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The changing nature of public transport

The launch of Uber in 2012 was a disruptive shift in the Australian transport market, and signalled a serious threat to the traditional taxi. Since Uber’s entry, other ride hailing companies have followed suit, and there are now a wide range of options available to the Australian consumer (Ola, Shofer, Shebah and DiDi to name a few).

So, how successful have ride hailing companies been at making inroads into the consumer transport market?

Although there are still more Australians using taxis than ride hailing, the latter have converted a significant portion of the population in a very short space of time. Seventy-two percent of Australians over 18 use taxis for personal travel, but ride hailing services are used by almost half of the adult population (49%).

The popularity of ride hailing apps is being driven, in the main, by younger generations. Gen Z are more likely to use ride hailing services than taxis, and Gen Y are just as likely to use a ride hailing company as a taxi.


The success of ride hailing companies is further reinforced when we take a look at the frequency with which consumers use the service. Just five percent of Australians use taxis on a weekly basis, whereas triple that amount (14%) use a ride hailing service at least once a week.

Younger generations are also using ride hailing apps more frequently than their older counterparts. Seventeen per cent of Gen Z and 20% of Gen Y use ride hailing on a weekly basis, versus 12% of Gen X, 10% of Baby Boomers and 2% of the Grey generation.


Looking ahead, the younger customer base using ride hailing apps means that the rising popularity of ride hailing is likely to continue. With three quarters of Australians using taxis, it is unlikely that they are on the way out just yet.  However, the greater frequency with which consumers use ride hailing companies, suggests that this may become the go-to option for travellers.

We'll be exploring this in more detail in our upcoming Consumer Mobility Insights Report, so sign up to our blog now, and make sure you're among the first to hear about it!

Topics: Automotive Research automotive trends