Australia Taxi Market Size, Share and Growth Report: Forecast Trends and Outlook (2026-2035)

Market Overview

The Australia taxi market is at an inflection point. Street hailing and rank based taxis once defined point to point travel, but app based booking now leads, and regulators are tightening driver standards while platforms test insurance, teen accounts and driverless cars.

Three forces are shaping the market: platform competition, with Uber and DiDi widening products and partnerships; regulatory tightening, as Victoria and New South Wales act on driver accountability and algorithm safety; and fleet transition, as electric and hybrid vehicles gain ground.

In August 2025 Uber expanded teen accounts to four more jurisdictions, and in December 2025 New South Wales introduced an algorithm safety bill. In February 2026 Victoria announced new driver rules, and in September 2026 Vero, Uber and Cover Genius launched pay per kilometre insurance.

Key Market Trends and Insights

• Stricter driver accountability: Victoria announced on 17 February 2026 that drivers with two fare offences within 10 years can lose accreditation, with the rules effective from 1 March 2026 and tougher meter penalties already active from 1 January 2026.
• Autonomous vehicle ambition: Uber said in March 2026 that autonomous vehicles could launch in Australia within two years, signalling a long-term shift in how ride-hailing fleets and driver supply may be organised across major cities.
• Event and partner marketing: DiDi became official rideshare partner of the 2026 Australian Open, held from 18 January to 1 February 2026, with exclusive rider offers for fans travelling to and from Melbourne Park.
• Insurance for gig drivers: Vero, Uber and Cover Genius announced pay per kilometre rideshare insurance in September 2026, pricing cover by distance driven on the Uber platform for drivers whose working patterns vary from month to month.

Australia Taxi Market Size and Forecast

The market is moving from licensed street service towards connected, app based mobility in which booking, payment, insurance and safety checks sit inside one platform. Ride-Hailing holds the largest share because upfront pricing and wide coverage suit everyday urban trips. Electric vehicles grow fastest as platforms and drivers shift towards lower running costs, while SUV and van models serve groups and luggage. New South Wales remains the biggest region, while Western Australia grows quickest. Tighter regulation and new products point to durable demand rather than a short lived cycle.

Key Takeaways: Australia Taxi Market

Ride-Hailing Platforms Anchor Long-Term Growth

Revenue is on course to grow by about 1.8 times across the decade, from AUD 9,850.00 million in 2025 to AUD 17,310.00 million in 2035 at a 5.8% CAGR. Platform scale, led by Uber, and new products such as pay per kilometre insurance in September 2026 keep trip volumes and driver supply steady.

Ride-Hailing and Electric Models Lead Growth

Ride-Hailing holds the largest share and grows at a 6.5% CAGR, while Electric grows at an estimated 11.8% CAGR through 2035 from a small base. Uber said in March 2026 that driverless cars could launch in Australia within two years.

Safety Rules Reshape Taxi and Rideshare Supply

Victoria announced on 17 February 2026 a two strikes rule, limits on provider branding and mandatory QR codes in taxis and rideshare vehicles. New South Wales introduced an algorithm safety bill in December 2025.

• Drivers lose accreditation after two fare offences within ten years
• QR codes mandatory in all Victorian taxis and rideshare vehicles from March 2026
• A2B network of more than 9,000 vehicles sits under ComfortDelGro

Australia Taxi Market Report Summary

Key Insight

App based booking, tighter driver rules and new insurance products are shifting taxis from a licensed street service towards a regulated digital mobility network. Ride-hailing leads because upfront pricing and wide app coverage suit everyday urban trips, while electric vehicles grow fastest from a small base as platforms push towards cleaner fleets. New South Wales leads on scale and Western Australia grows quickest, while traditional taxi networks hold their place through airports, contracts and accessible transport. Growth rests on named regulation and platform launches rather than speculative forecasts.

Key Trends in the Australia Taxi Market

The Australia taxi market is being reshaped by new insurance products for drivers, driverless car plans, stricter driver regulation and pressure on mass market taxi demand from ride-hailing.

September 2026 - Vero, Uber and Cover Genius Launch Pay Per Kilometre Rideshare Insurance

• Vero, Uber and Cover Genius announced on 8 September 2026 a motor policy priced by kilometres driven on Uber.
• A fixed premium covers private use, while the rideshare premium rises in months with more Uber kilometres and falls in quieter months.
• This translates into fewer cover gaps and easier entry for part time drivers who supply the ride-hailing segment.

March 2026 - Uber Says Driverless Cars Could Reach Australian Roads Within Two Years

• Uber said on 9 March 2026 that autonomous vehicles could launch in Australia within two years, as it expands driverless trials globally.
• Driverless fleets would change how trips are matched, priced and maintained, and would move cost away from driver earnings.
• This translates into long-term pressure on current driver supply models and on traditional taxi networks.

February 2026 - Victoria Announces Two Strikes Rule and Branding Limits for Drivers

• Victoria announced on 17 February 2026 that drivers with two fare offences in 10 years can lose accreditation.
• Drivers cannot display a provider's branding unless genuinely affiliated, and all taxis and rideshare vehicles must carry QR codes.
• This translates into higher compliance costs for small operators but greater passenger trust in licensed services.

August 2025 - ComfortDelGro Flags Ride-Hailing Pressure on Mass Market Taxi Demand

• ComfortDelGro reported on 13 August 2025 that group taxi and private hire operating profit rose 20.6% in the first half.
• Its outlook said mass market consumer demand faces pressure from ride-hailing, while premium and large business demand should stay stable.
• This translates into a split market where corporate and premium work protects taxi networks while mass market trips move to apps.

Key Insight

Insurance products, driverless plans, stricter rules and shifting demand show the market is evolving structurally rather than cyclically. Victorian driver rules and the pay per kilometre cover launched in September 2026 raise trust and lower friction for driver supply. Uber's driverless ambition and ComfortDelGro's view on ride-hailing pressure frame competition through the forecast period.

Recent Market Developments in the Australia Taxi Market

Recent developments, presented from the most recent, show Uber's quarterly growth, a DiDi event partnership, a New South Wales algorithm safety bill and an Uber teen account expansion.

August 2026 - Uber Reports Strong Mobility Growth in Second Quarter 2026

• Uber announced results on 5 August 2026, with global mobility gross bookings of USD 29.0 billion, up 22% year on year.
• Global trips reached 3.9 billion, up 18%, and monthly active platform consumers rose 16% to 208 million.
• The release gives no Australia split, but it confirms continued strong demand for app based rides.

January 2026 - DiDi Becomes Official Rideshare Partner of the Australian Open

• DiDi was named official rideshare partner of the 2026 Australian Open, held from 18 January to 1 February 2026.
• The partnership helps fans travel to and from Melbourne Park and includes exclusive rider offers for fans.
• Event partnerships give DiDi visibility against Uber in Melbourne during a peak demand fortnight.

December 2025 - New South Wales Introduces Algorithm Safety Bill for Workers

• New South Wales introduced a bill on 2 December 2025 requiring employers to ensure algorithms do not risk worker safety.
• Union delegates would gain access to inspect digital systems, and the bill had not passed parliament at publication.
• Platforms may have to adjust routing and acceptance rules, adding compliance costs.

August 2025 - Uber Expands Teen Accounts to Four More States and Territories

• Uber announced on 28 August 2025 that teen accounts for riders aged 13 to 17 would expand to four more jurisdictions.
• The expansion covers New South Wales, Victoria, the Northern Territory and Western Australia, and adds Comfort and UberXL options.
• This translates into a new rider segment for platforms, supported by PIN checks and screened drivers.

Key Insight

Uber's results of August 2026, DiDi's Australian Open partnership, the New South Wales algorithm bill and Uber's teen expansion show platforms scaling products while regulators raise expectations. Uber reported global mobility gross bookings growth of 22% in the quarter to June 2026, confirming strong demand for app based rides.

Australia Taxi Industry Segmentation

The Expert Market Research’s report on the Australia Taxi Market offers a detailed analysis of the market based on the following segments.

Market Breakup by Service Type

• Ride-Hailing
• Traditional Taxi
• Others

Ride-Hailing leads, in our estimate, because app based booking with upfront pricing now sits at the centre of urban trips, and it grows fastest at an estimated 6.5% CAGR through 2035. Uber said in March 2026 that driverless cars could launch in Australia within two years, while DiDi became official rideshare partner of the Australian Open in January 2026. Traditional Taxi remains important for ranks, airports, contracts and accessible transport, although ComfortDelGro said in August 2025 that mass market demand faces pressure from ride-hailing. Others include limousine, chauffeur and community transport services booked outside standard apps.

Market Breakup by Vehicle Type

• Hatchback
• Sedan
• SUV and Van
• Others

Sedan leads, in our estimate, because most taxi and ride-hailing fleets use mid-size cars that balance running cost, comfort and boot space, and Victoria requires QR codes in every taxi and rideshare vehicle from 1 March 2026 regardless of body type. SUV and Van grows fastest at an estimated 6.9% CAGR through 2035, helped by the Comfort and UberXL options Uber added to teen accounts in August 2025 and by wheelchair-accessible vehicle driver training due later in 2026. Hatchback serves compact city trips with low running costs. Others include limousines and luxury cars used for chauffeur and special events.

Market Breakup by Propulsion Type

• Internal Combustion Engine
• Hybrid
• Electric
• Others

Internal Combustion Engine leads, in our estimate, because most drivers use privately owned petrol cars, and the pay per kilometre cover launched by Vero, Uber and Cover Genius in September 2026 is aimed at driver partners whose mileage varies. Electric grows fastest at an estimated 11.8% CAGR through 2035 from a small base, as Uber aims to run a zero-emissions platform in Australia by 2040. Hybrid sits between the two, as fuel savings attract drivers without charging constraints. Others include plug-in hybrids and gas conversions in older taxi fleets.

Market Breakup by Region

• New South Wales
• Victoria
• Queensland
• Western Australia
• Others (Rest of Australia)

New South Wales dominates, in our estimate, because Sydney has the deepest pool of airport, corporate and event trips, and it grows at an estimated 5.4% CAGR through 2035. Its government introduced an algorithm safety bill in December 2025, with Uber drivers cited as an example. Western Australia is the fastest-growing listed region at 6.6% with a 16.2% share in 2025, followed by Victoria at 5.8%, where new driver rules took effect on 1 March 2026, and Queensland at 5.7%. Rest of Australia grows at 6.2%, with the Australian Capital Territory also at 6.2%, alongside South Australia, Tasmania and the Northern Territory.

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Purchase the Regional Overview for USD 1099

If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

Competitive Landscape in the Australia Taxi Market

Competition combines global ride-hailing platforms, taxi networks and regional cooperatives. Entry barriers include driver supply, app reach, brand trust, accreditation and licensing rules, and the cost of meeting safety, insurance and accessibility standards.

Uber

Uber, headquartered in San Francisco, California, was founded in 2009 and runs a global platform for rides, food delivery and freight. In Australia it offers Uber X, Comfort, XL and other ride options, and in August 2025 it extended teen accounts for riders aged 13 to 17 to New South Wales, Victoria, the Northern Territory and Western Australia. In March 2026 it said driverless cars could launch within two years. Its differentiators are platform scale, upfront pricing, in-app safety tools and 208 million monthly active platform consumers worldwide in the June 2026 quarter.

DiDi

DiDi, headquartered in Beijing, China, was founded in 2012 and runs one of the largest ride-hailing platforms in the world, operating in Australia through DiDi Mobility Australia. Its service offers rides in major Australian cities with frequent rider promotions. In January 2026 it became official rideshare partner of the Australian Open, held at Melbourne Park from 18 January to 1 February 2026, with exclusive fan offers. Its differentiators are competitive pricing, promotional campaigns and event partnerships that build rider awareness against Uber.

13cabs

13cabs, a taxi booking network and app owned by A2B Australia, connects passengers with licensed taxis by phone and app across Australian cities. Its parent has operated since 1976 and joined ComfortDelGro in 2024. Victorian rules announced on 17 February 2026 stop drivers displaying a provider's branding unless genuinely affiliated, which bears directly on network brands such as 13cabs. Its differentiators are licensed driver supply, a long-standing consumer brand and corporate account customers served through the wider A2B group.

A2B Australia

A2B Australia, owned by Singapore-based ComfortDelGro since 2024, is an Australian taxi network and payments group whose brands include 13cabs, Silver Service, the MTI dispatch platform and Cabcharge payments. Its network sits within a ComfortDelGro Australia taxi network of more than 9,000 vehicles. ComfortDelGro reported on 13 August 2025 that group taxi and private hire operating profit rose 20.6% in the first half, including a full contribution from A2B. Its differentiators are network scale, payment technology and corporate and government accounts.

Other players operating in the Australia taxi market include Ola, Silver Service, Black & White Cabs, Yellow Cabs Queensland, and Premier Cabs, alongside regional taxi cooperatives, accessible transport providers and limousine operators supplying passengers, corporate accounts and government programmes across Australia.

Key Insight

Competition rests on app reach, driver supply, pricing transparency and regulatory compliance rather than fares alone. Uber leads on platform scale, DiDi competes through promotions and partnerships, and A2B Australia operates 13cabs and Silver Service within a ComfortDelGro network of more than 9,000 vehicles. Black & White Cabs, Yellow Cabs Queensland and Premier Cabs serve state and regional markets. Network brands increasingly depend on apps to widen demand while regulators ask for stronger driver accountability.