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. Industry revenue is forecast to increase at a compound annual rate of 1.3% over the five years through 2016-17 to reach £9.4 billion. Weak expansion is anticipated for the current year, with industry revenue expected to rise by 0.6% amid economic uncertainty... purchase to read more
Industry Report - Industry Investment Chapter
The Taxi Operation industry is expected to have a medium level of capital intensity in 2016-17, with an estimated £7.26 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.
Despite the relatively large level of capital expenditure present in the industry, spending on labour far outstrips spending on capital. The large number of owner-operators in the industry contributes to the labour intensity. In many cases there is only one driver or employee per vehicle. How.. purchase to read more