Forecast Period
|
2026-2030
|
Market Size
(2024)
|
USD 1.35
Billion
|
CAGR (2025-2030)
|
6.59%
|
Fastest Growing
Segment
|
Online
|
Largest Market
|
New South Wales
|
Market Size (2030)
|
USD 2.1 Billion
|
Market
Overview
The Australia Radio Taxi Market was valued at USD 1.35 Billion in 2024
and is expected to reach USD 2.1 Billion by 2030 with a CAGR of 6.59% during the forecast period. The radio taxi market in
Australia is witnessing a rapid transformation through digitalization and
changing consumer preferences. The widespread use of smartphones has
revolutionized how people book and experience taxi services. Mobile apps enable
real-time booking, driver tracking, cashless payments, and ride reviews,
creating a seamless and efficient user experience. As consumers become more
comfortable with digital platforms, taxi operators are investing in technology
to stay competitive and meet rising expectations.
Market
Drivers
Smartphone Penetration and Digitalization
The widespread adoption of smartphones has revolutionized the Australian
taxi industry. With nearly universal internet access, consumers now prefer
booking rides through mobile applications, offering convenience and real-time
tracking. This shift towards digital platforms has led to increased customer
engagement and streamlined operations for taxi companies. Operators are
investing in user-friendly apps to meet the growing demand for seamless digital
experiences. Australia's commitment to reducing carbon emissions has prompted taxi
operators to adopt electric and hybrid vehicles. The transition to eco-friendly
fleets not only aligns with government regulations but also appeals to
environmentally conscious consumers. Although challenges like high initial
costs and limited charging infrastructure exist, the long-term benefits of
reduced operational expenses and positive public perception are driving this
shift. For instance, around 99% of Australian adults having internet access, the adoption of online booking platforms has surged. Major operators like Uber, Ola, and DiDi offer app-based booking options, catering to the growing demand for convenient and affordable taxi services.
Integration of Advanced Technologies
The incorporation of technologies such as GPS tracking, artificial
intelligence, and machine learning has enhanced the efficiency of taxi
services. These innovations enable real-time route optimization, predictive
maintenance, and personalized customer experiences. By leveraging data
analytics, taxi companies can improve service reliability and customer
satisfaction, positioning themselves competitively in the market.
Strategic Partnerships and Consolidation
Collaborations between traditional taxi services and ride-hailing
platforms have expanded service offerings and customer reach. These
partnerships allow for integrated booking systems, combining the reliability of
traditional taxis with the convenience of modern technology. Such alliances
help operators adapt to changing market dynamics and meet diverse customer
needs. Consumers are increasingly seeking tailored transportation options,
prompting taxi companies to offer specialized services. These include premium
rides, accessible vehicles, and customized amenities. By catering to specific
customer preferences, operators can differentiate themselves in a competitive
market and build customer loyalty. The Australian government's commitment to sustainability is evident through initiatives like the National Electric Vehicle Strategy, which supports the transition to EVs across various sectors, including public transport. For instance, On June 2025, Transport for NSW unveiled a comprehensive Zero Emission Buses (ZEB) Transition Plan aiming for a complete conversion of Greater Sydney’s fleet by 2035 and outer metropolitan regions by 2040. The first phase includes converting 11 existing bus depots to support around 1,200 battery-electric buses, with Macquarie Park slated as the first fully electric bus depot. The program combines battery-electric and hydrogen bus trials, and emphasizes local manufacturing of buses and charging infrastructure. This initiative marks a significant step toward sustainable mass transit in New South Wales. This policy framework encourages taxi operators to adopt cleaner vehicle technologies, aligning with broader national commitments to reduce carbon footprints.

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Key
Market Challenges
Regulatory Compliance and Licensing
Navigating the complex regulatory landscape poses significant challenges
for taxi operators. Varying regulations across states and territories, along
with stringent licensing requirements, can complicate operations. Ensuring
compliance necessitates continuous monitoring of legal frameworks and may involve
substantial administrative efforts, impacting operational efficiency.
Labor Shortages and Driver Retention
The Australian taxi industry faces a shortage of qualified drivers,
exacerbated by high turnover rates. Attracting and retaining skilled drivers
requires competitive compensation, flexible working conditions, and
professional development opportunities. Failure to address these issues can
lead to service disruptions and diminished customer satisfaction. The rise of ride-hailing services has intensified competition within the
taxi industry. Platforms like Uber and Ola offer flexible pricing models and
user-friendly interfaces, attracting a significant customer base. Traditional
taxi operators must innovate and enhance service quality to retain market share
and meet evolving consumer expectations.
Key
Market Trends
Adoption of Electric and Hybrid Vehicles
The transition to electric and hybrid vehicles is gaining momentum in
the Australian taxi industry. Operators are investing in eco-friendly fleets to
reduce carbon emissions and operational costs. Government incentives and
growing environmental awareness among consumers are accelerating this shift,
positioning sustainability as a key differentiator in the market. Government incentives have played a crucial role in promoting EV adoption. However, several states reduced or ended their rebate programs in 2023 and 2024. For instance, New South Wales and South Australia ended their USD 3,000 rebates in January 2024, and Victoria concluded its USD 3,000 rebate in mid-2023 . Despite these reductions, some states like the Australian Capital Territory continue to offer incentives, including free registration for two years
Integration of Artificial Intelligence and Machine Learning
AI and machine learning are transforming taxi operations by enabling
predictive analytics, route optimization, and personalized customer
experiences. These technologies enhance operational efficiency, reduce costs,
and improve service quality, allowing operators to meet the dynamic demands of
the transportation sector. Shared mobility solutions, including ride-pooling and micro-mobility
options like e-scooters, are becoming increasingly popular. These services
offer cost-effective and sustainable transportation alternatives, particularly
in urban areas. Taxi companies are incorporating shared mobility options to
cater to diverse customer needs and contribute to reducing traffic congestion.
Enhanced Customer Experience through Technology
Technological advancements are enhancing the customer experience in the
taxi industry. Features such as real-time ride tracking, seamless digital
payments, and personalized notifications improve convenience and satisfaction.
Investing in customer-centric technologies enables operators to build loyalty
and differentiate themselves in a competitive market. Data analytics is becoming integral to decision-making processes in the
taxi industry. By analyzing customer behavior, operational performance, and
market trends, companies can make informed decisions that optimize efficiency
and service quality. Leveraging data insights allows operators to anticipate
demand, manage resources effectively, and enhance profitability. The expansion of charging infrastructure has been pivotal in supporting EV adoption. For instance, As of mid-2024, Australia had approximately 3,000 public charging stations, with major cities like Sydney and Melbourne having more robust networks. The distribution of these charging stations is uneven, with regional and remote areas remaining underserved.
Segmental Insights
Vehicle
Type Insights
The Australian radio taxi market encompasses a diverse range of vehicle
types, each catering to specific customer needs and preferences. Hatchbacks are
favored for their compact size and fuel efficiency, making them ideal for short
urban trips and areas with high traffic congestion. Sedans, offering a balance
between comfort and affordability, are commonly used for standard rides,
appealing to everyday commuters and business travelers. SUVs, with their
spacious interiors and higher ground clearance, are increasingly popular for
longer journeys, family travel, and areas requiring robust vehicles. Luxury
vehicles, often equipped with premium features, cater to clients seeking a more
comfortable and upscale experience, such as executive travelers or special events.
Each vehicle type serves a distinct segment of the market, contributing to the
overall diversity and adaptability of the radio taxi industry in Australia.

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Regional
Insights
In 2024, New South Wales emerged as the dominant region in the
Australian radio taxi market. This dominance can be attributed to its large
population and the presence of major metropolitan areas, leading to a high
demand for taxi services. The state's extensive infrastructure, including
well-developed roads and transportation networks, facilitates efficient taxi
operations and accessibility. Urban centers within New South Wales, such as
Sydney, serve as hubs for both local and international travelers, further
driving the need for reliable and diverse taxi services. The concentration of
businesses and tourism activities in these areas also contributes to the
sustained demand for various transportation options, including radio taxis.
These factors collectively reinforce New South Wales' position as a central
player in the Australian radio taxi market in 2024.
In 2024, Victoria continued to play a significant role in the Australian radio taxi market, backed by its dynamic urban environment and strong emphasis on public mobility solutions. With Melbourne at its core, Victoria benefits from a dense population, thriving business hubs, and a steady influx of domestic and international tourists. The demand for timely, app-connected, and reliable taxi services has pushed radio taxi operators to adopt advanced dispatch technologies and integrated payment systems. The state’s push toward reducing urban congestion and its support for alternative transport solutions have encouraged partnerships between taxi providers and public infrastructure planners. As a result, Victoria has seen increased investment in vehicle tracking systems, route optimization tools, and environmentally friendly taxi fleets, contributing to the market’s steady expansion.
Western Australia has also shown notable growth in the radio taxi segment, driven by its sprawling geography and reliance on urban-rural transport connectivity. Perth, the state’s largest city, has seen a rise in demand for regulated taxi services as population growth continues and rideshare saturation creates space for diversified service models. Radio taxis provide a reliable transport option in areas with limited public transit coverage, making them essential in connecting regional zones with urban centers. Moreover, Western Australia’s mining and resource-based sectors often require secure and efficient corporate transportation solutions, which has created a niche market for high-quality radio taxi services equipped with professional drivers and robust scheduling platforms. This unique demand pattern has positioned the state as a key contributor to the evolving national taxi landscape
Recent
Developments
- In December 2023, ComfortDelGro Corporation Australia (CDC) announced a Scheme of Arrangement to acquire A2B Australia Limited, the parent of 13cabs, for USD 0.94 per share. Approved by shareholders, the deal is set to close in 2024 pending regulatory clearance, aiming to expand CDC’s footprint in Australia’s transport sector.
- In July 2023, CDC’s subsidiary won an eight-year, USD 130 million contract for Region 7 in New South Wales, covering The Entrance, Gosford, and Wyong. Starting July 2024, the deal will create around 150 jobs and boost CDC’s regional transport services.
- In 2023, CDC became a founding partner of the Geelong New Energies Service Station, Australia's first large-scale public hydrogen refuelling site. Backed by a USD 14.84 million ARENA grant, the project will launch two hydrogen-powered buses, supporting CDC’s clean energy transport goals.
- In 2023, Kakao Mobility revealed plans to launch its Kakao Taxi ride-hailing service in the U.S. and Australia later that year, leveraging its acquisition of London-based Splyt. The partnership enables seamless connections with local services like Uber, Grab, and Trip.com—so travelers can access regional ride-hailing through Kakao Taxi without installing multiple apps
Key
Market Players
- A2B Australia Limited
- Taxi 131
008 Limited
- Ingogo Pty Ltd.
- Australian Taxi Services Pty Ltd.
- Australian Taxi Advisers Pty Ltd.
- ComfortDelGro Corporation Australia Pty Ltd.
- Swan Taxis Pty Ltd.
- Yellow Cabs Queensland Holdings Pty Ltd.
- Tiger Taxis Pty Ltd.
- Silver Top Cabs Pty Ltd.
By Vehicle Type
|
By User
|
By Payment Mode
|
By Region
|
|
- Individual
- Corporate
- Tourist
|
|
- New South Wales
- Northern Territory
- Queensland
- South Australia
- Tasmania
- Victoria
- Western Australia
|
Report
Scope:
In this
report, the Australia Radio Taxi Market has been segmented into the following
categories, in addition to the industry trends which have also been detailed
below:
·
Australia Radio Taxi Market, By Vehicle Type:
o
Hatchback
o
Sedan
o
SUV
o
Luxury
·
Australia Radio Taxi Market, By User:
o
Individual
o
Corporate
o
Tourist
·
Australia Radio Taxi Market, By Payment Mode:
o
Cash
o
Online
·
Australia Radio Taxi Market, By Region:
o New South Wales
o Northern Territory
o Queensland
o South Australia
o Tasmania
o Victoria
o Western Australia
Competitive
Landscape
Company
Profiles: Detailed
analysis of the major companies presents in the Australia Radio Taxi Market.
Available
Customizations:
Australia
Radio Taxi Market report with the given market data, TechSci
Research offers customizations according to the company’s specific needs. The
following customization options are available for the report:
Company
Information
- Detailed analysis and profiling of additional
market players (up to five).
Australia
Radio Taxi Market is an upcoming report to be released soon. If you wish an
early delivery of this report or want to confirm the date of release, please
contact us at [email protected]