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 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.
FIGURE 1: TAXI MARKET SIZE 2019-2030 (USD MILLION)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The rising use of online cab booking platforms, largely due to the convenience they offer to customers, is one of the main drivers of the market's expansion. They also provide flexible pick-up and drop-off locations as well as straightforward online payment choices.
Due to the simplicity of booking through the app, people are increasingly choosing online booking over offline booking as internet and smartphones become more widely used. The availability of information on the app, such as tracking the driver's location, an expected ride cost, the driver's contact information, and vehicle information, has also contributed to the increase in customer preference for online booking.
The Taxi Market segmentation, based on booking type, the Taxi Market has been segmented into Online Booking and Offline Booking. Online booking is expected to grow in forecast period. Making a taxi reservation online means using a digital platform or application in the taxi industry. Customers can book a taxi by inputting their pick-up and drop-off locations, selecting the preferred vehicle type, and indicating any other requirements using a specialized mobile application or website. Customers benefit from the convenience and accessibility of online taxi booking because they may do so whenever and wherever they want.
Figure 3: TAXI MARKET SHARE BY BOOKING TYPE 2022 (USD MILLION)
The Taxi Market segmentation, based on filter media, the market has been segmented into Car, Motorcycles and Other Vehicle Online booking is expected to grow in forecast period.
Based on Vehicle Type, the global Taxi market has been segmented into Ride-Hailing and Ride-Sharing. Online booking is expected to grow in forecast period.
In terms of revenue, Asia-Pacific is dominated the Taxi Market 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. For instance, Didi Chuxing, a Chinese taxi business with operations in Mexico, Costa Rica, Japan, and Australia, launched "Huaxiaozhu" in July 2020 as a second ride-hailing service targeted towards younger clients with lower prices than its main app.
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 as 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.
In the upcoming years, the North American taxi industry 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 taxi companies are trying to keep up by developing their own mobile apps and using new technologies. However, regulations on ridesharing services are different in each city and state, with some having stricter rules on licensing, background checks, and insurance. The market in North America is dominated by major players such as Curb Mobility LLC and Flywheel Software Inc., which have a significant market share in the industry with their innovative platforms.
Figure 3: TAXI MARKET SHARE BY REGION 2022 (USD MILLION)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
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 automobiles, 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 companies are growing worldwide in addition to vying for customers in their own countries. With several local firms competing in multiple nations, the European market is highly fragmented. In order to address environmental concerns, the market is seeing an increase in the use of electric and hybrid taxis in major cities like London, Paris, and Berlin. Additionally, a number of European nations have put in place stringent rules to guarantee passenger safety and fair competition in the taxi business.
There are several regional and local service providers present in the global taxi business. All businesses are vying for a bigger market share in this fiercely competitive market. Service suppliers compete on the basis of elements including price, service calibre, dependability, and extra services. Therefore, in order to survive and compete in this cutthroat market environment, suppliers must provide affordable and effective services. Uber Technologies Inc., DiDi Global Inc., Grab Holdings Inc., and Ola Cabs are significant players in the global taxi sector. These businesses compete in the taxi sector on a number of fronts, including service accessibility, practicality, cost, and technical developments.
Their main objective is to offer cutting-edge features and services that will promote greater acceptance and boost the industry's development. Although the market is dominated by global firms, there are a number of regional and local players who stand out despite having a small 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. Throughout the projection period, they will be able to expand their presence and offerings in other nations thanks to this strategic strategy. In order to stay on top of new trends that can affect how competitive their service offerings are in the market, service providers must constantly create new technology and creative solutions. The worldwide taxi market is generally very competitive, with a wide range of operators vying for customers based on things like price, service level, and technology improvements. Vendors must continuously adjust their services to match clients' changing requirements and tastes while staying at the forefront of technology breakthroughs if they want to succeed in this market.
March 2023: Uber said that it would pay $3.1 billion to acquire Careem, the top ride-hailing service in the Middle East and North Africa. The purchase will give Uber a strong footing in the area, which is one of the regions for ride-hailing that is expanding the quickest.
October 2021: A new alliance between Uber and the rental car company Hertz was announced. By 2023, Uber's ride-hail drivers will have the opportunity to rent 50,000 Tesla Inc. vehicles thanks to this partnership between the two businesses. Starting on November 1, Los Angeles, San Francisco, San Diego, and Washington DC will be the first places in the US where Uber drivers can rent a Tesla through Hertz.
October 2021: Ola purchased GeoSpoc, a provider of geospatial services, to create the next generation of location technology, which will include vector, three-dimensional, and real-time maps.
January 2021: Grab and Panasonic together announced plans to employ Panasonic air purifiers in cabs to improve passenger experience.
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 246.3 billion |
| Market Size 2023 | USD 259.8 billion |
| Market Size 2030 | USD 394.8 billion |
| Compound Annual Growth Rate (CAGR) | 6.2% (2023-2030) |
| Base Year | 2022 |
| Forecast Period | 2023-2030 |
| Historical Data | 2018, 2019, 2020 & 2021 |
| Forecast Units | Value (USD billion) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Booking Type, Vehicle Type, Service Type and Region |
| Geographies Covered | North America, Europe, Asia Pacific, Middle East & Africa and South America |
| Countries Covered | The U.S, Canada, Mexico, Germany, Denmark, UK, Italy, China, Japan, India, Australia, Saudi Arabia, UAE, South Africa, Brazil and Argentina. |
| Key Companies Profiled | •           Uber Technologies, Inc. •           Bolt Technology OÜ •           Didi Global Inc •           Grab •           ANI Technologies Pvt. Ltd •           BlaBlaCar •           CURB MOBILITY, LLC •           FlYWHEEL •           FREE NOW •           Gojek tech |
| Key Market Opportunities | ·      Adoption of electric and autonomous vehicles |
| Key Market Dynamics | ·      Demand from online taxi booking channels has increased, and business travel and tourism are also on the rise. |
Frequently Asked Questions (FAQ) :
Taxi market is estimated USD 394.8 Billion in 2030
U.S Market is estimated USD 35.6 billion in 2022
6.2% is the growth rate of Taxi market.
Asia-Pacific region held the largest market share in the Taxi market.
Uber Technologies, Inc., Bolt Technology OÜ, Didi Global Inc, Grab, ANI Technologies Pvt. Ltd, BlaBlaCar, CURB MOBILITY, LLC, FlYWHEEL, FREE NOW, Gojek tech
Online Booking Type led the Taxi Market.
Car vehicle type had the largest market share in the Taxi Market.
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