Driving forward: Revenue has grown over the past five years despite rising external competition

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 licensed operator. The industry has faced challenging operating conditions over the past five years due to increased competition and volatile demand. Industry revenue is forecast to rise at a compound annual rate of 2.1% over the five years through 2018-19 to reach £9.7 billion. Revenue is anticipated to increase by 1.4% in the current year...read more.

Industry Statistics & Market Size
Revenue
£9.7bn
Annual Growth 14-19
2.1%
Forecast Growth 19-24
Profit
Employment
369,619
Businesses
15,031
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Increasing pressure from external rivals has forced some companies out of the industry
  • Increasing competition has put pressure on the prices companies can charge
  • Competition with external rival Uber is expected to remain an issue for the industry
  • Industry Report - Industry Key Buyers Chapter

    The Taxi Operation industry is dominated by owner-operators and the self-employed. As a result, there are no major players in the industry. The three largest industry operators are estimated to account for 3.7% of industry revenue in 2018-19.Private-hire vehicle (PHV) operators tend to be larger on average than taxi businesses. A lower fare rate for PHV operators means that vehicles need to be on the street for longer to generate the same return. The inability of PHVs to pick up passengers on the street means that they incur higher costs through the operation of radio and booking systems. The fragmented nature of the industry is illustrated by the fact that an estimated 73.8% of enterprises employed fewer than five employees in March 2018 and 88.2% employed fewer than 10. Just 0.2% o...purchase to read more.

    Additional Insights for the Taxi Operation Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Taxi Operation Industry are

  • Proximity to key markets
  • Effective cost controls
  • Marketing of differentiated products
  • IBISWorld analysts also discuss how external factors such as Business confidence index and Demand from bus and tramway operations in the Taxi Operation industry impact industry performance..

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    What's in this report

    What is the Taxi Operation Industry?

    The industry provides for-hire vehicle transport on British roads. This includes the use of hackney carriages (black cabs) and private-hire vehicles, limousines, executive cars and wedding cars. The industry also includes companies that exclusively provide related services, such as radio operators and taxicab owners.

    Industry Products
  • Taxicabs
  • Private-hire vehicles
  • Industry Activities
  • For-hire passenger vehicle operation
  • Disability transport vehicle operation
  • Airport transfers
  • Wedding car services
  • Limousine transfer services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Business confidence index
  • Demand from bus and tramway operations
  • Fuel prices
  • Real household disposable income
  • International tourist numbers
  • Urban population

  • Current Performance
  • Testing the brakes
  • App competition
  • Stalling growth
  • Payment tips
  • Regulation changes in London
  • Chart: Revenue Growth

  • Industry Outlook
  • Uber issues
  • Rising regulations
  • Table: Taxi Operation Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Taxi Operation Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Financial and Insurance Activities
  • Consumers

  • Key Selling Industries
  • Motor Vehicle Maintenance & Repair
  • New Car & Light Motor Vehicle Dealers
  • Petrol Stations

  • Products & Services
  • Private-hire vehicles
  • Taxicabs
  • Chart: Taxi Operation Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Private customers
  • Businesses
  • Tourists
  • Chart: Major Market Segmentation for the Taxi Operation Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchasesDepreciationOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Taxi Operation

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Taxi Operation Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Taxi Operation Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Taxi Operation Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Hackney Carriage
  • A type of taxicab also known as a black cab.
  • Hire And Reward
  • A class of insurance use that allows someone to legally carry other people's goods in return for payment.
  • Private-Hire Vehicle (Phv)
  • Another term for a minicab.
  • Taxicab
  • Taxis that are hailed on the street or from a rank.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Taxi Operation market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Taxi Operation:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Taxi Operation market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Taxi Operation, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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