Market Size of India Taxi Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 20.61 Billion |
| Market Size (2029) | USD 38.90 Billion |
| CAGR (2024 - 2029) | 13.55 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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India Taxi Market Analysis
The India Taxi Market size is estimated at USD 20.61 billion in 2024, and is expected to reach USD 38.90 billion by 2029, growing at a CAGR of 13.55% during the forecast period (2024-2029).
The COVID-19 pandemic stands to be the most abrupt shock to the global economy in modern times. With transport being one of the COVID-19 transmission vectors, the pandemic has affected shared mobility at large, including ride-hailing and ride-sharing services. While the current COVID-19 pandemic may delay the achievement of turnover targets, the medium to long-term growth of taxis in India is very likely. This would qualify taxis as a significant and growing contributor to road transport air pollution in India. However, the taxi market is witnessing substantial growth owing to the swiftly escalating year-on-year adoption rate of electric vehicles.
The rise of eco-friendly electric cab services will likely provide an attractive potential for market expansion. For instance, there was a dramatic rise in electric vehicle sales in the country, showing signs of active market growth in the Indian taxi market during the forecast period.
Further, the expansion of taxi services provided by market leaders such as Uber, Ola Cabs, and Meru Cabs, as well as the ability to select convenient pick-up and drop-off locations, is encouraging consumers to choose them and positively impacts the target market growth in the upcoming period.
Over the long term, the taxi industry is expected to grow due to increasing demand for ride-hailing and ride-sharing services, increasing demand from online taxi booking channels, and an increase in the cost of vehicle ownership. Compared to other modes of transportation, increasing traffic congestion and low taxi fares are the other major factors driving the taxi market in India.
