Taxi and Limousine Transport in Australia Industry Market Research Report Now Updated by IBISWorld

Stronger demand from households and business is expected to drive growth for the Taxi and Limousine Transport industry. For this reason, industry research firm IBISWorld has updated its report on the Taxi and Limousine Transport industry in Australia.

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IBISWorld Market Research

IBISWorld Market Research

After a bumpy road, renewed demand drives growth

Melbourne, Australia (PRWEB) May 07, 2013

The Australian Taxi and Limousine Transport industry is heavily regulated, with state governments determining the number of taxis on the road, fares they can charge and structure of the industry. Hire cars, limousines and wedding cars are moderately regulated, with state governments determining the number of these vehicles on the road and operating conditions. Over the five years through 2012-13, revenue is estimated to have grown at an annualised 1.7%. In 2012-13, revenue is expected to grow by 0.3% over the year to reach $4.91 billion.

According to IBISWorld industry analyst Ricky Willianto, “flush consumers and businesspeople supported industry revenue growth in the years leading up to the global financial crisis. Corporate spending grew steadily, with business travellers preferring the convenience of taxis and silver service or luxury sedan transport to airport transit and buses.” Continued strong growth in real disposable income encouraged increased spending on cafes, restaurants, pubs, clubs and recreation activities, helping to boost demand for taxis and other road passenger transport, and push revenue higher. This disposable income growth also helped the wedding and special occasion market grow.

Poor global economic conditions in 2008-09 caused Australian business confidence to plummet, taking budgets for business travel with it. “A shift to remote communication technologies such as videoconferencing accelerated, substituting in-person communication”, says WIllianto. “The same poor economic conditions resulted in decreased demand from households as they cut back on spending and outings.” Tourism fell sharply in 2008-09, driving industry demand even lower. Revenue fell 0.8% as a result. However, industry revenue picked up through 2009-10 and 2010-11, as business travellers returned and consumer demand stabilised. In 2012-13, industry revenue is expected to grow 0.3%. As government-determined supply lags well behind demand, population growth and demographic changes will see revenue increase strongly in the next five years.

One major player, Cabcharge, dominates the Australian Taxi and Limousine Transport industry. Revenue does not capture the full influence of various players in the industry. 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 more information, visit IBISWorld’s Taxi and Limousine Transport report in Australia industry page.

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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
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
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.


Contact

  • Gavin Smith
    IBISWorld
    310-490-5973
    Email