Taxi & Limousine Services in the US Industry Market Research Report Now Available from IBISWorld

electric generators


Los Angeles, CA (PRWEB) March 25, 2012

The Taxi and Limousine Services industry suffered from a dip in consumer spending in 2008 and 2009. This fall was provoked by low disposable incomes, high unemployment and stricter corporate spending practices. In response to these changes, consumers switched to other types of transportation, such as public transit or carpooling. Alternatively, consumers downgraded from higher-cost services, like limousine services or luxury sedans, to taxis. According to IBISWorld industry analyst Lauren Setar, one of the industry's largest markets is corporate travelers and business commuters. The recession caused corporate profit to contract, which led many businesses to slash spending and corporate travel. This resulted in a substantial decline in demand for industry services. The luxury segment has been most adversely affected, with demand for limousines, town cars and luxury sedans falling sharply in 2008 and 2009. The recession's effects have been so severe that consumers resorted to cutting back on hiring limousines for weddings.

The Taxi and Limousine Services industry is expected to earn just $ 9.7 billion in 2012, recording an average annual decline of 4.4% since 2007. Revenue is expected to increase just 1.6% in 2012 as a result of increased consumer spending. Historically high corporate profit has led to growth in corporate spending; as a result, companies are spending more money on domestic travel. Rising fuel prices and changes in regulation have taken their toll on the industry, especially on profit margins. The world price of crude oil increased at an average annual rate of 7.7% in five years to 2012. This price is highly correlated with gas prices, which, combined with more fuel-efficient auto fleets, has led to increasing profit since its peak in 2008. Although some operators will implement fuel surcharges based on varying gasoline prices, industry firms are fighting this rising cost by investing in fuel-efficient vehicles or those powered by alternative fuels. Fuel-cost savings and some federal and state government incentive programs are making investments in hybrid-electric cars like the Toyota Prius.

The largest four companies in this industry are expected to generate less than 3.0% of revenue in 2012. The industry is highly fragmented and achieving economies of scale is difficult for many small operators. Large entities do not generate a significant amount of revenue across regions because they still must maintain an office, a center for repairs and a lot in each operating region, in addition to complying with various regulations across regions, says Setar. Although Yellow Cab Company did historically maintain a sizeable fleet of vehicles across the nation in the 1960s while under the Checker Motors Corporation, the company faced financial difficulties which led the company to split into regional entities. The largest entity from that split is Yellow Cab Chicago, which generates less than 1.0% of industry revenue with its fleet of 2,600 vehicles. For more information, visit IBISWorlds Taxi & Limousine Services in the US report in the US industry page.

Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld

Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189

IBISWorld industry Report Key Topics

Companies in this industry provide car or van-based passenger transportation. Establishments of taxi owner and operators, taxi fleet operators, and taxi organizations are included in this industry. This does not include transportation operated on regular routes or schedules.

Industry Performance

Executive Summary

Key External Drivers

Current Performance

Industry Outlook

Industry Life Cycle

Products & Markets

Supply Chain

Products & Services

Major Markets

Globalization & Trade

Business Locations

Competitive Landscape

Market Share Concentration

Key Success Factors

Cost Structure Benchmarks

Barriers to Entry

Major Companies

Operating Conditions

Capital Intensity

Key Statistics

Industry Data

Annual Change

Key Ratios

About IBISWorld Inc.

Recognized as the nations most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.





Micro Niche Profit Formula 2.0
Put Your Internet Income On Autopilot With These 24 Optimized Websites Pre Monetized With Adsense, Amazon And CB And Can Be Hosted On Your Own Domains And Servers... Just Add Your Id's And Upload Them To Start Earning Daily Income On Autopilot.
Micro Niche Profit Formula 2.0

Republished by Blog Post Promoter

Related Posts:

  1. Global Industrial Machinery Market to Reach US$514 Billion by 2015, According to New Report by Global Industry Analysts, Inc.
  2. Global Electricity Transformers Market to Reach US$53.6 Billion, and 9.7 Million Units by 2017, According to a New Report by Global Industry Analysts, Inc.
  3. Balfour Beatty Engineering Services To Begin Work at Glasgow Research Centre
  4. Global Market for Power/Utility Boilers to Reach 147.5 Thousand MW, and Industrial Boilers to Reach 719 Thousand TSPH by 2017, According to Global Industry Analysts, Inc.
  5. Davis Instruments Signs Exclusive Agreement with Relay Engineering Services (RES)

Leave a Reply

Your email address will not be published. Required fields are marked *

*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>