Taxi and Other Road Passenger Transport in Australia Industry Market Research Report now updated by IBISWorld

Share Article

Over the past five years, taxi revenue is expected to grow. Poor conditions during the global financial crisis caused Australian business confidence to plummet, taking budgets for business travel and industry revenue with it. However, over the past three years revenue picked up as business travellers returned and consumer demand stabilised. IBISWorld expects that subdued improvement in business travel will boost revenue in the current year. For these reasons, industry research firm IBISWorld has updated its report on the Taxi and Other Road Passenger Transport in Australia industry.

IBISWorld Market Research

IBISWorld Market Research

Renewed demand from business travellers is driving industry growth

The Australian Taxi and Other Road Passenger Transport industry is heavily regulated, with state governments determining the number of taxis on the road, the fares they can charge and the structure of the industry in which they operate. Hire cars, and limousines and wedding cars are moderately regulated, with state governments determining the number of these vehicles on the road and the operating conditions. Over the five years through 2011-12, the number of taxis on the road is expected to grow. Over the same period, revenue will grow an annualised 2.5% to reach a forecast $4.75 billion. According to IBISWorld industry analyst Caroline Finch, “Flush consumers and businesspeople supported industry revenue growth in the years leading up to the global financial crisis”. The poor global economic conditions in 2008-09 caused Australian business confidence to plummet, taking budgets for business travel and industry revenue with it. However, revenue picked up through 2009-10 and 2010-11, as business travellers returned and consumer demand stabilised. In 2011-12, industry revenue is expected to grow 3.1%.

As government-determined supply lags well behind demand, population growth and demographic changes will see revenue increase strongly in the next five years. The industry's revenue is projected to grow over the five years through 2016-17. However, underlying demand for the industry is likely to grow slower than revenue. “Business travel is projected to grow slower than in the past, as technology use changes demand for travel and therefore taxis and other road passenger transport”, Finch adds. As business growth slows, catering to the transport needs of an ageing population presents an opportunity for the industry.

Market share concentration is estimated to be low in the Taxi and Other Road Passenger Transport industry in Australia. The industry is dominated by one major player, Cabcharge. The hire car segment especially is dominated by owner drivers. Revenue does not capture the full influence of various players in the industry. Hierarchy, depot owners, license owners and license operators stand between the customer and the taxi driver. Concentration at these intermediate levels of the industry can have significant effects on competition within the industry without being significant from a revenue point of view. For example, Cabcharge has a monopoly-like control of payment systems within the industry and has been prosecuted for anti-competitive payment by the Australian Competition and Consumer Commission.

For more information, visit IBISWorld’s Taxi and Other Road Passenger Transport report in Australia industry page.

Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau

IBISWorld industry Report Key Topics

Companies in this industry operate taxicabs, hire cars with drivers, or other forms of road vehicles for passenger transportation, such as limousines and wedding cars.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalisation & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Gavin Smith
Visit website