Market Overview

The taxi market is expected to register a CAGR of 9.22%, during the forecast period, 2019-2024.

• Reduced taxi fare and ease of booking through mobile apps are the major factors that has driven the online booking segment type to capture a major share of more than 40% of the taxi market in 2017, globally. With the advent of e-hailing taxi applications, such as Uber, Lyft, Ola, etc., taxi services have been one of the game-changing innovations of the transportation sector.
• Passengers’ preferences for utilizing taxi services and ride-sharing services across developing countries, such as India, China, Vietnam, etc. has increased. This has led to companies enhancing the options and expanding their operations to be provided in mobile applications to retain their respective market share in the highly competitive market.
• Asia-Pacific captured a major share of the market, accounting for more than 70% of the global motorcycle/bike taxi market in 2018. Increasing traffic congestion and low taxi fare, when compared to other modes of transportation, are the major factors driving the growth of the motorcycle/bike taxi service in the Asia-Pacific market.

Scope of the Report

A taxi or cab is a type of vehicle for hire, with a driver, used by a single passenger or small group of passengers, often for a non-shared ride. A taxi conveys passengers between locations of their choice. This service differs from other modes of public transport, where the pick-up and drop-off locations are determined by the service provider, and not by the passenger.

The taxi market has been segmented by booking type, vehicle type, service type, and geography.

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Key Market Trends

Increasing Demand from Online Channel

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, across the world.

Additionally, information, like tracking the driver’s location, pre-estimated ride fare, driver contact, and vehicle details, all available within an app at a short time has further increased the customer preference more toward the online booking option.

Many major operators, like Grab, Uber, Ola, etc., provide ridesharing option (which provide fare-splitting option among co-passengers) in their respective apps in certain regions, to capture the increasing demand for low taxi fare services, among the customers.

To sustain the above growing trend of ridesharing service, local taxi operators have started to adopt the same strategy, and are trying to incorporate ridesharing option in their respective taxi app development. For instance,

• In Vietnam, Mai Linh, one of the major taxi operators in the country, is trying to focus on providing ridesharing services, to overcome the country’s mobility challenges (majorly due to traffic congestion and rising population) by partnering with Kyyti Group, in November 2017.
• In January 2019, a new company called Ridealto was established that offers ride-sharing services on a subscription basis. The company has its own fleet of SUVs and drivers.

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