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Taxi and Limousine ServicesPublished by: First Research, Inc. Published: Oct. 12, 2009 - 10 Pages Table of Contents
AbstractThe US taxi and limousine services industry includes about 5,000 companies with about $4 billion in combined annual revenue. No major companies dominate the industry, which is fragmented.COMPETITIVE LANDSCAPE Taxi and limousine revenue is driven by business and leisure travel. The profitability of individual companies depends on good marketing. Small companies can effectively compete with large ones because there are few economies of scale in operations. The industry is labor-intensive: average annual revenue per employee is about $60,000. PRODUCTS, OPERATIONS & TECHNOLOGY Both taxis and limousines transport passengers after being dispatched per customer request or reservation. Taxi cabs also pick up passengers that hail them while driving on city streets or at taxi stands. Limousines can pick up customers only by telephone request. Limousine companies may lease vehicles with a driver by the hour, or may operate for-hire vehicles (FHV) that charge flat rates for specific trips, in competition with taxis. Companies typically have a central dispatching office, own a fleet of vehicles, may own fuel tanks and pumps, and may operate a maintenance and repair shop. Drivers and fuel are major operating costs. Because prices for taxi service are usually fixed by local commissions, companies increase profitability by hiring the cheapest labor available; therefore, many drivers are part-time employees. Drivers may be paid a flat wage or a percentage of revenue; some are hired as independent contractors (so-called lease drivers), paying for fuel themselves ... Get Full Details About This Report >> |
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