Australia Taxi Market Report and Forecast 2025-2034

Australia Taxi Market Report and Forecast 2025-2034

Market Outlook

According to the report by Expert Market Research (EMR), the Australia taxi market size reached around USD 5.81 billion in 2024. Aided by the rise of ride-sharing services and a growing shift towards electric and hybrid vehicles for sustainable urban mobility, the market is projected to grow at a CAGR of 5.77% between 2025 and 2034 to attain nearly USD 10.2 billion by 2034.

The Australia taxi market growth is being aided by changing urban mobility patterns, evolving consumer preferences, and the integration of digital technologies. Taxis continue to serve as an essential mode of public transportation, offering reliable point-to-point services across cities, suburbs, and regional areas. Despite growing competition from rideshare platforms, traditional taxi services remain a crucial part of the transport infrastructure, particularly for airport transfers, corporate travel, and services catering to elderly and disabled passengers. As the country prioritises accessibility, convenience, and efficiency in urban transportation, the taxi market is adapting through innovation, service quality improvements, and regulatory evolution.

The Australia taxi market expansion is supported by a growing population and increased urbanisation, which have led to rising transport needs in major metropolitan areas. Cities such as Sydney, Melbourne, Brisbane, and Perth continue to witness high taxi usage, especially during peak travel times, events, and late-night hours when public transit options may be limited. Taxis provide a dependable and safe travel option that is often preferred by tourists, business professionals, and individuals without access to private vehicles. In regional and rural areas, where public transport coverage is often sparse, taxis also play a key role in community mobility, ensuring access to healthcare, education, and essential services.

The integration of digital technology into taxi operations aimed at improving the customer experience and operational efficiency is boosting the Australia taxi market revenue. Many Australian taxi operators have adopted app-based booking systems, GPS-enabled tracking, real-time fare estimation, and cashless payment options. These innovations have enhanced transparency and convenience, bringing taxi services closer in line with the user-friendly experience offered by ride-hailing apps. Digital platforms also enable better fleet management, driver performance monitoring, and data-driven service optimisation. These advancements are helping the taxi industry retain its relevance in a competitive mobility landscape.

Regulatory frameworks across different Australian states and territories continue to evolve in response to the evolving Australia taxi market dynamics. Governments are working to create fair and level playing fields between traditional taxis and ride-hailing services by aligning rules related to licensing, fare structures, driver background checks, and vehicle safety standards. These regulatory measures aim to ensure public safety, maintain service quality, and support competition while safeguarding the livelihoods of taxi drivers and operators. Some jurisdictions have introduced flexible fare caps, adjusted subsidy schemes, and encouraged fleet modernisation to support the ongoing viability of the taxi sector.

Environmental considerations are also influencing the Australia taxi market landscape. With increasing awareness of climate change and sustainable transport goals, there is growing interest in transitioning taxi fleets to low-emission and electric vehicles. Government incentives and infrastructure investments are encouraging taxi operators to adopt cleaner vehicle technologies, reduce fuel consumption, and lower emissions. Hybrid and electric taxis are becoming more common in urban centres, offering an eco-friendly alternative without compromising service quality. These efforts are aligned with broader national commitments to reduce carbon footprints and promote sustainable urban mobility solutions.

As per the Australia taxi market analysis, service differentiation and customer satisfaction are emerging as key focus areas for taxi operators seeking to build loyalty and retain market share. Initiatives such as professional driver training, enhanced customer service, clean and comfortable vehicles, and special accessibility features are being introduced to elevate the overall travel experience. Taxis offering wheelchair access, baby seat options, and assistance for elderly passengers are particularly valued in both city and regional markets. Corporate accounts and business travel packages are also being developed to cater to the specific needs of professional clients and frequent travellers.

Despite positive developments, the Australia taxi market faces challenges, including pricing competition, driver shortages, and the impact of fluctuating fuel prices. The rise of gig economy platforms has reshaped driver expectations and availability, with many drivers shifting between taxis and rideshare services based on earnings potential. Addressing these issues requires improved driver incentives, flexible work arrangements, and strategic investments in driver welfare and training. Continued collaboration between industry stakeholders, regulators, and technology providers will be essential in navigating these complexities and supporting the market’s long-term resilience.

Looking ahead, the Australia taxi market outlook remains cautiously optimistic. As urban mobility continues to evolve, taxis are expected to maintain a critical role by offering regulated, professional, and accessible transport options. Embracing digital transformation, sustainability, and customer-centric strategies will be key to meeting modern transport demands and securing the future of the taxi industry. With the right support and innovation, taxis will continue to serve as a trusted and valuable component of Australia’s integrated transport network.

Market Segmentation

The market can be divided based on service type, vehicle type, booking type, and region.

Market Breakup by Service Type

• Ride Sharing
• Ride Hailing
• Others

Market Breakup by Vehicle Type

• Motorcycle
• Cars
• Others

Market Breakup by Booking Type

• Offline Booking
• Online Booking

Market Breakup by Region

• New South Wales
• Victoria
• Queensland
• Australian Capital Territory
• Western Australia
• Others

Competitive Landscape

The EMR report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in the Australia taxi market. Some of the major players explored in the report by Expert Market Research are as follows:

• Uber Technologies Inc.
• Gm Cabs
• A2B Australia Limited
• Ingogo Limited
• Taxi Apps Pty Ltd.
• Rydo Technologies Pty Ltd.
• Didi Mobility (Australia) Pty Ltd.
• Silver Top Taxi Pty Ltd.
• Black and White Cabs Pty Ltd.
• Ladies Let’s Roll Pty Ltd.
• Others

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*We at Expert Market Research always strive to provide you with the latest information. The numbers in the article are only indicative and may be different from the actual report.