Industry Analysis & Industry Trends
The Taxi Operation industry consists of participants that provide taxis and private-hire vehicles (PHVs) for personal and business transport on British roads. The two-tier system in place in the United Kingdom distinguishes between taxis, which can pick up customers directly on the street, and PHVs, which must be pre-booked through a licenced operator. The industry has faced challenging operating conditions over the past five years because of volatile input costs and unsteady demand. Nevertheless, industry revenue is forecast to increase at a compound annual rate of 4.2% over the five years through 2016-17, to reach £9.1 billion. Moderate expansion is anticipated for the current year, with industry revenue expected to rise by 2.4%... purchase to read more
Industry Report - Industry Investment Chapter
The Taxi Operation industry is expected to have a low level of capital intensity in 2016-17, with an estimated £10.72 spent on labour for every £1.00 spent on capital. The industry's primary capital expense is vehicles. Private-hire operators compete on the comfort and modernity of their vehicles. However, most private-hire vehicles are owned by the drivers. As a result, the cost of a new vehicle is not recorded by the industry. As the proportion of PHVs in the industry has increased, capital intensity has decreased progressively throughout the past five years as a result.
Despite the relatively large level of capital expenditure present in the industry, spending on labour far outstrips spending on capital... purchase to read more