The global taxi market size was valued at around USD 70 billion in 2021 and is anticipated to reach around USD 120.90 billion by 2030, expanding at a CAGR of around 12% during the forecast period, 2022 – 2030. The growth of the market is attributed to the increasing use of online taxi booking channels and easy online payment methods.
Taxi, short for taximeter cab, is a type of vehicle that can be hired along with a driver, which is used by single or multiple passengers to travel from one location to another location. Taxi services are different from other public transport, as customers decide the pick-up and drop-off locations. Passengers hail or book a taxi via call or message on phones, by using smartphone applications, through websites, or by going to the taxi stand. Types of vehicles used in taxi services include passenger cars, scooters, motorcycles, vans, autorickshaws, and others. Passengers decide on the pick up and drop off locations as well as number of passengers to travel in taxi. Taxi fares are either pre-decided or conveyed at the drop-off locations by drivers. Passengers pay in cash or through online payment method at the end of the ride.
The COVID-19 situation affected the taxi market negatively, as lockdown and travel restrictions limited the demand for taxis. Preferences of passengers switched towards personal vehicles, due to increasing risks of cross-contamination in public spaces such as taxis. However, increasing demand for taxi services after easing of lockdown measures is expected to propel the global taxi market in the coming years.
Market Trends, Drivers, Restraints, and Opportunities
- Increasing cost of vehicle ownership is expected to drive the global taxi market.
- Growing demand for online taxi booking channels is estimated to boost the market.
- Low fare cost offered by taxis spurs the market.
- Easy online payment methods are anticipated to fuel the market during the forecast period.
- Development in other public transport services such as buses, trains, metro, and others are expected to hinder the growth of the market.
- Staying indoors or using personal vehicle to avoid the spread of COVID-19 virus are anticipated to hamper the growth of the market.
- Varying government regulations on taxi services in different countries restrains the growth of the market.
- Increasing eco-friendly electric taxi services offer lucrative growth opportunities for the key market players.
Scope of the Report
The report on the global taxi market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Taxi Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2021
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Historic Data
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2019–2020
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Forecast Period
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2022–2030
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Segmentation
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Vehicle Types (Cars, Motorcycles, and Others), Booking Types (Online Booking and Offline Booking), and Service Types (Ride-Sharing and Ride-Hailing)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered in the Report
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Uber Technologies, Inc.; Lyft, Inc.; ANI Technologies Pvt. Ltd. (Ola Cabs); Didi Chuxing Technology, Co.; Grab Holdings, Inc.; Dubai Taxi Corporation (DTC); Beijing Xiaoju Technology Co. Ltd.; Curb Mobility LLC; Yandex N.V.; Gojek Tech; Nihon Kotsu Co. Ltd.; Maxi Mobility Spain; Grab Holdings, Inc.; Gett; FREE NOW; Careem, an Uber company; and Others
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Market Segment Insights
Car segment drives the market
Based on vehicle types, the market id divided into cars, motorcycles, and others. The car segment is estimated to expand at a rapid pace during the forecast period, as cars accommodate higher number of passengers at a time than motorcycles. Benefits of car rides such as shade and air-conditioning makes them a preferred mode of transportation than other vehicle types.
Online booking segment boosts the market
In terms of booking types, the market is bifurcated into online booking and offline booking. The online booking segment is expected to drive the market during the forecast period, due to its convenience. Online booking method offers flexibility and option of choosing pick-up and drop-off locations to clients. Several advantages of online booking such as pre-estimated ride fare, vehicle details, driver contact, tracking the driver position, and others expands the online booking segment, thus boosting the market.
Ride-hailing segment holds a large market share
On the basis of service types, the market is segregated into ride-sharing and ride-hailing. The ride-hailing segment is projected to fuel the market during the forecast period, due to increasing cost of vehicle ownership. Rising environmental concerns, due to increasing traffic are expected to boost the market.
Asia Pacific dominates the market
Based on regions, the market is segmented into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. The market in Asia Pacific holds a large share of the market, owing to the high usage rate of smartphones in the region. Increasing usage of online bookings for taxi services in Asia Pacific boosts the market in the region. Growing ride-hailing services and inexpensive taxi fares are expanding the market rapidly. Pooling/sharing taxis are in high demand in countries such as India, China, and others, due to different socio-economic strata.
Segments
The global taxi market has been segmented on the basis of
Vehicle Types
Booking Types
- Online Booking
- Offline Booking
Service Types
- Ride-Sharing
- Ride-Hailing
Regions
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- Uber Technologies, Inc.
- Lyft, Inc.
- ANI Technologies Pvt. Ltd. (Ola Cabs)
- Didi Chuxing Technology, Co.
- Grab Holdings, Inc.
- Dubai Taxi Corporation (DTC)
- Beijing Xiaoju Technology Co. Ltd.
- Curb Mobility LLC
- Yandex N.V.
- Gojek Tech
- Nihon Kotsu Co. Ltd.
- Maxi Mobility Spain
- Grab Holdings, Inc.
- Gett
- FREE NOW
- Careem, an Uber company
- Others
Competitive Landscape
Key players such as Uber Technologies, Inc.; Lyft, Inc.; ANI Technologies Pvt. Ltd. (Ola Cabs); Didi Chuxing Technology, Co.; Grab Holdings, Inc.; Dubai Taxi Corporation (DTC); Beijing Xiaoju Technology Co. Ltd.; Curb Mobility LLC; Yandex N.V.; Gojek Tech; Nihon Kotsu Co. Ltd.; Maxi Mobility Spain; Grab Holdings, Inc.; Gett; FREE NOW; Careem, an Uber company; and others use business strategies such as mergers, acquisitions, partnerships, collaborations, and product launches to strengthen their hold on the global taxi market. For example, in 2021, China-based ride-hailing company, Didi Chuxing Technology Co., started operating in South Africa. The company announced its plans to launch ride-hailing services in the UK, Germany, and France. In March 2022, Uber Technologies, Inc. announced Uber Explore, which facilitates browsing and booking for dinner reservations, live events, and other activities through Uber application. In January 2021, Grab Holdings, Inc. and Panasonic Holdings Corporation announced a partnership to use air purifiers by Panasonic in Grab taxis to enhance costumer experience. In October 2021, ANI Technologies Pvt. Ltd. acquired GeoSpoc, a geospatial service provider, to build a new version of location technology. In October 2021, Uber Technologies, Inc. announced a partnership with Hertz Global Holdings, Inc., a car rental company, to offer 50,000 Tesla, Inc. vehicles as a rental option for Uber ride-hail drivers.
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