Australia Taxi Market Size (2024 - 2029)

The Australian taxi market is experiencing significant growth, driven by the increasing popularity of ridesharing and ride-hailing services. This competitive landscape is characterized by the expansion of major players and the introduction of innovative services that blend traditional taxis with rideshare options. The market's expansion is further supported by the rise in online taxi booking applications and the demand for on-demand transportation services. These developments are enhancing customer experience and satisfaction, contributing to the overall growth of the market.

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Market Size of Australia Taxi Industry

Australia Taxi Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 3.73 Billion
Market Size (2029) USD 7.34 Billion
CAGR (2024 - 2029) 9.60 %
Market Concentration High

Major Players

Australia Taxi Market Major Players

*Disclaimer: Major Players sorted in no particular order

Australian Taxi Market Analysis

The Australia Taxi Market size is estimated at USD 3.73 billion in 2024, and is expected to reach USD 7.34 billion by 2029, growing at a CAGR of 9.60% during the forecast period (2024-2029).

The Australian taxi market is becoming competitive due to the rising trend of ridesharing 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 getting into other streams of services as well. However, the competition for Uber has increased, with players like Ola and DiDi entering the market.

For instance, in April 2023, GM Cabs, the integral taxi service in Australia with a network of 30,000 taxis, announced the official launch of Taxi-Share 2023, a progressive and hybrid taxi service that combines the best of taxis and rideshare under the GM Cabs brand. The company is focusing on revolutionizing the transport industry in Australia. The team is working hard to find the perfect taxi hybrid model that meets the needs of both traditional taxis and rideshare taxis while prioritizing customer satisfaction.

Some of the major factors driving the market's growth are the increasing demand for ridesharing and the rise in online taxi booking applications in the country. Considering the market potential, rental taxi companies are working on new strategies to stay ahead of the competition.

For example, in December 2023, Singapore-listed transportation firm ComfortDelGro Corporation Limited announced the acquisition of the taxi operator A2B Australia Limited (A2B) for AUD 182 million (USD123.35 million).

There is a general rise in on-demand transportation services, including taxis, passenger vehicles, and charter vehicles. Features like vehicle tracking in real-time, feedback, and experience rating 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.

Australian Taxi Industry Segmentation

A taxi is a vehicle for hire with a driver used by a single passenger or a small group of passengers.

The Australian taxi market has been segmented by service type, booking type, vehicle type, and country. The market has been segmented by ride hailing and ridesharing based on service type. Based on the booking type, the market is segmented into online and offline booking. On the basis of vehicle type, the market is segmented into hatchbacks, sedans, and SUVs/MUVs. On the basis of country, the market is segmented into New South Wales, Victoria, Queensland, Western Australia, and Rest of Australia. For each segment, market sizing and forecasts have been done on the basis of market value (USD).

By Service Type
Ride Hailing
Ridesharing
By Booking Type
Online Booking
Offline Booking
By Vehicle Type
Hatchbacks
Sedans
SUVs/MPVs
Country
New South Wales (NSW)
Victoria
Queensland
Western Australia
Rest of Australia
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Australia Taxi Market Size Summary

The Australian taxi market is experiencing significant transformation, driven by the increasing popularity of ridesharing and ride-hailing services. This competitive landscape is characterized by the presence of major players like Uber, Ola, and DiDi, who are expanding their service offerings to capture a larger market share. The market is witnessing a shift towards hybrid models that combine traditional taxi services with ridesharing, as seen with GM Cabs' Taxi-Share 2023 initiative. The rise of online taxi booking applications and the ease of mobile app usage are further propelling market growth, as consumers increasingly prefer the convenience of digital platforms for their transportation needs. This trend is supported by the high penetration of internet and smartphone usage in Australia, which facilitates real-time tracking, fare estimation, and other user-friendly features.

The market is also seeing a growing adoption of SUVs in the taxi business, driven by their popularity among consumers and their suitability for ridesharing services. Companies like Kakao Mobility and Uber are expanding their fleets to include electric and compact SUVs, catering to the demand for modern and efficient vehicles. Strategic partnerships and acquisitions, such as ComfortDelGro's acquisition of A2B Australia Limited and Toyota Australia's continued collaboration with the NSW Taxi Council, are helping companies strengthen their market positions. The Australian taxi market is consolidated, with key players focusing on innovation, strategic collaborations, and the integration of advanced payment solutions to enhance customer experience and maintain competitiveness.

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Australia Taxi Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Drivers

      1. 1.1.1 Growing Tourism Industry in Australia

    2. 1.2 Market Restraints

      1. 1.2.1 Varying Government Regulations on Taxi Services

    3. 1.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.3.1 Threat of New Entrants

      2. 1.3.2 Bargaining Power of Buyers/Consumers

      3. 1.3.3 Bargaining Power of Suppliers

      4. 1.3.4 Threat of Substitute Products

      5. 1.3.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION (Market Size in Value USD Billion)

    1. 2.1 By Service Type

      1. 2.1.1 Ride Hailing

      2. 2.1.2 Ridesharing

    2. 2.2 By Booking Type

      1. 2.2.1 Online Booking

      2. 2.2.2 Offline Booking

      3. 2.2.3

    3. 2.3 By Vehicle Type

      1. 2.3.1 Hatchbacks

      2. 2.3.2 Sedans

      3. 2.3.3 SUVs/MPVs

    4. 2.4 Country

      1. 2.4.1 New South Wales (NSW)

      2. 2.4.2 Victoria

      3. 2.4.3 Queensland

      4. 2.4.4 Western Australia

      5. 2.4.5 Rest of Australia

    5. 2.5

Australia Taxi Market Size FAQs

The Australia Taxi Market size is expected to reach USD 3.73 billion in 2024 and grow at a CAGR of 9.60% to reach USD 7.34 billion by 2029.

In 2024, the Australia Taxi Market size is expected to reach USD 3.73 billion.

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