The Middle-East and North Africa Taxi Market is projected to grow with a CAGR of more than 5 % during the forecast period.
- Owing to the increasing business opportunities in the region, the business travelers along with the growing tourism and religious travelers are driving the demand for taxis in Middle-East and North African region.
- According to report published by United Nations World Tourism Organization published in March 2019, the Middle-East and North Africa region witnessed a growth of around 10% tourists in the year 2018, with around 87 million international tourists arriving in the region.
- The vast cultural heritage, connectivity with the world, developed infrastructure and business tourism is attracting vast diversified tourist base in some countries of the Middle-East region.
- The countries of Saudi Arabia, Egypt, United Arab Emirates etc. are the places that the international tourists most prefer in the region and the major taxi players are investing majorly in these countries to cater the growing demands.
Key Market Trends
Online Booking Segment Poised to Capture High Share
With the advancement of technology in mobiles and advancement in internet connectivity, majority of businesses are trying to shift their operations through the online mode. Taxi market is also one of the markets which is shifting towards Online services owing to the ease of operation for both the user and the operator.
In the past few years, the small players who use to operate through Offline modes of booking have either suspended their operations or joined with the major Online giants in the space to remain operational. The Popularity of Leisure travel as well as business travel in the region has attracted global giants like Careem and others to set up their operations in the region.
For instance, in September 2019, with the National Transformation’s Program initiative in the Kingdom of Saudi Arabia, the Global taxi player Uber announced start of its operations in the country. Uber Saudi Arabia aspires to offer new mobility options to strengthen the oil-rich country’s path to growth and modernization.
Saudi Arabia poised to be a Major Market
In Middle-East and North Africa Taxi Market, Saudi Arabia is poised to have a major Taxi market. This is due to the presence of many technological centers, entertainment places, industries in the country. Also, Riyadh is the most populous city in the country and thus, in order to capture the individual and corporate demand for business visitors, major players are investing heavily in the country to meet the growing demand.
The central region is a popular in tourism as it has major airports connecting the capital. Tourists book taxis from the province and travel throughout the country. The western region is the most popular tourist destination due to cities such as Mecca and Medina. These places are the major pilgrimage attractions in Saudi Arabia.
Considering the demand from the corporate and tourism industry, the government is also working on improving the taxi services in the country by actively monitoring and making regulations for the operators. For instance, in December 2019, The Public Transport Authority (PTA), in cooperation with the Saudi Commission for Tourism and National Heritage (SCTH), has launched a program to improve taxi services across Saudi Arabia and apply modern technology in them. Taxis exterior will be changed into green and will be obliged to use a regulated fare system and e-payment facilities, in addition to modern tracking technologies and maps.
The Middle-East and North Africa Taxi Market is fragmented, with many players accounting for a small market share. Some of the prominent companies in the Middle-East and North Africa Taxi Market Uber, Lyft, Bolt Private and others. The major players in the region are launching different platforms to attract specific audience and enhance the user experience. For instance, in July 2019, Didi Chuxing, the Chinese major Taxi operator, made an announcement of joint venture (JV) in the Middle-East in a partnership with local investors, with the aim of expansion.
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