Major players in the online taxi services market are Ola (ANI Technologies Private Limited), Uber India Systems Private Limited, Lyft Inc., Didi Chuxing, GrabTaxi Holdings Pte Ltd, Carzonrent (India) Private Limited, Mega Cabs Private Limited, Meru Mobility Tech Private Limited, Savaari Car Rentals Private Limited, Go-Jek.
The global online taxi services market is expected to grow from $23.42 billion in 2020 to $28.65 billion in 2021 at a compound annual growth rate (CAGR) of 22.3%. The growth is mainly due to the companies resuming their operations and adapting to the new normal while recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $41.22 billion in 2025 at a CAGR of 9.5%.
The online taxi services market consists of sales of taxi services and related goods by entities (organizations, sole traders, and partnerships) that provide passenger transportation by automobile or van through online reservations or on a booking basis.This industry comprises establishments primarily engaged in providing passenger transportation by taxi that are booked by using a mobile application.
These companies use online platforms and mobile applications to offer their services to customers.Examples include Uber, Lyft, and Didi.
Taxis booked online through an app are mentioned in the report as ride-hailing services.This does not include taxis stopped on roadsides.
Only goods and services traded between entities or sold to end consumers are included.
Rising internet penetration drives the demand for the online taxi services market.The availability of high-speed internet connectivity and convenience associated with using online services is shifting consumer preferences towards online taxi services.
According to the Internet World Stats, the number of internet users increased from 4,208 million to 4,833 million in June 2020. Furthermore, internet users in India are expected to grow from 636.73 million in 2019 to 974.86 million by the end of 2025. A growing number of internet users with smartphones now have taxi services at their fingertips that give the drivers’ details and location and benefit the user and thereby fuel the demand for the online taxi services market.
The launch of self-driving taxi services is gaining popularity in the online taxi services market.Major players operating in the industry are continuously focused on introducing innovations and technologies to better serve the needs of consumers.
For instance, in August 2020, AutoX, an autonomous driving startup announced the public launch of robo-taxi services in China.In December 2018, Waymo LLC, a US-based autonomous driving technology development company, launched self-driving taxi services for paying customers in Arizona, USA.
Moreover, in October 2019, Ola, a ride-hailing firm introduced Ola Drive, self-driving car-sharing services in multiple locations in India including Bangalore, New Delhi, Mumbai, and Hyderabad.
The online taxi services market covered in this report is segmented by service type into ride-hailing; ride sharing and by vehicle type into motorcycles; cars.
Stringent regulations imposed on online taxi services operations limit the growth of the online taxi services market.Many cases of assault and molestation have been registered against online taxi services as a result of which governments across the world have imposed strict regulations on the providers.
In 2018, were 5,981 claims of sexual assaults were reported by Uber.These incidents call for a strong policy to secure customers.
Governments have imposed strict background checks on Uber and Lyft drivers and mandatory fingerprint background check to avoid such incidents any further.Other regulations imposed by governments to comply with the service providers include India’s Motor Vehicle (Amendment) Bill 2016 and Information Technology Act, 2000, Malaysia’s Commercial Vehicles Licensing Board Act 1987 (Act 334) (“CVLBA 1987”) and the Land Public Transport Act 2010 (“LPTA 2010”)(Act 715).
The laws under the act regulate both e-hailing operators and drivers. Moreover, e-hailing service providers are mandated to have an intermediation business license to operate their business in Malaysia. Thus, the stringent rules and regulations imposed on taxi services are restricting the online taxi services market growth during the forecast period.
In September 2019, Mahindra & Mahindra, an Indian multinational vehicle manufacturing corporation announced the acquisition of 55% stakes in Meru Cabs, a taxi cab service provider for $27.3 million (Rs 201.5 crore). With the acquisition of Meru Cabs, Mahindra & Mahindra plans to expand its business with participation in the growing shared mobility space. Meru Cabs is an India-based ridesharing company operating in the ride-hailing segment and corporate transportation solutions.