<p>Taxi service is a crucial component of the modern transportation system. In addition to the public bus transportation, taxi service is also perceived as the main public transportation option in most Indian cities. In Shillong, the taxi service operates in both shared and hired mode basis. This study focuses on taxi service operating on shared mode, which serves collective mobility needs rather than individual preferences. The main objective of this research is to model the utility and mode choice behavior of taxi service in hilly urban areas. The types of surveys that were conducted were the traffic volume survey, passenger occupancy survey, topographic survey, and questionnaire survey for trip makers. Taxi service is also evaluated from the operators’ perspective to provide a holistic assessment. A multinomial logit model was used to assess the mode choice behavior. The utility equations obtained from the model suggested that improving accessibility and managing costs could be key strategies for increasing taxi utilization. A taxi service intensity map was prepared using GIS, and it was observed that roads leading to the CBD area have comparatively higher taxi users. This is vital for transportation planning and policy development, as it can inform decisions on infrastructure improvements and traffic management strategies to balance traffic distribution. Lastly, the comparison of modal utilities showed that the predicted modal utility more closely resembles the stated modal utility than the revealed modal utility.</p>