From the induction of motorized taxis in Sydney in 1906, the taxi industry had seen a steady increase in their usage and demand until the start of the pandemic in 2020. The taxi industry was valued at USD 2,409.5 million in 2020, but the pandemic has crippled the taxi operators due to no operations taken out during the lockdown affecting the livelihood of many drivers and still suffering from the after effects of it. However, the rising trend of the ridesharing applications such as Uber, Ola, DiDi, etc., has made it all the more strenuous for the local taxi drivers to come out of their misery and leading many taxi drivers to bankruptcy.
The taxi industry was flourishing at the end of 2019 and was expected to reach a CAGR of 9.61% during the forecast period, 2021-2026. But despite all this during 2020, with the onset of the COVID and lockdowns the New South Wales taxi industry fell by nearly 80%. This is due to the outbreak of the COVID-19 pandemic and the shifting of the work to home for most of the daily corporate sector commuters and almost none of the general consumer usage of the taxis due to COVID restrictions, which thereby caused a significant decrease in the bookings.
According to the Australian Taxi Drivers Association, another reason for the slow rise of the taxi industry after the lockdown had also been due to panic seen in the commuters as one in three Taxi drivers in Sydney are tested positive. All these reasons put together have produced a drastic destructive impact on the development of the taxi industry.