Taxi And Limousine Services Market Definition
The taxi and limousine services market consist of sales of taxi and limousine services by entities (organizations, sole traders and partnerships) that provide passenger transportation via automobiles or vans, or provide an array of specialty and luxury passenger transportation services via limousine or luxury sedan, generally on a reserved basis. Taxi and limousine services establishments usually provide services on demand. These establishments do not operate over regular routes and on regular schedules.
Taxi And Limousine Services Market Size
The global taxi and limousine services market is expected to decline from $83.0 billion in 2019 to $46.7 billion in 2020 at a compound annual growth rate (CAGR) of -43.7%. The decline is mainly due to lockdown and social distancing norms imposed by various countries and economic slowdown across countries owing to the COVID-19 outbreak and the measures to contain it. The market is then expected to recover and grow at a CAGR of 6.5% from 2021 and reach $94.4 billion in 2023.
Growth in the historic period resulted from technological development, strong economic growth in emerging markets, and growth in aging population, low oil prices, and surge pricing during peak hours. Factors that negatively affected growth in the historic period were safety concerns and public lawsuits, weak wage growth in developed economies, and use of public transportation in urban areas.
Going forward, economic growth, technology, emphasis on cutting carbon emissions, ease of transportation and changing consumer preferences towards car sharing will drive growth. Factors that could hinder the growth of the taxi and limousine services market in the future include improvement of public transportation, stringent regulations, inadequate chauffeurs, and coronavirus disease (COVID-19) outbreak.
Taxi And Limousine Services Market Drivers
The key drivers of the taxi and limousine services market include:
Ease Of Transportation
Hiring a taxi cab has become much easier, when compared to earlier days. Currently, a passenger can book a cab for a desired destination along with the driver information, live tracking, cashless travel, and SOS apps, at the touch of a button. Technology advances have boosted the demand for taxi services, as passengers can access various cab facility providers and book a cab for a comfortable, safe, and secure journey. Therefore, ease of transportation via cabs positively impacts the taxi and limousine services market.
Taxi And Limousine Services Market Restraints
The key restraints on the taxi and limousine services market include:
Improvement Of Public Transportation
Expected increase of government investments in public transport infrastructure, especially in emerging markets, will be a major restraint on the taxi and limousine services market going forward. In 2018, in India, for instance, 10 cities had functional metro rail networks stretching for more than 515 kilometers. It is expected that the overall national metro rail network will increase by 664 kilometers, taking into account the metro construction activities in 15 Indian cities . By 2024, the railways, roads and highways sector in India is expected receive INR 30 trillion ($0.42 trillion) to improve the country’s public transport infrastructure . Increasing investments in the public transport infrastructure sector are expected to slow down the growth of the taxi and limousine services market in emerging economies.
Taxi And Limousine Services Market Trends
Major trends influencing the taxi and limousine services market include:
Eco-Friendly Electric Cab Services
Global warming is a cause of concern across the world. Vehicles emissions is a major contributor to carbon footprint on our planet. With fossil fuels about to run out and an imminent carbon footprint reduction burden, electric cars have become the future of taxis. Given the growing demand for an eco-friendly future, electric taxis tend to be the logical step. The trend of electric cars is picking up and taxi companies are putting efforts to include electric cars into their fleet. Norway is the leading country with the highest number of electric vehicles per capita worldwide. Electric cars are on many countries’ wish lists, which is why there is a political will for this to happen. Due to this, taxi company owners and taxi drivers may benefit from various incentives and schemes offered by their respective governments. In the USA, electric cabs are in operation, including Electric Cab North America, whose cabs are considered to provide zero emission micro-transit services in heavily congested metropolitan areas. Also, in India, as the government pushes electrification of public mobility by including electric vehicles into its Vision 2030, cab services provider Ola, India’s leading mobility platform, is shifting towards electric vehicles. Ola has raised a sum of $52.63 million (INR 400 crore) to fund Ola Electric Mobility Pvt Ltd., its electric mobility business.
Social Media For Strategic Customer Relationship Management
Taxi and limousine services providers are increasingly using social media presence to improve customer loyalty and gain overall presence in the market. Social media is widely used by transportation service providers to increase their market presence by increasing the number of followers and establishing a stronger connection with them . For instance, Uber, an American on-demand cab transportation service provider with an international presence, has been using various social media stops to maximize profits and satisfaction of both its suppliers and customers . Uber has about 22 million followers on Facebook , 1 million followers on Twitter and 983 thousand followers on Instagram . Uber’s Facebook account provides information of all the latest deals, discounts, new rides, riding arrangements and offers, and addresses consumer complaints. Through Uber’s Twitter and Instagram accounts, the company tries to increase its influence on customers by posting latest deals and discounts in picture and video formats.
Opportunities And Recommendations In The Taxi And Limousine Services Market
Opportunities – The top opportunities in the taxi and limousine services market will arise in the online taxi services segment, which will gain $7.0 billion of global annual sales by 2023. The taxi and limousine services market size will gain the most in China at $2.53 billion.
Market-trend-based strategies for the taxi and limousine services market include increasing bike-taxi services offerings, eco-friendly electric cab services offerings, implementing big data analytics tools in companies’ operations, using social media platforms to improve their reach, and implementing new transportation technologies such as on-demand booking services and taxi soft meter. Player-adopted strategies in the taxi and limousine services market include reinforcing M&A strategies to expand businesses in other geographic areas, investing in expanding networks, operations and distribution networks, and streamlining business travel experiences through partnerships.
Recommendations – To take advantage of the opportunities, The Business Research Company recommends the taxi and limousine services companies to focus on increasing bike-taxi services offerings, eco-friendly electric cab services offerings, implementing big data analytics tools in companies’ operations, investing in expanding networks, operations and distribution networks, and streamlining business travel experiences through partnerships.
Taxi And Limousine Services Market Segmentation
The taxi and limousine services market is segmented by type of service, by vehicle type, by payment mode, by ride type.
By Type Of Service –
The taxi and limousine services market can be segmented by type of service
The tele and offline taxi services market was the largest segment of the taxi and limousine services market in 2019 at 41.4%. The online taxi services market is also expected to be the fastest-growing segment going forward at a CAGR of 5.6%.
- a) Online Taxi Services
- b) Tele And Offline Taxi Services
- c) Limousine Services
By Vehicle Type –
The taxi and limousine services market can be segmented by vehicle type
The cars market was the largest segment of the taxi and limousine services market in 2019 at 62.6%. The others market is also expected to be the fastest-growing segment going forward at a CAGR of 6.2%.
- a) Cars
- b) Motorcycles
- c) Others
By Payment Mode –
The taxi and limousine services market can be segmented by payment mode
The online market was the largest segment of the taxi and limousine services market in 2019 at 72.2% and also expected to be the fastest-growing segment going forward at a CAGR of 3.9%.
By Ride Type –
The taxi and limousine services market can be segmented by ride type
The individual market was the largest segment of the taxi and limousine services market in 2019 at 67.3% and the car pool/share is expected to be the fastest-growing segment going forward at a CAGR of 4.2%.
- a) Individual
- b) Car Pool/Share
The taxi and limousine services market is segmented into
Western Europe was the largest market for taxi and limousine services market, accounting for 39.0% of the global market in 2019. It was followed by Asia-Pacific, North America and then the other regions. Going forward, the fastest growing regions in the taxi and limousine services market will be the Middle East and Africa, where growth will be at CAGRs of 4.5% and 4.2% respectively. These will be followed by the South America and Eastern Europe where the market is expected to grow at CAGRs of 4.2% and 3.9% respectively.
- o North America
- o Western Europe
- o Asia Pacific
- Hong Kong
- New Zealand
- South Korea
- o Eastern Europe
- Czech Republic
- o South America
- o Middle East
- Saudi Arabia
- o Africa
- South Africa
Taxi And Limousine Services Competitive Landscape
Major Competitors are:
Other Competitors Include:
- • Uber Technologies, Inc.,
- • Didi Chuxing Technology Co.,
- • Lyft, Inc.,
- • Grab Holdings Inc.,
- • Gett, Inc.
- • Yellow Cab
- • Limo City
- • Hailo
- • Stefano’s RomeCabs
- • Rome Chauffeur
- • Domenico’s Airport Transfers
- • Chauffeur Privé
- • LeCab
- • MyTaxi
- • Nihon Kotsu
- • Didi Dache
- • Bolt
- • Prague Taxis
- • Taxify
- • YandexTaxi
- • BA Taxi
- • Careem
- • Dubai Taxi Corporation
- • Africa Ride
- • Oga Taxi
- • Littele Cabs
- • Yookoo Rider