Europe Taxi Market

Europe Taxi Market Size (2024 to 2032)

The European taxi market was expected to be valued at USD 71.26 billion in 2023 and is anticipated to reach USD from USD 77.4 billion in 2024 from USD 143.76 billion by 2032. The European taxi market is growing at a brisk pace and is expected to grow at a CAGR of 8.11% from 2024 to 2032.

A taxi, often known as a cab, is a kind of hired car with a driver that is employed by one person or a small group of people, frequently for a private ride. A taxicab takes people to and from the destinations of their choice.

MARKET DRIVERS

High-Quality Services Provided by Taxis Boost the Europe Taxi Market Growth.

Taxis provide high-quality services for everyone, including those with impairments and in populated areas, enabling people to fully engage in social life. There are over a million taxis in Europe and they are in high demand in the various countries of the region. In Europe, 50% of senior persons don’t have a car or are unable to drive, while 40% of households do not have a private car. When public transportation isn't an option for these communities, they significantly rely on taxis. Physically handicapped people utilize taxi services three times more frequently than the public.

The increasing adoption of e-taxi is accelerating the growth of the European taxi market.

Taxi firms are adopting environmentally friendly vehicles to control the carbon emissions caused by fuel vehicles. In Europe, entire taxi fleets are changed every three to five years, allowing the business to keep up with new technological breakthroughs and engine efficiency in terms of noise, pollution, and CO2 emissions. Countries like Sweden, Germany, Bulgaria, and others are adopting taxis that run on alternative fuels.

Several factors are driving the growth of the taxi market in Europe, such as the low cost of taxi fares and huge traffic on the roads. Moreover, the increasing costs of vehicles in Europe are forcing people to use taxis for traveling rather than purchasing a vehicle. Taxis are convenient, safe, and comfortable, and they provide personalized, high-quality customer care. Passengers can book the taxis on the spot or in advance. The digitalization of taxi booking is further boosting the growth of the taxi market in Europe. In addition to this, European travelers place a high emphasis on the dependability and predictability of travel conditions. Among all modes of passenger transportation, taxi services offer the most flexibility. Due to their 24-hour flexibility and customer-focused door-to-door services, taxis and rental cars with drivers are mostly preferred by passengers. Since taxis in Europe offer quality service and the drivers are well trained, less than 1% of road accidents are caused in the region. The low occurrence of accidents by taxi drivers in the region further boosts the growth of the taxi market in Europe. Several taxis are now adopting eco-friendly vehicles to reduce the carbon emissions and noise pollution caused by petrol vehicles. The rising adoption of e-vehicles for taxi purposes is further accelerating the growth of the European taxi market during the forecast period.

MARKET RESTRAINTS

The increasing carbon emissions caused by fuel cars may hamper the growth of the European taxi market to a certain extent. However, the adoption of e-vehicles by most taxi companies will create opportunities for the growth of the European taxi market during the forecast period.

REPORT COVERAGE

This research report on the European taxi market has been segmented and sub-segmented into the following categories.

Europe Taxi Market Analysis By Service Type

• Ride-hailing
• Ridesharing

The ride-hailing segment is expected to dominate the European taxi market during the forecast period. Modern mobility services based on apps are transforming urban transportation. Since ride-hailing offers an easy, on-demand door-to-door service for urban travel, it has grown significantly during the past ten years. Ride-hailing services are often used among young, wealthy, educated people who are accustomed to modern technologies.

Europe Taxi Market Analysis By Booking Type

• Online
• Offline

The online segment is dominating the European taxi market during the forecast period. Most companies provide online taxi booking facilities in Europe. This factor leads to online segment growth.

Europe Taxi Market Analysis By Vehicle Type

• Motorcycles
• Cars
• Others

The car segment is dominating the European taxi market during the forecast period. The majority of consumers prefer four-wheeler vehicles rather than motorcycles due to safety concerns. Hence, this results in high demand for car taxis in the region.

Europe Taxi Market Analysis By Country

• UK
• Russia
• Germany
• Italy
• France
• Spain
• Sweden
• Denmark
• Poland
• Switzerland
• Netherlands
• Rest of Europe

The Swedish taxi market is expected to play a notable role in the European taxi market during the forecast period.  Since 1990, the Swedish taxi industry has been completely deregulated, allowing for free market entry and pricing. There are approximately 18,000 taxis, and the taxi density is around 1.7 per thousand residents in Sweden. The deregulation of the taxi industry in Sweden has led to the country's growth of the taxi market. Following Sweden, Germany's taxi market has the largest share. Spain's taxi market is projected to hit the highest growth rate in the coming years. Italy's taxi market is likely to have accountable market shares in the forecast period.

KEY MARKET PLAYERS

Uber, FreeNow, Hopp, Ola, Gett, Addison Lee, London Lady Chauffeurs, Bolt, iTaxi, Helbiz, YandexTaxi, Taxi Polska, MiniTaxi, MOIA (a subsidiary of Volkswagen) and BerlKönig are some of the notable companies in the Europe taxi market.

RECENT HAPPENINGS IN THE EUROPE TAXI MARKET

• In August 2022, Uber revealed it would revamp its business strategy in Brussels and introduce Uber Rent in the UK. With this revamp, Uber users in Brussels will be able to use the app to order a regular taxi. Uber will soon incorporate regional taxi companies onto its platform in Brussels, becoming the latest city in Europe to do so. Previously, Uber had a few kinds of taxi integration in cities in Spain, Austria, Germany, Greece, and Italy.
• In August 2022, Helbiz launched its taxi service in Europe. Customers will be able to summon an on-demand taxi, make payments, and rate the service within the Helbiz app at first due to Helbiz's integration with several active taxi operators.
• In June 2022, Addison Lee signed a deal with black cab taxi service ComCab, making it the largest operator in London. It also announced its intention to become carbon-neutral by the end of next year. After travel restrictions in the UK were lifted, Addison Lee recorded a 47% rise in passenger revenues and a 53% increase in earnings before interest and tax compared to February 2021.