Lexi Webster
The taxi industry in Australia is a vital part of the country's transportation network, with around 57,100 individuals employed as taxi drivers. The market size of the taxi industry in Australia is expected to reach US$4.09 billion by 2025, with a projected user number of 3.79 million. New South Wales has the largest number of taxi drivers in Australia, with over 22,700 drivers serving around 6,000 taxis.
| Characteristics | Values |
|---|---|
| Number of people employed in the taxi industry | 57,100 |
| Number of businesses in the taxi and limousine transport industry | 35,854 |
| Market size of the taxi and limousine transport industry | $2.8 billion in 2025 |
| Expected market size in 2024 | $1.25 billion |
| Expected market size in 2025 | $4.09 billion |
| Expected market size in 2030 | $6.47 billion |
| Number of taxi drivers in New South Wales | Over 22,700 |
| Number of taxis in New South Wales | 6,000 |
| Number of taxis in South Australia | 994 metro taxis, 253 country taxis, and 102 metro wheelchair-accessible vehicles |
| Number of accredited taxi-only drivers in South Australia | 780 |
| Number of taxi drivers in Tasmania | Over 1,000 |
| Percentage of female taxi drivers in Western Australia | 10% |
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What You'll Learn
Taxi licences in Australia
The taxi industry in Australia has evolved over the years, from horse-drawn cabs in the early days to the modern motor taxis we see today. With the rise of ride-hailing apps, the Australia Taxi Market is expected to reach USD 4.09 billion by 2025 and grow to USD 6.47 billion by 2030.
To become a taxi driver in Australia, one must meet the requirements set out in the Road Transport (Driver Licensing) Regulation 2000 and obtain a public vehicle licence. An ACT driver's licence with a 'T' condition requires a minimum level of English language proficiency. Those who are citizens of Australia, Canada, New Zealand, the UK, Ireland, or the USA, or hold a passport from these countries, are exempt from an English language assessment.
In terms of specific regions, New South Wales has the largest number of taxis and drivers in Australia, with around 6,000 taxis and over 22,700 taxi drivers. In South Australia, as of September 2020, there were 994 metro taxis, 253 country taxis, 102 metro wheelchair-accessible vehicles, and 780 accredited taxi-only drivers. Darwin and Alice Springs have a limit on the number of taxi licences, which are issued by ballots.
The taxi industry in Queensland has seen changes since 2016, with no new taxi service licences being released. However, individuals can still obtain a taxi service licence by buying or leasing an existing one.
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Taxi drivers in Australia
The taxi industry in Australia is a vital component of the country's transportation network, providing employment to around 57,100 individuals. It is expected to reach a market size of USD 4.09 billion in 2025, growing at a CAGR of 9.60% to reach USD 6.47 billion by 2030. The industry has seen a shift towards ride-hailing services like Uber, Ola, Didi, and others, leading to increased competition and disruption.
New South Wales has the largest fleet of taxis in Australia, with around 6,000 taxis and over 22,700 taxi drivers, the highest number in the country. Victoria has the most taxi and limousine operators, with a recent surge in enterprise numbers due to deregulation. In Hobart, Tasmania, there are three main taxi providers: 131008 Hobart, Taxi Combined, and Yellow Cabs. The former alone services over half of Hobart's immediate population.
The Australian Capital Territory (ACT) has the lowest proportion of taxi drivers, accounting for only 2% of the industry. This disparity highlights the concentration of the taxi industry in specific regions, influenced by factors such as demand dynamics or incentives. Western Australia faces a similar issue with gender diversity, as female drivers represent only 10% of the total number of taxi drivers in the region.
The taxi industry in Australia has been affected by the COVID-19 pandemic and the rise of ridesharing services, causing a decline in industry revenue and demand for non-booked services. However, it remains an essential mode of travel, particularly in regions where it aligns with local preferences and infrastructure. Embracing a hybrid business model that combines offline and online bookings can help traditional taxi services remain competitive in the evolving transportation landscape.
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Taxi companies in Australia
The taxi industry in Australia has evolved over the years, from horse-drawn cabs in the early days to the modern motorised taxis of today. The taxi market in Australia is expected to reach a value of USD 4.09 billion in 2025 and continue growing, reaching USD 6.47 billion by 2030. This growth is partly attributed to the increasing preference for online booking options offered by major operators in the country.
In terms of specific taxi companies in Australia, there are several notable ones:
- Uber Australia: Uber is a well-known ride-sharing company that operates in Australia. They have partnered with distributors to introduce electric cars to their fleet and offer flexible financing options for their drivers.
- Ola: Ola is another major ride-sharing company operating in Australia, providing online booking options for customers.
- 13cabs: 13cabs is a taxi service operating in Melbourne, Sydney, and other parts of Australia. They have over 8,000 cabs on the road and offer features like wheelchair-accessible vehicles, guide dog accommodations, and the ability to book trips with multiple stops.
- DiDi: DiDi is a ride-sharing company that provides online booking options and operates in the Australian market.
- GM Cabs: GM Cabs is a taxi company operating in Australia and is one of the major players in the Australian taxi market.
- Black and White Taxis: This taxi company serves the Perth area of Western Australia and holds about 10% of the traffic in the region.
- Hobart Taxi Companies: In Hobart, there are three main taxi providers: 131008 Hobart, Taxi Combined, and Yellow Cabs. Yellow Cabs was the first taxi company in Tasmania to operate hybrid vehicles.
- Airport Transfer Companies: Companies like Airport Xpress Taxis Melbourne and Chauffeur Link specialise in airport transfers and offer reliable services to and from Australian airports.
These companies, along with others like GoCatch HOP, Shebah, and Kakao Taxi, contribute to the diverse taxi industry in Australia, providing various services and options for customers. The industry employs thousands of taxi drivers, with New South Wales having the largest number, at over 22,700 drivers.
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Taxi market size in Australia
The taxi market in Australia is a growing industry, with a projected market size of US$4.09 billion in 2025, up from US$3.7 billion in 2024. This growth is expected to continue, with the market forecast to reach US$6.47 billion by 2030, representing a 9.6% compound annual growth rate (CAGR) during the 2025-2030 period.
The taxi industry in Australia employs thousands of drivers, with New South Wales having the largest number of taxis and drivers in the country, with around 6,000 taxis and over 22,700 taxi drivers. In South Australia, there are 994 metro taxis, 253 country taxis, and 780 accredited taxi-only drivers as of September 2020. Tasmania's taxi industry employs over 1,000 drivers, with three main providers in Hobart: 131008 Hobart, Taxi Combined, and Yellow Cabs.
The Australian taxi market has been segmented by service type, booking type, vehicle type, and region. Service types include ride-hailing and ridesharing, with major operators like Uber, Ola, Didi, and GoCatch offering online booking options. The market has also been segmented by booking type, with options for online and offline booking. The vehicle type segment includes hatchbacks, sedans, and SUVs/MUVs, with SUVs gaining popularity in the taxi business.
The taxi market in Australia is expected to benefit from the high internet and smartphone penetration in the country, with the Australian Communication and Media Authority reporting a 99% internet adult penetration rate in 2022. This is expected to drive the demand for ride-hailing and taxi services, as customers prefer the convenience of online booking options.
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Taxi ridesharing in Australia
Ridesharing has become an increasingly popular service in Australia due to its accessibility via smartphone applications and its typically cheaper fares when compared to some taxi services. The Australia Taxi Market size is expected to reach USD 4.09 billion in 2025 and grow at a CAGR of 9.60% to reach USD 6.47 billion by 2030.
Ridesharing services such as Uber, DiDi, Ola, GoCatch HOP, Shebah, Ingogo, Bolt, and Kakao Taxi are available in Australia. These services are similar to taxi services, but there are some key differences. When using a rideshare app, you book your ride by entering your desired destination, and multiple drivers can see your potential booking. One driver must accept it at the quoted fare before your booking is confirmed. In contrast, when taking a taxi, you usually approach a rank on the street or are assigned a driver by contacting the taxi booking office.
Ridesharing is now legal in all Australian states and territories, and legislative changes have been made to ensure that all ridesharing services, not just Uber, comply with regulations and requirements such as vehicle quality control, background checks, and licensing fees. These requirements differ from state to state. For example, taxis and rideshares in the Northern Territory incur an additional $1 fee to offset unique licensing fees.
Some taxi companies in Australia have partnered with rideshare services, giving customers the option to choose between a cab or a private vehicle. In Melbourne, for example, several taxi companies operate and can be flagged at a taxi rank, booked using an app, or called over the phone. Ridesharing services such as Uber, Ola, and Shebah are also available throughout Melbourne and can be booked through mobile phone apps.
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Frequently asked questions
As of 2024, there are approximately 57,100 individuals employed in the taxi industry in Australia.
New South Wales has the largest number of taxi drivers in Australia, with over 22,700 drivers.
The average waiting time for a taxi in Australia's capital cities is 10-15 minutes.
The ACT has the lowest proportion of taxi drivers in Australia, accounting for only 2% of the industry.
Female drivers represent only 10% of the total number of taxi drivers in Western Australia.
