Car taxi business has been a source of livelihood for many people in Kisumu City. However, studies indicate that their economic performance has been on the downward trend. Whereas the decline could be attributed to several factors; it is not clear whether location of parking space and competitive forces, occasioned by city planning has influenced the decline. Therefore, the purpose of this study is to investigate the influence of parking locations and competitive forces on the economic performance of car taxi in Kisumu City. This study uses ex post facto research design, while adopting a mixed method approach which utilizes both quantitative and qualitative data. These were collected by means of interview schedules and questionnaires. Quantitative data was analyzed using Chi-square and regression analyses while qualitative data was analyzed through content analysis. The study concludes that location of car taxi parks and bargaining power of taxi operators have significant influence on the economic performance of car taxi business in Kisumu City. Consequently, it recommends that Kisumu city council should develop relevant policies to level the field for taxi operators and improve taxi service quality.