2018 - 2026
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The Australian taxi market was valued at USD 2,409.5 million in 2020 and is projected to reach a CAGR of 9.61% during the forecast period, 2021-2026.
The COVID-19 pandemic has crippled the taxi operators, due to the lack of operations following the lockdown. Ridesharing player, Bolt, closed its local operations after almost two-and-a-half years, in the country, which was primarily a result of weakened demand due to the pandemic. Many taxi drivers have lost their jobs, and they are waiting for the pandemic to end. This is currently one of the most challenging issues for the taxi market in Australia.
The Australian taxi market is becoming competitive, due to the rising trend of ride-sharing and ride-hailing services. Ridesharing is gaining popularity among commuters in Australia, and the market is expanding steadily. Uber has established itself as a market leader in cab-hailing services over the years. The brand is slowly inching into other streams of services as well. However, the competition for Uber has increased, with players, like Ola and DiDi, entering the market.
Some of the major factors driving the growth of the market are the increasing demand for ride sharing and the rise in online taxi booking applications in the country. However, reliability issues and the abolishment of taxi licenses have hampered the growth of the market.
There is a general rise in the on-demand transportation services, including taxis, passenger vehicles, and charter vehicles. Features, like vehicle tracking in real-time, feedback, and the rating of the experience, make it extremely friendly for customers to use these services. There are even platforms that facilitate the comparison of prices before booking the cab. These facilities and features are giving a significant boost to the market.
In 2018, the Labor government’s decision to abolish taxi licenses, introducing a single registration for taxis last year, has deregulated the taxi industry. By introducing hire cars and ride share services, like Uber, the consequences have been destructive for many, leading several taxi drivers to bankruptcy.
However, the internet penetration, rise in the standards of living, and the emergence of local players are slowly shifting the landscape. Over the forecast period, the rising demand and the market scenario are expected to be graphically different and in favor of on-demand transportation services.
Scope of the Report
A taxi is defined as a vehicle for hire with a driver, used by a single passenger or small group of passengers.
The Australian taxi market has been segmented by the method of request and vehicle type. In Method of Request, the market has been segmented by Phone Call, Taxi Rank, Hailing on the Street, and the Internet. In-Vehicle Type, the market has been segmented by Hatchback, Sedan, SUV/MUV, and Luxury. For each segment market sizing and forecasts have been done on the basis of market value (USD million).
|By Method of Request|
|Hailing on the Street|
|By Vehicle Type|
|New South Wales (NSW)|
|Rest of Australia|
Key Market Trends
Increasing Demand for Online Channels
Ease of booking through mobile applications and online websites has significantly attracted customers to prefer online booking over offline booking, owing to the increasing usage of internet and smartphones by people.
Additionally, information, like tracking the driver’s location, pre-estimated ride fare, driver contact, and vehicle details available within an app at a short time, have further increased the customer preference toward the online booking option.
Many major operators, like Uber, Ola, DiDi, GoCatch HOP, and Shebah, provide online booking options (through their respective websites or mobile applications) in Australia, to capture the increasing demand for low taxi fare services. The growing millennial and Generation Z commuting populations in the country is the major reason for the growth of the online bookings.
Surveys state that Uber became the most preferred mode of private transport in Australia in 2019, with a total of 4.7 million Australians utilizing the ride sharing app in an average three-month period. Australians aged between 18 and 24 years are Uber’s largest customer base, and they are driving the platform’s popularity. Perth has the highest Uber app usage rate of any capital city, followed by Melbourne and Sydney.
However, the penetration of the service providers that provide online bookings is on the lower side. Competitors of Uber, like Ola, DiDi, etc., currently operate in only certain cities in the country. Nevertheless, it will not be long before these service providers expand to various other cities in the country, owing to the rising demand for online bookings across the country.
<To sustain this rising trend of ride sharing service, local taxi operators have started to adopt the same strategy, and they are trying to incorporate ride sharing options in their respective taxi app development. Several online taxi booking services, like the GoCatch, 13cabs, ingogo, Rydo, and OkTaxi, are available in Australia.
<With the increasing demand for hassle-free online ride booking, any taxi operators are expected to adopt online bookings, which is expected to further boost the market prospects in the country during the forecast period.
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New South Wales is Expected to Witness Highest Demand
New South Wales represents the largest market for taxi services in the country. The increasing demand for taxi services is contributed by factors, such as increasing tourists, increasing demand for ride sharing services, and the rise in online taxi booking applications.
By April 2020, there were a total of 6,992 taxi licenses issued in NSW with 2,277 authorized service providers, out of which 5,572 licenses were issued in Sydney alone.
Although there has been a surge in taxi bookings until the end of 2019, during 2020, the taxi industry in New South Wales fell by nearly 80%. This is due to the outbreak of COVID-19, and several daily ride sharing commuters have started working from home, thereby, bookings have significantly decreased.
The average fare costs had fallen to USD 19 from USD 25, while 30% of the network was no longer in operation as drivers had taken their vehicles off the road. In addition to this, there has been panic among the customers as one in three drivers in Sydney are tested positive, according to the Australian Taxi Drivers Association.
Taxi service providing companies in NSW, such as 13Cabs, to help their customers from the ongoing pandemic have started online delivery of groceries from supermarkets. The service is available seven days a week and operates in Maitland, Swansea, Toronto, and Rutherford in New South Wales' Hunter, and Lake Macquarie regions.
However, the demand for taxi services is expected to stabilize post the end of COVID-19. It is also expected that new taxi operating systems are expected to launch in New South Wales.
The market studied is highly fragmented due to the presence of many regional and international players. However, the market is dominated by some of the major players, such as Uber, Ola, Didi, and A2B, which accounted for a significant market share of about 70% in 2019.
Uber ranked the top position in the market studied, with nearly 63,000 drivers registered in its business across the country.
With entry of Ola in Australia in 2018, the company, currently, operates in over 20 cities across the country.
- A2B has undertaken a large modernization program and invested in new technology and a rebranding to give 13cabs a more contemporary look and feel in the battle against ride-sharing firms such as Uber, Didi and Ola.
- A2B has also urged taxi owners to retire old vehicles from the roads underage restrictions that began in January, 2019.
- In March 2020, Didi Mobility launched its ridesharing services, DiDi Express and DiDi Max in Sydney, New South Wales.
- In March 2020, 13cabs began offering taxi services in the Mid North Coast region of New South Wales with its operations in the town of Taree, the town of Foster and the town of Laurieton.
Table of Contents
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Industry Attractiveness - Porter's Five Force Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 By Method of Request
5.1.1 Phone Call
5.1.2 Taxi Rank
5.1.3 Hailing on the Street
5.2 By Vehicle Type
5.3.1 New South Wales (NSW)
5.3.4 Western Australia
5.3.5 Rest of Australia
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 Uber Technologies Inc.
6.2.2 ANI Technologies Pvt Ltd (Ola)
6.2.3 Bolt Technology OÜ
6.2.4 GM Cabs
6.2.5 Taxi Apps Pty Ltd (GoCatch)
6.2.6 A2B Australia Limited
6.2.7 P2P Transport Limited
6.2.9 Legion Cabs
6.2.10 Rydo Taxi
6.2.12 (Didi Chuxing) Beijing Xiaoju Technology Co. Ltd
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
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Frequently Asked Questions
What is the study period of this market?
The Australia Taxi Market market is studied from 2018 - 2026.
What is the growth rate of Australia Taxi Market?
The Australia Taxi Market is growing at a CAGR of 9.61% over the next 5 years.
What is Australia Taxi Market size in 2018?
The Australia Taxi Market is valued at 2409 Million USD in 2018.
What is Australia Taxi Market size in 2026?
The Australia Taxi Market is valued at 3812 Million USD in 2026.
Who are the key players in Australia Taxi Market?
- Uber Technologies Inc.
- ANI Technologies Pvt. Ltd (Ola)
- GM Cabs
- A2B Australia Limited
- Didi Chuxing
Are the major companies operating in Australia Taxi Market.