Smooth ride: Technology innovation will aid revenue, but strict regulations may limit overall growth

The Taxi and Limousine Services industry in Canada has experienced slight growth over the five years to 2018. In recent years, rising consumer spending and increased corporate profit have sparked demand for taxis and limousines. Moreover, the proliferation of ride-sharing applications, such as Uber and Lyft, has enabled a wave of nonemploying operators to enter the market, bolstering industry growth. As a result, industry revenue is estimated to increase over the five years to 2018. The Canadian economy is expected to continue to improve over the five years to 2023, precipitating renewed business confidence and higher levels of consumer spending. During this time, demand for industry services is anticipated to more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Uber and other similar services will likely expand, resulting in greater price competition with traditional taxi operators
  • Technology has transformed the industry as consumers use new transporation applications
  • Industry growth will continue to be restricted by heavy regulation on industry segments
  • Industry Report - Starting a New Business Chapter

    Barriers to entry differ depending on the segment an operator seeks to enter, the type of business structure and geographic location. Taxi licences are highly regulated by city authorities, with caps on the number of medallions available. This means a new taxi driver that wants to enter the industry must purchase a licence from an existing owner, assuming no more are made available by the city authority. In many cities, licences cannot be purchased, as they are closely guarded by owners, so they are instead leased to drivers. One licence may be leased for two or more shifts per day to maximize the amount of time the vehicle is in service. How...purchase to read more.

    Additional Insights for the Taxi & Limousine Services Industry

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

  • Must comply with government regulations
  • Ability to pass on cost increases
  • Effective quality control
  • IBISWorld analysts also discuss how external factors such as Consumer spending and Corporate profit in the Taxi & Limousine Services industry impact industry performance..

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    What's in this report

    What is the Taxi & Limousine Services Industry?

    This industry provides passenger transportation by taxi and limousine. Taxi services are not operated on regular schedules or routes and limousine services are rented or hired with a driver. This does not include transporting passengers to or from hotels and airports using buses or vans.

    Industry Products
  • Taxi services
  • Luxury and corporate sedan services
  • Stretch limousine services
  • Industry Activities
  • Providing limousine services
  • Providing luxury sedan services
  • Providing chauffer and personal driver services
  • Providing corporate sedan services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Consumer spending
  • Corporate profit
  • Inbound international travel
  • World price of crude oil
  • New vehicle sales

  • Current Performance
  • Industry structure
  • Technology revolutionizes industry
  • Regulatory disputes surround transportation network companies
  • Fluctuating profit
  • Employment
  • Chart: Revenue Growth

  • Industry Outlook
  • Profit
  • Traditional taxicabs supply to remain restricted
  • Innovation drives change
  • Table: Taxi & Limousine Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Taxi & Limousine Services Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Hotels & Motels in Canada
  • Gambling in Canada
  • Consumers in Canada

  • Key Selling Industries
  • Auto Mechanics in Canada
  • Automobile Wholesaling in Canada
  • Car Body Shops in Canada
  • Car Wash & Auto Detailing in Canada
  • Gas Stations with Convenience Stores in Canada
  • Tire Wholesaling in Canada

  • Products & Services
  • Taxi services
  • Luxury and corporate sedan services
  • Stretch limousine services
  • Other
  • Chart: Taxi & Limousine Services Industry Products and Services Segmentation

  • Demand Determinants
  • Income
  • Business travel
  • Availability of substitutes
  • Accessibility

  • Major Markets
  • 21 to 35
  • 20 and younger
  • 51 and older
  • 36 to 50
  • Chart: Major Market Segmentation for the Taxi & Limousine Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Purchases
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Taxi & Limousine Services

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Taxi & Limousine Services 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 & Limousine Services 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 & Limousine Services Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • World price of crude oil (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Black Car
  • Another name for a town car because the most common colour town car is black.
  • Limo Bus
  • A larger, longer and more expensive version of a regular limousine.
  • Medallion
  • An emblem of registration for a taxicab.
  • Stretched Limousine
  • A luxury passenger vehicle with an extremely long wheel base.
  • Town Car
  • A luxury corporate sedan used by operators in the limousine market.
  • Transportation Network Company
  • A company that uses an online-enabled platform to connect passengers with drivers.
  • What Our Customers Say

    Why buy this report?

    The Taxi & Limousine Services market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    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
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    This report on Taxi & Limousine Services:
    • 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 of 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 & Limousine Services 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 & Limousine Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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