MAJOR PROJECTON

STUDY ON THE IMPACT OF DIGITISATION IN CAB INDUSTRY

Submitted in Partial Fulfillment for the Award of the

Degree of BBA 2022-2025

Under the Guidance of: Submitted By:

MS. Rashi Aggarwal Bhavya Barolia

Designation : University Enrollment No.

Assistant Professor 07561101722

Maharaja Agrasen Institute of Management Studies

(A unit of Maharaja Agrasen Technical Education Society)
Affiliated to GGSIP University; Recognized u/s 2(f) of UGC
Recognized by Bar Council of India; ISO9001:2015 Certified Institution
 CERTIFICATE FROM THE INSTITUTE GUIDE

This is to certify that the major project titled STUDY ON THE IMPACT OF DIGITISATION IN
CAB INDUSTRY is an academic work done by BHAVYA BAROLIA submitted in the partial
fulfillment of the requirement for the award of the degree of BBA at Maharaja Agrasen Institute of
Management Studies, Delhi, under my guidance & direction.To the best of my knowledge and belief
the data & information presented by him/her in the project has not been submitted earlier.

Signature :

Name of the Guide : MS.RASHI AGGARWAL

Designation : Assistant Professor

 STUDENT DECLARATION

This is to certify that I have completed the major Project report titled STUDY ON THE IMPACT
OF DIGITISATION IN CAB INDUSTRY under the guidance of MS. RASHI AGGARWAL in
partial fulfillment of the requirement for the award of Degree of BBA at Maharaja Agrasen
Institute of Management Studies, Delhi. This is an original piece of work & I have not submitted it
earlier elsewhere.

Date: Signature:

Place: Name: BHAVYA BAROLIA

University Enrollment No.: 07561101722

 ACKNOWLEDGEMENT

Guidance, inspiration and motivation have always played a key role in the success of any venture. I
would like to pay my sincere regards to all those who guided me in my project work.

I would like to avail this opportunity to pay my sincere gratitude and regards to DR. RAJNI
MALHOTRA DHINGRA, Director and DR. MANOJ VERMA, HOD, Business Administration,
Maharaja Agrasen Institute of Management Studies for providing me such a wonderful opportunity to
widen the horizons of my knowledge. I would also like to express my heartfelt thanks to my Project
Supervisor MS. RASHI AGGARWAL Assistant professor for giving his/her support ,guidance and
encouragement throughout the project work.

Last but not the least I would like to thank my parents ,family and friends who have directly or
indirectly contributed in making this project a success.

Name of the Student : BHAVYA BAROLIA

University Enrolment No : 07561101722

Program & Section : BBA 6E

Batch : 2022– 2025

4
 INDEX
Title Page 1

Certificate 2

Declaration 3

Acknowledgement 4

Table of Contents 5

Chapter 1 Introduction to the Cab Industry 6 – 19

Chapter 2 Introduction to the topic 20 – 31

Chapter 3 Research Methodology 32 – 34

Chapter 4 Data Analysis & Interpretation 35 – 42

Chapter 5 Findings & Observations 43 – 45

Chapter 6 Suggestions & Conclusion 46 – 47

Reference & Bibliograpy 48

Annexure– Questionnaire 49

5
 CHAPTER-1
INTRODUCTION
ABOUT THE
COMPANY

6
 Introduction to the Cab Industry

The cab industry, often referred to as the taxi or ride-hailing industry, has played a crucial role in
shaping urban transportation across the globe. Historically rooted in traditional taxi services, the
industry has evolved dramatically over the past few decades due to advancements in technology,
changes in consumer behavior, and the rise of the gig economy. From horse-drawn carriages in the
early 17th century to modern GPS-enabled ride-sharing apps, the cab industry has continuously
adapted to meet the growing demands of urban mobility.

In the modern era, the cab industry has become an indispensable part of city life, offering
convenience, flexibility, and a reliable mode of transportation for millions of people. It caters to a
diverse range of passengers, from daily commuters and tourists to business travelers and those
without access to personal vehicles. The rise of app-based services like Uber, Lyft, Ola, and others
has revolutionized the way people book and experience rides, emphasizing affordability, safety,
and user-centric innovations.

Technology has been a major driving force behind the industry's transformation. With the
integration of smartphones, real-time navigation, automated fare calculations, digital payments, and
customer feedback systems, the cab industry has become more efficient and customer-friendly.
These innovations have also opened up new employment opportunities, allowing individuals to
become drivers with flexible work hours and income potential.

In recent years, sustainability has become a key focus, with many companies investing in electric
vehicles (EVs), shared rides, and carbon-neutral initiatives to reduce their environmental footprint.
As cities strive to become smarter and more sustainable, the cab industry is expected to play a
central role in providing efficient, eco-friendly transport solutions.

In conclusion, the cab industry is a dynamic and rapidly evolving sector that is central to modern
transportation systems. It reflects broader trends in urbanization, technology adoption, and shifting
consumer preferences. As the world continues to urbanize and innovate, the cab industry will
remain at the forefront of reimagining mobility for the future.

Swot Analysis:

A brief idea about the position of the industry in the market can be estimated from the
SWOT analysis which Indicates the respective strengths ,weaknesses ,opportunities and
threats faced by the company.

Strengths:
1. Convenience and Accessibility: 24/7 availability and easy app-based booking systems make
cabs a highly accessible transport option.

2. Employment Opportunities: Offers flexible job options for drivers, including part-time and
full-time roles.

3. Technological Integration: Use of GPS, digital payments, ride tracking, and customer reviews
enhance user experience.

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Weaknesses
1. Dependence on Technology: System failures, app glitches, or poor internet can disrupt
services.

2. Driver Dissatisfaction: Issues like low earnings, lack of job security, and long working hours
lead to high attrition.

3. Pricing Fluctuations: Surge pricing during peak hours often leads to customer dissatisfaction.

4. Safety Concerns: Incidents of passenger safety can damage brand reputation and trust.

Opportunities:
1. Electric Vehicle Integration: Shifting to EVs can reduce costs and align with environmental
goals.

2. Expansion in Tier-2 & Tier-3 Cities: Growing urbanization opens new markets beyond
metros.

3. Partnership with Corporates & Public Transport: Integrating with office transport or metro
systems boosts ridership.

4. Data Analytics for Optimization: Leveraging big data to improve routes, pricing, and
customer service.

Threats:
1. Intense Competition: High rivalry among cab companies and competition from local auto/taxi
services.

2. Government Regulations: Stringent transport and labor laws can impact operations and
profits.

3. Fuel Price Volatility: Rising fuel costs affect driver earnings and overall fare structure.

4. Pandemic or Health Crises: Reduced travel demand during health emergencies can drastically
affect revenue.

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 The word “taxi” elicits nostalgic images of the black-and-yellow Premier Padmini (now
Santro andi10) cars for Mumbaikar sortheubiquitous yellow AmbassadorsforKolkatans.For
many of us who have seen the glory days of good old taxis, maybe a couple of decades ago,
will remember that these taxis were the very lifeline of cities. They would take you to places
you couldn’t travel to by bus or didn’t know where it was located. The genteel “taxiwala”
would crank down the meter and off you’d go!

The Birth of the Organized Taxi Industry

In the early days, players like Mega Cabs and Fast Track Taxi started operations with their own small
fleets, with drivers as employees. Passengers could book rides through telephone calls, and payment was
done in cash.

In 2006, other players like Meru Cabs, Easy Cabs, and Savaari appeared on the horizon. They took on
drivers as “subscribers” who placed a deposit with the company. The company would buy a car, train the
drivers in soft skills, and charge a fixed amount from them per day. In turn, the driver had to bear the
cost of fuel, while maintenance of the car was taken care of by the company. Some companies
completely owned the car throughout its lifetime, while others, like Easy Cab, had a system wherein
after five years of non-stop driving, the car became the property of the driver.

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However, for obvious reasons, this was never a viable and scalable way of doing business, and the first
phase of owning entire fleets of taxis petered down considerably—although some companies are still in
business after tweaking their business models.

2010 marked a historic year for the taxi business when Ola entered the scene with its fleet
aggregation model. This lean business model attracted many drivers who owned cars to join the platform
to offer services. TaxiForSure joined the bandwagon in 2011, and Uber arrived on Indian shores a couple
of years later. The phenomenal growth of these companies is intricately tied to the mobile revolution in
India. Riders could simply pull out their smartphones, enter the app, and book a taxi. The true ride-
hailing revolution was born.

The Market Potential for Taxi Service in India

According to statistics, the market volume of taxi services in India is more than 2 million rides per day.
The market is expected to grow at a CAGR of 13.7% and reach around $14 billion by 2022. The
changing lifestyles of the urban middle class and an increase in disposable income will drive this growth.

It is noteworthy that the organized taxi market is still in its nascent stages, and aggregator companies like
Ola and Uber comprise a mere 4–5% of the market in terms of number of vehicles. The unorganized taxi
services across the country still account for around 90% of the market, and radio cabs and affiliates like
Meru and Savaari make up the remainder.

All of these statistics indicate that the taxi aggregator services have barely scratched the surface of the
Indian market that holds tremendous potential for growth, and the number of investments the two
incumbents are attracting is a testimony to this potential.

But “All is Not Well”

While Ola and Uber are fighting tooth and nail for a bigger share of the lucrative Indian market pie, the
only stakeholder that is happy is the customer. Investors are still waiting to see green on their Excel
sheets. And probably the most important stakeholder of this ecosystem is getting frustrated.One might
argue that the drivers of the ride-hailing ecosystem have always been short-changed. While customers
dictated service and quality parameters, who wants to listen to the drivers, who are made to follow and
serve?

10
That Uber is facing an existential crisis in its core market—the US—is all too well known. Internal
policy issues are being compounded by the disillusionment of drivers who are barely making enough
money to remain sustainable.

Ola, on the other hand, is trying to learn from the mistakes of Uber by keeping itself nimble and going a
few steps ahead to avoid these problems. However, drivers aren’t too happy with them either. Driving
for these companies seemed like a lucrative offer when it all started. But with passing time, the focus has
now shifted to increasing profitability. Drivers are paying more commissions, paying for fuel and
maintenance of the car, and are also caught up in the vicious circle of low fares that companies are
charging from riders in a bid to expand their markets.

The brunt, unfortunately, is being faced by the drivers. Many drivers bought cars on loans, which they
are finding difficult to repay considering they aren’t left with much at the end of the day. The promises
that the companies made when they started operations attracted tens of thousands of drivers to join them.
That rosy picture has now well and truly faded into nothingness.

The problems are being percolated downwards and are being faced by riders too. Frustrated drivers are
getting into heated debates (sometimes even physical assaults) with riders. Many drivers are cancelling
rides, leaving riders fuming and at the mercy of either private cabs or a sketchy public transport system.
Riders aren’t getting the kind of service they had tasted earlier. And let us not even begin to discuss the
problem of surge pricing. That is a discussion for another time.

So, What is the Solution?

Technological advancements are happening so fast that a new technology enters the market before an
earlier iteration has been fully monetized. More often than not, the new iteration is a solution for the pain
points of the previous one. Blockchain technology is one such advancement that has the potential to
address the pain points of many real-world problems. The taxi service in India is no different.

Based on the democratic principles of decentralization, trustlessness, and complete transparency, any
system that is based on blockchain technology also enjoys the benefits of its core tenets. So why not
create a ride-hailing service on the blockchain? Drife is seeking to do just that.

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What Does Drife Offer?

Drife is a NexGen ride-hailing platform that seeks to empower both the riders and the drivers. A self-
sustaining community that runs like a well-oiled machine without the control of a central entity driven
by capitalist tendencies seems like a utopian dream. But it is not—and it is gradually taking shape.

Drivers pay a nominal sum to become part of the platform. They keep all that they are paid as fare for a
ride. They pay no commission. All fares are transparent, and there are no “surge prices.” The platform
does not just offer services—it endeavours to create a community wherein every individual is vital to the
smooth functioning of the platform. Members are rewarded for good behaviour and for helping other
community members. Drife seeks to make each stakeholder important within the entire ecosystem.

Parting Thoughts

A diverse country such as India comes with its own set of problems and opportunities. What is important
to note here is that we are a nation that puts the community before self, unlike many Western nations that
celebrate an individualistic way of life. We are equally concerned with the well-being of our brethren as
much as we are concerned with ourselves.

Drife is basing its business model on exactly this kind of moral and societal obligation towards our
community. The thinking that “if my community is happy, I am happy” is the underlying principle that
will guide the platform. No doubt there will be monetary incentives, but a feeling of mutual trust and
respect will drive every stakeholder to give (and receive) the highest level of service and satisfaction.

The Pre-Cab Aggregator Era

Most of the regular cab users, mainly frequent airport travelers, might remember this as the “Meru cabs
era.” Well known for its quality services, disciplined drivers, and punctuality, Meru—a radio taxi
provider—had garnered a loyal customer base during this time. Even though there were other radio taxi
providers like EasyCabs and Mega Cabs, Meru was the undisputed king of the market despite its
relatively higher pricing. But commuters looking for an economical alternative for both within-city and
airport commutes were at the mercy of local cab agencies.

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Cab agencies ideally do not own cars. They usually pass on the bookings they receive to the cab drivers
(mostly driver-cum-owners) associated with them for a fixed commission per month. Most of the taxi
bookings were done through call centers and very few through the web. Due to this, booking a cab on
demand was a hassle. With their general marketing strategies—i.e., newspaper inserts and bulk SMS
campaigns—customer acquisition was getting difficult.

JustDial gave a hope of better business to cab agencies by connecting them with the customers looking
for a cab in their area. It soon became a popular lead generator, charging up to ₹15 lakhs per year as
commission, as reported by local cab agencies.

This was a golden period for the local cab agencies. However, most of the core problems of cab users—
like cab availability, driver reporting on time, timely intimation of cab details, cab tracking, and drivers
demanding extra money after a ride—remained unaddressed.

The Era of Cab Aggregators

Necessity is the mother of invention. In 2011, in order to ease the cab booking process, TaxiForSure
started as an online portal, aggregating multiple cab agencies. This relieved the customers from
contacting multiple cab agencies for booking a cab and also helped the cab agencies to flourish. They
charged cab agencies a small commission per booking instead of charging a hefty annual fee like
JustDial did. They grew in popularity by including an Android-based GPS system which helped
customers track their ride.

Meanwhile, another cab aggregator, Ola, which started in 2010, was following a different model by
associating directly with cab drivers, thereby eliminating the need for cab agencies. In 2013, while Ola
was gaining popularity, global taxi market leader Uber entered the Indian market, heating up the
competition further. However, Uber’s app-only model with credit card-only payment hampered its
growth.

To further increase its customer base, Ola started offering rides for as low as ₹10 per km. This was
cheaper than an auto ride, and the demand for Ola cabs rose exponentially. When it comes to the cab
industry, the demand was always high, but supply was an issue. Realizing this, Ola started highly
incentivizing the drivers, due to which many of them started signing up with Ola.

Based on Ola’s cash-burning rate, the rest of the industry didn’t expect it to last for a long time. But
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when Ola raised a fund of $210 million in October 2014, it gave a clear sign to everyone that it was here
to stay. Soon, TaxiForSure started attaching cab drivers directly and rolling out exciting offers to its
customers to compete with Ola. Understanding the Indian market, Uber revised its strategy and
introduced an Android app, Paytm mobile wallet, and cash payment option.

Meru CEO Pawha observes: “The app-based aggregators are incentivizing their drivers at around ₹150
per trip to retain them in their network and compensate for their loss. Ola has a burn rate of $15 million
to $20 million a month, Uber around $8 million to $10 million, while Meru is at $1.5 million to $2
million per month.”

By the end of 2014, Ola and TaxiForSure had become major players in the industry, and Uber and Meru
Genie had very small market shares. After purchasing TaxiForSure—which was struggling to raise funds
—Ola’s market share zoomed to almost 80%, followed by Meru with 12% and Uber with 5%, as per a
report by brokerage India Infoline.

In 2015, armed with a $1 billion fund, Uber was back in the race for the position of market leader. Since
2015 till date, Ola raised around $1.2 billion and intensified the competition further.

As of December 2015, an India Infoline report indicated that Uber’s market share was around 25–35%,
and Ola’s around 65–75%. Ola was handling approximately 7.5 lakh bookings per day, whereas Uber
accounted for 5.8 lakh bookings. Ola had a fleet size of 3.25 lakh vehicles and Uber had 2.5 lakh. Both
were targeting 1 million bookings per day by Q1 of 2016.

One must appreciate Ola for its execution. In spite of having heavyweight players like Uber, it still holds
the biggest market share. But as per the recent statement released by Eric Alexander, Uber claimed that
it owns 50% market share and is going to beat Ola in the next 30 days. In response, Ola launched Ola
Micro, and Ola spokesperson Raghuvesh Sarup stated that Ola Micro itself has the potential to become
bigger than Uber in a month’s time.

To say the least, the competition sure seems to be heating up.

Hurdles Delaying the Progress of the Billion-Dollar Industry

One of the main purposes of cab aggregators is to reduce car ownership, which they have succeeded in
doing—partially. (Anand Mahindra acknowledged it), due to the subsidized rates. Many people in urban
14
India—primarily from the middle and upper-middle-class sections—are thinking twice before
purchasing cars and are relying more on cabs. But if the cab aggregators increase the prices or start
charging normal rates, people will shift back to driving their own vehicles or purchasing new ones.

So, while assessing the broader picture, it’s clear that differential pricing models by cab aggregators may
not help in addressing the issue of rising car ownerships in the country.

Meanwhile, at present, the entire game of the cab industry revolves around market shares. While Ola
claims to have around 65–75% market share owing to its cash-burning strategies, Uber has gained over
half of it within a mere 3 years of its launch—due to the very same strategy.

But in reality, both of them have failed to acquire a loyal customer base. A cash-burning strategy is
essential for acquiring the initial customer base, but after that, the aggregators are supposed to draw a
line. Here, by offering heavy discounts, the cab aggregators are losing around ₹10–20 crores every day.
So even if they have raised a huge amount, the money will not be sufficient if they continue with this
strategy. The moment they revive their pricing as per the normal industry standards, it will become
impossible for them to stick to the same market shares.

Customer acquisition has become tough indeed—even for high-valued cab aggregators like Ola and
Uber. No matter how innovative they are, people will run after discounts. In such cases, high valuations
will be of no use because, with their constant cash-burning strategies, they can’t survive for a long
period. With a high valuation, getting acquired by competitors will also get really tough, and for an IPO,
it will still take a long time.

There is no denying that cab aggregators have solved the problem of commuting and availability of cabs.
But in the process of solving problems, they have created new issues as well. Cases of misbehaving
drivers, drivers cancelling bookings, or rash driving to reach their daily target for extra incentives have
increased.

Drivers are running behind incentives and cab aggregators are busy achieving targets set by their
investors. So, whether all these challenges will allow the Indian cab industry to evolve as the next big
thing or not is something we will have to wait and watch out for.

15
 CHAPTER-2
DIGITISATION IN
CAB INDUSTRY

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WHAT IS DIGITIZATION?

Digitization is the process of converting information into a digital format. In this format, information
is organized into discrete units of data (called bits) that can be separately addressed (usually in
multiple-bit groups called bytes). This is the binary data that computers and many devices with
computing capacity (such as digital cameras and digital hearing aids) can process.

Text and images can be digitized similarly: a scanner captures an image (which may be an image of
text) and converts it to an image file, such as a bitmap. An optical character recognition (OCR)
program analyzes a text image for light and dark areas in order to identify each alphabetic letter or
numeric digit, and converts each character into an ASCII code.

Audio and video digitization uses one of many analog-to-digital conversion processes in which a
continuously variable (analog) signal is changed, without altering its essential content, into a multi
level (digital) signal. The process of sampling measures the amplitude (signal strength) of an analog
waveform at evenly spaced time markers and represents the samples as numerical values for input as
digital data.

Digitizing information makes it easier to preserve, access, and share. For example, an original

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historical document may only be accessible to people who visit its physical location, but if the
document content is digitized, it can be made available to people worldwide.
There is a growing trend towards digitization of historically and culturally significant data.

The Rise of Digitalization in Businesses

Digitalization is the process of converting material or information into a digital form. Many
businesses are now transitioning online in a bid to streamline the management and day-to-day
running of operations.

This shift is being powered by a new wave of technology that allows companies of all shapes and
sizes to be more strategic and efficient. This trend is set to continue as more businesses understand
the benefits of digitalization and move to capitalize on them.

From storing documents, online backups, workflow and document management to remote working,
the possibilities are endless. The process is faster, more efficient, and safer than offline equivalents.
The process of automation saves you time, space, and money.

Key benefits:

 Increases efficiency
 Reduces operational costs
 Enables data to be analysed
 Safer data storage in the cloud
 Lack of human error

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Here are three popular processes and how they can be improved by automation:

The Cloud

The role of technology in the workplace has changed dramatically. Cloud computing is technology that
can help your company gain a competitive edge in the marketplace. The introduction of cloud computing
has revolutionised how businesses operate, providing new levels of flexibility and access via remote
working.

Cloud computing is the delivery of IT services online in the ‘cloud’. A growing number of businesses
are adopting this application for their IT infrastructure. It is more secure – hosting your systems on
remote servers protects your information, prevents data loss, and allows for a more effective and
protected storage solution. It is also more reliable with automated data backups and disaster recovery.

Cloud computing comes in three forms: public clouds, private clouds, and hybrid clouds.

The right solution for you will depend on the scale and scope of business, as well as your data
requirements.

Workflow and Document Management

Another way to increase productivity is through automated workflow. This is a system that digitally
produces, tracks, and manages documents associated with your business processes.

Many businesses find they have large paper archives and countless boxes of old documents that are
taking up valuable office space. Over the years, it’s likely that the organisation and storage of these
documents will fall into disarray, leaving a large paper trail of archived work.

Effective workflows are crucial; the more efficient, cost-effective, and sustainable they are, the better
prepared you will be for the future workplace.
An improvement strategy will help manage your documents whether they are paper, electronic, or

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digital.
There are many benefits to this: reduced costs, improved efficiency, and enhanced security, which is
especially important to those who must comply with rules around legal or sensitive data. You can control
when, who, and to what capacity certain people access documents, with a solid authorised paper trail.
Popular departments who benefit from this process include digital mailrooms, recruitment, HR, and
finance management divisions. Essentially, it allows you to manage your information, analyse current
performance, and optimise for continued improvement.

Data Capture

Intelligent data capture manages the process of capturing incoming information or data to your business,
ensuring it is processed and documented efficiently.

Information coming into an organisation typically arrives in paper, fax, web, or email format. With
intelligent data capture solutions, information can be automatically classified, extracted, validated, and
shared with digital workflows or existing ERP systems.

There are many data capture technologies that organisations can incorporate into their processes; the
most suitable will depend on the nature of the business. Digital pens, tablets, or OCR intelligent
document and image scanning are the most popular. The information gathered can then integrate with
host systems and pre-defined databases – automating the process from start to finish.

 When data capture is digitalized and automate it eliminates the **human error** factor and will
increase data quality and accuracy
 When this process is digitalized and automated, it eliminates the human error factor and will
increase data quality and accuracy. It also saves a huge amount of time, increases efficiency and
productivity, and lowers organizational and storage costs. It improves business processes and
increases transparency internally.
 Popular for mailroom, field operations, and accounts payable automation, data capture is a smart
digital solution for many businesses.

These three core processes, used together or in isolation, can have a dramatic effect on operations.

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We now live in a digital age, and as technology advances, so will the way in which we all work. Digital
transformation and disruption have been making waves lately across all industries. To stay relevant,
companies, departments, and individuals need to know exactly where business technology is headed and
be sure to stay on top of each shifting digital trend.

Those who embrace these technical advancements into their business structure will thrive; those who
don’t risk being left behind in the digital revolution.

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 How digital transformation is changing the cab industry?

Technological innovation has completely changed the way how we live, work, and commute.**
In recent years, every commuter has felt how technology, and more specifically mobile apps, has
completely transformed the rental cab hiring experience. From negotiating with cab drivers and agencies
on phones days before the actual trips to tapping on phones minutes before, the cab industry has come a
long way.

But what does this mean for the future of cabs? How is this transformation slowly improving the
customer experience?

The Rise of App-based Services

In less than half a decade, the app-only trend has really picked up the pace in the taxi rental domain. As
stated above, riders are used to booking cabs on-the-go, anywhere, anytime. On top of it, the penetration
of global players in emerging markets has fueled industry growth. The phenomenon has led to:
 Highly discounted service offerings due to the entry of deep-pocketed global players.
 Ride-sharing solutions to drive home the idea of affordability.
 Omni-channel customer support for addressing queries and handling grievances.

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Booking the Ride on a Fast Lane — Efficient Tech-driven Platform

With millennial acquiring the center stage in the consumption pie, cab companies are revamping their
traditional systems. While apps simplify cab booking for the end-customers, the backend infrastructure
streamlines the operations flow.
As customers demand agility and quick response, robust customer engagement and servicing
platforms have become the need of the hour.

Technology has made it possible to transform the booking process completely, reducing booking times
significantly and enabling service providers to offer one-click booking.

Disruptions Paving Way for Convenience, Safety & Greater User Connect

Apps have not only streamlined booking processes, but have also infused new life into the ailing
industry with obsolete cabs and no technological breakthrough. Now with the help of sensors, GPS, and
other technologies, service providers can promise:
 Authenticated rides with verified drivers.
 Doorstep service with real-time location tracking.
 Instant emergency contact notifications.

Way Ahead Towards a Better Cab Experience

The future holds greater promise when it comes to cab rentals. Technologies are fast evolving to create
more user-centric experiences.
Cab aggregation platforms are already investing heavily in technology to promote faster bookings and
onboarding of reliable driver partners/reputed agencies.

The entry of AR/VR technologies in the cab booking domain might further fuel up an innovation spark.
Riders will get a chance to check out the cabs they are booking before they arrive for pickup. Moreover,
the industry is in for a massive makeover when it comes to ride scheduling, client relationship
management, and customer delight promise.

23
A number of players are driving digital transformation through their focused efforts. Through their
innovative services, they have carved a niche and made cabs more accessible, reliable, and secure. Beep
n Ride is trying to improve the way corporates and individuals perceive cabs by blending innovation,
technology, customer connects, and the promise of reliability under a single package. By connecting
users with reputed cab agencies from around the country, it is promoting the freedom of choice, giving
users the ability to hire a cab as per their budget and preference. Try out the all-new Beep n Ride
experience and ride the transformation wave now.

Factors Driving the Growth of the Ride-hailing Service Industry

 The Rise in the Trend of On-demand Transportation Services

On-demand transportation services include taxis, passenger vehicles, and charter vehicles. These
services provide real-time feedback, tracking of the vehicle, and rating for service experience as an
option for the riders. The ride-hailing services ensure that customers are able to locate their rides easily
and also track their journey as a safety measure.
The taxi booking platform allows a user to compare the prices before booking one.

 Increase in Employment Opportunities

The taxi booking services are offering the drivers to work for full or part-time. More than 40% of drivers
in America have opted to become full-time drivers for taxi booking companies.
According to a report, Uber agreed that the company is creating more than 50,000 new jobs almost every
month. The expansion of ride-hailing services like Lyft, Uber, OLA, Careem, Taxify, and others is
expected to create many employment opportunities worldwide.

 Increase in Trend of Mobility-as-a-Service

People who do not own their own car or who do not wish to drive can always depend on taxi booking
services and experience seamless travel through mobility services.
According to the Bureau of Transportation, the average cost to own a vehicle goes around $8,858 if you
travel 15K miles per year. But going for taxi booking decreases such costs for the users. It also provides
improved utilization of transport services. Therefore, the digitally-enabled ride-hailing and taxi booking
seem to be the smartest way to manage travel needs. The process of taxi booking includes everything
from travel planning to payments, all sorted through just a mobile app.
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How Technology is Elevating Customer Experience in Cab Services

The quote clearly signifies the importance of adapting to the digital aura. Over time, organizations who
have understood the value of digitalization have remained competitive and relevant.
Customer experience has been described as the heart of digital transformation. However, with limited
resources, it’s difficult for organizations to set a digital vision and strategy to engage the right people in
the right place for measuring digital success.

Mobile has been the biggest medium to engage digital customers in the customer experience lifecycle. It
has been the focal point for organizations wanting to revolutionize their traditional business model and
become a digital-first medium.
The world has been witnessing this trend, as organizations lead their path towards the unique "app-only"
approach to cater to their various market requirements.

This also goes for the booming cab business, where app services have gained traction and many
organizations have either adopted or are thinking of moving to the app-only model.

Cab services have grown steadily over the past two years by offering rides at comparatively lower prices
along with regular offers (often customized ones).
The app-only trend is also having an impact on the local cab providers, who are witnessing their users
shifting to more cost-effective and trusted taxi services.
This trend is more like a bonanza for the fleet industry, but for now, these companies have been
spending massive amounts of money on marketing campaigns, discount offers, and expanding into new
markets.

Millennial have multiple options of communication and expect service providers to ease their life while
travelling. These increasing demands have aroused the need for a robust and efficient customer
engagement platform. This platform ensures that the flow behind operations is streamlined. When the
customer books a cab through apps, a host of customer information is recorded in the contact center.
Accordingly, the nearest fleet driver receives the details from the contact center via the apps and is able
to immediately respond to the request.

25
The entire process, from the incoming commuter request to call recording and informing the nearest cab,
is handled by the contact center processes.

Thus, the shift in consumer habits towards convenience and on-demand services have fueled cab
services to customize the experience of customers by providing one-click service through apps.

The efficiency and the quality of cab apps have not only made the customer’s life easy but also given a
huge boost to the usage of a new breed of cabs.
The apps have enhanced authentication and streamlined the customer booking journey. Customers can
book new cab requests, take doorstep service, track their booking status, send inquiries, and provide
feedback through a single tap.
Who would want to go to a prepaid taxi outlet and stand in a long queue? Obviously, none of us would
like to wait for cabs or other transport modes after a tiring day.

The app-only trend adopted by cabs has changed the way cabs are perceived by us.
The big players offer numerous lucrative deals like first ride free, referrals, cab wallets, etc., that
consumers get habitual of using their services.
This has created a plethora of demand for smart services.

Moreover, the cab-aggregation market has also stepped up by introducing the number masking feature to
keep customer numbers undisclosed from driver partners.
As a result, when any customer clicks on the ‘Call Driver’ feature, two calls are initiated from random
numbers (processed by the contact center) and the customer gets connected to the driver.
In order to ensure full privacy, a single number is assigned to the ride. This number is displayed on the
driver’s phone, and thus he can speak to the customer on the same number until the ride starts.

The cab apps also have another benefit for taxi drivers as the GPS integration with fleet allows cab
drivers to find the fares with ease.
This also helps travelers in emergency situations and to better manage breakdown services.

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Corporate Rides, Shuttle, and Carpool Services

Keeping in mind the corporate culture, some cab companies have gone the extra mile by initiating
corporate rides.
This feature has simplified the reimbursement process for daily commuters to office. Commuters can
now receive consolidated invoices for all their official rides at one place.

Times have changed, and cabs no longer provide just standalone cab services.
Rather, they have now started offering shuttle and carpool services inside the apps.
Some of these companies have tied up with corporate offices to offer rides reserved through pre-booking
on apps.
Others are offering carpooling opportunities by inviting users to register on their apps before finalizing
the route and partners for the ride.

Carpooling and shuttle service have also become a viable transportation alternative which allows
passengers to travel with comfort and security while saving costs significantly.

Ultimately, the cab and fleet industry is succeeding by following the app-only approach to unveil hassle-
free journeys, and the rest of the industry should follow suit.
Internet users have wholeheartedly embraced apps and the mobile web.
To meet the demands and expectations of the new-age customers, these industries need a robust contact
center technology capable of supporting these apps to provide a galore of significant benefits for those
who want to make the best use of it.

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 CHAPTER-3
RESEARCH
METHODOLOGY

28
Research Design

Research design is the framework of research methods and techniques chosen by a researcher. The
design allows researchers to hone in on research methods that are suitable for the subject matter and set
up their studies for success.

The type of research problem an organization is facing will determine the research design and not vice-
versa. The design phase of a study determines which tools to use and how they are used.

Sampling Unit

The respondents include students and employed persons for the survey.

 Gender Range: Male and Female

 Age Group: 15-30 years
 Education: High school to Post-Graduation

Sample Size

The sample size used under the study is 55. Sample size is a count of the individual samples or
observations in any statistical setting, such as a scientific experiment or a public opinion survey.

Sampling Technique

In this study, Convenience sampling technique is used. Convenience sampling is a non-probability

sampling technique where subjects are selected because of their convenient accessibility and proximity
to the researcher. For example, standing at a mall or a grocery store and asking people to answer
questions would be an example of a convenience sample. In other words, this sampling method involves
getting participants wherever you can find them and typically wherever is convenient. Facebook polls or
questions can also be mentioned as a popular example for convenience sampling.

29
Data Collection Tools

There are two types of data – primary and secondary. Primary data is a type of data which never existed
before; hence it was not previously published.

For our study, we have also collected primary data through questionnaires circulated to family, teachers,
relatives & peers.

Primary data collection methods can be divided into two categories: Qualitative and Quantitative.

Research Objective

 To understand the growth of cab industry.

 To understand the concept of digitisation.
 To understand the concept of digitisation of cab industry.
 To know the future of digitised cab industry.
 To know any challenges or shortcomings faced by cab industry.

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 CHAPTER-04
DATA ANALYSIS
AND
INTERPRETATION

31
Analysis of the Study

1. Do you understand the concept of digitized cabs?

S.no Particulars No. of Respondents

Yes 51
1

No 4
2

DataInterpretation-From the above chart, it can be interpreted that more than 90%of the respondents
are aware of the concept of digitalized cabs.

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2. How often do you use cab services?

S.no Particulars No. of Respondents

Very often 25
1

Rarely 28
2

Never 2
3

Data Interpretation- From the above chart, it can be interpreted that out of the 55respondents
around 96% prefer the digitized concept of booking cabs to the traditional booking system.

33
3. Do you prefer this new system over the traditional cab booking system?

S.no Particulars No. of Respondents

Yes 53
1

No 2
2

Data Interpretation- From the above chart, it can be interpreted that out of the 55 respondents
around 96% prefer the digitized concept of booking cabs to the traditional booking system.

34
4. Do you mind paying a little extra than the normal price for these cabs?

S.no Particulars No. of Respondents

Yes 21
1

No 34
2

Data Interpretation- From the above chart, it can be interpreted that around 62% of the
respondents have no problem in paying a bit extra for the cab services,whereas,the rest of the
respondents have a problem.

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 5. Do you think there should be more market players in this sector?

S.no Particulars No. of Respondents

Yes 46
1

No 9
2

Data Interpretation- From the above chart it can be interpreted that more than44respondents
out of the 55 think that there shouldn’t be any more firms entering this industry while the rest
have a different point of view to this question.

36
6. Do you think that the cab industry has reached to the peak of its success?

S.no Particulars No.of Respondents

Yes 18
1

No 37
2

DataInterpretation-Fromtheabovechart,itcanbeinterpretedthat67%respondentsthinkthat
thedigitalizedcabindustryis yetto reachthepeak ofitssuccess. Theother33%thinkthatthe
industry is at its top.

37
 7. Isthisnewsystemgoodforoursociety?

S.no Particulars No.ofRespondents

Yes 51
1

No 4
2

Data Interpretation- From the above chart, it can be interpreted that more than 90% of the 55
respondents think that this new system of booking cabs is good for our society, whereas, the
rest of the respondents aren’t so sureof this new system.

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 CHAPTER-
5FINDINGS
&OBSERVATIO
NS

39
 FINDINGS

 Thestudyrevealsthatmorethan90%oftherespondentsareawareoftheconceptof
digitalized cabs.
 Thestudyrevealsthataround51%oftherespondentsusecabservices‘VeryOften’,
around 45% of the respondents use it rarely, and the rest, i.e. around 4%, of the
respondentsnever use cab services.
 From the above study, it can be interpreted that out of the 55 respondents around
96% preferthedigitized conceptofbooking cabs tothetraditionalbooking system.
 Thestudy interpretsthat around62% oftherespondentshave noproblem inpaying
abitextraforthe cabservices, whereas, the restoftherespondents have aproblem.
 The study interprets that more than 44 respondents out of the 55 think that there
shouldn’tbeanymorefirmsenteringthisindustrywhiletheresthaveadifferentpoint of
view to this question.
 Thestudyreveals that67% respondentsthinkthatthedigitalized cab industryisyet to
reach the peak of its success. The other 33% think that the industry is at its top.
 The study reveals that more than 90% of the 55 respondents think that this new
system ofbooking cabs is good for our society, whereas, the rest oftherespondents
aren’t much sure.

40
 OBSERVATION

As any research is not complete and always has scope for further research, this

researchtoo has further scope. As data was collected only from Delhi region and

only from teenagers, result represents only small part of population. In future

further research should be done with more varied sample with more

geographically spread. So, there isscopeoffurther research and further research

willgivemorecomprehensiveconclusionabout aggregator taxiservices in India.

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 CHAPTER-
6SUGGESTIONS&C
ONCLUSION

42
CONCLUSION

Conclusion Through our study, it is clear that several companies can easily open up
market space bysimplyfollowing theprincipleofgoingdigitalin thesame wayOladid. The
focus ofcompanies should be to firstly act as an intermediary between supply and
demand, secondly reduce costs of amenities or goods for the customer and third, allow
forinteractionthroughadigitalplatformequippedwithpaymentoptions,livetracking(if
relevant), constant interactionbetween user and app. Now we can talk about other
companies who have followed the same idea to go big and show how our paper holds
good for the Indian market and how Ola’s steps can be followed by any company.

TheIndianmarketisever-growingandtherestillliespotentialtoenterthedigitalmarket
inseveraldepartments.Thefirststepto goingahead withthisislookingoutthere,foran
existingbusiness that you think needs to get on the web.

SUGGESTIONS

• Studywasconfinedonlytoyoungsters.So,thestudymaynotbejustifiedforall.
• Theremaybeachanceofmarkingwronganswersormarkingincorrectchoices in
• thequestionnaireassomeoftherespondents mayhavemisreadthe questions.
• Timeboundationwasalsooneofthelimitations.
• Interpretationtookalotoftimeastherewerevarietiesofanswers.

43
BIBLIOGRAPHY
 MalikMR.ManagingPartnerPerformance,Engagement&Retention.International
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Competition Killer

 KimW,ChanRM.BlueOceanStrategy.NewYorkCity,NewYork,UnitedStates: Harvard
Business Review, 2004.

 ANI.RetrievedfromBusinessStandard,2018,https://ech/ola-to-digitise- public-
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 Bloomberg J. Retrieved from Forbes, 2018, https://

www.forbes.com/sites/jasonbloomberg/2018/04/29/digitization-digitalization-and-
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ANNEXURE

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