Industry Analysis & Industry Trends
The Taxi and Limousine Services industry is in cruise control, exhibiting stable growth after a slight bump in the road caused by the aftermath of the recession. Increased consumer spending and corporate profit have pushed up industry demand over the past five years, as consumers and businesses alike loosened their purse strings to again indulge in travel services. Over the next five years, the industry will continue to grow, as the Canadian economy resumes growth. However, industry growth will continue to be restricted by heavy regulation on the taxi segment of the industry and ongoing regulatory scrutiny of ride-hailing transportation networks... purchase to read more
Industry Report - Industry Investment Chapter
The Taxi and Limousine Services industry is subject to a moderate level of capital intensity. Industry operators will invest about $0.14 in the use and replacement of capital in 2016 for every $1.00 spent on labour. Labour is a prominent feature of this industry, as it is currently impossible for taxis and limousines to operate without a human behind the wheel.
Labour costs include the wages granted to those that own taxi and limousine companies and individual owner-operators who generally have their own vehicle and licence. These generate the maximum return for the investment vehicles that are operated on a 24-hour basis, especially taxis. As such, one vehicle may have two or three drivers per day, pushing up the labour cost in proportion to the capital investment... purchase to read more