Taxi And Limousine Services Global Market Report 2022: By Distance, By Application

Major companies in the taxi and limousine services market include Uber, Daimler AG, Lyft, MOL Hungarian Oil and Gas plc, ComfortDelGro Corporation, and A2B Australia Ltd.

The global taxi and limousine services market is expected to grow from $95.5 billion in 2021 to $104.87 billion in 2022 at a compound annual growth rate (CAGR) of 9.8%. The market is expected to grow to $147.26 billion in 2026 at a compound annual growth rate (CAGR) of 8.9%.

The taxi and limousine services market consist of sales of taxi and limousine services and related goods 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.

The main types in the taxi and limousine services market are online taxi services, tele and offline taxi services, and limousine services. The limousine services usually provide services on demand for passenger transportation. The market is segmented by distance into long-distance and short-distance and by application into adults and children.

Asia Pacific was the largest region in the taxi and limousine services market in 2021. Western Europe was the second largest region in the taxi and limousine services market. The regions covered in this report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.

The shift in consumer preferences towards traveling in taxis rather than investing in buying a personal car is expected to be a key driver of the taxi and limousine services market. Rising prices of vehicles and fuel, high traffic situations, limited availability of parking spaces, and low costs of taxi ridership compel people, especially millennials, to opt for ride-hailing services. Ride-hailing companies are offering rides at low prices globally. For instance, in the USA, Uber charges a base fare of about $3 and about $2 per mile. In India Uber offers rides at as low as INR 7/km and Ola offers rides at INR 8/km. This makes a daily taxi ride much cheaper than a car bought on loan. This change in consumer preferences will drive the demand for taxi services going forward.

The 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. 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 to 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 service providing companies are offering shared transportation services to cater to the increasing demand of customers. A shared transportation system is an innovative transportation strategy that enables users to gain short-term access to transportation modes as needed. It includes various forms of transportation, such as car-sharing, bike-sharing, carpooling, and platform-based ride services. Shared transportation systems are growing in the transit and ground passenger transportation industry owing to the cost benefits this system offers to customers. For example, Uber, an American on-demand cab transportation service provider with an international presence, is offering a shared ride service known as UberPOOL. Ride-sharing companies such as BlaBlaCar and Drivezy also facilitate users to book a seat in vehicles according to their choice by mere payment of a membership fee or fare.

The countries covered in the taxi and limousine services market report are Argentina, Australia, Austria, Belgium, Brazil, Canada, Chile, China, Colombia, Czech Republic, Denmark, Egypt, Finland, France, Germany, Hong Kong, India, Indonesia, Ireland, Israel, Italy, Japan, Malaysia, Mexico, Netherlands, New Zealand, Nigeria, Norway, Peru, Philippines, Poland, Portugal, Romania, Russia, Saudi Arabia, Singapore, South Africa, South Korea, Spain, Sweden, Switzerland, Thailand, Turkey, UAE, UK, USA, Venezuela, and Vietnam.