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Taxi Operation Industry
The Taxi Operation segment in the UK includes for-hire vehicle transport services such as black cabs, private-hire vehicles, limousines, executive cars, and wedding cars. The industry also encompasses companies providing related services like radio operators and taxicab ownership, excluding ridesharing companies.
£8B
Market Size
349,249
Industry Employment
7%
The South East saw the most significant fall in driver licences, at 7.0%, while the West Midlands saw the most marked increase, at 4.5%.
Taxi Operation segment provides for-hire vehicle transport on British roads. It includes using hackney carriages (black cabs), private-hire vehicles, limousines, executive cars, and wedding cars. The industry also includes companies that exclusively provide related services, such as radio operators and taxicab owners. However, this industry does not include ridesharing companies (Ibis World, 2022).
Industry Challenges 
- Competition from ride-hailing services
- Staff shortages
- Regulatory changes and compliance
- Meeting changing customer preferences
(Ibis World, 2022; Business Mondays, 2023)
The Taxi Operation industry has displayed a mixed performance over the past five years, but the projected industry profitability illustrates growth. In today’s evolving landscape, though, UK taxi companies face several challenges. They can overcome these by embracing innovation, investing in technology, understanding customer needs, collaborating with relevant stakeholders and positioning themselves for long-term growth and sustainability (Business Mondays, 2023).
Industry Opportunities 
- Technology for seamless booking, real-time tracking, and personalised experiences
- Driver retention and well-being
- Services that offer choice and personalisation to the customers
- Transition to electric vehicles
(Business Mondays, 2023)
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