The global taxi market is anticipated to grow at a significant CAGR of 10.1% during the forecast period. One of the core factors that is fueling the market is the growing tour and travel sector across the globe. Tours and traveling have been growing for years owing to several reasons such as visiting, functions, studies, jobs, business, and others. As per the World Bank 2019 data of International tourism, the total receipts reached $1.86 trillion in 2019. This has impacted the taxi market positively as taxis are easy to find, and book for the exact destination location. 

Impact of COVID-19 Pandemic on Global Taxi Market

The COVID-19 pandemic has impacted several industries, and the tour & travel industry was impacted heavily owing to the implementation of lockdown across the globe. The imposition of lockdown stopped international traveling for months and local traveling which declined the demand for taxi services globally. Key market players also reported a decline in sales and revenue for FY2020 compared to previous years. As per the annual report of Uber 2020, the revenue of the company declined by 16% as compared to the revenue of the company in 2019. Additionally, it also shifted the user’s preference to travel in a private vehicle more than a public vehicle for avoiding contact with unknowns. This change has grown the market exponentially as the situation normalized for traveling. As per the annual report of Uber 2021, the revenue of the company grew by 83% as compared to the revenue of the company in 2020.    

Segmental Outlook 

The global taxi market is segmented based on booking type, service type, and vehicle type. Based on the booking type, the market is segmented into online booking and offline booking. Based on the service type, the market is sub-segmented into ride-hailing, and ride-sharing. Based on the vehicle type, the market is sub-segmented into two-wheeler, three-wheeler, and four-wheelers. The above-mentioned segments can be customized as per the requirements. Among the service type, the ride-hailing segment is anticipated to grow significantly over the forecast period. 

Global Taxi Market Share by Booking Type, 2021 (%)

The Online Booking Segment Anticipated to Grow at a Considerable CAGR in the Global Taxi Market

The online booking segment is anticipated to grow at a considerable CAGR in the market during the forecast period owing to the growing internet penetration across the globe. With easy access to the internet, people have been inclining more and more on online purchases, and bookings in the past few years. This has also grown the taxi market as it reduces the effort to find a taxi at an affordable price. Most non-local people use these apps to travel for reaching their destination without any trouble. As per the annual report of Uber 2021, Gross Bookings reached $25.9 billion which grew by 51% year-over-year the growth also benefitted from the decline in 2020 due to COVID-19, which has also boosted online booking to avoid the crowd. 

Regional Outlooks

The global taxi market is further segmented based on geography including North America (the US, and Canada), Europe (Italy, Spain, Germany, France, and Others), Asia-Pacific (India, China, Japan, South Korea, and Others), and the Rest of the World (the Middle East & Africa, and Latin America).  The market can be analyzed for a particular region or country level as per the requirement. The Asia-Pacific is estimated to hold the prominent share in the market while North America promises significant growth during the forecast period. 

Global Taxi Market Growth, by Region 2022-2028

The Asia-Pacific Region Anticipated to Hold Prominent Share in the Global Taxi Market

Asia-Pacific is anticipated to hold a prominent share in the market during the forecast period owing to the presence of emerging and populated countries such as China, India, and others. The region has the highest population across the globe, and a big share of the population does not own a vehicle on own which increases its dependency on private and public transport such as taxis, buses, trains, and others. Thus the taxi market is huge in the region catering to fulfill the requirement of such people. Moreover, market players such as DiDi Chuxing, Onda, and Ola are taking advantage of Asia-Pacific's high smartphone penetration rate. These South Asian cab service providers are growing the competition in regional marketplaces while growing internationally. For instance, in July 2020, Didi Chuxing, a Chinese taxi company, which also operates in Mexico, Costa Rica, Japan, Australia, and numerous other countries, launched a standalone ride-hailing service that targets younger customers with cheaper ride as compared to its main app. The new service named “Huaxiaozhu”. 

Market Players Outlook

The major companies serving the global taxi market include ANI Technologies Pvt Ltd (Ola), BlaBlaCar, DiDi Global Inc., Lyft, Inc., Uber, and others. The market players are considerably contributing to the market growth by the adoption of various strategies including mergers & acquisitions, collaborations, funding, and new product launches, to stay competitive in the market. For instance, in October 2021, ANI Technologies Pvt Ltd (Ola) acquired GeoSpoc, a geospatial services provider, for building the next-generation location technology, including three-dimensional, real-time, and vector maps.

The Report Covers

• Market value data analysis of 2021 and forecast to 2028.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global taxi market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.