The taxi and limousine service industry

The taxi and limousine service industry generated $1.2 billion in operating revenue in 2002, an increase of 14% from 2001. The increase in operating expenses was slightly lower (+12%) and resulted in a 23% increase in profit margins.

The industry is divided into two major segments: taxi and limousine associations and companies, and self-employed taxi and limousine drivers. In Canada, there were 1,800 taxi and limousine associations and companies in operation in 2002. Although they represented only 6% of the number of businesses in the industry, they generated 45% of the total operating revenue. The average operating income of taxi associations and companies was $288,000, an increase of 2% from 2001. Average operating expenses decreased slightly to $266,000 leaving these businesses with an average operating margin of $22,000-approximately 8% of their operating income.

There were 31,400 self-employed taxi and limousine drivers in 2002 and they accounted for 55% of the total operating revenue for the industry. The average operating income of self-employed drivers was $21,000, down 5% from 2001. Average operating expenses fell 6% to $15,000 resulting in an average operating margin of $6,000 (or 29% of operating income). This high proportion can be attributed to the fact that self-employed drivers use their operating margin as personal income.

The predominant expenses reported by taxi associations and companies included salaries, wages and benefits (which represents 37% of the total operating expenses), other purchased services such as telecommunications (22%), and the cost of energy and supplies (12%). The predominant expenses reported by self-employed drivers were other operating expenses (19% share of the total operating expenses), energy and supplies (17%), repairs and maintenance costs and other purchased services (equally placed at 15%).

About 39% of all the businesses in the taxi and limousine service industry in Canada were located in Ontario and they generated 44% of the national operating revenue in 2002. Quebec followed with 27% of all businesses in this sector and 20% of the total operating revenue.

Available on CANSIM: table 407-0001.

Definitions, data sources and methods: survey number 4707.

To order data, contact Ronald Chrétien (613-951-8774; ron.chretien@statcan.gc.ca). For more information about the concepts, methods and data quality of this release, contact Vincent Dubé (613-951-7031; vincent.dube@statcan.gc.ca), Transportation Division.