A taxi zoning system was for the first time introduced by the Derg region about 20 years ago. The Nagpur taxi transport service, which is believed to have begun from 2012 to 2016 with small cars has gone through various stages and systems before it reached the current level. The authorities of transport confirmed many times in the past that, the existing public transport system in Nagpur is critically inadequate to provide services for the existing travel demand. The overall performance of mass transport was constrained by many problems such as low transport service accessibility and standard, lack of taxi station, parking spaces and poor traffic management and control have remained the most critical issues to day. The need for adequate transport services has been kept on growing. This study investigates the reason which assesses the need to zone the taxi service in Nagpur city and the impact will result from the zoning in service delivery in the city. Structured questionnaire and survey interview have been prepared and targeted to three categories, control staff which includes a transport agency, traffic police, taxi association. The second category includes taxi drivers, terminal attendants, and third category include service users or passengers that use a taxi as the main mode in the southwest zone. The descriptive and exploratory research methods, quantitative research methods are employed to study the information gained from the structured questionnaire and interview questions. The collected data were classified, organized, and interpreted by using descriptive statistics including tables, frequency distributions, and percentages to give a digested picture of the data. The analysis of the data showed that taxi zoning transport service in Nagpur city may fail to achieve its purpose as stakeholders do not have any training concerning to system, there is a problem of implementation and it is also noted that 65 percent of mode share for two-wheelers contribute in the city, population is expected to grow annually by 3.8 percent, taxi drivers gain much more extra income when they cut trips, especially during rush hours, about 66.6 percent of respondents replied that they could not find taxi easily and most of the respondents say that inside facilities of taxi are not comfortable for customers. This study will help the taxi service industry to develop and design their future market strategy.