A new study by a British financial services company HSBC has revealed that in some countries using taxi services is gradually becoming cheaper than owning a car, Russian financial newspaper Kommersant reported on July 31.
HSBC has compared the costs of using a taxi against those of owning a car, using the price of Toyota Camry in each country as a reference. The analysts took into account the costs of gasoline and car maintenance, taxi tariffs and the average income of the residents of selected countries.
The study has revealed that owning a car in Russia is essentially infeasible for those who drive less than 5,400 kilometers per year. According to HSBC, the poor public transportation infrastructure in the country results in its frequent substitution by taxi services. As a result, the latter are widely used and relatively cheap.
India is another country where a taxi might be a better option than a personal car: there, the threshold distance is 2,731 km per year. The UK and the U.S. follow with 1,184 km and 1,102 km, respectively.
In Germany, on the other hand, owning a car is a better choice if one travels more than 811 km per year.
As per HSBC, over 45% of citizens in Russia have at least one taxi service app installed on their smartphone. This number is only higher in China (51%) and Mexico (46%), while in the U.S. and the UK the figures are slightly lower (40% and 30% respectively). In India, the number is 28%, and in Germany — 20%.
According to several industry forecasts, the taxi market in the U.S. and the UK will grow by 25% over the next five years.
It is expected that the U.S. taxi market will bring $2.81 billion of revenue in 2020, while the UK will see $2.94 billion over the same period.