Electric Vehicle Taxi Market Size, Share and Growth Projections by 2034

Electric Vehicle Taxi Market Competitive Landscape & Future Outlook

The electric vehicle taxi market is projected to reach USD 80.77 billion by 2034, growing from USD 27.69 billion in 2025, at a CAGR of 12.63% during the forecast period from 2025 to 2034.

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Introduction

The electric vehicle taxi market is a prominent segment of the EV industry. This industry deals in providing taxi services based on electric vehicles across the world. There are several types of vehicles used in this sector consisting of battery electric vehicles (BEVs), hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs) and some others. This sector provides different types of taxis including short-range taxis and long-range taxis. The rising sales of electric vehicles in different parts of the world has driven the market expansion. This industry is expected to rise significantly with the growth of the ride-hailing services sector in different parts of the globe.

• According to the International Energy Agency, around 1.7 million BEVs were sold in Europe in 2020 that increased to 6.7 million in 2023.

Highlights of the Electric Vehicle Taxi Market

• Asia Pacific held the highest share of the electric vehicle taxi market.
• North America is expected to grow with a significant CAGR during the forecast period.
• By range, the short-range EV taxis segment held a dominant share of the market.
• By range, the long-range EV taxis segment is predicted to grow with a significant growth rate during the forecast period.
• By ownership model, the company-owned segment led the industry.
• By ownership model, the individually-owned segment is anticipated to rise with the highest growth rate during the forecast period.

Key Metrics and Overview

Electric Vehicle Taxi: Trends in the Industry

• Several fleet operators are partnering with automotive companies to provide EV-based taxi services in different parts of the world. For instance, in February 2023, Tata Motors partnered with Uber. This partnership is done for launching an EV-based taxi service in India.
• Government of several countries have started investing heavily for deploying electric taxis with an aim to reduce emission. For instance, in February 2025, the government of UK announced to invest around 120 million euros. This investment is done for deploying EV taxis in the UK region.
• Numerous airports are launching EV-based taxi services to enhance the experience of air travelers. For instance, in June 2024, Bangalore Airport announced to introduce a fleet of EV taxis. These taxis are deployed for providing hassle-free commute to the flight travelers.
• Various fleet operators have started launching attractive EV-based taxi services to promote sustainable transportation around the globe. For instance, in February 2025, Cab Direct launched Ford MAXiCab service in Scotland. This EV-based taxi service is aimed at lessening the maintenance cost of fleet operator and lowering air pollution in this nation.

Range Insights

The short-range EV taxis segment held a dominant share of the market. The rising use of electric taxis for short commutes has driven the market in a positive direction. Also, the growing adoption of affordable electric vehicles by fleet operators for operating taxi services further propels the industrial expansion. Moreover, the rising demand for low-price taxis by office goers and school goers further adds to the market growth.

The long-range EV taxis segment is predicted to grow with a significant growth rate during the forecast period. The growing investment in the EV battery industry coupled with increasing emphasis on developing EVs with high driving range has boosted the market expansion. Moreover, the rising consumer interest to travel long distance in a sustainable way further propels the industrial growth.

Ownership Model Insights

The company-owned segment led the industry. The rise in number of ride-hailing companies across the world has increased the demand for electric vehicles for taxi purposes, thereby boosting the market growth. Also, numerous partnerships among car rental companies and EV brands coupled with rapid investment by fleet operators for deploying electric taxis has accelerated the growth of the electric vehicle taxi market.

The individually-owned segment is anticipated to rise with the highest growth rate during the forecast period. The rising adoption of electric vehicles among individual owners due to less maintenance and enhanced efficiency boosts the market expansion. Moreover, people of developing nations have started putting their EVs for rental services to earn extra amount of money, thereby fostering the market growth.

Geographical Insights

Asia Pacific held the highest share of the electric vehicle taxi market. The rising sales and production of electric vehicles in countries such as India, China, Japan, South Korea, Singapore and some others has boosted the market growth. Additionally, the growing investment by government for strengthening the EV infrastructure along with increasing awareness about reducing emission is playing a vital role in shaping the industrial landscape. Furthermore, the presence of various electric taxi providers coupled with technological advancements in automotive sector is expected to boost the market growth in this region.

China held the dominant share of the industry in this region. In China, the market is generally driven by the rising emphasis on manufacturing EVs along with growing investment by government and private entities for strengthening the EV charging infrastructure. Additionally, increasing adoption of battery swapping solutions as well as availability of raw materials and skilled workforce is another integral factor that propels the industrial expansion.

• In December 2024, CATL launched a battery swapping solution in China. This battery swapping services helps in enhancing the experience of EV consumers.

India also held significant share of the market. The growing demand for fuel-efficient vehicles along with rising consumer awareness regarding eco-friendly transportation has boosted the market expansion. Moreover, the rise in number of fleet operators coupled with government initiatives aimed at adopting EVs further accelerates the industrial growth. Furthermore, rapid adoption of ride-hailing services as well as availability of cab booking apps in Play Store and Apps Store is projected to foster the growth of the electric vehicle taxi market.

• In December 2024, MetroRide Kids launched a ride-hailing app in India. This app is designed for booking cabs online by parents to ensure safe rides of children aged between 5-16.

North America is expected to grow with a significant CAGR during the forecast period. The growing trend of electric vehicles along with presence of prominent automotive brands propels the market growth. Also, surge in demand for eco-friendly transportation coupled with rapid investment for developing the EV infrastructure propels the industrial expansion. Moreover, the rise in number of ride-sharing platforms as well as increasing proliferation of 5G technology is anticipated to foster the market growth in this region.

• In September 2024, the government of Canada announced to invest around US$ 14.9 million. This investment is done for developing the zero-emission vehicle (ZEV) infrastructure across Canada.

The U.S. is a major contributor of this industry. The rising demand for sustainable transportation coupled with rapid investment by fleet operators for deploying electric taxis drives the market expansion. Also, the growing emphasis on reducing emission along with numerous government initiatives aimed at deploying fast-charging stations further boosts the market growth. Moreover, the presence of several electric taxi service providers such as Uber, Waymo, Lyft and some others is likely to propel the growth of the electric vehicle taxi market.

• In October 2024, Waymo partnered with Hyundai. This partnership aims at launching electric taxi services across California, U.S.

Industry Leader Announcement

• In December 2024, Mr. Nguyen Van Thanh, the Global CEO of GSM made an announcement stating that, “Indonesia is an incredibly exciting market, where the shift toward green and smart mobility solutions is accelerating. Indonesia’s clear commitment to achieving Net Zero by 2060 aligns seamlessly with our mission to lead the global electrification of transportation. We believe Xanh SM will provide Indonesian people with a premium transportation experience while also spark a larger movement towards green mobility worldwide, creating a sustainable future for all.”

Competitive Landscape

The electric vehicle taxi market is a rapidly developing industry with the presence of several dominating players. Some of the prominent companies in this industry consists of Xanh SM, BAIC Group, BluSmart Mobility, BMW, BYD Company, Didi Chuxing, Lyft, Ola and some others. These companies are constantly engaged in providing taxi services based on electric vehicles and adopting numerous strategies such as product launches, joint venture, partnerships, acquisition, and some others to maintain their dominant position in this industry. For instance, in January 2025, BYD partnered with Grab Holdings. This partnership is done for launching EV taxi services in Southeast Asia. Moreover, in December 2024, Xanh SM announced partnership with PT Agung Sedayu Retail Indonesia. This partnership is done for launching electric taxi services in Indonesia.

• According to the annual report of Uber, the revenue of the mobility segment in 2022 was US$ 14029 million that increased to US$ 19832 million in 2023.

Recent Developments

• In March 2025, Tesla announced to launch an electric taxi service in the U.S. This service is expected to assure hassle free commute across the U.S. region.
• In January 2025, Blusmart launched an EV cab service in Mumbai, India. This service is designed for the daily commuters of Mumbai with an aim to enhance sustainable transportation.
• In June 2024, Verne launched a fleet of electric taxis in Croatia. This fleet is designed for providing enhanced taxis services to the people of this area.
• In June 2024, Uber Green launched electric cabs service in Kolkata, India. This launch is aimed at providing eco-friendly urban transportation across this city.

Electric Vehicle Taxi Market Segments

By Vehicle

• Battery electric vehicles (BEVs)
• Hybrid electric vehicles (HEVs)
• Plug-in hybrid electric vehicles (PHEVs)

By Range

• Short-range EV taxis
• Long-range EV taxis

By Ownership Model

• Company-owned
• Individually-owned

By Charging Infrastructure

• Fast charging
• Slow charging
• Wireless charging

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa