Taxi Market Size, Trends & Forecast | 2031 (2024)

Global Taxi Market size was valued at USD 203.16 Billion in 2022 and is poised to grow from USD 229.89 Billion in 2023 to USD 618.11 Billion by 2031, at a CAGR of 13.16% during the forecast period (2024-2031).

The global taxi market continues to undergo significant transformations driven by technological advancements and changing consumer preferences. Ride-hailing services have emerged as a disruptive force, challenging traditional taxi operators with their convenient mobile platforms and competitive pricing models. Increasing urbanization and the rise of the gig economy are fueling demand for on-demand transportation solutions, leading to the proliferation of ride-hailing companies worldwide. However, the market faces regulatory hurdles and fierce competition among key players, necessitating innovative strategies to maintain market share and profitability. The advent of electric and autonomous vehicles promises to further revolutionize the industry, offering potential cost savings and environmental benefits. Moreover, partnerships with automotive manufacturers and investments in smart mobility solutions present opportunities for growth and differentiation. As the industry evolves, understanding evolving consumer behaviors and embracing technological innovations will be crucial for taxi operators to thrive in an increasingly competitive landscape.

US Taxi Market is poised to grow at sustainable CAGR for the next forecast year.

Market Snapshot - 2024-2031

Global Taxi Market is segmented on the basis of vehicle type, service type, customer type, and region. by type, the market is segmented into sedans, suvs, hatchbacks, luxury taxis, others. by service type, the market is segmented into individual taxis, shared taxis. by customer type, the market is segmented into personal and corporate. By region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

Taxi Market Analysis By Vehicle Type

The taxi market can be segmented based on various vehicle types, each catering to different customer preferences and requirements. These segments include sedans, SUVs, and luxury taxis. Among these segments, sedans represent the largest segment in terms of market share. Sedans are the most common and widely used vehicles in the taxi market. They are known for their compact size, fuel efficiency, and affordability. Sedans provide a comfortable and convenient mode of transportation for individuals and small groups. They are particularly suitable for urban areas with narrow streets and limited parking spaces. Sedan taxis are often hailed for daily commutes, short trips, and general transportation needs.

On the other hand, SUVs have witnessed significant growth and are considered the fastest-growing segment in the taxi market. SUV taxis cater to larger groups or passengers with additional luggage requirements. These vehicles provide ample seating space, enhanced legroom, and higher cargo capacity compared to sedans. SUVs are known for their versatility, robustness, and ability to navigate through rough terrains. They offer a comfortable and spacious travel experience, making them suitable for airport transfers, family outings, and group travels.

Taxi Market Analysis By Service Type

The individual taxis represent the largest segment in terms of market share, while shared taxis are considered the fastest-growing segment. Individual taxis are the most common and widely used service type in the taxi market. These taxis provide transportation services to individual passengers or small groups. Customers can easily hail individual taxis on the streets or through phone calls, and these services are regulated by local transportation authorities. Individual taxis offer convenience, flexibility, and personalized travel experiences. They are suitable for a wide range of purposes, including daily commutes, shopping trips, and social outings.

On the other hand, shared taxis have witnessed significant growth and are considered the fastest-growing segment in the taxi market. Shared taxis provide cost-effective transportation by allowing multiple passengers to share the same ride. These services are typically facilitated through mobile applications or online platforms, connecting passengers traveling in the same direction. Shared taxis promote carpooling, reducing the number of individual vehicles on the road and contributing to environmental sustainability. They offer affordable fares, shared costs, and reduced congestion. Shared taxis are increasingly popular among commuters, students, and budget-conscious travelers.

The largest market region in the Taxi market is North America. The region boasts a well-established transportation infrastructure and a high level of urbanization, contributing to a significant demand for taxi services. Major cities in North America, such as New York, Los Angeles, and Toronto, have dense populations and heavy traffic, creating a strong need for convenient and efficient transportation options. The presence of established ride-hailing platforms, such as Uber and Lyft, has further fueled the growth of the taxi market in the region. Additionally, North America has a strong culture of using taxis for various purposes, including daily commuting, airport transfers, and leisure activities.

When it comes to the fastest growing region in the taxi market, Asia Pacific emerges as a dynamic and rapidly evolving market. The region is witnessing significant growth due to several factors. Firstly, rapid urbanization and a rising middle-class population have led to increased demand for transportation services, including taxis. Emerging economies such as China and India, with their large populations and expanding urban areas, are key drivers of growth in the Asia Pacific taxi market. Secondly, the adoption of technology-enabled ride-hailing platforms has surged in the region, providing convenient and affordable transportation options to a growing customer base. Players like Didi Chuxing in China and Ola in India have successfully captured market share and continue to expand their operations.

Taxi MarketDrivers

The Increasing Urbanization And Population Density

• As cities continue to grow, there is a higher concentration of people in urban areas, resulting in greater demand for transportation services. Urban dwellers rely on taxis for their daily commutes, running errands, and social outings. The convenience and accessibility offered by taxis make them a preferred mode of transportation in densely populated areas. Moreover, as urbanization expands, it leads to longer commuting distances and increased traffic congestion, making taxis a practical choice for individuals seeking a quicker and hassle-free travel experience.

Taxi Market Restraints

Competition From Ride-Sharing Services And Other Emerging Mobility Options

• The rise of ride-hailing platforms, such as Uber and Lyft, has disrupted the traditional taxi market. These platforms offer competitive pricing, greater convenience, and a seamless user experience through mobile applications. They have attracted a large customer base, particularly among younger generations, who favor the ease of booking, cashless payments, and real-time tracking features offered by ride-hailing services. This increased competition has put pressure on traditional taxi operators, who often face challenges in adapting to rapidly changing market dynamics.

The Global Taxi Market features a highly competitive landscape with the presence of several key players. Some of the prominent players in the market focus on product innovation and technological advancements to gain a competitive edge. They invest significantly in research and development to introduce new features and functionalities in their Taxi solutions. Additionally, strategic partnerships, collaborations, and acquisitions are common strategies employed by these players to expand their market presence and enhance their product portfolios. With the growing demand for Taxi solutions, the competition among these players intensifies, leading to continuous advancements and improvements in the market offerings.

Taxi Market Top Player’s Company Profile

• Uber Technologies Inc. (US)

• Didi Chuxing Technology Co. Ltd. (China)

• Lyft Inc. (US)

• Grab Holdings Inc. (Singapore)

• Ola Cabs (ANI Technologies Pvt. Ltd.) (India)

• Gett Inc. (Israel)

• Curb Mobility LLC (US)

• Careem (United Arab Emirates)

• Easy Taxi Serviços Ltda. (Brazil)

• Bolt (Taxify) (Estonia)

• 99 (99 Technology Ltda.) (Brazil)

• DiDi Australia Pty Ltd. (Australia)

• Gojek (PT Aplikasi Karya Anak Bangsa) (Indonesia)

• MyTaxi (Intelligent Apps GmbH) (Germany)

• Karhoo Ltd. (United Kingdom)

• Yandex.Taxi (Russia)

• Wingz Inc. (US)

• Juno Inc. (US)

• Beat (Taxibeat Ltd.) (Greece)

• Kakao Mobility Corp. (South Korea)

Taxi Market Recent Developments

• In February 2024, Joby Aviation Inc. a company developing all-electric aircraft for commercial passenger service, announced it has signed a definitive agreement with Dubai’s Road and Transport Authority (RTA) to launch air taxi services in the Emirate by early 2026, with Joby targeting initial operations as early as 2025.

• In January 2024 The Dubai Taxi Co PJSC ("DTC"), one of a leading provider of comprehensive mobility solutions in Dubai, announced the launch of a new service for people of determination (POD), enabling them to book regular taxis through "DTC App".

• In December 2023 Bike-taxi and auto aggregator Rapido has entered the cab booking services category with the launch of Rapido Cabs.

• Growing emphasis on sustainability and the adoption of electric vehicles (EVs): As the world shifts towards a more eco-friendly and sustainable future, the taxi market is witnessing a trend towards electrification. Governments, regulatory bodies, and consumers are increasingly focused on reducing carbon emissions and mitigating the environmental impact of transportation. Taxi companies and ride-hailing platforms are recognizing the importance of sustainability and are investing in electric vehicle fleets. This trend is driven by several factors. The decreasing costs of EV technology, along with government incentives and subsidies, have made electric vehicles more accessible and economically viable for taxi operators.

SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.

According to our analyses, the taxi market is undergoing significant transformations driven by evolving consumer preferences, technological advancements, and the need for sustainable transportation solutions. The most significant driving factor shaping the industry is the rise of ride-hailing platforms and the adoption of technology-enabled services, providing seamless booking, cashless payments, and real-time tracking. These platforms, such as Uber and Didi Chuxing, have disrupted the traditional taxi market and continue to attract a large customer base, particularly among younger generations. The largest segment in the taxi market is individual taxis, serving as a reliable and convenient mode of transportation for daily commutes, short trips, and general transportation needs. However, the fastest-growing segment is shared taxis, fueled by the demand for cost-effective and eco-friendly transportation options through ride-sharing. Asia Pacific emerges as the dominating region in the taxi market, with countries like China and India contributing significantly to its growth. These nations experience rapid urbanization, population growth, and increasing middle-class populations, driving the demand for transportation services. Moreover, the Asia Pacific region has seen the rise of technology-enabled platforms and supportive government initiatives, propelling its growth further. As the industry continues to evolve, embracing sustainability and exploring emerging technologies like electric vehicles, the taxi market holds vast potential for innovation and enhanced customer experiences.