gateways with real-time tracking and monitoring tools. Through the app or website, customers may find out where their reserved taxi is located, determine when it will arrive, and keep track of its journey.

2. Offline Booking: Offline booking is the conventional way to make a taxi reservation through offline means, such as calling a taxi company or dispatcher on the phone or physically going to a taxi stand or office. Customers must wait in queue or telephone taxi companies to make reservations, which is less convenient, especially during busy times or when several people are making reservations at once. Online reservations typically include paying the driver in cash.

• Motorcycles: In the taxi industry, motorcycles provide several benefits, including the capacity to manoeuvre in dense traffic, less fuel consumption, fewer operating expenses, and the ability to enter places with limited space for larger vehicles. They are most common in regions of Asia, Africa, and South America because they provide a practical and affordable mode of transportation in heavily populated places.


• Cars: Depending on regional tastes, laws, and market demands, different cars may be available in the taxi business. The most popular types of vehicles utilised in the taxi industry are sedans, hatchbacks, and SUVs. Due to their comfort, affordability, and fuel efficiency, sedans are best suited for urban and suburban taxi services. Hatchbacks are smaller-sized vehicles with doors that open to reveal a space that may accommodate both passengers and baggage.


• Other Vehicles: The taxi sector also uses auto-rickshaws as additional transportation. They are common in many Asian and African nations and are also referred to as three-wheelers or tuk-tuks. Compact vehicles called auto-rickshaws are frequently utilised for local short-distance travel in cities and towns.

By Service Type 

• Ride-Hailing: The term "ride-hailing" describes the on-demand dispatching and booking of private vehicles via a mobile application or online platform. Professional drivers who are registered with the platform and operate their own vehicles or vehicles connected to the service provider are used in this service. Individual journeys for passengers are a priority for ride-hailing businesses. Customers can use it to request trips from their current position to any desired destination within the service region because it enables flexibility in terms of pickup and drop-off locations.


• Ride-Sharing: The on-demand dispatching and reservation of private vehicles through a mobile application or internet platform is referred to as "ride-hailing". This service makes use of qualified drivers who have registered with the platform and drive either their own cars or cars that are connected to the service provider. Individual passenger journeys are a top goal for ride-hailing companies. Customers can use it to request journeys since it offers flexibility in terms of pickup and drop-off locations, from their current location to any desired destination within the service area.

By Region

• North America: In the upcoming years, the North American taxi market is anticipated to expand significantly due to a number of factors, including urbanization, rising demand for ride-hailing services, and the need for effective transportation options. People have the option of using traditional taxi services or ride-hailing services like Uber and Lyft throughout North America. The growing popularity of ridesharing services is due to their affordability and convenience. Traditional cab businesses are utilizing new technologies and creating their own smartphone apps in an effort to keep up. The rules governing ridesharing services vary from city to city and state to state, with some having stronger requirements for insurance, background checks, and licensing. Major competitors such as Curb Mobility LLC and Flywheel Software Inc. dominate the market in North America.


• Europe: Due to shifting consumer tastes, governmental regulations, and technological improvements, the European cab sector is changing quickly. Some of the top taxi companies are based in Europe. For instance, the European headquarters of Free Now, Kabbee Exchange Ltd., Bolt Technologies OU, and BlaBlaCar. In order to remain competitive in the market, these players are making a significant contribution to market growth by using a variety of strategies, including mergers and acquisitions, partnerships, funding, and the launch of new products. Market participants are increasingly using digital booking and payment systems to respond to the shifting environment. With numerous local firms competing in multiple nations, the European market is highly fragmented. There are well-established cab services in major cities like London, Paris, and Berlin, and the market.


• Asia-Pacific: Due to the presence of populous and developing nations like China, India, and others in the area, the Asia-Pacific is anticipated to hold a sizable market share throughout the projection period. Because of the area's vast population and lack of personal vehicles, many people in it rely on taxis, buses, trains, and other forms of transit. There is a significant need for taxi services as a result of the great reliance on both public and private transportation. Important market companies like DiDi Chuxing and Ola are also profiting from the region's high smartphone usage rates. These South Asian taxi service businesses are not only vying for customers domestically, but also abroad.