Taxi Service — Business Survival Rate
An estimated 43% of taxi service businesses survive their first 5 years, based on U.S. Census Bureau Business Dynamics Statistics. The annual business closure rate is 15.6%.
Is Taxi Service a Good Business to Start?
With a 43% five-year survival rate, taxi service has a below-average survival rate compared to the national average of ~50%. This indicates higher risk of failure — new entrants face significant competitive pressure or challenging economics.
The annual exit rate of 15.6% is elevated. If you're considering entering this industry, ensure adequate capitalization, a clear competitive advantage, and realistic timeline to profitability.
Entry vs. Exit Rates
Annual rate of new businesses opening versus existing businesses closing.
Net positive: more businesses opening than closing (+7.9 pp spread).
Job Creation & Destruction
The industry is adding jobs faster than losing them — a positive sign for both workers and new business owners looking to hire. Total employment: 50,778 workers across 6,136 firms.
Want to know how much taxi service businesses actually make?
See full revenue benchmarks for Taxi Service →Frequently Asked Questions
- What percentage of taxi service businesses fail?
- Approximately 57% of taxi service businesses fail within their first 5 years. The annual closure rate is 15.6%, with 843 firms closing permanently in 2023.
- Is the taxi service industry growing or shrinking?
- The taxi service industry is currently growing with a net job creation rate of +8.9% per year. New businesses are entering at 23.5% while 15.6% close annually.
Source: U.S. Census Bureau, Business Dynamics Statistics (2023). Survival rate estimated from annual exit rates.