US Radio Taxi Services Market to Grow at 7%

Increasing demand for radio taxis by passengers and tourists along with growing penetration of radio taxis in remote areas to fuel growth in United States radio taxi services market

According to the recently released TechSci Research report, “United States Radio Taxi Services Market Forecast & Opportunities, 2021’’, radio taxi services market in the United States is forecast to grow at CAGR of around 6.6% during 2016 - 2021. Traditional medallion taxis were the most commonly used taxi services in the United States until 2009, when smartphone app based radio taxi service providers such as Uber, Lyft, etc. revolutionized the radio taxi market in the country. These radio taxi services offer high end features such as real time monitoring of availability of cabs using GPS and other features like Wi-Fi. With the advent of smartphone app-based ride sharing and e-hailing services, there has been a shift of customers from traditional medallion taxis to private taxis or For-Hire Vehicles (FHVs) over the last few years. Growing demand for radio taxis in the country can be attributed to rising demand from individual as well as corporate customers, coupled with increasing disposable income levels of consumers.

Due to high cost involved in procuring medallions and operating taxi services under medallion based taxi model, drivers have been increasingly registering themselves with private operators such as Uber, Lyft, etc. Hence, radio taxi services market in the United States witnessed a major shift from medallion taxis to For-Hire Vehicles (FHVs), in turn swelling the fleet share of For-Hire Vehicles (FHVs) to around 70% in 2015. Uber, Lyft, Flywheel, Gett, and GoGreenRide are few of the major radio taxi providers operating in the United States. In 2015, Southeast region of the United States accounted for the highest share in the overall fleet of radio taxis in the country, followed by Northeast region, and Midwest region.

“The market share of For-Hire Vehicles (FHVs) in the US radio taxi fleet is increasing as large number of venture capitalists, private equity firms and angel investors, both of domestic and international origin, are investing in the United States radio taxi services market. Uber and Lyft have been able to attract investments in tune of USD4 billion over the last 5-6 years. With smartphone app based cab booking increasingly becoming a norm, private operators would continue to dominate the radio taxi services market in the US through 2021.”, said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.

“United States Radio Taxi Services Market Forecast & Opportunities, 2021” has evaluated the future growth potential of the United States radio taxi services market and provides statistics and information on market structure, size and trends. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment evaluation. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges and opportunities available in the United States radio taxi services industry.