Top market trends for the limo industry in 2020

Chockalingam


Limo taxi business is on the rise with the increasing demands of the people across various fields. The US is the top-performing market for limousines and around 108,000 chauffeured vehicles were present in 2018 and still growing strong. As the market continues to grow, there are bound to be new trends and technologies that will come into the limousine industry. Here’s a look at the top limousine market trends for the year 2020.

Growing digital platform

There exists a growing importance of digital platforms in the current scenario. 85% of limo companies have websites and allow online reservations. Similar to the development in the taxi business, app-based platform and services are slowly evolving to be successful in the modern world and provide ample benefits with their long list of features along with other innovations.

Prominent segments

As the need for convenience, luxury and comfort continue to rise, people prefer limousines for different occasions, apart from the usual weddings and proms. In fact,

airport transfers account for the top-most revenue generation in the limo business with a whopping 24%, followed by corporate transfers at 21.5%. Businesses can focus on these sectors to garner better opportunities.

Inadequate chauffeurs

Over the past few years, there has been a rising demand for seasoned chauffeurs to handle the increasing limo fleets. However, with low wages and online ride-hailing competition, the industry has experienced a shortage of professionals.  Not everyone can handle limos; only a few are given the license and a prerequisite for every limo business is to have a professional to step on the pedal. Hence, it’s very important to concentrate on driver retention activities to retain your chauffeurs and make them sustain in your company for a longer period of time.

Technology innovation

Every car brand is shifting their focus towards electric and autonomous vehicles; where some vehicles today, even possess semi-autonomous driving features. The Future of Driving report from Ohio University states that with autonomous taxis, “The waiting time for a cab will come down from the average five minutes today to just 36 seconds. The cost of a ride too will come down to just $0.5 per mile in a driverless car.”

Road safety and accidents have become a pressing concern for the transportation industry. However, the application of ADAS technology in scenarios such as collision warning, pedestrian crossing, lane departure warning, etc, has shown promising results in improving the safety conditions. 

Both these technological innovations will reflect in the limousine industry, changing the luxury transportation market along with it.

With the steady increase in demand for limousines and technology paving better opportunities for businesses, the year 2020 looks promising.