Market Trends of Australia Taxi Industry
Online Booking Holds the Highest Share
Ease of booking through mobile applications and online websites has significantly attracted customers to prefer online booking over offline booking, owing to people's increasing usage of the internet and smartphones.
Additionally, information like tracking the driver's location, pre-estimated ride fare, driver contact, and vehicle details available within an app in a short time has further increased customer preferences for the online booking option.
According to the Australian Communication and Media Authority, the internet adult penetration rate stood at around 99% in 2022, which also portrays the strong demand for smartphones, thus helping the demand for ride-hailing and taxi services across the country. Many major operators in Australia, like Uber, Ola, DiDi, GoCatch HOP, and Shebah, provide online booking options (through their respective websites or mobile applications) to capture the increasing demand for low taxi fare services. The growing millennial and Generation Z commuting populations in the country are the major reason for the growth of online bookings.
For instance, in September 2022, Karhoo partnered with Amadeus to enable taxi booking from Cytric. With the Cytric mobile app, users can hail rides through Karhoo, a venture of Mobilize, from hundreds of fleets of taxis and private transfer companies in 1,000+ cities worldwide.
In November 2022, the NSW Taxi Council and Rydo Technologies announced a partnership to take advantage of NSW Taxi Council’s role as the recognized peak organization for the NSW Taxi industry and a major contributor to the NSW public transport system, as well as Rydo’s innovative, leading-edge technology as Australia’s taxi app.
With the increasing demand for hassle-free online ride booking, taxi operators are expected to adopt online bookings, which is expected to further boost the market prospects in the country during the forecast period.
Sedans are Expected to Hold the Highest Share
SUVs accounted for more than 50% of new vehicles sold in Australia last year, a share which has almost doubled over the past decade. With the growth in demand for SUVs, its adoption in the taxi business is also rising exponentially.
Kia Sportage and Mitsubishi Outlander are Australia's most popular ridesharing businesses.
A number of rental companies, such as OCR Car Rentals, are offering convenient and affordable compact SUVs in Australia. Compact SUV hire is famous for many reasons, such as sportiness, sleekness, attractive look, and fuel efficiency. Their spacious interior can comfortably accommodate five people or travelers with plenty of gear. Compact SUVs can provide an unparalleled driving experience with all the in-built modern amenities. Their decent size, adequate storage space, and powerful engine make these SUVs a perfect companion for an adventurous road trip.
With the growing adoption of SUVs in the taxi business, many car rental service providers are also focusing on advancements in their services and expanding their fleets.
In September 2023, Kakao Mobility aimed to launch its cab-hailing service Kakao Taxi in the US and Australian markets, an initiative helped by the acquisition of Splypt in March. Splypt rolled out other tailored services in partnership with Miki Taxi, such as taxi booking services at the airport, implementation of family-friendly SUV vehicles, taxi tours, and car rentals. It plans to continue to expand travel-related services through Kakao Taxi.
Uber Australia partnered with the distributor EVDirect to introduce a fleet of 10,000 BYD electric cars. Uber rideshare drivers and Uber Eats delivery workers can now access “flexible and competitive” financing options via EVFlex to use an Atto 3 small electric SUV, with more models coming soon.
Owing to such developments, SUVs are projected to register the highest growth rate.
