Predicted Growth of the Sedan and Limousine Industry

Overview: With high corporate and consumer spending still predicted to continue despite lower oil prices, the sedan service industry remains in high demand. With innovations in communications, the primary change in the limousine and sedan service is the connectivity between customers, drivers and dispatchers. Read the blog below for more information on the growth of the car service.

In the last recession, both consumers and corporations began to cut spending on areas like the car service industry. However, this time around with low oil prices, consumers and corporations are still pouring money into the economy, which is increasing the demand for car services. One of the key reasons that the limousine industry is prospering is because it has become an essential service for companies. For example, many people believe that only the top-level executives use a company car service, but the truth is that employees of all levels working long hours use and access the sedan service. Companies understand that if they are going to get their teams to work late into the evenings on several nights, they need to accommodate their employees by getting them home safe. This is just one small example of the use and need of the car service that has increased in recent years. Just because oil prices are on a downward trend, doesn’t mean that companies are packing it in and calling it a day. They are utilizing sedan services to get to meetings, travelling to the airport and visiting job sites, all in the hope of getting the oil sector energized again.

Some industry analysts believe the market has become saturated and that the growth of the limousine service will be limited in the future. This might be true for areas with smaller populations, but there is greater opportunity for growth in major metropolitan cities. Many cities limit the number of licenses issued to operate a taxi; The City of Calgary has fixed the number of taxi plates, so even with population increase the number of taxicabs on the street have barely changed. Essentially the demand has increased, yet the number of vehicles has remained the same and that is the primary reason that ride-sharing apps have had an opportunity to enter the market (not available in Calgary currently).

Smart phones and innovations in communications are bridging the gap between passengers and drivers. The problem is that many taxi drivers and all ride-sharing drivers are independent contractors. Their availability is completely dependent on themselves, setting their own hours and days to work. Even with the industry expected to grow in metropolitan cities like Calgary, the demand by passengers will not necessarily sync with the times the drivers are on the road. This is where National Limo excels by carefully planning all their clients' transportation needs in advance, assuring that professionals will be picked up and dropped off at their desired location.

The Bottom Line: The Canadian economy is expected to grow over the next five years, and the car service industry is also predicted to grow moderately, mainly because of strict regulations. The industry is also going to increase productivity with advancements in communications via smartphones. The City of Calgary has strict regulations in place for the taxi and limousine businesses, limiting the growth potential. However, sedan service companies like National Limo have been able to stand out of the crowd because of a strong mandate assuring their clients will have full access to their service at all times.

If you need a Sedan Service in and around Calgary, contact National Limousine today at 403-512-8751 or toll free at 1-866-512-8751.