Cabonline Group

The market

Historically, the Nordic taxi market has experienced limited but stable growth and in 2017 it was estimated to be approximately billion SEK 45 with an estimated 43,000 taxis. In the Nordic countries, the taxi business is part of the public transportation system, and a large part of the taxi market is made up of publicly procured business, such as mobility services and school transportation.

The market is divided into three overarching customer segments:

• B2P – Public

• B2B – Business

• B2C – Consumer

An estimated 50% of the Nordic taxi market is made up of taxi services performed on behalf of and under contract to public authorities and agencies, B2P. Services include transportation for the elderly and people with physical disabilities, referred to as mobility services, as well as school transportation. B2B and B2C together make up the other 50%.

Market drivers

Regulations

Changes in government regulations of the Nordic taxi markets may have a great impact in those markets in the future. The Swedish market was deregulated in 1990. Norway and Denmark are still regulated markets and thereby have limitations on fares and the number of taxi licenses permitted. Deregulation of the market has commenced in Denmark and is being considered in Norway, which may have an impact on the market over the coming few years.

Economic cycle

Historic data shows that the market is relatively insensitive to fluctuations in the economy.

Contracts and pricing

Taxi fares have historically increased in line with inflation.

Demographics

It is likely that the ageing population will be favourable for the demand for mobility services in the B2P segment. Urbanisation may also positively impact demand within the B2C and B2B segments as taxi services are most common in city areas.

Increasing competition from alternative forms of travel

The taxi business is affected by alternative transportation services, including public transport, private vehicles and other new initiatives within the transport sector.