Industry Analysis & Industry Trends
Increased consumer spending and impressive growth in corporate profit over the past five years have helped the Taxi and Limousine Services industry out of a rough patch. The industry is highly reliant on discretionary spending, and when the economy faltered during the recession, demand for nonessential segments of the industry, such as luxury limousine and town car services fell heavily, as many consumers traded down to relatively less-expensive taxi services. In the coming years, the industry's structure is not expected to fundamentally change, however, technological innovations will facilitate connectivity between drivers and customers, potentially helping profit margins... purchase to read more
Industry Report - Industry Products Chapter
The largest segment in the Taxi and Limousine Services industry is taxi services, accounting for about two-thirds of total revenue. Taxi income is derived from the fares earned after a taxi is hailed or booked. In many cases, customers do not choose a particular taxi, but patronise the first in the taxi rank, or hail the first taxi that passes.
Most fleet owners employ drivers as independent contractors who keep earnings (fares plus tips) minus leasing charges and fuel. In return, fleet owners may provide a strong brand and centralized reservation system, among other benefits. Most leasing drivers and owner-operators of taxis obtain nearly all of their revenue from private taxi fares... purchase to read more