Australia Taxi Market Size (2024 - 2029)

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).