Taxi and limousine services have been transformed in a few short years as technology and ride hailing via apps have swept across the market and changed the way consumers access these services. A previously localized industry is welcoming global players who are rapidly expanding their share of the market. Within the global taxi and limousine services market, the top 6 companies accounted for more than 20% of the market in 2019. Considering the market is built from foundations of small, local players, the transition to global, leading players with substantial shares in the market has been rapid and transformational on how the services are utilized.
LONDON, Nov. 25, 2020 (GLOBE NEWSWIRE) -- Key Competitor Market Shares In The Global Taxi And Limousine Market, 2019, USD Millions
Uber tops the list as the largest taxi and limousine company globally, with a 12.75% market share, according to the latest research from The Business Research Company. This is of course impressive for a company formed just over 10 years ago in 2009.
Uber first gained significant traction as a ride-sharing service – matching travelers to empty seats in vehicles traveling in the same direction – a simple way of improving efficiency and reducing cost through the sophisticated organization. As it grew, its proposition expanded, matching drivers to individual passengers heading to a specific destination, a choice of vehicle class and driver, and food deliveries.
Uber has grown along with the use of smartphones – as smartphones became more integrated into day-to-day lifestyles, so too did Uber. There is not much there isn’t an app for – and ordering a taxi service is certainly no exception. Ordering through the app allows the customer to know the car and driver, have an estimated price in advance and a very specific pick-up location; all of these pass control and convenience to user, allowing them to trust in the service. This user experience has always been at the forefront for Uber, with investments in the latest technology and highly skilled technical staff has been a priority from the onset. Abdul Wasay, Director, Syndicate Research at The Business Research Company added: ‘Uber is truly a product and a success story of the digital age: a company born from technology, engaging with technology, revolutionizing the simple act of ordering a taxi service, and growing rapidly alongside the age of the smartphone.’
The journey for Uber has not always been a smooth one, with much media attention given to multiple controversies, including but not limited to: their treatment of their drivers, use of surge pricing, the disruption to local taxicab businesses, and whether they indeed were fair competition with their aggressive strategies.
Uber is followed in the taxi and limousine market by Lyft. Lyft offers a very similar service, with taxi services bookable by an app, and the addition of food deliveries. The main differences between the companies are their size and coverage, with Lyft servicing the US and Canada, while Uber expands a more global reach. Lyft accounts for 4.3% of the global taxi and limousine services market which, like Uber, showcases an impressive journey for a company established in 2012.
Of course, the transport industry has been hit hard by the coronavirus pandemic, and both Uber and Lyft are expected to have taken a hit, with both having been seen streamlining their business processes and reporting losses. However, despite initial drops in demand, it would appear that demand is slowly returning and as the economy settles down, TBRC expects future growth for Uber and Lyft.
TBRC’s data shows that the taxi and limousine market grew at a CAGR of 4.3% from 2009 to 2019 and is expected to grow further at a CAGR of 5.4% to 2030, despite the slump in 2020. Ride hailing using app technology will continue as a major trend in the market, and technology is expected to develop even further as the market sees the introduction of automatic taxi services. As consumers grow more environmentally conscious, the use of electric vehicles is another technology expected to grow in importance for the market. Abdul Wasay, Director, an analyst at TBRC adds: ‘The challenge clearly presenting itself in this market is to localized taxi firms and the competition they face from national and global players – they will have to work hard to establish themselves with the younger generations and invest in technology for convenient ride hailing processes.’
The company revenues are captured from the latest annual reports available at the time of publishing and other publicly available sources and allocated to specific markets based on the relevant companies divisions and analyst estimates based on secondary research, industry knowledge, and expert interviews carried out by TBRC Consultants.
Research is sourced from TBRC’s Global Market Model.
The forecasted revenue of the company is calculated based on the assumption that the company’s market share will remain the same during the forecast period.
The facts of this report are believed secondary sources, whose accuracy we are not always in a position to guarantee. As such TBRC Business Research Pvt Ltd can accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect. Analysis and findings included in TBRC reports and presentations are our opinions and are not intended as statements of fact or investment guidance.
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