Market Size of India Taxi Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 20.61 Billion |
| Market Size (2029) | USD 38.90 Billion |
| CAGR (2024 - 2029) | 13.55 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
India Taxi Market Analysis
The India Taxi Market size is estimated at USD 20.61 billion in 2024, and is expected to reach USD 38.90 billion by 2029, growing at a CAGR of 13.55% during the forecast period (2024-2029).
The COVID-19 pandemic stands to be the most abrupt shock to the global economy in modern times. With transport being one of the COVID-19 transmission vectors, the pandemic has affected shared mobility at large, including ride-hailing and ride-sharing services. While the current COVID-19 pandemic may delay the achievement of turnover targets, the medium to long-term growth of taxis in India is very likely. This would qualify taxis as a significant and growing contributor to road transport air pollution in India. However, the taxi market is witnessing substantial growth owing to the swiftly escalating year-on-year adoption rate of electric vehicles.
The rise of eco-friendly electric cab services will likely provide an attractive potential for market expansion. For instance, there was a dramatic rise in electric vehicle sales in the country, showing signs of active market growth in the Indian taxi market during the forecast period.
Further, the expansion of taxi services provided by market leaders such as Uber, Ola Cabs, and Meru Cabs, as well as the ability to select convenient pick-up and drop-off locations, is encouraging consumers to choose them and positively impacts the target market growth in the upcoming period.
Over the long term, the taxi industry is expected to grow due to increasing demand for ride-hailing and ride-sharing services, increasing demand from online taxi booking channels, and an increase in the cost of vehicle ownership. Compared to other modes of transportation, increasing traffic congestion and low taxi fares are the other major factors driving the taxi market in India.
India Taxi Industry Segmentation
The Indian taxi market refers to the industry within India's transportation sector that encompasses the various services providing point-to-point transportation through taxi vehicles. It can be used for single or multiple passengers, with the option of sharing or not sharing.
The scope of the India taxi market is segmented by booking type, service type, and vehicle type. By booking type, the market is segmented into online booking and offline booking. By service type, the market is segmented into ride-hailing and ride-sharing. By vehicle type, the market is segmented into motorcycles, cars, and other vehicle types (vans).
For each segment, market sizing and forecast have been done on the basis of value (USD).
| By Booking Type | |
| Online Booking | |
| Offline Booking |
| By Service Type | |
| Ride-Hailing | |
| Ride-Sharing |
| By Vehicle Type | |
| Motorcycles | |
| Cars | |
| Other Vehicle Types (Vans) |
India Taxi Market Size Summary
The India taxi market is poised for significant growth over the forecast period, driven by the increasing adoption of electric vehicles and the expansion of ride-hailing services. The market is experiencing a shift towards eco-friendly transportation solutions, with electric cab services gaining traction due to stringent governmental regulations aimed at reducing pollution. Major players like Uber, Ola, and Meru are expanding their services and incorporating electric vehicles into their fleets, which is expected to enhance air quality and reduce carbon emissions in urban areas. The rise of online cab booking platforms, facilitated by the proliferation of smartphones and internet access, is further propelling market growth by offering convenience and flexibility to consumers. These platforms are also integrating ride-sharing options to cater to the growing demand for cost-effective transportation solutions.
The competitive landscape of the Indian taxi market is characterized by a fragmented structure with numerous players vying for market share. Companies are leveraging technology and strategic partnerships to enhance their service offerings and expand their reach. Initiatives by the Indian government to promote digital solutions in the taxi industry, such as the development of government-owned booking apps, are also contributing to market dynamics. The market's growth is supported by the increasing demand for ride-hailing and ride-sharing services, coupled with the rising costs of vehicle ownership and traffic congestion. As these trends continue to evolve, the India taxi market is expected to experience robust expansion, positioning it as a key player in the global transportation sector.
India Taxi Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Drivers
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1.1.1 Increasing Accessibility and Utilization of Taxi Services
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1.2 Market Restraints
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1.2.1 Stringent Transportation Regulatory Hurdles to Restrict the Market Growth
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1.3 Industry Attractiveness - Porter's Five Forces Analysis
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1.3.1 Threat of New Entrants
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1.3.2 Bargaining Power of Buyers/Consumers
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1.3.3 Bargaining Power of Suppliers
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1.3.4 Threat of Substitute Products
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1.3.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION (Market Size in Value - USD)
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2.1 By Booking Type
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2.1.1 Online Booking
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2.1.2 Offline Booking
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2.2 By Service Type
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2.2.1 Ride-Hailing
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2.2.2 Ride-Sharing
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2.3 By Vehicle Type
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2.3.1 Motorcycles
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2.3.2 Cars
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2.3.3 Other Vehicle Types (Vans)
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India Taxi Market Size FAQs
How big is the India Taxi Market?
The India Taxi Market size is expected to reach USD 20.61 billion in 2024 and grow at a CAGR of 13.55% to reach USD 38.90 billion by 2029.
What is the current India Taxi Market size?
In 2024, the India Taxi Market size is expected to reach USD 20.61 billion.
