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Factors Affecting Consumer Behaviour in Taxi Rides
Submitted by:
Name: Chinmay Thippani
Roll No. 141215
Guided By:
Prof. Tripura Joshi
UNDERTAKING:
I, Chinmay Thippani hereby declare that the work carried out by me is an original piece
of work and not an extension of some project submitted by me as a part of some course work
during the MBA Programme. I also certify that no material has been copied without proper
acknowledgement of the source as a part of the reference
Chinmay Thippani
Roll No.: 141215
MBA-FT,
Batch of 2014-16,
Institute of Management, Nirma University
ACKNOWLEDGEMENT
I would like to take this opportunity to express my heartfelt gratitude to Prof Tripura Joshi,
Professor at Institute of Management Nirma University (IMNU), for his invaluable guidance and
the support that she has offered to me during the course of my research and report development.
I am equally thankful to the Programme Chairperson, Prof.Nityesh Bhatt for providing me with
the opportunity to present my dissertation report on Factors Affecting Consumer Behaviour in
Taxi Rides as a part of the course of MBA (Full Time).
There are my colleagues, batch-mates, guides and friends whose names I have not mentioned in
this acknowledgement but without their support, encouragement and guidance, my dissertation
could not have been complete. I want to express my sincere thanks to all of them.
EXECUTIVE SUMMARY:
The rapid growth of on-demand ride services, has prompted debate among policy makers and
stakeholders. Key questions include: how taxis compare with respect to trip types, customers,
and locations served; whether Taxis competes on the satisfaction and problems faced by the
customers. I addressed these questions using a survey .
Ola customers are satisfied with the price per kilometer and they are facing the problem with the
driver's attitude. Uber customers are satisfied with the expediency of pickup and they are facing
problem with the responsiveness to the problems raised.
.
Table of Contents
UNDERTAKING:............................................................................................................................2
ACKNOWLEDGEMENT...............................................................................................................3
EXECUTIVE SUMMARY:.............................................................................................................4
List of Tables...................................................................................................................................6
CHAPTER 1: INTRODUCTION....................................................................................................7
1.1 Introduction & Background:..................................................................................................7
1.2 Literature Review:.................................................................................................................8
1.3 Objectives of the Research....................................................................................................9
CHAPTER 2: RESEARCH METHODOLOGY...........................................................................10
2.1 Sampling Plan:.....................................................................................................................10
2.2 Instruments:.........................................................................................................................10
2.3 Data Collection Method.......................................................................................................10
2.4 Data Analysis Methods:.......................................................................................................10
CHAPTER 3: DATA ANALYSIS..............................................................................................11
3.1 Factors that are affecting satisfaction level of customers:...............................................11
3.2 Problems faced by Customers :......................................................................................22
CHAPTER 4: CONCLUSION AND RECOMMENDATIONS:.................................................30
4.1 Conclusion:..........................................................................................................................30
4.2 Recommendation:................................................................................................................30
REFERENCES:.............................................................................................................................31
APPENDICES:..............................................................................................................................32
Questionnaire.............................................................................................................................32
List of Tables
Table 3.1
Table 3.2
Table 3.3
Table 3.4
Table 3.5
Table 3.6
Table 3.7
Table 3.8
Table 3.9
Table 3.10 Satisfaction Level of Uber customer who ride Monthly Once
Table 3.11
Table 3.12
Table 3.13
Table 3.14
Table 3.18 Customers Who are satisfied and Problems faced with Ola
Table 3.19 Customers Who are satisfied and Problems faced with Uber
CHAPTER 1: INTRODUCTION
1.1 Introduction & Background:
In recent years, advances in information and communication technology have enabled new
services that provide a wide variety of real-time and demand-responsive trips. Passengers request
a ride from a private passenger vehicle driven by a (usually) non-commercially licensed driver
through the mobile application, which then communicates the passengers location to drivers via
GPS. These apps charge a distance-variable fare, approximately 80% of which goes to the driver,
with the remaining to the ride sourcing service.
Many of these applications maintain a rating system that allows for drivers and passengers to rate
each other after the trip is completed. A passengers credit card information can be saved within
the system to facilitate future trips. Complete characterization of ridesourcing is difficult though,
as the services are quickly evolving.
The recent emergence of app-based, on-demand ride services has sparked debate over their role
in urban transport. Companies like Ola, Uber and Taxi for Sure are experiencing a surge in
demand in recent years. Ola and Uber in particular have grown explosively over the past year by
offering car rides at prices lower than the fares charged by auto rickshaws. Consumers perception
towards taxi rides is changing. Earlier Taxi rides used be only for airport rides. In recent times as
the penetration of smart phones into the market increased, the companies which provides
bookings through smart phones benefited a lot. With this back ground customers are more
concerned about the safety issues raising in the Taxi rides and the service being offered to them
by the drivers and company is effecting their decision to book the cab. This research aims to
understand the factors which effect the customers to book online cabs.
Demand pattern on different time slot in a day (Peak and off peak)
Demand pattern(High, Medium, Low) of the type of vehicle ( Luxury, Comfort , Budget)
different areas on different days of the week and at different time slots can serve maximum
number of customers. Accordingly, they can plan and deploy the vehicles in those areas and
can also determine number of vehicles to be sent for maintenance. This will reduce the idle
time of vehicles and increase the paid miles. According to him The key drivers of customer
satisfaction are The availability of the vehicle, Price per mile, Expediency of pickup,
Adherence to the bookings, Drivers behavior and driving skills. By using the feedback data
they can improve the services rendered to the customers. If there is a cancellation of cab then
by leveraging the data, providers has to see whether it is from the operators side or customers
side. If it is from the operator's side they could increase the fleet size. He also explained that
Drivers may cause serious damage to the vehicle if they do not have a smooth style of
handling the mechanics of the vehicle. Maintenance reporting data and customer
complaints/feedback data with regard to the conduct of the drivers can provide insights with
regard to the drivers performance. Accordingly measures can be taken to reduce the wear
and tear of the vehicle and make customer experience better. A risk index can be created for
each driver who can then be weeded out thereby providing the safest driving experience for
the customer. This can also be leveraged to gauge training needs of drivers differently so that
the customers exposure to bad experiences can be minimized.
Indian car rental services are of $13 billion in which 10 % is organized. As the smart phone
penetration increased in Indian market, it benefited organized cab services. In 1 year i.e from
March 2014- June 2015, they Ola and Uber increased their footholds to 100 and 22 cities
respectively. In Delhi, a Jugnoo acquired Bookmycab, which is also a Taxi service. But at the
same time customer complaints after taking rides are also increasing and safety concerns
posing a threat to customers.
2.2 Instruments:
A questionnaire containing various open-ended and closed questions designed in order to collect
information from the respondents. In order to obtain the best responses, the questions went from
being general to more specific.
52.4%
33.3%
33.3%
47.6%
66.7% of the customers who are taking rides weekly once Ola are satisfied with the Price per
kilometer Ola is charging. More than half of the members are satisfied with the expediency of
pick up after booking the cab. Nearly half of the members are satisfied with the promotional
offers available in Ola. Whereas only one third of the members are satisfied with Adherence to
booking and availability of vehicle. This is low in comparison with the other factors.
52.2%
50.0%
52.2%
40.0%
30.0%
20.0%
10.0%
0.0%
26.1%
21.7%
More than 3/4th of the customers who are taking rides weekly twice are satisfied with the Price
per kilometer charged by Ola. More than half of the customers are satisfied with the Expediency
of Pickup and available promotional offers. Only a few customers are satisfied with Adherence
to booking and availability of vehicle. This is low in comparison with the other factors. Hence
the concern is same for both the customers who are travelling weekly once as well as twice.
50.0%
50.0%
45.0%
40.0%
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
Weekly Thrice
50.0%
43.8%
18.8%
18.8%
Weekly Thrice
Exactly half of the customers who are taking rides weekly thrice in Ola are satisfied with the
Price per kilometer Ola is charging and availability of vehicle. Slightly less than half of the
members are satisfied with the promotional offers available in Ola. Nearly half of the members
are satisfied with the promotional offers available in Ola. Whereas a few people are satisfied
with Adherence to booking and expediency of pick up after booking the cab.. This is low in
comparison with the other factors.
75.0%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
60.9%
47.6%
47.8%
47.8%
45.0% 47.6%
37.5%
43.8%
35.0%
23.8%
17.4%
30.0%
42.9%
45.0%
40.0% 42.9%43.8%
31.3%
30.4%
It is clear that Customers are satisfied the with expediency of pick up , Promotional offers and
availability of the cabs irrespective of the regularity of the bookings. Satisfaction is very low
when it comes to Price per kilometer charged by Uber. As per the literature review and this table
we can say, due to the Peak pricing in peak times customers are facing problems and switching to
other company's cabs.
78.3%
66.7%
60.0%
50.0%
40.0%
50.0%
52.4%
52.2%
40.0%
50.0%
40.0%
30.0%
20.0%
40.0%
33.3%
18.8%
Weekly Once
33.3% 35.0%
26.1%
18.8%
52.2%
47.6%
43.8%
21.7%
30.0%
10.0%
0.0%
Weekly Twice
Weekly Thrice
Monthly Once
It is clear that Customers are satisfied the with Price and Promotional offers irrespective of the
regularity of the bookings. Whereas only few customers are satisfied with the Expediency of
Pick up , Adherence to booking. Satisfaction is very low when it comes to Availability of the
vehicles.
Table
3.6
18
16
14
12
10
8
6
4
2
0
Taxi for Sure customers are satisfied with the Adherence to booking which is low in Ola. Some
of customers are satisfied with the availability of vehicle and availability o f promotional offers.
Only few customers are satisfied with the Price. Whereas for Ola customers are satisfied with the
Price. So If Taxi for sure can reduce the prices it can increase the number of customers.
47.6%
23.8%
47.6%
42.9%
42.9%
Weekly Once
Nearly half of the customers who are taking rides weekly once with Uber are satisfied with
expediency of pick up after booking the cab, promotional offers available in uber and Adherence
to booking and availability of vehicle. Only few of the customers are satisfied with the price per
kilometer charged by Uber. This is because of the Peak pricing charged by the Uber in Peak
hours as mentioned in Literature review.
20.0%
10.0%
0.0%
17.4%
47.8%
60.9%
30.4%
Weekly Twice
More than half of the customers who are taking rides weekly twice with Uber are satisfied with
the availability of the vehicle. Nearly half of the members are satisfied with the expediency of
pick up after booking the cab and Adherence to booking. Whereas only one third of the
members are satisfied with availability of promotional offers. Only few of the customers are
satisfied with the price per kilometer charged by Uber. This is because of the Peak pricing
charged by the Uber in Peak hours as mentioned in Literature review. This is low in comparison
with the other factors.
75.0%
30.0%
20.0%
10.0%
0.0%
37.5%
43.8%
31.3%
43.8%
Weekly Thrice
3/4th of the customers who are taking rides weekly thrice with Uber are satisfied with the
Expediency of pickup after booking the cab. Nearly half of the members are satisfied with the
adherence to booking and Adherence to booking. Whereas only one third of the members are
satisfied with availability of vehicles and price. This is in contrast with the Ola customers who
rides weekly thrice. In ola they are not facing any problem with the availability of vehicle where
as in Uber they are facing problem with the availability of vehicle.
35.0%
45.0%
30.0%
40.0%
45.0%
Monthly Once
Nearly half of the customers who are taking rides monthly once with Uber are satisfied with the
availability of the vehicle, expediency of pick up after booking the cab and availability of
promotional offers. Adherence to booking. . Only few of the customers are satisfied with the
price per kilometer charged by Uber. This is because of the Peak pricing charged by the Uber in
Peak hours as mentioned in Literature review. This is low in comparison with the other factors.
13.04%
9.52%
6.25%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
10.00%
6.25%
0.00%
0.00%
0.00%
0.00%
It is clear that Only few customers are using Meru. The customers who are using Meru are
satisfied availability of vehicle. It is because of telephonic bookings. The satisfaction level is low
in expediency of pickup. Whereas none of the customers are satisfied with adherence to booking
and price per kilo meter charged by Meru.
6% 6%
17%
Ola
72%
Uber
TFS
Meru
Table 3.12
Drivers
attitude as a problem
Out of the surveyed people 64% of the customers who took a ride with Ola are facing
driver's attitude as a problem. Whereas 14.81% of the who rode with Uber are facing Driver's
attitude as a problem. Whereas this is less in Taxi for Sure and Meru cabs.
Table 3.13
20%
1%
34%
Ola
Uber
45%
TFS
Meru
Out of the surveyed people 40% of the customers who took a ride with Uber are facing
responsiveness to the problems raised as a problem. Whereas 30 % of the customers who rode
with Ola are facing responsiveness to the problems raised as a problem. Responsive to the
problems raised is not a major concern for Meru customers.
Table 3.14
Maintenance of cabs as Problem
22%
23%
Ola
Uber
55%
TFS
Meru
Out of the surveyed people 47% of the customers who took a ride with Uber are facing
Maintenance of the cab as a problem. This is mainly because of the various reasons like not
providing Air-conditioner, Radio etc. Whereas 30 % of the customers who rode with Ola are
facing responsiveness to the problems raised as a problem. Responsive to the problems raised is
not a major concern for Meru customers.
8%
6%
37%
Ola
Uber
49%
TFS
Meru
Out of the surveyed people 43.21% of the customers who took a ride with Uber are
facing Non availability as a problem. Whereas one third of the customers who rode with Ola
are facing non availability as a problem. Non availability of the cabs is not the concern for the
surveyed customers as most of them have not taken a ride with Taxi for Sure and Meru.
13%
3%
52%
33%
Ola
Uber
TFS
Meru
Out of the surveyed people 40% of the customers who took a ride with Ola are facing
Driver's skills as a problem. Driver's skills includes the short routes, traffic jam areas and
timings. A driver who knows the short route can save a lot time and money for customer.
Whereas one fourth of the customers who rode with Uber are facing driver's skills as a
problem.
Table 3.17 Customers Who are satisfied with price and Problems faced
28%
35%
Dr. Attitude
Resp. to problems
Maintatinance
Non availability of
cabs
Driving skills
16%
8%
13%
From the above analysis it is clear that Ola customers are satisfied with the Price per kilometer
charged by them. This pie chart depicts the customers who are satisfied with the price and their
problems. 3/4th of the customers who rode with Ola had faced the problem with the driver's
attitude. Whereas 60% of them had a problem with driving skills of the driver. It is revealing the
consumer behaviour before and after the ride. They are satisfied with the price but not with the
driver skills and attitude.
90.00%
80.00%
75.00%
77.14%
70.37%
70.00%
60.42%
58.33%
60.00%
50.00%
Price
40.00%
Expediency
Adherance
Availability
42.86%
48.57% 48.57%
45.83%
44.44%
Promotions
37.14%
33.33%
30.00%
27.08%
25.93%
25.00%
28.57%
33.33%
29.17%
18.52%
16.67%16.67%
20.00%
10.00%
0.00%
Dr. Attitude
Resp. to problems
Maintatinance
Table 3.18 Customers Who are satisfied and Problems faced with Ola
Driving skills
The above figure depicts the customers satisfaction in various factors and how they are
facing the problems with Ola even though they are satisfied in some of the aspects.
1) The customers who are satisfied riding with Ola are majorly facing Driver's attitude as
the problem. 3/4th of the customers who are satisfied with Price and Available promotions are
facing the problem with driver's attitude.
2) On an average 30% of the customers are facing the problem with responsive the
problems raised by the customers after travelling in the cab.
3) More than half of the customers who are satisfied with the other factors are facing the
problem with driving skills of the driver. It includes short routes, traffic jam areas and timings. A
driver who knows the short route can save a lot time and money for customer.
70.00%
61.76%
60.00%
50.00%
44.44%
41.18%
40.63%40.91%
46.88%
44.44%
47.06%
44.44%
45.45%
40.91%
40.00%
37.50%
31.82%
35.29%
33.33%
30.00%
Price
22.73%
20.00%
10.00%
0.00%
Expediency
19.44%
17.65%
15.63%
Adherance
Availability
Promotions
21.43% 21.88%
The above figure depicts the customers satisfaction in various factors and how they are
facing the problems with Ola even though they are satisfied in some of the aspects.
1) On an average 40% of the customers are facing the problem with responsiveness to
the problems raised by the customers after travelling in the cab, maintenance of the cab and non
availability of the cabs.
2) More than half of the customers who are satisfied with the other factors are facing the
problem with driving skills of the driver. It includes short routes, traffic jam areas and timings. A
driver who knows the short route can save a lot time and money for customer.
3) On an average 15% of the customers are facing problem with Driver's attitude which
is in contrast with Ola.
4.2 Recommendation:
1.
Ola has to work on the availability of the vehicle i.e they have to ensure that
maximum fleet should be there on the road such that no customer gets
dissatisfied with non availability of vehicle. To increase the Adherence to
booking, management has to instruct the drivers that they should take the
booking once they accept the ride otherwise they will charge penalty to the
drivers.
2. Ola has to instruct the drivers how to create a overall positive experience for
customers while they are riding in Ola. By this they can decrease the
problems of the customers who are facing driver's attitude as the problem.
3. As Ola and Uber both are dominating the industry, other cab aggregators like
Meru, Taxi for sure has to work on decreasing the price per kilometer,
increasing the available vehicles and promotions.
4. As Uber's customers are not that satisfied with price even though it is low,
they have to work out a solution to reduce the peak demand prices.
REFERENCES:
Booming taxi-app firms like Ola, Uber endure bumpy ride in India. (2015, June 14). Economic
Times. Retrieved October 11, 2015, from http://economictimes.indiatimes.com/smallbiz/startups/booming-taxi-app-firms-like-ola-uber-endure-bumpy-ride-inindia/articleshow/47664035.cms
Chopra, P. (2014, May 8). How Ola Cabs Turned A Frustrated Customer Into Its Brand Advocate.
Retrieved October 11, 2015, from http://www.digitalvidya.com/blog/how-ola-cabs-turned-afrustrated-customer-into-its-brand-advocate/
Dalal, M., & Verma, S. (2015, March 20). Indias taxi wars. Mint. Retrieved October 10, 2015,
from http://www.livemint.com/Companies/bqnczLla1qZtW9MHWnhutO/Indias-taxi-wars.html
Gera, K., & Kanth, R. (2015, August 13). Autorickshaw app, now gets cabs, too. Business
Standard, pp. 2-3. Retrieved October 9, 2015, from http://www.businessstandard.com/article/companies/autorickshaw-app-now-gets-cabs-too-115080300002_1.html
Jain, N. (2014, December 19). How data can improve profits and C-Sat for the car rental
business. Retrieved October 11, 2015, from http://bridgei2i.com/blog/how-data-can-improveprofits-and-c-sat-for-the-car-rental-business/
Ramalingagouda, C., & Shrivastava, M. (2014, May 9). Why have investors poured over INR
600 crores into the taxi market? Retrieved October 11, 2015, from
http://yourstory.com/2014/05/taxi-market-india/
Uber expands India footprint, drives into 4 more cities. (2015, August 25). Economic Times.
Retrieved October 10, 2015, from http://economictimes.indiatimes.com/small-biz/startups/uberexpands-india-footprint-drives-into-4-more-cities/articleshow/48670339.cms
APPENDICES:
Questionnaire