Taxi & Limousine Services
Brief Excerpt from Industry Overview Chapter:
Companies in this industry provide passenger transportation by automobiles not operated over regular routes or on regular schedules. No major companies dominate.
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 US industry is fragmented: the top 50 companies account for about 30% of industry revenue.
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.