Development of New Cab Business Model for Delhi Abstract
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The paper discusses on the importance of the customer service while booking the cab along with service offers the customers.If the customers are provided services on their demand and needs, then they are loyal to the cab company and used their services continuously when travelling.If the customers are provided services on their demand and needs, then they are loyal to the cab company and used their services continuously when travelling.If the customers are provided services on their demand and needs, then they are loyal to the cab company and
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Running head: DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
Development of new cab business model for Delhi
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Development of new cab business model for Delhi
Name of the Student:
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DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
Abstract
The paper is concentrated on development of new cab business model for Delhi. This research work
is mainly supported on disruptive innovation in Indian cab market where the industry is witnessed
cab aggregation by means of mobile application, leads to result of technological progress to make
use of transportation easier. The findings of this paper are that most of population of Delhi used
Uber cab services as compared to Meru and Ola. While booking the cab, online payment method is
most popular. Price, transparency, safety, security and ease of use are the factors affect the
transportation services. Most of the cab services are provided with moderately affordable prices of
the cab so that middle level people can ride on it. In this paper RIDE business model is used to
provide with in-depth understanding of on-demand business model such that it is provide with new
business idea to generate stronger value propositions for the customers. RIDE model is also
proposed for benefiting the future researchers so that they are encouraged towards further research
in the future. The paper discusses on the importance of the customer service while booking the cab
along with service offers the customers. If the customers are provided services on their demand and
needs, then they are loyal to the cab company and used their services continuously when travelling.
The data sources used to analyze the topic are primary and secondary. Primary is conducted through
questionnaires and interview and secondary through academic journals, websites and news articles.
The recorded responses will help to analyze the approach of customers while booking the cab. In
the discussion section, SERVQUAL model is linked with the analyzed data and literature study
findings. This study is also providing with recommendations to make improvement over cab
services which will benefit the customers to use cab services.
Keywords: Cab aggregator, disruptive innovation, transportation, mobile application.
Page 1
Abstract
The paper is concentrated on development of new cab business model for Delhi. This research work
is mainly supported on disruptive innovation in Indian cab market where the industry is witnessed
cab aggregation by means of mobile application, leads to result of technological progress to make
use of transportation easier. The findings of this paper are that most of population of Delhi used
Uber cab services as compared to Meru and Ola. While booking the cab, online payment method is
most popular. Price, transparency, safety, security and ease of use are the factors affect the
transportation services. Most of the cab services are provided with moderately affordable prices of
the cab so that middle level people can ride on it. In this paper RIDE business model is used to
provide with in-depth understanding of on-demand business model such that it is provide with new
business idea to generate stronger value propositions for the customers. RIDE model is also
proposed for benefiting the future researchers so that they are encouraged towards further research
in the future. The paper discusses on the importance of the customer service while booking the cab
along with service offers the customers. If the customers are provided services on their demand and
needs, then they are loyal to the cab company and used their services continuously when travelling.
The data sources used to analyze the topic are primary and secondary. Primary is conducted through
questionnaires and interview and secondary through academic journals, websites and news articles.
The recorded responses will help to analyze the approach of customers while booking the cab. In
the discussion section, SERVQUAL model is linked with the analyzed data and literature study
findings. This study is also providing with recommendations to make improvement over cab
services which will benefit the customers to use cab services.
Keywords: Cab aggregator, disruptive innovation, transportation, mobile application.
Page 1
DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
Table of Contents
Chapter 1: Introduction.....................................................................................................................10
1.1 Outline of the research study..................................................................................................10
1.2 Context of the study...............................................................................................................11
1.3 Aim of the study.....................................................................................................................12
1.4 Objectives of the study...........................................................................................................12
1.5 Statement of the problem........................................................................................................12
1.6 Reason for selection...............................................................................................................13
1.7 Proposed model- RIDE..........................................................................................................13
1.8 Research hypothesis...............................................................................................................15
1.9 Research questions.................................................................................................................16
1.10 Outline of dissertation structure............................................................................................17
Chapter 2: Literature Review............................................................................................................19
2.1 Introduction............................................................................................................................19
2.2 Growth of Cab Aggregators in Delhi......................................................................................19
2.3 Importance of customer service while booking cab................................................................20
2.3.1 Payment method..............................................................................................................23
2.3.2 Offers attract the customers.............................................................................................23
Page 2
Table of Contents
Chapter 1: Introduction.....................................................................................................................10
1.1 Outline of the research study..................................................................................................10
1.2 Context of the study...............................................................................................................11
1.3 Aim of the study.....................................................................................................................12
1.4 Objectives of the study...........................................................................................................12
1.5 Statement of the problem........................................................................................................12
1.6 Reason for selection...............................................................................................................13
1.7 Proposed model- RIDE..........................................................................................................13
1.8 Research hypothesis...............................................................................................................15
1.9 Research questions.................................................................................................................16
1.10 Outline of dissertation structure............................................................................................17
Chapter 2: Literature Review............................................................................................................19
2.1 Introduction............................................................................................................................19
2.2 Growth of Cab Aggregators in Delhi......................................................................................19
2.3 Importance of customer service while booking cab................................................................20
2.3.1 Payment method..............................................................................................................23
2.3.2 Offers attract the customers.............................................................................................23
Page 2
DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
2.4 Challenges faced by cab aggregator industry and customers..................................................24
2.4.1 Identification of points caused gaps in the customer satisfaction....................................24
2.4.2 Explore issues of customer satisfaction due to cab aggregator driver..............................25
2.5 Analyzing the cab companies operated in Delhi.....................................................................26
2.5.1 Loyal customers..............................................................................................................26
2.5.2 Safety concerns...............................................................................................................28
2.5.3 Preference of female drivers............................................................................................29
2.5.4 Cheapest price rate of the cab companies........................................................................30
2.6 Key points from the literature review chapter........................................................................33
Chapter 3: Research Methodology....................................................................................................35
3.1 Introduction............................................................................................................................35
3.2 Methods outline......................................................................................................................35
3.3 Research philosophy...............................................................................................................36
3.3.1 Justification of selecting appropriate philosophy............................................................36
3.4 Research approach..................................................................................................................36
3.4.1 Justification of selecting appropriate approach...............................................................37
3.5 Research design......................................................................................................................37
3.5.1 Justification of selecting appropriate design....................................................................37
3.6 Data collection procedure.......................................................................................................37
Page 3
2.4 Challenges faced by cab aggregator industry and customers..................................................24
2.4.1 Identification of points caused gaps in the customer satisfaction....................................24
2.4.2 Explore issues of customer satisfaction due to cab aggregator driver..............................25
2.5 Analyzing the cab companies operated in Delhi.....................................................................26
2.5.1 Loyal customers..............................................................................................................26
2.5.2 Safety concerns...............................................................................................................28
2.5.3 Preference of female drivers............................................................................................29
2.5.4 Cheapest price rate of the cab companies........................................................................30
2.6 Key points from the literature review chapter........................................................................33
Chapter 3: Research Methodology....................................................................................................35
3.1 Introduction............................................................................................................................35
3.2 Methods outline......................................................................................................................35
3.3 Research philosophy...............................................................................................................36
3.3.1 Justification of selecting appropriate philosophy............................................................36
3.4 Research approach..................................................................................................................36
3.4.1 Justification of selecting appropriate approach...............................................................37
3.5 Research design......................................................................................................................37
3.5.1 Justification of selecting appropriate design....................................................................37
3.6 Data collection procedure.......................................................................................................37
Page 3
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DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
3.6.1 Data sources used............................................................................................................38
3.6.2 Data analysis techniques.................................................................................................39
3.7 Population and sample............................................................................................................39
3.8 Ethical considerations.............................................................................................................39
3.9 Summary................................................................................................................................40
Chapter 4: Data analysis and findings...............................................................................................41
4.1 Introduction............................................................................................................................41
4.2 Quantitative Data Analysis.....................................................................................................41
4.2.1 Summary on quantitative findings...................................................................................63
4.3 Qualitative Data Analysis.......................................................................................................63
4.3.1 Learning from qualitative findings..................................................................................65
4.4 Summary................................................................................................................................65
Chapter 5: Discussion.......................................................................................................................67
5.1 Discussion on the cab business model....................................................................................67
5.2 Discussion on the success story of cab services in Delhi........................................................68
5.3 Discussion on importance of consumer behaviour and perception towards the cab aggregators
.....................................................................................................................................................71
5.4 Discussion on data analysis results and findings....................................................................73
5.5 Factors affecting the customer satisfaction in cab service market in India.............................77
Page 4
3.6.1 Data sources used............................................................................................................38
3.6.2 Data analysis techniques.................................................................................................39
3.7 Population and sample............................................................................................................39
3.8 Ethical considerations.............................................................................................................39
3.9 Summary................................................................................................................................40
Chapter 4: Data analysis and findings...............................................................................................41
4.1 Introduction............................................................................................................................41
4.2 Quantitative Data Analysis.....................................................................................................41
4.2.1 Summary on quantitative findings...................................................................................63
4.3 Qualitative Data Analysis.......................................................................................................63
4.3.1 Learning from qualitative findings..................................................................................65
4.4 Summary................................................................................................................................65
Chapter 5: Discussion.......................................................................................................................67
5.1 Discussion on the cab business model....................................................................................67
5.2 Discussion on the success story of cab services in Delhi........................................................68
5.3 Discussion on importance of consumer behaviour and perception towards the cab aggregators
.....................................................................................................................................................71
5.4 Discussion on data analysis results and findings....................................................................73
5.5 Factors affecting the customer satisfaction in cab service market in India.............................77
Page 4
DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
Chapter 6: Conclusion......................................................................................................................81
6.1 Conclusion.............................................................................................................................81
6.2 Linking with the objectives....................................................................................................85
6.3 Recommendations..................................................................................................................86
6.4 Further scope of the study......................................................................................................87
Chapter 7: Reflection........................................................................................................................89
Chapter 8: Limitation of the study....................................................................................................91
References........................................................................................................................................92
Appendix..........................................................................................................................................99
1. Survey Questionnaires..............................................................................................................99
2. Time Horizon.........................................................................................................................104
Page 5
Chapter 6: Conclusion......................................................................................................................81
6.1 Conclusion.............................................................................................................................81
6.2 Linking with the objectives....................................................................................................85
6.3 Recommendations..................................................................................................................86
6.4 Further scope of the study......................................................................................................87
Chapter 7: Reflection........................................................................................................................89
Chapter 8: Limitation of the study....................................................................................................91
References........................................................................................................................................92
Appendix..........................................................................................................................................99
1. Survey Questionnaires..............................................................................................................99
2. Time Horizon.........................................................................................................................104
Page 5
DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
Table of Figures
Figure 1.1: Proposed RIDE model....................................................................................................14
Figure 4.1: Gender............................................................................................................................42
Figure 4.2: Age.................................................................................................................................43
Figure 4.3: Time to travel by cab......................................................................................................44
Figure 4.4: Use cab for personal or professional travel.....................................................................45
Figure 4.5: Online cab aggregator typically use................................................................................46
Figure 4.6: Better payment method for the online cab transportation...............................................47
Figure 4.7: Factor important for selecting a transportation form.......................................................48
Figure 4.8: Prefer to compare the cab operators availability plus transparency on fares from unified
platform............................................................................................................................................49
Figure 4.9: Prices of cab affordable..................................................................................................51
Figure 4.10: Offers require providing in the cab services.................................................................52
Figure 4.11: Preferable to get female drivers at any time of the day for the female passengers........53
Figure 4.12: Situation prefer to get carpool......................................................................................54
Figure 4.13: Primary reason to opt car pool......................................................................................55
Figure 4.14: Information require about the car owner related to security perspective.......................56
Figure 4.15: Suitable pricing system for the shared journey.............................................................57
Figure 4.16: Recommend cab services to friend or colleague...........................................................58
Page 6
Table of Figures
Figure 1.1: Proposed RIDE model....................................................................................................14
Figure 4.1: Gender............................................................................................................................42
Figure 4.2: Age.................................................................................................................................43
Figure 4.3: Time to travel by cab......................................................................................................44
Figure 4.4: Use cab for personal or professional travel.....................................................................45
Figure 4.5: Online cab aggregator typically use................................................................................46
Figure 4.6: Better payment method for the online cab transportation...............................................47
Figure 4.7: Factor important for selecting a transportation form.......................................................48
Figure 4.8: Prefer to compare the cab operators availability plus transparency on fares from unified
platform............................................................................................................................................49
Figure 4.9: Prices of cab affordable..................................................................................................51
Figure 4.10: Offers require providing in the cab services.................................................................52
Figure 4.11: Preferable to get female drivers at any time of the day for the female passengers........53
Figure 4.12: Situation prefer to get carpool......................................................................................54
Figure 4.13: Primary reason to opt car pool......................................................................................55
Figure 4.14: Information require about the car owner related to security perspective.......................56
Figure 4.15: Suitable pricing system for the shared journey.............................................................57
Figure 4.16: Recommend cab services to friend or colleague...........................................................58
Page 6
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DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
Figure 5.1: Demand trend- Delhi Taxi Demand Point......................................................................69
Figure 5.2: Installation of cab hailing application of Uber and Ola..................................................70
Figure 5.3: Market size of taxi service market in India.....................................................................78
Page 7
Figure 5.1: Demand trend- Delhi Taxi Demand Point......................................................................69
Figure 5.2: Installation of cab hailing application of Uber and Ola..................................................70
Figure 5.3: Market size of taxi service market in India.....................................................................78
Page 7
DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
Table of Tables
Table 4.1: Gender.............................................................................................................................42
Table 4.2: Age..................................................................................................................................43
Table 4.3: Time to travel by cab.......................................................................................................44
Table 4.4: Use cab for personal or professional travel......................................................................45
Table 4.5: Online cab aggregator typically use.................................................................................46
Table 4.6: Better payment method for the online cab transportation.................................................47
Table 4.7: Factor important for selecting a transportation form........................................................48
Table 4.8: Prefer to compare the cab operators availability plus transparency on fares from unified
platform............................................................................................................................................49
Table 4.9: Prices of cab affordable...................................................................................................50
Table 4.10: Offers require providing in the cab services...................................................................51
Table 4.11: Preferable to get female drivers at any time of the day for the female passengers.........52
Table 4.12: Situation prefer to get carpool........................................................................................53
Table 4.13: Primary reason to opt car pool.......................................................................................55
Table 4.14: Information require about the car owner related to security perspective........................56
Table 4.15: Suitable pricing system for the shared journey..............................................................57
Table 4.16: Recommend cab services to friend or colleague............................................................58
Table 4.17: Summary output of regression analysis conducted for hypothesis 1..............................59
Page 8
Table of Tables
Table 4.1: Gender.............................................................................................................................42
Table 4.2: Age..................................................................................................................................43
Table 4.3: Time to travel by cab.......................................................................................................44
Table 4.4: Use cab for personal or professional travel......................................................................45
Table 4.5: Online cab aggregator typically use.................................................................................46
Table 4.6: Better payment method for the online cab transportation.................................................47
Table 4.7: Factor important for selecting a transportation form........................................................48
Table 4.8: Prefer to compare the cab operators availability plus transparency on fares from unified
platform............................................................................................................................................49
Table 4.9: Prices of cab affordable...................................................................................................50
Table 4.10: Offers require providing in the cab services...................................................................51
Table 4.11: Preferable to get female drivers at any time of the day for the female passengers.........52
Table 4.12: Situation prefer to get carpool........................................................................................53
Table 4.13: Primary reason to opt car pool.......................................................................................55
Table 4.14: Information require about the car owner related to security perspective........................56
Table 4.15: Suitable pricing system for the shared journey..............................................................57
Table 4.16: Recommend cab services to friend or colleague............................................................58
Table 4.17: Summary output of regression analysis conducted for hypothesis 1..............................59
Page 8
DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
Table 4.18: ANOVA table of regression analysis conducted for hypothesis 1..................................59
Table 4.19: Coefficient table of regression analysis conducted for hypothesis 1..............................60
Table 4.20: Summary output of regression analysis conducted for hypothesis 2..............................61
Table 4.21: ANOVA table of regression analysis conducted for hypothesis 2..................................61
Table4.22: Coefficient table of regression analysis conducted for hypothesis 2...............................62
Page 9
Table 4.18: ANOVA table of regression analysis conducted for hypothesis 1..................................59
Table 4.19: Coefficient table of regression analysis conducted for hypothesis 1..............................60
Table 4.20: Summary output of regression analysis conducted for hypothesis 2..............................61
Table 4.21: ANOVA table of regression analysis conducted for hypothesis 2..................................61
Table4.22: Coefficient table of regression analysis conducted for hypothesis 2...............................62
Page 9
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DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
Chapter 1: Introduction
1.1 Outline of the research study
The paper is based on “Development of new cab business model for Delhi”. The paper is
focused on analyzing the gaps in the customer behavior and unfilled customer needs with the view
to establish gaps in Indian cab market. The prices of cab services are surging throughout peak hours
as well as in the rainy season as the passengers are not having any other options for travelling. In
this research study, there is analyzing on drivers of the value proposition. The researchers have gone
through the higher demand of cabs in Delhi with higher population, and therefore the researcher
comes with an idea to start a cab company after performing research on car aggregator industry
within India (Hira and Reilly 2017). Due to deficiency of high-quality of the public transport
system, cab services are playing a key function as mobility options within India. As per the road
transport yearbook, there are around 600,000 of registered cab services across various states all over
India. The market of cab services is growing from the last 3-4 years while there is current growth of
approximately 15-20% per year. Kashyap and Bhatia (2018) stated that in order to provide safety as
well as comfortable taxi services to the local commuters, the tourism of Delhi as well as transport
department has launched its radio taxi services in the year 2006.
Due to increase in competition as well as rise in the public demands, quality of cab services
as well as comfort of the services is to be provided by the cab companies. Increase in usage of the
Smartphones within India as well as usage of the mobile internet is being increasing which made
task easier for the cab aggregators. Srivastava (2019) discussed that there is a unique thinking to
assemble mobile application, where the customers can book the cab with the contact of the finger.
Cab services are used to facilitate the travelers from home to workplaces and vice versa. The
passengers should be aware of safety as well as security perspective of the cab company, therefore
the company aware them of facilities provided as safety measures. The users use cab services for
Page 10
Chapter 1: Introduction
1.1 Outline of the research study
The paper is based on “Development of new cab business model for Delhi”. The paper is
focused on analyzing the gaps in the customer behavior and unfilled customer needs with the view
to establish gaps in Indian cab market. The prices of cab services are surging throughout peak hours
as well as in the rainy season as the passengers are not having any other options for travelling. In
this research study, there is analyzing on drivers of the value proposition. The researchers have gone
through the higher demand of cabs in Delhi with higher population, and therefore the researcher
comes with an idea to start a cab company after performing research on car aggregator industry
within India (Hira and Reilly 2017). Due to deficiency of high-quality of the public transport
system, cab services are playing a key function as mobility options within India. As per the road
transport yearbook, there are around 600,000 of registered cab services across various states all over
India. The market of cab services is growing from the last 3-4 years while there is current growth of
approximately 15-20% per year. Kashyap and Bhatia (2018) stated that in order to provide safety as
well as comfortable taxi services to the local commuters, the tourism of Delhi as well as transport
department has launched its radio taxi services in the year 2006.
Due to increase in competition as well as rise in the public demands, quality of cab services
as well as comfort of the services is to be provided by the cab companies. Increase in usage of the
Smartphones within India as well as usage of the mobile internet is being increasing which made
task easier for the cab aggregators. Srivastava (2019) discussed that there is a unique thinking to
assemble mobile application, where the customers can book the cab with the contact of the finger.
Cab services are used to facilitate the travelers from home to workplaces and vice versa. The
passengers should be aware of safety as well as security perspective of the cab company, therefore
the company aware them of facilities provided as safety measures. The users use cab services for
Page 10
DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
personal travelling also with their families. Due to rise in the cab services, it is critical to solve the
problems of the customers when they complained about any issues faced while using the services.
Most popular cab companies are Ola and Uber as both of them are using GPS technology and
innovative business model to capture market share. The users are using innovative cab aggregator’s
mobile application for booking the cabs (Bashir, Yousaf and Verma 2016). From the year 2000, the
competitive players have entered into cab industry. There is disruption into that particular sector
because of launching of Ola in the year 2010, local taxi in 2011 and launching of Uber services in
2013.
1.2 Context of the study
The research study is based on the business model of cab aggregation industry. The
transportation industry in India is exclusive as well as diverse as contrasted to the industry of other
countries. It is considered as rising industry which attracts the start-ups for joining a huge feasible of
the transportation industry. The cab aggregators are addressing major problems related to
availability of the cab at proper timeframe, behaviour of the drivers as well as security to track the
vehicles by means of the technology (Zhang, Siaand Lee 2017). They do not own vehicles or cars in
order to coordinate among the customers as well as drivers. The technology which is used by the
cab drivers as well as passengers is GPS/GPRS. The cab agencies own smaller number of cars as
well as offer with services to the consumers dependent on pre-bookings along with person means
who do not own the cabs (Wieland, Hartmann and Vargo 2017). The passengers are operated to
coordinate with the owners of cars, car agencies as well as travel agencies those are seeking amount
of commission per booking of rides.
The cab aggregators companies are called as technology companies as they do not possess
their own cars or taxis. In Delhi, the cab companies operated are Uber, Ola, Meru and others. The
expertise to use the technology acted as interface among the customers as well as drivers. In this
business context, mobile application is being used and developed by means of map to identify
Page 11
personal travelling also with their families. Due to rise in the cab services, it is critical to solve the
problems of the customers when they complained about any issues faced while using the services.
Most popular cab companies are Ola and Uber as both of them are using GPS technology and
innovative business model to capture market share. The users are using innovative cab aggregator’s
mobile application for booking the cabs (Bashir, Yousaf and Verma 2016). From the year 2000, the
competitive players have entered into cab industry. There is disruption into that particular sector
because of launching of Ola in the year 2010, local taxi in 2011 and launching of Uber services in
2013.
1.2 Context of the study
The research study is based on the business model of cab aggregation industry. The
transportation industry in India is exclusive as well as diverse as contrasted to the industry of other
countries. It is considered as rising industry which attracts the start-ups for joining a huge feasible of
the transportation industry. The cab aggregators are addressing major problems related to
availability of the cab at proper timeframe, behaviour of the drivers as well as security to track the
vehicles by means of the technology (Zhang, Siaand Lee 2017). They do not own vehicles or cars in
order to coordinate among the customers as well as drivers. The technology which is used by the
cab drivers as well as passengers is GPS/GPRS. The cab agencies own smaller number of cars as
well as offer with services to the consumers dependent on pre-bookings along with person means
who do not own the cabs (Wieland, Hartmann and Vargo 2017). The passengers are operated to
coordinate with the owners of cars, car agencies as well as travel agencies those are seeking amount
of commission per booking of rides.
The cab aggregators companies are called as technology companies as they do not possess
their own cars or taxis. In Delhi, the cab companies operated are Uber, Ola, Meru and others. The
expertise to use the technology acted as interface among the customers as well as drivers. In this
business context, mobile application is being used and developed by means of map to identify
Page 11
DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
request from the passengers and nearest availability of the cab is accepted and the passenger request
is facilitated by the online transaction or cash payment (Lim et al. 2018). This industry is considered
to be 5% controlled by organized players and estimated to be $9 billion in the Indian cab market.
There is a growth of approximately 30% in each month with huge cab service market is tapped
within the Indian market (Sachitanand 2018).
1.3 Aim of the study
The aim of this particular study is to determine the customer demands towards the cab
services and determine the factors required to book the cab into the Indian market.
1.4 Objectives of the study
Following are list of the research objectives which are taken into considerations such as:
To determine the perspective of the customers towards the cab services
To create cab business model for entering the market of cab industry
To determine the key significant factors required while booking of the cab
To identify the safety concerns towards booking of cab
1.5 Statement of the problem
The point of investigation for this research study is being explored to development of new
cab business model in Indian cab industry. The study has shown with new technology through
which the passengers can book for cab, it is possible for the customers as well as cab drivers to get
an insight about status as well as operations of the travelling. The study is focused on opportunities
as well as challenges with introduction of cab services which are operated in India (Maheshwari
2017). The research problem in this particular study is analyzing opportunities of the cab services
and those opportunities are examined based on reducing of costs plus marginal profits. There is
identification of challenges which can cause delay in developing of new cab business model in
Delhi.
Page 12
request from the passengers and nearest availability of the cab is accepted and the passenger request
is facilitated by the online transaction or cash payment (Lim et al. 2018). This industry is considered
to be 5% controlled by organized players and estimated to be $9 billion in the Indian cab market.
There is a growth of approximately 30% in each month with huge cab service market is tapped
within the Indian market (Sachitanand 2018).
1.3 Aim of the study
The aim of this particular study is to determine the customer demands towards the cab
services and determine the factors required to book the cab into the Indian market.
1.4 Objectives of the study
Following are list of the research objectives which are taken into considerations such as:
To determine the perspective of the customers towards the cab services
To create cab business model for entering the market of cab industry
To determine the key significant factors required while booking of the cab
To identify the safety concerns towards booking of cab
1.5 Statement of the problem
The point of investigation for this research study is being explored to development of new
cab business model in Indian cab industry. The study has shown with new technology through
which the passengers can book for cab, it is possible for the customers as well as cab drivers to get
an insight about status as well as operations of the travelling. The study is focused on opportunities
as well as challenges with introduction of cab services which are operated in India (Maheshwari
2017). The research problem in this particular study is analyzing opportunities of the cab services
and those opportunities are examined based on reducing of costs plus marginal profits. There is
identification of challenges which can cause delay in developing of new cab business model in
Delhi.
Page 12
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DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
1.6 Reason for selection
The researcher had chosen this particular research topic for analyzing the gaps in the
customer behavior and unfilled customer needs in the current Indian market.. This study is
performed for examining the cab companies operated, services offered by the cab companies for
targeting the customers. The researcher also discussed this study for determining the factors which
are key significant for the customers at the time of booking cab. The research performed a
marketing analysis on the customers to analyze the demands of cab in the Indian market. The topic
is selected for determining various strategies used by the cab aggregators to the target customers and
how the cab booking application affects the customers. This particular topic is selected for this
study so that the reader can understand possible offers which are provided to the passengers so that
they can attract to the cab services and determine the customer behaviour while getting the services.
1.7 Proposed model- RIDE
This proposed business model is different from Uber and Ola cab services, therefore new
cab business model will help to provide better cab services to the customers.
Page 13
1.6 Reason for selection
The researcher had chosen this particular research topic for analyzing the gaps in the
customer behavior and unfilled customer needs in the current Indian market.. This study is
performed for examining the cab companies operated, services offered by the cab companies for
targeting the customers. The researcher also discussed this study for determining the factors which
are key significant for the customers at the time of booking cab. The research performed a
marketing analysis on the customers to analyze the demands of cab in the Indian market. The topic
is selected for determining various strategies used by the cab aggregators to the target customers and
how the cab booking application affects the customers. This particular topic is selected for this
study so that the reader can understand possible offers which are provided to the passengers so that
they can attract to the cab services and determine the customer behaviour while getting the services.
1.7 Proposed model- RIDE
This proposed business model is different from Uber and Ola cab services, therefore new
cab business model will help to provide better cab services to the customers.
Page 13
DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
Figure 1.1: Proposed RIDE model
(Source: Sarvepalli and Prakash 2016, pp-323)
The new business model turned to be successful as well as popular so that it can fuel to new
startup economy or on-demand economy. This RIDE business model is provided with in-depth
understanding on the on-demand business model so that it can provide the researcher with a new
startup business idea in Indian cab industry. The RIDE has helped cab companies in generating
strong value propositions for passengers and cab drivers in order to obtain onboard platform and
produce disruption in cab industry.
The RIDE model stands for:
R- Research: According to this particular model, the businesses are being recommended to
perform examination on customer's opportunities. The main stakeholders into the businesses are
Page 14
Customer
Research
Execute
Deploy
Innovate
Customer insights
With Zero lag
New features
Mobile applications
Figure 1.1: Proposed RIDE model
(Source: Sarvepalli and Prakash 2016, pp-323)
The new business model turned to be successful as well as popular so that it can fuel to new
startup economy or on-demand economy. This RIDE business model is provided with in-depth
understanding on the on-demand business model so that it can provide the researcher with a new
startup business idea in Indian cab industry. The RIDE has helped cab companies in generating
strong value propositions for passengers and cab drivers in order to obtain onboard platform and
produce disruption in cab industry.
The RIDE model stands for:
R- Research: According to this particular model, the businesses are being recommended to
perform examination on customer's opportunities. The main stakeholders into the businesses are
Page 14
Customer
Research
Execute
Deploy
Innovate
Customer insights
With Zero lag
New features
Mobile applications
DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
users those are moving closely to help the organizations understand new trends coming into the
market (Sarvepalli and Prakash 2016). There is also research on new features the business wanted to
see in the mobile-based cab booking application. There is continuous commitment of the consumers
to make industry better in addition to add loyalty towards the cab businesses.
I-Innovate: In this particular step, the groups can verify for innovative and practical
solutions included in the mobile application employing using technology based on inputs
established as performing the study (Basu 2019). If any business modifications can strategically
occur, then it is implemented into the cab business industry.
D-Deploy: New features are developed in an earlier step required to create in the mobile
application by sending of version update later than performing completed testing.
E-Execute: Success of the entire model is based on how rapidly the cab businesses are
executed whole process. In this case, if the customers are required to download an application, then
it will take few seconds for uninstalling the app as well as install the app of competitors in
Smartphone (Sarvepalli and Prakash 2016). It is a reason behind strongly recommended to act
quickly and take proper decisions; otherwise, it will create a negative impact on the application of
mobile. RIDE model deals with the booking system followed by companies. In this model, user
used to reach to cab booking application personally and books a cab with proper journey details.
Then the cab booking company reaches to cab drivers nearest to the arrival point and then allocates
that driver to that user. This system of cab booking has helped in providing safety and ease of
journey for customers.
1.8 Research hypothesis
Following are list of the research hypotheses which are taken into action for conducting the
research work such as:
Page 15
users those are moving closely to help the organizations understand new trends coming into the
market (Sarvepalli and Prakash 2016). There is also research on new features the business wanted to
see in the mobile-based cab booking application. There is continuous commitment of the consumers
to make industry better in addition to add loyalty towards the cab businesses.
I-Innovate: In this particular step, the groups can verify for innovative and practical
solutions included in the mobile application employing using technology based on inputs
established as performing the study (Basu 2019). If any business modifications can strategically
occur, then it is implemented into the cab business industry.
D-Deploy: New features are developed in an earlier step required to create in the mobile
application by sending of version update later than performing completed testing.
E-Execute: Success of the entire model is based on how rapidly the cab businesses are
executed whole process. In this case, if the customers are required to download an application, then
it will take few seconds for uninstalling the app as well as install the app of competitors in
Smartphone (Sarvepalli and Prakash 2016). It is a reason behind strongly recommended to act
quickly and take proper decisions; otherwise, it will create a negative impact on the application of
mobile. RIDE model deals with the booking system followed by companies. In this model, user
used to reach to cab booking application personally and books a cab with proper journey details.
Then the cab booking company reaches to cab drivers nearest to the arrival point and then allocates
that driver to that user. This system of cab booking has helped in providing safety and ease of
journey for customers.
1.8 Research hypothesis
Following are list of the research hypotheses which are taken into action for conducting the
research work such as:
Page 15
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DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
Hypothesis 1: There is positive relationship between price and coupon redemption
behaviour among the customers of cab services.
This research hypothesis is utilized to create a new business model in the cab market as the
factors like price, redemption of coupon and innovativeness are influencing or providing positive
impact on the consumer behaviour to select the cab services.
Hypothesis 2: The level of comfort provided in the cab affects the cab market in Delhi.
This research hypothesis is used to create a cab business model in Delhi cab market by
correlating relationship between the level of comfort and cab services provided to the customers.
1.9 Research questions
Following are the list of the research questions which are to be taken into consideration
when analyzing the development of cab business model for Delhi.
a. How important is customer service while booking a cab?
b. How do you know about the cab companies?
The above mentioned are the two main questions based on which entire thesis work is being carried
out. Each of the questions consisted of sub-questions which are required to determine when
analyzing the main questions. Following are the list of sub-questions such as:
a. How important is customer service while booking a cab?
Do you prefer to pay by cash or card?
What offers they get from different cab companies?
Which offers attract you the most?
How do you get to know about the offers?
Page 16
Hypothesis 1: There is positive relationship between price and coupon redemption
behaviour among the customers of cab services.
This research hypothesis is utilized to create a new business model in the cab market as the
factors like price, redemption of coupon and innovativeness are influencing or providing positive
impact on the consumer behaviour to select the cab services.
Hypothesis 2: The level of comfort provided in the cab affects the cab market in Delhi.
This research hypothesis is used to create a cab business model in Delhi cab market by
correlating relationship between the level of comfort and cab services provided to the customers.
1.9 Research questions
Following are the list of the research questions which are to be taken into consideration
when analyzing the development of cab business model for Delhi.
a. How important is customer service while booking a cab?
b. How do you know about the cab companies?
The above mentioned are the two main questions based on which entire thesis work is being carried
out. Each of the questions consisted of sub-questions which are required to determine when
analyzing the main questions. Following are the list of sub-questions such as:
a. How important is customer service while booking a cab?
Do you prefer to pay by cash or card?
What offers they get from different cab companies?
Which offers attract you the most?
How do you get to know about the offers?
Page 16
DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
b. How do you know about the cab companies?
Are customers loyal to cab company?
Is safety a concern at any time of the day?
Do female passengers have preference for female drivers at any time of the
day?
Which company offers the cheapest price rate most of the time?
1.10 Outline of dissertation structure
The researcher made a categorization of the selected research topic such that perspective of
selected topic is being highlighted in an effective way.Based on the eight chapters, the content of
this particular chapter is to take into action:
Chapter 1: Introduction: The details of selected topic are being explained so that the reader
can know the main topic of selected topic. In this particular chapter, the development of cab
business model for Delhi is described in a proper way. Further in this chapter, research aims along
with objectives are being stated to better understand the acknowledgement of the research title.
Chapter 2: Literature Review: Theories in addition to concepts assist the researcher to
comprehend the topic and with the literature sources, the researcher evaluated the concept of cab
business model in brief manner. Critical perspective of this particular topic helped to observe
benefits as well as opportunities of selected topic.
Chapter 3: Research Methodology: The research process utilizes to gain a proper data
collection procedure based on the selected research topic which is pointed out in this particular
chapter. This particular chapter helps to guide path to lead a better analysis of selected topic and
Page 17
b. How do you know about the cab companies?
Are customers loyal to cab company?
Is safety a concern at any time of the day?
Do female passengers have preference for female drivers at any time of the
day?
Which company offers the cheapest price rate most of the time?
1.10 Outline of dissertation structure
The researcher made a categorization of the selected research topic such that perspective of
selected topic is being highlighted in an effective way.Based on the eight chapters, the content of
this particular chapter is to take into action:
Chapter 1: Introduction: The details of selected topic are being explained so that the reader
can know the main topic of selected topic. In this particular chapter, the development of cab
business model for Delhi is described in a proper way. Further in this chapter, research aims along
with objectives are being stated to better understand the acknowledgement of the research title.
Chapter 2: Literature Review: Theories in addition to concepts assist the researcher to
comprehend the topic and with the literature sources, the researcher evaluated the concept of cab
business model in brief manner. Critical perspective of this particular topic helped to observe
benefits as well as opportunities of selected topic.
Chapter 3: Research Methodology: The research process utilizes to gain a proper data
collection procedure based on the selected research topic which is pointed out in this particular
chapter. This particular chapter helps to guide path to lead a better analysis of selected topic and
Page 17
DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
achieves research related details. The selected methods as well as procedures are to be followed by
providing accurate justification related to why the tools are to be selected.
Chapter 4: Analysis and Findings: Based on the collected data as well as information
using the primary data collection method, the researchers have gone through analysis of collected
sources and data so that proper research results and findings are obtained. The data analysis chapter
will help to understand the selected topic and also analyze based on the responses those are taken
from the contributors.
Chapter 5: Discussion: This particular chapter is based on findings from the literature
review as well a research in relative to the selected hypothesis of this research study.
Chapter 6: Summary and Recommendations: This concluding chapter of this thesis paper
presented entire view of the selected title and generated result of selected topic. Based on the
objectives of this research study, the researcher tried to conclude achievement level of the selected
theme as well as also describe involving of the research objectives with the literature review
findings.
Chapter 7: Reflections: This chapter provides a brief synopsis of the personal learning and
implications of this particular research study.
Chapter 8: Limitation of the study: This chapter provides with study limitations such that
lack of data interpretation and analysis, improper review of literature sources and lack of time
management.
Page 18
achieves research related details. The selected methods as well as procedures are to be followed by
providing accurate justification related to why the tools are to be selected.
Chapter 4: Analysis and Findings: Based on the collected data as well as information
using the primary data collection method, the researchers have gone through analysis of collected
sources and data so that proper research results and findings are obtained. The data analysis chapter
will help to understand the selected topic and also analyze based on the responses those are taken
from the contributors.
Chapter 5: Discussion: This particular chapter is based on findings from the literature
review as well a research in relative to the selected hypothesis of this research study.
Chapter 6: Summary and Recommendations: This concluding chapter of this thesis paper
presented entire view of the selected title and generated result of selected topic. Based on the
objectives of this research study, the researcher tried to conclude achievement level of the selected
theme as well as also describe involving of the research objectives with the literature review
findings.
Chapter 7: Reflections: This chapter provides a brief synopsis of the personal learning and
implications of this particular research study.
Chapter 8: Limitation of the study: This chapter provides with study limitations such that
lack of data interpretation and analysis, improper review of literature sources and lack of time
management.
Page 18
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DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
Chapter 2: Literature Review
2.1 Introduction
The study has found that innovation into the cab industry is due to using mobile
applications resulted in technological advancement makes transportation easier in Delhi. Ola, Uber
and Meru are found as accessible in Delhi, and primary goal of the companies is connecting drivers
and customers. The paper is based on analyzing the development of the cab business model,
REVENUE model for this particular research. The main aim of REVENUE model is to know
customer's demands and a gap in expectations fulfilled by using technology. The paper discusses
that customers are being interested to select cab offers more offers and benefits. The factors which
are key significant for the customers to choose cab services are price, coupons and brand image of
the cab company. In the literature study, there is also discussion on factors affecting the customer
satisfaction level in the cab market in Delhi. The professionalism of drivers in addition to cab
booking convenience are factors that provide impact on customer's satisfaction.
2.2 Growth of Cab Aggregators in Delhi
Kumar and Kumar (2016) discussed that cab aggregator is technological innovation in the
transportation market. The cab aggregator is those companies create technology platforms such as
cab booking application for Ola, Uber, Meru and others by which the passengers can connect with
cab drivers. Sharma and Das (2017) stated that the cab industry is playing a key role in society,
especially for people who do not have a car or use a local taxi. The users are selecting cab services
to make travelling more comfortable, convenient, plus faster to reach their destination. Increase in
usage of Smartphone, as well as internet services, made it possible for the cab aggregators to reach
the customer's demands. Uber, Ola, along with Meru, are considered as three competitors aimed to
Page 19
Chapter 2: Literature Review
2.1 Introduction
The study has found that innovation into the cab industry is due to using mobile
applications resulted in technological advancement makes transportation easier in Delhi. Ola, Uber
and Meru are found as accessible in Delhi, and primary goal of the companies is connecting drivers
and customers. The paper is based on analyzing the development of the cab business model,
REVENUE model for this particular research. The main aim of REVENUE model is to know
customer's demands and a gap in expectations fulfilled by using technology. The paper discusses
that customers are being interested to select cab offers more offers and benefits. The factors which
are key significant for the customers to choose cab services are price, coupons and brand image of
the cab company. In the literature study, there is also discussion on factors affecting the customer
satisfaction level in the cab market in Delhi. The professionalism of drivers in addition to cab
booking convenience are factors that provide impact on customer's satisfaction.
2.2 Growth of Cab Aggregators in Delhi
Kumar and Kumar (2016) discussed that cab aggregator is technological innovation in the
transportation market. The cab aggregator is those companies create technology platforms such as
cab booking application for Ola, Uber, Meru and others by which the passengers can connect with
cab drivers. Sharma and Das (2017) stated that the cab industry is playing a key role in society,
especially for people who do not have a car or use a local taxi. The users are selecting cab services
to make travelling more comfortable, convenient, plus faster to reach their destination. Increase in
usage of Smartphone, as well as internet services, made it possible for the cab aggregators to reach
the customer's demands. Uber, Ola, along with Meru, are considered as three competitors aimed to
Page 19
DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
capture a market share in Delhi (Das, Bhatt and Path 2017). The impact that cab aggregators created
in Delhi market is noticed from blogs, articles, newspaper in addition to television shows.
Ola is settled on an existing application model after testing their cab services as radio cab.
Uber entered the Indian market with their cashless payments as well as started cash payments. Uber
came into the cab industry later; therefore, it gave Ola as the first mover. Meru cabs were launched
in 2007 in Mumbai and operated across four metros like Bengaluru, Mumbai, Delhi as well as
Hyderabad. The back end technology of Meru enabled to computerize their services and regulate the
experience of the customers (Horsu and Yeboah 2015). The cab aggregators used the revenue to
expand its fleet of cab vehicles and expanded geologically across the nation. Cash payment in India
provides an impact on the business operation of Ola, Uber and Meru. Lenhart et al. (2010)
explained that Uber was being forced to start with cash payments as for most people it is an easier
way to pay for their ride. Ola has higher revenue while it contains negative net profit as compared to
Uber contains positive benefit. Meru has also contained negative net profit as compared to Ola and
Uber. Northouse (2010) argued that based on customer preferences from downloading of
application along with its usage, it is found that Ola is broadly used app. The customers from metros
have shown loyalty towards Uber due to quality ride plus lower rates. In case of Meru, cab
availability is not so much when the customers have required it. It offers reliable pre-booking for
long-distance or airport as well as rental facilities. The price is the same as Ola Prime, and the
disadvantage is that there is no in-cab entertainment system.
2.3 Importance of customer service while booking cab
Anirvinna and Deshmukh (2019) discussed that there are benefits of cab booking mobile
applications for cab aggregators as the drivers are not getting to reject the passenger's request; the
passenger can verify for driver's profile along with leave feedback after using the cab services. For
the payment method, the passengers are selecting cash, card, online payments and others. The cab
applications are also offered with discounts, coupons as well as promotion that local cabs are not
Page 20
capture a market share in Delhi (Das, Bhatt and Path 2017). The impact that cab aggregators created
in Delhi market is noticed from blogs, articles, newspaper in addition to television shows.
Ola is settled on an existing application model after testing their cab services as radio cab.
Uber entered the Indian market with their cashless payments as well as started cash payments. Uber
came into the cab industry later; therefore, it gave Ola as the first mover. Meru cabs were launched
in 2007 in Mumbai and operated across four metros like Bengaluru, Mumbai, Delhi as well as
Hyderabad. The back end technology of Meru enabled to computerize their services and regulate the
experience of the customers (Horsu and Yeboah 2015). The cab aggregators used the revenue to
expand its fleet of cab vehicles and expanded geologically across the nation. Cash payment in India
provides an impact on the business operation of Ola, Uber and Meru. Lenhart et al. (2010)
explained that Uber was being forced to start with cash payments as for most people it is an easier
way to pay for their ride. Ola has higher revenue while it contains negative net profit as compared to
Uber contains positive benefit. Meru has also contained negative net profit as compared to Ola and
Uber. Northouse (2010) argued that based on customer preferences from downloading of
application along with its usage, it is found that Ola is broadly used app. The customers from metros
have shown loyalty towards Uber due to quality ride plus lower rates. In case of Meru, cab
availability is not so much when the customers have required it. It offers reliable pre-booking for
long-distance or airport as well as rental facilities. The price is the same as Ola Prime, and the
disadvantage is that there is no in-cab entertainment system.
2.3 Importance of customer service while booking cab
Anirvinna and Deshmukh (2019) discussed that there are benefits of cab booking mobile
applications for cab aggregators as the drivers are not getting to reject the passenger's request; the
passenger can verify for driver's profile along with leave feedback after using the cab services. For
the payment method, the passengers are selecting cash, card, online payments and others. The cab
applications are also offered with discounts, coupons as well as promotion that local cabs are not
Page 20
DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
provided to their passengers. The mobile apps are showing the availability of cabs near the location
of the passenger and allocate the cab closer to the passengers. Drucker (2014) illustrated that the
mobile application provides the driver with navigation for reaching the customers with not having to
call them for getting directions. The customers can also book a cab for later travel by setting both
times as well as date. Basu (2019) argued that the cab aggregators are used the location-based
tracking system to track the passengers. GPS enabled technology helps to get coordinates of a cab
for better scheduling. The passengers are also provided with a user interface for tracking location of
a cab so that the customers can acquire an actual position of their cab.
The customers are provided with special importance of cab services by pre-booking or
booking for long distances or airport. It helps to make passenger travelling more easy and
convenient(Goel et al. 2018). Through using the mobile-based cab application, the customers can
get to select pick up and drop off locations. As per the destination location plus total distance from
the location to destination, the cost of a trip is provided to passengers. In case of booking, there are
extra charges imposed on passengers. Basa (2018) stated that cab services are not only provided in
cities, but it can extend their services to rural areas. During the long-distance, charges of tool,
parking and others are not included in cab fare prices. It will be added extra into the customer
payment. Based on the place, the number of days, total nights, car type, distance and others, the total
cost of a long-distance trip is estimated.
The cab aggregators are provided with an opinion to customers for rating their driver based
on their performance and services offerings to passengers. Yulia (2016) discussed that when the
driver gets low rating, then he is required training to serve the customers. In case the driver rating is
good, then be rewarded for their performance. Kashyap and Bhatia (2018) stated that the cab
aggregators are provided benefits to drivers so that they are motivated to offer better customer
services. They are also provided with offers and discounts to customers so that it ensures repeat
Page 21
provided to their passengers. The mobile apps are showing the availability of cabs near the location
of the passenger and allocate the cab closer to the passengers. Drucker (2014) illustrated that the
mobile application provides the driver with navigation for reaching the customers with not having to
call them for getting directions. The customers can also book a cab for later travel by setting both
times as well as date. Basu (2019) argued that the cab aggregators are used the location-based
tracking system to track the passengers. GPS enabled technology helps to get coordinates of a cab
for better scheduling. The passengers are also provided with a user interface for tracking location of
a cab so that the customers can acquire an actual position of their cab.
The customers are provided with special importance of cab services by pre-booking or
booking for long distances or airport. It helps to make passenger travelling more easy and
convenient(Goel et al. 2018). Through using the mobile-based cab application, the customers can
get to select pick up and drop off locations. As per the destination location plus total distance from
the location to destination, the cost of a trip is provided to passengers. In case of booking, there are
extra charges imposed on passengers. Basa (2018) stated that cab services are not only provided in
cities, but it can extend their services to rural areas. During the long-distance, charges of tool,
parking and others are not included in cab fare prices. It will be added extra into the customer
payment. Based on the place, the number of days, total nights, car type, distance and others, the total
cost of a long-distance trip is estimated.
The cab aggregators are provided with an opinion to customers for rating their driver based
on their performance and services offerings to passengers. Yulia (2016) discussed that when the
driver gets low rating, then he is required training to serve the customers. In case the driver rating is
good, then be rewarded for their performance. Kashyap and Bhatia (2018) stated that the cab
aggregators are provided benefits to drivers so that they are motivated to offer better customer
services. They are also provided with offers and discounts to customers so that it ensures repeat
Page 21
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DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
rides for them. Most of the cabs are provided with offers and discounts for usage of cab in addition
to referrals, others.
Govinda (2019) identified that key performance indicators which are used for conventional
cab services are included with reliability, speed of travelling, expenses of passengers, quality of
services and others. Verma, Kansal and Malvi (2018) suggested that the cab services have potential
to grow in Delhi targeting the middle as well as rich classes. The level of customer satisfaction is
higher, presentation of a positive impact on the future expansion of cab services plus an expansion
of the cab industry. REVENUE MODEL is used in this case where the online cab aggregators are
generated with revenue throughout pay for performance model. Based on capital investment, the
startups business for online cab aggregators are Ola, Meru and Uber needed lower capital
investment for setting up the business (Rayleet al. 2016). The online cab companies are partnered
with the private cab owners and offered with GPS technology along with internet calling devices to
facilitate cab booking. In order to get access to the technical platform, the cab aggregators are
charging cab owners with fixed commission towards their generated revenue. The private cab
owners found that there is a win-win game for the companies as they are getting benefits to get
access to aggregated customer's demands across Delhi. Potts et al. (2018) argued that there is an
increase in cab booking as it included services such as local pick up, drop up, outstation travelling
and cab rentals on half or full-day basis.
Hall, Palsson and Price (2018) discussed that the main motives of service providers are
increasing into market share, achieving economies of scale as well as providing the satisfaction
level of the customers. The value propositions for the passengers are on-demand cab bookings, real
time tracking, cashless rides, upfront pricing and various ride options. On the other hand, the value
propositions for the drivers are better income, assistance to get loans for vehicles, better allocation
of trip and better income.
Page 22
rides for them. Most of the cabs are provided with offers and discounts for usage of cab in addition
to referrals, others.
Govinda (2019) identified that key performance indicators which are used for conventional
cab services are included with reliability, speed of travelling, expenses of passengers, quality of
services and others. Verma, Kansal and Malvi (2018) suggested that the cab services have potential
to grow in Delhi targeting the middle as well as rich classes. The level of customer satisfaction is
higher, presentation of a positive impact on the future expansion of cab services plus an expansion
of the cab industry. REVENUE MODEL is used in this case where the online cab aggregators are
generated with revenue throughout pay for performance model. Based on capital investment, the
startups business for online cab aggregators are Ola, Meru and Uber needed lower capital
investment for setting up the business (Rayleet al. 2016). The online cab companies are partnered
with the private cab owners and offered with GPS technology along with internet calling devices to
facilitate cab booking. In order to get access to the technical platform, the cab aggregators are
charging cab owners with fixed commission towards their generated revenue. The private cab
owners found that there is a win-win game for the companies as they are getting benefits to get
access to aggregated customer's demands across Delhi. Potts et al. (2018) argued that there is an
increase in cab booking as it included services such as local pick up, drop up, outstation travelling
and cab rentals on half or full-day basis.
Hall, Palsson and Price (2018) discussed that the main motives of service providers are
increasing into market share, achieving economies of scale as well as providing the satisfaction
level of the customers. The value propositions for the passengers are on-demand cab bookings, real
time tracking, cashless rides, upfront pricing and various ride options. On the other hand, the value
propositions for the drivers are better income, assistance to get loans for vehicles, better allocation
of trip and better income.
Page 22
DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
2.3.1 Payment method
The cab companies are tied up with a free charge, paytm, and other payment methods to
provide a hazel free ride to the customers. They are offering more accessible payment options using
offers along with discounts for the trips. The preference of customers towards online transactions
push them towards Uber cab services to create the portal, and the company spends on different
marketing and pricing strategies. Welch, Gehrke and Widita (2018) argued that the payment
methods accepted in cab services of Ola are Ola money, credit in Ola, credit and debit card
payment, cash and others. Most of the customers are wished to go for cash payment as compared to
card payment. In the case of Uber, the payment is made through cash, credit and debit, paytm and
others (Ge et al. 2017). In Meru cab, there is payment via in-app wallets; unique Bharat QR codes,
as well as credit and debit cards, are accepted for fare payment make life easier for passengers.
2.3.2 Offers attract the customers
Litman (2015) discussed that the customers are loyal to the cab aggregators if they are
offered at lower prices. The offers which the customers are mainly received, such as referral,
provide with discounts and free ride services. The digital innovation helps the companies to attract
more customers by providing them with the usage of mobile applications and websites to cash in
internet users. As a new cab business model development for cab services, the cab aggregators
should make up with flyers with the promo codes as well as distribute the flyers in the public places
such as colleges, exhibitions, art events and others. It should provide with higher class services as
value in the coupons should higher and spread across various places. Lewis and Williams (2019)
explained that there is also sharing of coupons online like public posts with promo codes on social
media accounts. Online system should provide the passengers with opportunity to share promo
codes via sharing existed with the cab application. Therefore, using those two channels the
customers should know about offers and discounts provided by cab companies.
Page 23
2.3.1 Payment method
The cab companies are tied up with a free charge, paytm, and other payment methods to
provide a hazel free ride to the customers. They are offering more accessible payment options using
offers along with discounts for the trips. The preference of customers towards online transactions
push them towards Uber cab services to create the portal, and the company spends on different
marketing and pricing strategies. Welch, Gehrke and Widita (2018) argued that the payment
methods accepted in cab services of Ola are Ola money, credit in Ola, credit and debit card
payment, cash and others. Most of the customers are wished to go for cash payment as compared to
card payment. In the case of Uber, the payment is made through cash, credit and debit, paytm and
others (Ge et al. 2017). In Meru cab, there is payment via in-app wallets; unique Bharat QR codes,
as well as credit and debit cards, are accepted for fare payment make life easier for passengers.
2.3.2 Offers attract the customers
Litman (2015) discussed that the customers are loyal to the cab aggregators if they are
offered at lower prices. The offers which the customers are mainly received, such as referral,
provide with discounts and free ride services. The digital innovation helps the companies to attract
more customers by providing them with the usage of mobile applications and websites to cash in
internet users. As a new cab business model development for cab services, the cab aggregators
should make up with flyers with the promo codes as well as distribute the flyers in the public places
such as colleges, exhibitions, art events and others. It should provide with higher class services as
value in the coupons should higher and spread across various places. Lewis and Williams (2019)
explained that there is also sharing of coupons online like public posts with promo codes on social
media accounts. Online system should provide the passengers with opportunity to share promo
codes via sharing existed with the cab application. Therefore, using those two channels the
customers should know about offers and discounts provided by cab companies.
Page 23
DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
2.4 Challenges faced by cab aggregator industry and customers
2.4.1 Identification of points caused gaps in the customer satisfaction
Panigrahi, Shahi and Rathore (2018) discussed that the cab industry is being exposed to
different challenges included competition, globalization, quick changes in the customer preferences
and technological changes with innovation. Téguia, Chambost and Stuart (2018) stated that
challenges required overcoming by cab companies for establishing in addition to maintaining loyal
customer base by meeting with customer's riding experiences. Xu et al. (2018) argued that to
understand requirements of customers, it improves over quality of existing cab services. Following
are the causes of gaps in the customer satisfaction faced from the perspective of the cab aggregator
such as:
No availability of cab: The cab aggregators use probable algorithms for matching with
demand as well as supply to use the mobile applications. Lack of vehicles logged in the system
creates issues to meet with customer's needs (Anirvinna and Deshmukh 2019). It generates a
negative impression on the mind of customers and leads to customer losses.
Lack of skilled resources: Wang (2017) discussed that there is a lack of experienced cab
drivers and non-professional drivers due to improper behaviour with the customers bring complaints
after riding the cab. Faster ride of the drivers to meet with their targets and gain incentives bring the
customers into trouble.
Lack of regulatory rules: The cab aggregator organizations are not coming under
transportation laws, and because of non-availability of the policies disrupt the cab industry (Goel et
al. 2018). There are no such central policies across India, and each state tried to bring rules and
regulations like recently government of Delhi is focused on surge pricing.
Page 24
2.4 Challenges faced by cab aggregator industry and customers
2.4.1 Identification of points caused gaps in the customer satisfaction
Panigrahi, Shahi and Rathore (2018) discussed that the cab industry is being exposed to
different challenges included competition, globalization, quick changes in the customer preferences
and technological changes with innovation. Téguia, Chambost and Stuart (2018) stated that
challenges required overcoming by cab companies for establishing in addition to maintaining loyal
customer base by meeting with customer's riding experiences. Xu et al. (2018) argued that to
understand requirements of customers, it improves over quality of existing cab services. Following
are the causes of gaps in the customer satisfaction faced from the perspective of the cab aggregator
such as:
No availability of cab: The cab aggregators use probable algorithms for matching with
demand as well as supply to use the mobile applications. Lack of vehicles logged in the system
creates issues to meet with customer's needs (Anirvinna and Deshmukh 2019). It generates a
negative impression on the mind of customers and leads to customer losses.
Lack of skilled resources: Wang (2017) discussed that there is a lack of experienced cab
drivers and non-professional drivers due to improper behaviour with the customers bring complaints
after riding the cab. Faster ride of the drivers to meet with their targets and gain incentives bring the
customers into trouble.
Lack of regulatory rules: The cab aggregator organizations are not coming under
transportation laws, and because of non-availability of the policies disrupt the cab industry (Goel et
al. 2018). There are no such central policies across India, and each state tried to bring rules and
regulations like recently government of Delhi is focused on surge pricing.
Page 24
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DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
Customer acquisition: The initial customer acquisition, as well as get a loyal customer is a
challenge for the company as anytime the passengers may switch to other cab services (Kashyap
and Bhatia 2018).
Increase in operating cost: Expansion in new market and initiatives taken to capture cab
market cause an increase in the operating cost of Cab Aggregator Company.
Undesired events: The cab aggregators are taking care of their drivers by providing them
training on behaviour, safety as well as security (Rajesh and Chincholkar 2018). Sometimes,
incidents happen where social media is undesired events used to cause problems for the cab
aggregators.
2.4.2 Explore issues of customer satisfaction due to cab aggregator driver
Application only: The cab aggregators are allowed with booking throughout the mobile app
only. It is required that the passenger should use a Smartphone with the data connections through
mobile. The users who are not used to the technology faced problems and complexity with the
development.
Higher pricing: From the current reviews on social media, there are sometimes cases on
higher prices during peak hours. The cab aggregators called surge pricing meant the cost of the cab
services is increased based on customer's demand on that specific instance. In this way, the
customers are confused about overpricing created worries among customers (Ganapathy 2017). In
that case, the customers have to wait for few minutes, and then there is a possibility that the price
becomes usual.
Rejection of service or denial from driver's side: The drivers ask the customers for
cancelling the ride-booking once they get to identify that the destination is not on the route (Sharma
and Das 2017). After the cancellation, the users are tried to book other cab, then the same driver is
being assigned as the location is nearby.
Page 25
Customer acquisition: The initial customer acquisition, as well as get a loyal customer is a
challenge for the company as anytime the passengers may switch to other cab services (Kashyap
and Bhatia 2018).
Increase in operating cost: Expansion in new market and initiatives taken to capture cab
market cause an increase in the operating cost of Cab Aggregator Company.
Undesired events: The cab aggregators are taking care of their drivers by providing them
training on behaviour, safety as well as security (Rajesh and Chincholkar 2018). Sometimes,
incidents happen where social media is undesired events used to cause problems for the cab
aggregators.
2.4.2 Explore issues of customer satisfaction due to cab aggregator driver
Application only: The cab aggregators are allowed with booking throughout the mobile app
only. It is required that the passenger should use a Smartphone with the data connections through
mobile. The users who are not used to the technology faced problems and complexity with the
development.
Higher pricing: From the current reviews on social media, there are sometimes cases on
higher prices during peak hours. The cab aggregators called surge pricing meant the cost of the cab
services is increased based on customer's demand on that specific instance. In this way, the
customers are confused about overpricing created worries among customers (Ganapathy 2017). In
that case, the customers have to wait for few minutes, and then there is a possibility that the price
becomes usual.
Rejection of service or denial from driver's side: The drivers ask the customers for
cancelling the ride-booking once they get to identify that the destination is not on the route (Sharma
and Das 2017). After the cancellation, the users are tried to book other cab, then the same driver is
being assigned as the location is nearby.
Page 25
DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
Crisis on rainy days: The customers face problems and difficulties at rainy reason to get ride
services as in Delhi. The drivers are unwilling to accept rides request as they are feared of heavy
traffic along with logging of water (Pandya, Rungta and Iyer 2017).
2.5 Analyzing the cab companies operated in Delhi
Shah et al. (2019) discussed that discount war among the online marketplace consumed
conventional retailers in arms in the cab business. The cab booking companies are included Ola,
Uber, Meru who offered lower fares to the users plus higher to the cab driver as they are seeking to
build loyalty. The market leader, Meru, was the first company for succeeding into fragmented space
(Dudley, Banister and Schwanen 2017). It is provided with the cabs for airport drops as well as pick
up and become recognized among the business travelers. Uber, Ola and Meru do not own cars,
connecting the customers with the cab drivers as well as charging commission on each ride.
Venkatesh and Easaw (2015) argued that Uber and Ola are tapped into increasing usage of the
Smartphones for purchasing of products as well as cab services. The asset model is allowed to grow
into the supply at faster rate as compared to Meru, which has competitors to improve its technology.
According to Panigrahi, Shahi and Rathore (2018), the Delhi based companies are helped
the cab brands to provide customer support on social media. Social media assists the customers to
know about the cab companies and their respective ride prices. As per the customer metrics, Ola, as
well as Uber, is looking to increase its customers in next two years while Meru has a tough time, as
well as consolidation, is predictable. Therefore this cab company is losing its customers. Sanghi
(2016) illustrated that along with the price, customer loyalty is also required within the business
organization.
2.5.1 Loyal customers
Muralidhar (2016) discussed that India's largest cab service, Ola has launched with Ola
Select so that they can retain more customers so that the company can keep them away from rival
Page 26
Crisis on rainy days: The customers face problems and difficulties at rainy reason to get ride
services as in Delhi. The drivers are unwilling to accept rides request as they are feared of heavy
traffic along with logging of water (Pandya, Rungta and Iyer 2017).
2.5 Analyzing the cab companies operated in Delhi
Shah et al. (2019) discussed that discount war among the online marketplace consumed
conventional retailers in arms in the cab business. The cab booking companies are included Ola,
Uber, Meru who offered lower fares to the users plus higher to the cab driver as they are seeking to
build loyalty. The market leader, Meru, was the first company for succeeding into fragmented space
(Dudley, Banister and Schwanen 2017). It is provided with the cabs for airport drops as well as pick
up and become recognized among the business travelers. Uber, Ola and Meru do not own cars,
connecting the customers with the cab drivers as well as charging commission on each ride.
Venkatesh and Easaw (2015) argued that Uber and Ola are tapped into increasing usage of the
Smartphones for purchasing of products as well as cab services. The asset model is allowed to grow
into the supply at faster rate as compared to Meru, which has competitors to improve its technology.
According to Panigrahi, Shahi and Rathore (2018), the Delhi based companies are helped
the cab brands to provide customer support on social media. Social media assists the customers to
know about the cab companies and their respective ride prices. As per the customer metrics, Ola, as
well as Uber, is looking to increase its customers in next two years while Meru has a tough time, as
well as consolidation, is predictable. Therefore this cab company is losing its customers. Sanghi
(2016) illustrated that along with the price, customer loyalty is also required within the business
organization.
2.5.1 Loyal customers
Muralidhar (2016) discussed that India's largest cab service, Ola has launched with Ola
Select so that they can retain more customers so that the company can keep them away from rival
Page 26
DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
companies. Under Ola select, the company is offered with handpicked benefits such as Sedan cabs
at the cost of mini so that they can gain loyal customers. Ola tied with various partners for
promoting their services. They partnered with the maker of mobile phone like OnePlus for making
OnePlus 2 phones available for on-demand experiences (Rao and Alexander 2017). The company is
partnered with Myntra, online fashion store for offering free makeovers to the customers.
In order to gain loyal customers, Uber tied up with the Zomato, restaurant platform for
offering rides to the customers those are finding restaurant through Zomato app. The company has
rolled with proposal termed as UberPITCH in Delhi where the business entrepreneurs should field
with thoughts throughout 15-minute cab ride from selecting business capital business. Uber has cab
hailing service providers required to focus on the loyalty of the customers and provided with price
fairness (Agarwal 2019). When a price is high, plus the cost of switching is lower, then it is critical
to gain the loyalty of the customers. The cab hailing service companies are initiated with ride passes
as well as Uber publicized with vouchers for locking in utilizing of the cab services (Smith and
McCormick 2019). The new cab hailing service companies can scale up, focused on the loyalty of
the customers, gain of trust as well as provide with a sense of fairness of price when it turns
profitable.
Uber also provides loyalty programme for their drivers so that it can reduce losses of the
cab drivers. According to Khupse (2017), Uber has launched pilot of the driver loyalty programme
within India so that it is available for selecting drivers in Delhi and other metro cities. Under the
Uber Plus, the company is offered with loyalty programme for enabling the driver partners to make
sure about cost savings plus access to rewards. Kargl, Schmidt and Bösch (2018) argued that they
are earning points over fixed period of each three months. Those points are used to unlock the
rewards as well as tiers. Those tiers are categorized as Blue, Gold, Platinum as well as Diamond.
The opportunities are included with discounted cost for education, access to the loans, fast pickup
for the Airport, access to the free consultation to doctor and others. Those benefits can help the
Page 27
companies. Under Ola select, the company is offered with handpicked benefits such as Sedan cabs
at the cost of mini so that they can gain loyal customers. Ola tied with various partners for
promoting their services. They partnered with the maker of mobile phone like OnePlus for making
OnePlus 2 phones available for on-demand experiences (Rao and Alexander 2017). The company is
partnered with Myntra, online fashion store for offering free makeovers to the customers.
In order to gain loyal customers, Uber tied up with the Zomato, restaurant platform for
offering rides to the customers those are finding restaurant through Zomato app. The company has
rolled with proposal termed as UberPITCH in Delhi where the business entrepreneurs should field
with thoughts throughout 15-minute cab ride from selecting business capital business. Uber has cab
hailing service providers required to focus on the loyalty of the customers and provided with price
fairness (Agarwal 2019). When a price is high, plus the cost of switching is lower, then it is critical
to gain the loyalty of the customers. The cab hailing service companies are initiated with ride passes
as well as Uber publicized with vouchers for locking in utilizing of the cab services (Smith and
McCormick 2019). The new cab hailing service companies can scale up, focused on the loyalty of
the customers, gain of trust as well as provide with a sense of fairness of price when it turns
profitable.
Uber also provides loyalty programme for their drivers so that it can reduce losses of the
cab drivers. According to Khupse (2017), Uber has launched pilot of the driver loyalty programme
within India so that it is available for selecting drivers in Delhi and other metro cities. Under the
Uber Plus, the company is offered with loyalty programme for enabling the driver partners to make
sure about cost savings plus access to rewards. Kargl, Schmidt and Bösch (2018) argued that they
are earning points over fixed period of each three months. Those points are used to unlock the
rewards as well as tiers. Those tiers are categorized as Blue, Gold, Platinum as well as Diamond.
The opportunities are included with discounted cost for education, access to the loans, fast pickup
for the Airport, access to the free consultation to doctor and others. Those benefits can help the
Page 27
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DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
drivers to be working with the company. Panda and Dash (2018) discussed that Uber would check
growth, as well as review feedback previous to it, roll out to the driver partners across the country.
In case of limited inventory of Meru cab, the passengers are complaining about non-
availability of the cabs when they are requested for using the app. The company is working on first
come and first serve based while they are provided with their loyal customers with getting cab
through Meru Select. The customers should be loyal to cab companies by using the same services
on a continuous basis. Surie and Sharma (2019) concluded that in order to gain more customers, the
cab companies are providing their passengers with discounts, free ride offers along with coupons.
2.5.2 Safety concerns
Hanrahan, Ma and Yuan (2018) stated that down the line, the cab companies have started to
compromise with verification of cab drivers. Security is considered to be most crucial concern
compromised for the quality. In Delhi, there is higher concern for women safety. There are a
number of crimes that occurred against the women committed by drivers of the cab application.
Usage of the app is started to rise and appeared in hunger of growth, plus the safety of traveler was
measured as an initial casualty. Kaushal (2018) argued that it is possible that the driver of cab used
fake license. The driver partners should forge the personal documents and other documents, which
is a big challenge for Uber as well as other cab aggregator companies. The cab services are not so
much safe; it is unpleasant experiences as well as unsafe. When women go for share option, it is not
predicted about intentions of passengers (Mahapatra and Patra 2016). Women carry pepper spray so
that they can escape when required. Most of the passengers are want to stay with ride-sharing, and it
is not banned for saving cost as well as time. At times, the cab companies are lifesavers as it is the
best option in Metro connectivity areas. Therefore, safety is a concern for any time of the day.
As a safety tip, it is suggested not to book the cab in the last minutes. It should keep in mind
that while booked cabs get confirmed, and it is on the way, the rider should get full details of cab
driver and check before the car reaches the pickup location (Kashyap and Bhatia 2018). Before
Page 28
drivers to be working with the company. Panda and Dash (2018) discussed that Uber would check
growth, as well as review feedback previous to it, roll out to the driver partners across the country.
In case of limited inventory of Meru cab, the passengers are complaining about non-
availability of the cabs when they are requested for using the app. The company is working on first
come and first serve based while they are provided with their loyal customers with getting cab
through Meru Select. The customers should be loyal to cab companies by using the same services
on a continuous basis. Surie and Sharma (2019) concluded that in order to gain more customers, the
cab companies are providing their passengers with discounts, free ride offers along with coupons.
2.5.2 Safety concerns
Hanrahan, Ma and Yuan (2018) stated that down the line, the cab companies have started to
compromise with verification of cab drivers. Security is considered to be most crucial concern
compromised for the quality. In Delhi, there is higher concern for women safety. There are a
number of crimes that occurred against the women committed by drivers of the cab application.
Usage of the app is started to rise and appeared in hunger of growth, plus the safety of traveler was
measured as an initial casualty. Kaushal (2018) argued that it is possible that the driver of cab used
fake license. The driver partners should forge the personal documents and other documents, which
is a big challenge for Uber as well as other cab aggregator companies. The cab services are not so
much safe; it is unpleasant experiences as well as unsafe. When women go for share option, it is not
predicted about intentions of passengers (Mahapatra and Patra 2016). Women carry pepper spray so
that they can escape when required. Most of the passengers are want to stay with ride-sharing, and it
is not banned for saving cost as well as time. At times, the cab companies are lifesavers as it is the
best option in Metro connectivity areas. Therefore, safety is a concern for any time of the day.
As a safety tip, it is suggested not to book the cab in the last minutes. It should keep in mind
that while booked cabs get confirmed, and it is on the way, the rider should get full details of cab
driver and check before the car reaches the pickup location (Kashyap and Bhatia 2018). Before
Page 28
DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
boarding the cab, the cab number should be shared with friend or family members so that in case of
emergency they should get details of that particular cab. In case of women, when they are travelling
alone, it is critical to review route from pickup to destination. The online app is showing shortest
route when the rider can ask the driver to take other direction they want. In case, the driver insists
on taking following path showing on the app; then the traveler is required to take a call to police or
friend or family member (Ge et al. 2017). Most important is to take note of rating of cab driver
provided on the mobile application.
2.5.3 Preference of female drivers
Maheshwari et al. (2017) explained that in some cases, the women requested for female cab
driver when they are required with specific services. Currently, Uber app is not matching with
particular driver. It is similar in the case of Ola and Meru. The female passengers are not getting any
preferences for the female drivers at any time of the day. They prefer to get female drivers as they
are less likely to engage in rising driving behavior as compared to male drivers. Uber riders were
said that they are feeling uncomfortable at the time of ride-sharing when all the co-passengers and
cab driver is male. In case the driver would be female, then it will reduce occurrence of any crime.
Parsheera, Shah and Bose (2017) argued that women are preferred to go for ride-hailing application
as it is safe for them instead of local taxi services and public transportation.
Rao and Alexander (2017) concluded that female's preference to the female drivers for
Uber, Ola and Meru is required to take into focused. Neither of the cab companies is provided with
the option to request driver focused on gender. Among the three companies, Uber has no such plan
to make it available and recruit female drivers till now. As most of the female passengers are
preferred for female drivers, therefore it is requested or suggested to the cab companies to start this
new driver preference option so that they can attract more female customers towards their services.
There should be lawsuit filed that the company should screen drivers, in addition, to provide safety
to female passengers. The cab companies presented a new option that the passenger should
Page 29
boarding the cab, the cab number should be shared with friend or family members so that in case of
emergency they should get details of that particular cab. In case of women, when they are travelling
alone, it is critical to review route from pickup to destination. The online app is showing shortest
route when the rider can ask the driver to take other direction they want. In case, the driver insists
on taking following path showing on the app; then the traveler is required to take a call to police or
friend or family member (Ge et al. 2017). Most important is to take note of rating of cab driver
provided on the mobile application.
2.5.3 Preference of female drivers
Maheshwari et al. (2017) explained that in some cases, the women requested for female cab
driver when they are required with specific services. Currently, Uber app is not matching with
particular driver. It is similar in the case of Ola and Meru. The female passengers are not getting any
preferences for the female drivers at any time of the day. They prefer to get female drivers as they
are less likely to engage in rising driving behavior as compared to male drivers. Uber riders were
said that they are feeling uncomfortable at the time of ride-sharing when all the co-passengers and
cab driver is male. In case the driver would be female, then it will reduce occurrence of any crime.
Parsheera, Shah and Bose (2017) argued that women are preferred to go for ride-hailing application
as it is safe for them instead of local taxi services and public transportation.
Rao and Alexander (2017) concluded that female's preference to the female drivers for
Uber, Ola and Meru is required to take into focused. Neither of the cab companies is provided with
the option to request driver focused on gender. Among the three companies, Uber has no such plan
to make it available and recruit female drivers till now. As most of the female passengers are
preferred for female drivers, therefore it is requested or suggested to the cab companies to start this
new driver preference option so that they can attract more female customers towards their services.
There should be lawsuit filed that the company should screen drivers, in addition, to provide safety
to female passengers. The cab companies presented a new option that the passenger should
Page 29
DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
designate upto five contacts to share their trip details utilizing mobile cab app (Smith and
McCormick 2019). The company should also provide with background check process and insurance
protection plan details as well as quick response time for the customers in case of reporting issues.
All the cab companies are required to secure ride of female so that they are no such possibility of
any crimes to them.
2.5.4 Cheapest price rate of the cab companies
According to Shrivastava (2018), both Ola, as well as Uber, are two main ride hailing
companies witnessing with slowdown into growth of the trips as there is reduction of the operational
efficiencies. There is cutting the discounts of customers in addition to incentives of cab driver. The
cab market is owned to high base effect and hike into the fares.
The cab operator Meru Cabs have slashed fates within Delhi capital region by
approximately 30% seek to take struggles of Ola as well as Uber for retaining the passengers and
driver objections. The drivers those are working on Ola as well as Uber are facing issues of
incentives, disrupting the cab services. Delhi-NCRfaced 50% hike in price rate in ride of Uber time
fare. New Meru fare is coming with no surge prices, no such charges of ride time, no such base fare
as well as no charges for the night time. Minimum fare considered for Meru cabs is Rs. 48. While in
case of other cab services such as Uber and Ola, the price rates are at high levels (Bansal 2017). On
the other hand, Uber is cheaper as compared to the auto-rickshaw of Delhi. Uber X is popular SKU
with costs of around Rs. 9/km while Uber Black is around Rs. 12/km. Uber Black is a premium
SKU offered with luxury cars.
Bashir, Yousaf and Verma (2016) discussed that with establishment of the number one
position in the Indian market, Ola offered the market with better service as compared to other two
competitors such as Uber and Meru. Lenhart et al. (2010) argued that Ola is different from its
aggregator service providers and segments which are operated in marketplace. This cab service is
popular in the market as it is listed base on rates as well as cabs in the system. Wieland, Hartmann
Page 30
designate upto five contacts to share their trip details utilizing mobile cab app (Smith and
McCormick 2019). The company should also provide with background check process and insurance
protection plan details as well as quick response time for the customers in case of reporting issues.
All the cab companies are required to secure ride of female so that they are no such possibility of
any crimes to them.
2.5.4 Cheapest price rate of the cab companies
According to Shrivastava (2018), both Ola, as well as Uber, are two main ride hailing
companies witnessing with slowdown into growth of the trips as there is reduction of the operational
efficiencies. There is cutting the discounts of customers in addition to incentives of cab driver. The
cab market is owned to high base effect and hike into the fares.
The cab operator Meru Cabs have slashed fates within Delhi capital region by
approximately 30% seek to take struggles of Ola as well as Uber for retaining the passengers and
driver objections. The drivers those are working on Ola as well as Uber are facing issues of
incentives, disrupting the cab services. Delhi-NCRfaced 50% hike in price rate in ride of Uber time
fare. New Meru fare is coming with no surge prices, no such charges of ride time, no such base fare
as well as no charges for the night time. Minimum fare considered for Meru cabs is Rs. 48. While in
case of other cab services such as Uber and Ola, the price rates are at high levels (Bansal 2017). On
the other hand, Uber is cheaper as compared to the auto-rickshaw of Delhi. Uber X is popular SKU
with costs of around Rs. 9/km while Uber Black is around Rs. 12/km. Uber Black is a premium
SKU offered with luxury cars.
Bashir, Yousaf and Verma (2016) discussed that with establishment of the number one
position in the Indian market, Ola offered the market with better service as compared to other two
competitors such as Uber and Meru. Lenhart et al. (2010) argued that Ola is different from its
aggregator service providers and segments which are operated in marketplace. This cab service is
popular in the market as it is listed base on rates as well as cabs in the system. Wieland, Hartmann
Page 30
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DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
and Vargo (2017) mentioned that it could lead to the transparency of price as well as enable to
achieve the trust of the customers. One of the benefits of Ola superior is it can limit to the services
within the boundary of the city. It offers car rental facilities for the outstation trips so that the
passengers can use Ola cab services to travel long-distance trip. The price rate, in this case, is based
on total distance travelled by the passenger. The driver makes the passenger's ride to be customer
friendly services. Ola acquires into report protection of customers, and therefore, they are provided
with 24*7 customer care services. Attractive price of the package along with various fleets of cabs
can target moderate-income segments lead to an increase in customer base. Potts et al. (2018)
explained that GPS tracker in cabs could use to monitor activities in the cab vehicles plus higher
visibility to contribute towards the success of the cab aggregators.
From the above analysis of three cab aggregators, it is seen that Meru provides with
cheapest price rate of the cab services. While it is not offered better customer services and their
services are not so customers friendly. Therefore, in this case, the passengers are not attracted to
their services. Sharma and Das (2017) stated that hence, to gain and achieve more customers, Meru
cab provides with the lowest price. While on the other hand, based on the customer services Ola
provided with better customer services as compared to Uber and Meru cab services. Khupse (2017)
argued that Ola is also best as it allows for various tour packages and deals. Increase into
completion as well as steep rise into the public demand because of quality plus comfort of cab
services offered by the cab services, and there is a boost in investment activities (Das, Bhatt and
Path 2017). The cab aggregators own as well as manage web based application by which it can
enable the customers for connecting with their passengers and offering cab services.
Following table shows the summary of the three cab companies which are operated in Delhi
based on criteria such as business model, technical advancement, marketing factors and services
offered.
Criteria UBER OLA MERU
Page 31
and Vargo (2017) mentioned that it could lead to the transparency of price as well as enable to
achieve the trust of the customers. One of the benefits of Ola superior is it can limit to the services
within the boundary of the city. It offers car rental facilities for the outstation trips so that the
passengers can use Ola cab services to travel long-distance trip. The price rate, in this case, is based
on total distance travelled by the passenger. The driver makes the passenger's ride to be customer
friendly services. Ola acquires into report protection of customers, and therefore, they are provided
with 24*7 customer care services. Attractive price of the package along with various fleets of cabs
can target moderate-income segments lead to an increase in customer base. Potts et al. (2018)
explained that GPS tracker in cabs could use to monitor activities in the cab vehicles plus higher
visibility to contribute towards the success of the cab aggregators.
From the above analysis of three cab aggregators, it is seen that Meru provides with
cheapest price rate of the cab services. While it is not offered better customer services and their
services are not so customers friendly. Therefore, in this case, the passengers are not attracted to
their services. Sharma and Das (2017) stated that hence, to gain and achieve more customers, Meru
cab provides with the lowest price. While on the other hand, based on the customer services Ola
provided with better customer services as compared to Uber and Meru cab services. Khupse (2017)
argued that Ola is also best as it allows for various tour packages and deals. Increase into
completion as well as steep rise into the public demand because of quality plus comfort of cab
services offered by the cab services, and there is a boost in investment activities (Das, Bhatt and
Path 2017). The cab aggregators own as well as manage web based application by which it can
enable the customers for connecting with their passengers and offering cab services.
Following table shows the summary of the three cab companies which are operated in Delhi
based on criteria such as business model, technical advancement, marketing factors and services
offered.
Criteria UBER OLA MERU
Page 31
DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
Business model Variation in fare of cab as
per the situation is
considered as key aspect
of the business model of
UBER. When there is
increase in demand, per
mile prices are also
raised.
The business model of
OLA cab is generating
funds from charging of
commission into the sales
that the company is
generating.
In case of limited
inventory of Meru cab,
the passengers are
complaining about
non-availability of the
cabs when they are
requested focusing the
app
Technical
advancement
UBER charges the tax
owners with smaller fee
and provide access to
technical platform on the
mobile app.
Technical advancement is
being done with Ola, and
then there is an increase in
customer base using
offering better experiences
to customers.
The back end
technology of Meru
enabled to
computerize their
services and regulate
the experience of the
customers.
Marketing
factors
The UBER is promoting
their brand by using
social media and using
advanced promotional
channels. The critical
element to make the cab
companies successful
brand is disciplined plus
speedy accessibility
OLA cabs are promoted
their services through the
social media marketing.
MERU is not using
social media channels
like Facebook to
promote their cab
services among the
customers.
Page 32
Business model Variation in fare of cab as
per the situation is
considered as key aspect
of the business model of
UBER. When there is
increase in demand, per
mile prices are also
raised.
The business model of
OLA cab is generating
funds from charging of
commission into the sales
that the company is
generating.
In case of limited
inventory of Meru cab,
the passengers are
complaining about
non-availability of the
cabs when they are
requested focusing the
app
Technical
advancement
UBER charges the tax
owners with smaller fee
and provide access to
technical platform on the
mobile app.
Technical advancement is
being done with Ola, and
then there is an increase in
customer base using
offering better experiences
to customers.
The back end
technology of Meru
enabled to
computerize their
services and regulate
the experience of the
customers.
Marketing
factors
The UBER is promoting
their brand by using
social media and using
advanced promotional
channels. The critical
element to make the cab
companies successful
brand is disciplined plus
speedy accessibility
OLA cabs are promoted
their services through the
social media marketing.
MERU is not using
social media channels
like Facebook to
promote their cab
services among the
customers.
Page 32
DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
presented by the firm.
Services
provided
UBER is provided with
discounts and coupons
and referrals to their
customers to gain trust.
OLA is provided with
services to capture Indian
market like local transfers,
travel to outstation places,
half or full day rental
services. They also
provided with discounts
and coupons and free
rides.
In case of Meru, cab
availability is not so
much when the
customers have
required it. It offers
reliable pre-booking
for long-distance or
airport as well as
rental facilities.
2.6 Key points from the literature review chapter
The key things which are uncovered into the literature review are the factors which are
affecting the customer retention to develop marketing strategies and exclusive models for
understanding the consumer behaviour towards the cab services with respect to research questions
on customer satisfaction and customer needs. In the literature study, following points have been
discovered such as:
i. Growth of cab aggregators in Delhi
ii. Importance of customer service while booking cab
iii. Challenges faced by cab aggregator industry and customers
iv. Analyzing the cab companies operated in Delhi with respect to loyal customers, safety
concerns, preference of female drivers and cheapest price rate of the cab companies
The points which are further investigated with research design and methods are methods
which are used to analyze selected research topic are positivism research philosophy,
Page 33
presented by the firm.
Services
provided
UBER is provided with
discounts and coupons
and referrals to their
customers to gain trust.
OLA is provided with
services to capture Indian
market like local transfers,
travel to outstation places,
half or full day rental
services. They also
provided with discounts
and coupons and free
rides.
In case of Meru, cab
availability is not so
much when the
customers have
required it. It offers
reliable pre-booking
for long-distance or
airport as well as
rental facilities.
2.6 Key points from the literature review chapter
The key things which are uncovered into the literature review are the factors which are
affecting the customer retention to develop marketing strategies and exclusive models for
understanding the consumer behaviour towards the cab services with respect to research questions
on customer satisfaction and customer needs. In the literature study, following points have been
discovered such as:
i. Growth of cab aggregators in Delhi
ii. Importance of customer service while booking cab
iii. Challenges faced by cab aggregator industry and customers
iv. Analyzing the cab companies operated in Delhi with respect to loyal customers, safety
concerns, preference of female drivers and cheapest price rate of the cab companies
The points which are further investigated with research design and methods are methods
which are used to analyze selected research topic are positivism research philosophy,
Page 33
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DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
descriptive research design and deductive research approach. Application of both primary as
well as secondary sources are taken help to provide detailed of the selected research topic and
bring analysis of collected data.
Page 34
descriptive research design and deductive research approach. Application of both primary as
well as secondary sources are taken help to provide detailed of the selected research topic and
bring analysis of collected data.
Page 34
DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
Chapter 3: Research Methodology
3.1 Introduction
Flick (2015) stated that the research methodology is utilized to introduce of statistical tools
towards performing the data analysis. The methods are introduced in this section to analyse
concepts of scientific research and conduct a scientific inquiry. Performing of research methods is a
system to explain the issues conducted into the research work. This particular chapter addressed
data collection and methods which are utilized to investigate and address selected research
questions. It can triangulate collected data from the literature review study. The theories along with
concepts are being adopted into methods which help to understand chosen research topic. The
researcher tried to apply of processes help to investigate the development of new business model in
Delhi.
3.2 Methods outline
In this study, detailed research methods are analyzed towards development of cab business
model and its effect on the passengers and customers those are using cab services for their daily
travelling in Delhi. The selected philosophy in this study is positivism helps to achieve data based
on detailed evaluation. Descriptive research approach is taken into consideration allowed the
researcher to perform the research study based on secondary sources. Descriptive research design is
selected to define and apply concepts in a way help to define impact of cab services among the
passengers. Application of both primary as well as secondary sources are taken help to provide
detailed of the selected research topic and bring analysis of collected data. The sample size
consisted for this study is 50 those are daily travelers and interview is performed by remarkable
person from the competitors’ company.
Page 35
Chapter 3: Research Methodology
3.1 Introduction
Flick (2015) stated that the research methodology is utilized to introduce of statistical tools
towards performing the data analysis. The methods are introduced in this section to analyse
concepts of scientific research and conduct a scientific inquiry. Performing of research methods is a
system to explain the issues conducted into the research work. This particular chapter addressed
data collection and methods which are utilized to investigate and address selected research
questions. It can triangulate collected data from the literature review study. The theories along with
concepts are being adopted into methods which help to understand chosen research topic. The
researcher tried to apply of processes help to investigate the development of new business model in
Delhi.
3.2 Methods outline
In this study, detailed research methods are analyzed towards development of cab business
model and its effect on the passengers and customers those are using cab services for their daily
travelling in Delhi. The selected philosophy in this study is positivism helps to achieve data based
on detailed evaluation. Descriptive research approach is taken into consideration allowed the
researcher to perform the research study based on secondary sources. Descriptive research design is
selected to define and apply concepts in a way help to define impact of cab services among the
passengers. Application of both primary as well as secondary sources are taken help to provide
detailed of the selected research topic and bring analysis of collected data. The sample size
consisted for this study is 50 those are daily travelers and interview is performed by remarkable
person from the competitors’ company.
Page 35
DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
3.3 Research philosophy
In this particular research methodology chapter, research philosophy is assisted for
determining accurate ways to analyze the selected research topic. Glesne (2015) discussed that it
helps to analyze based on which assumptions the research work is carried out. There are mainly two
types of research philosophy categorized as positivism and interpretivism. Hair et al. (2015) stated
that positivism is helped in logical application and analyzed hidden facts related to chosen research
related work. Under this selected philosophy, in-depth research observations as well as knowledge
are being enabled. On other hand, interpretivism is used to solve complex structure of business
activities. Secondary data collection method is used for this research philosophy. Realism is relied
on ideas which are independent on reality from humans. It is focused on assuming approaches
towards knowledge and skills development.
3.3.1 Justification of selecting appropriate philosophy
In this thesis study, positivism is selected where the researcher is being allowed to reveal
hidden data related to business model development for cab services among the passengers and
tourists. It can restrict to the research actions for interpretation of collected data.
3.4 Research approach
The research approaches are utilized for selecting proper approach used to perform an
analysis of development of cab business model in Delhi. There are two types of research approach
used like deductive and inductive approach. Deductive approach is selected to test existing customer
behaviour theories and provide hypothesis to provide assumptions taken into consideration. The
research approach will enable researcher to solve problems by collecting of information types and
data to reject the research hypothesis. Inductive approach is selected to be flexible in addition to
open ended into nature as there are no proper theories to collect data and information (Ledford and
Gast 2018). This particular research approach is offered the researcher with arguments to observe
collected data.
Page 36
3.3 Research philosophy
In this particular research methodology chapter, research philosophy is assisted for
determining accurate ways to analyze the selected research topic. Glesne (2015) discussed that it
helps to analyze based on which assumptions the research work is carried out. There are mainly two
types of research philosophy categorized as positivism and interpretivism. Hair et al. (2015) stated
that positivism is helped in logical application and analyzed hidden facts related to chosen research
related work. Under this selected philosophy, in-depth research observations as well as knowledge
are being enabled. On other hand, interpretivism is used to solve complex structure of business
activities. Secondary data collection method is used for this research philosophy. Realism is relied
on ideas which are independent on reality from humans. It is focused on assuming approaches
towards knowledge and skills development.
3.3.1 Justification of selecting appropriate philosophy
In this thesis study, positivism is selected where the researcher is being allowed to reveal
hidden data related to business model development for cab services among the passengers and
tourists. It can restrict to the research actions for interpretation of collected data.
3.4 Research approach
The research approaches are utilized for selecting proper approach used to perform an
analysis of development of cab business model in Delhi. There are two types of research approach
used like deductive and inductive approach. Deductive approach is selected to test existing customer
behaviour theories and provide hypothesis to provide assumptions taken into consideration. The
research approach will enable researcher to solve problems by collecting of information types and
data to reject the research hypothesis. Inductive approach is selected to be flexible in addition to
open ended into nature as there are no proper theories to collect data and information (Ledford and
Gast 2018). This particular research approach is offered the researcher with arguments to observe
collected data.
Page 36
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3.4.1 Justification of selecting appropriate approach
Deductive approach is suitable for this research study as it enables researcher to solve issues
and problems by collection of information and data to verify and reject the research hypothesis. It is
started with theories and concepts of customer behaviour while using cab services and then specific
research hypothesis is being tested. Observations are taken to collect and address hypothesis end to
test it. This particular research approach is selected to perform hypothesis testing and clarification
and images.
3.5 Research design
According to Lewis (2015), research design is stated to develop research framework needed
to gather and analyze the data in this case. This research design will help revealing pattern plus data
sources needed to complete the research study. There are three types of research designs such as
Explanatory, Exploratory and Descriptive. Mackey and Gass (2015) discussed that exploratory
design is permitted researcher to classify necessary data and conduct of research study. Explanatory
design is used to provide with aim and define incidents which are performed with respect to time
plus impacts. Finally, descriptive research design is offered with details of events occurred while it
is accounted for research study time period with impact of chosen research topic.
3.5.1 Justification of selecting appropriate design
This research study is cross sectional and therefore descriptive research design is suitable
for this study. This selected design is focused on evaluation of development factors of new cab
business model and its business performance.
3.6 Data collection procedure
In order to conduct the research study, the data is accounted as important information
required for this research study. Key significant information plus data is provided with insight to
perform the study in proper manner. Panneerselvam (2014) stated that application of detailed
Page 37
3.4.1 Justification of selecting appropriate approach
Deductive approach is suitable for this research study as it enables researcher to solve issues
and problems by collection of information and data to verify and reject the research hypothesis. It is
started with theories and concepts of customer behaviour while using cab services and then specific
research hypothesis is being tested. Observations are taken to collect and address hypothesis end to
test it. This particular research approach is selected to perform hypothesis testing and clarification
and images.
3.5 Research design
According to Lewis (2015), research design is stated to develop research framework needed
to gather and analyze the data in this case. This research design will help revealing pattern plus data
sources needed to complete the research study. There are three types of research designs such as
Explanatory, Exploratory and Descriptive. Mackey and Gass (2015) discussed that exploratory
design is permitted researcher to classify necessary data and conduct of research study. Explanatory
design is used to provide with aim and define incidents which are performed with respect to time
plus impacts. Finally, descriptive research design is offered with details of events occurred while it
is accounted for research study time period with impact of chosen research topic.
3.5.1 Justification of selecting appropriate design
This research study is cross sectional and therefore descriptive research design is suitable
for this study. This selected design is focused on evaluation of development factors of new cab
business model and its business performance.
3.6 Data collection procedure
In order to conduct the research study, the data is accounted as important information
required for this research study. Key significant information plus data is provided with insight to
perform the study in proper manner. Panneerselvam (2014) stated that application of detailed
Page 37
DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
information is significant to the study assisted to deliver data accuracy plus maintenance of research
standard.
3.6.1 Data sources used
Silverman (2016) discussed that identification of data collection methods are critical to
perform data analysis and data interpretation. The data sources are used in this particular study to
provide with sensitive information relevant to the study. There are two types of data collection
methods categorized as primary in addition to secondary data collection method. Smith (2015)
discussed that primary data method is used to collect data through completed study. Primary data is
selected in this case to cater with requirements of research study. Raw data are provided with
comprehensive insight of data information which is required justification of data sources based on
authority plus dependability. The secondary data is being collected and gathered by other people.
The secondary data is gathered from academic journals, news articles and published writings and
websites.
In this particular study, primary data collection and secondary data collection method is
selected helps to identify development factors required for cab business model. Questionnaires are
selected as primary method where the data are collected from at least 50 respondents from corporate
segments. It is based on corporate sector segments as it is collected from daily travelers included
throughout Online Google Form. The interview is taken by remarkable person from the competitors
of the company. Therefore, questionnaire survey is used to perform the research study. The survey
is sent to people in India throughout Google Form for targeting the corporate segment. It is kept
anonymous and left to person those are voluntarily respond to survey method. The collected
responses should help to analyze commuter’s approach while booking of cab. Secondary data is
collected by taking arguments of other person’s from academic journals, websites and others.
Page 38
information is significant to the study assisted to deliver data accuracy plus maintenance of research
standard.
3.6.1 Data sources used
Silverman (2016) discussed that identification of data collection methods are critical to
perform data analysis and data interpretation. The data sources are used in this particular study to
provide with sensitive information relevant to the study. There are two types of data collection
methods categorized as primary in addition to secondary data collection method. Smith (2015)
discussed that primary data method is used to collect data through completed study. Primary data is
selected in this case to cater with requirements of research study. Raw data are provided with
comprehensive insight of data information which is required justification of data sources based on
authority plus dependability. The secondary data is being collected and gathered by other people.
The secondary data is gathered from academic journals, news articles and published writings and
websites.
In this particular study, primary data collection and secondary data collection method is
selected helps to identify development factors required for cab business model. Questionnaires are
selected as primary method where the data are collected from at least 50 respondents from corporate
segments. It is based on corporate sector segments as it is collected from daily travelers included
throughout Online Google Form. The interview is taken by remarkable person from the competitors
of the company. Therefore, questionnaire survey is used to perform the research study. The survey
is sent to people in India throughout Google Form for targeting the corporate segment. It is kept
anonymous and left to person those are voluntarily respond to survey method. The collected
responses should help to analyze commuter’s approach while booking of cab. Secondary data is
collected by taking arguments of other person’s from academic journals, websites and others.
Page 38
DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
3.6.2 Data analysis techniques
In this selected research study, researcher is based on quantitative as well as qualitative data
analysis for getting the research findings. Taylor, Bogdan and DeVault (2015) explained that
combination of qualitative and quantitative data is suitable for this study as both survey with
interview is being performed. The researcher is performed this study to get primary data from the
daily travelers and analyzed those data by means of quantitative data analysis by means of survey
questionnaire. The data analysis method is employed to triangulate investigation to add verifications
to literature review. The quantitative data analysis is performed from questionnaires in form of
graphs and table, charts. It is allowed the researcher to get numerical data interpreted to review in
statistical way displayed trends and triangulations.
The qualitative approach is selected on methods to subjective evaluate the opinions and also
attitudes. By means of this approach, the researcher performed in-depth analysis on selected topic
and perform this focus group interviews.
3.7 Population and sample
In this particular research study, population is the total number of people those are involved
in performing the responses to survey questions. The daily travelers those are using cab services are
taken into consideration for research work. The sample is taken to study development of cab
business model in Delhi. The selected sample method is random sampling where no such specific
criteria are selected to select the population to perform the survey. In order to perform the
quantitative research techniques, 50 daily travelers are considered and interacted by means of
questionnaire forms. Hence, the sample size is 50.
3.8 Ethical considerations
Throughout process of research methods, the researcher is required to follow a strict ethical
guidelines help to recognize wrong as well as right set of behaviors needed to adapt throughout
Page 39
3.6.2 Data analysis techniques
In this selected research study, researcher is based on quantitative as well as qualitative data
analysis for getting the research findings. Taylor, Bogdan and DeVault (2015) explained that
combination of qualitative and quantitative data is suitable for this study as both survey with
interview is being performed. The researcher is performed this study to get primary data from the
daily travelers and analyzed those data by means of quantitative data analysis by means of survey
questionnaire. The data analysis method is employed to triangulate investigation to add verifications
to literature review. The quantitative data analysis is performed from questionnaires in form of
graphs and table, charts. It is allowed the researcher to get numerical data interpreted to review in
statistical way displayed trends and triangulations.
The qualitative approach is selected on methods to subjective evaluate the opinions and also
attitudes. By means of this approach, the researcher performed in-depth analysis on selected topic
and perform this focus group interviews.
3.7 Population and sample
In this particular research study, population is the total number of people those are involved
in performing the responses to survey questions. The daily travelers those are using cab services are
taken into consideration for research work. The sample is taken to study development of cab
business model in Delhi. The selected sample method is random sampling where no such specific
criteria are selected to select the population to perform the survey. In order to perform the
quantitative research techniques, 50 daily travelers are considered and interacted by means of
questionnaire forms. Hence, the sample size is 50.
3.8 Ethical considerations
Throughout process of research methods, the researcher is required to follow a strict ethical
guidelines help to recognize wrong as well as right set of behaviors needed to adapt throughout
Page 39
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entire research work. The researcher is required to determine development of cab services and
business model using ethical considerations help to add some sort of standards to selected title for
the study such as:
Data Application: The data are being gained from the research study helps to understand
current trend of the customer behaviour to travel through cab. Any form of commercial data
application is avoided such that the data findings for this study are limited to academic purposes.
Involvement of research respondents: The researcher is tried to insert any external authority
on providing pressure over the research respondents to take part into the feedback processes. The
respondents with voluntary participation are not so much motivated to participate into the study.
Anonymity of respondents: It is made sure that no mental as well as physical harassment are
involved with the research respondents, and identities of the respondents are concealed irrespective
of request from the participants.
Based on those ethical considerations, the researcher had performed the research work for
maintaining research ethics.
3.9 Summary
It is summarized that in this study primary and secondary data collection methods are
selected using survey and review of academic journals. The data are analyzed through mixed
approach to understand development of new cab business model in Delhi. Positivism is selected as
research philosophy, deductive approach as research approach and descriptive as research design to
determine framework required for this particular research study investigation. The researcher is
aligned with this study’s nature and framed methods based on this selected topic evaluation.
Selected methods in addition to procedures are suitable for this work as it offered with requisite
standard to expand completed work so that reader can understand the research work efficiently.
Page 40
entire research work. The researcher is required to determine development of cab services and
business model using ethical considerations help to add some sort of standards to selected title for
the study such as:
Data Application: The data are being gained from the research study helps to understand
current trend of the customer behaviour to travel through cab. Any form of commercial data
application is avoided such that the data findings for this study are limited to academic purposes.
Involvement of research respondents: The researcher is tried to insert any external authority
on providing pressure over the research respondents to take part into the feedback processes. The
respondents with voluntary participation are not so much motivated to participate into the study.
Anonymity of respondents: It is made sure that no mental as well as physical harassment are
involved with the research respondents, and identities of the respondents are concealed irrespective
of request from the participants.
Based on those ethical considerations, the researcher had performed the research work for
maintaining research ethics.
3.9 Summary
It is summarized that in this study primary and secondary data collection methods are
selected using survey and review of academic journals. The data are analyzed through mixed
approach to understand development of new cab business model in Delhi. Positivism is selected as
research philosophy, deductive approach as research approach and descriptive as research design to
determine framework required for this particular research study investigation. The researcher is
aligned with this study’s nature and framed methods based on this selected topic evaluation.
Selected methods in addition to procedures are suitable for this work as it offered with requisite
standard to expand completed work so that reader can understand the research work efficiently.
Page 40
DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
Chapter 4: Data analysis and findings
4.1 Introduction
In this particular data analysis as well as findings chapter, the researcher showed the data
analysis of the development of cab business model in Delhi and demand of the customers towards
the cab services. By means of both quantitative as well as qualitative data analysis, it helped the
researcher to enlarge into value of collected data plus build proper analysis of the cab services
among the customers. The data analysis is implicated with complexities as well as limitation of the
research study. The researcher analyzes the research findings to add validity into the data collection
processes. In order to perform quantitative data analysis, the respondents considered are daily
travelers using cab services in Delhi. In order to carry out qualitative data analysis, interview is
done to the customer relationship manager of any of the competitors’ company such as Uber.
4.2 Quantitative Data Analysis
In this particular section, the daily travelers will be measured for performing the
quantitative data analysis such that the researcher can recognize the usage and demand of the cab
services in Delhi. The total number of respondents those are taken for quantitative data analysis is
50 as others were not interested to fill the Google Form. Therefore, the total sample size which is
taken is 50 while others are discarded from the sample. Other populations are discarded as some are
not interested to fill the survey form and some are busy in their work.
Following are the list of the survey questions which assisted the researcher to perform the
study as well as analyze the growth of new cab business model for Indian market.
1. Gender
Page 41
Chapter 4: Data analysis and findings
4.1 Introduction
In this particular data analysis as well as findings chapter, the researcher showed the data
analysis of the development of cab business model in Delhi and demand of the customers towards
the cab services. By means of both quantitative as well as qualitative data analysis, it helped the
researcher to enlarge into value of collected data plus build proper analysis of the cab services
among the customers. The data analysis is implicated with complexities as well as limitation of the
research study. The researcher analyzes the research findings to add validity into the data collection
processes. In order to perform quantitative data analysis, the respondents considered are daily
travelers using cab services in Delhi. In order to carry out qualitative data analysis, interview is
done to the customer relationship manager of any of the competitors’ company such as Uber.
4.2 Quantitative Data Analysis
In this particular section, the daily travelers will be measured for performing the
quantitative data analysis such that the researcher can recognize the usage and demand of the cab
services in Delhi. The total number of respondents those are taken for quantitative data analysis is
50 as others were not interested to fill the Google Form. Therefore, the total sample size which is
taken is 50 while others are discarded from the sample. Other populations are discarded as some are
not interested to fill the survey form and some are busy in their work.
Following are the list of the survey questions which assisted the researcher to perform the
study as well as analyze the growth of new cab business model for Indian market.
1. Gender
Page 41
DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
Options No of respondents Total respondents Response %
Male 28 50 56%
Female 22 50 44%
Table 4.1: Gender
Figure 4.1: Gender
From the above figure, it is found that out of 50 respondents, 56% of the respondents are
male and 44% of them are female those are interested and provided their responses to participate in
the research study.
2. Age
Options No of respondents Total respondents Response %
21-29 years 39 50 78%
Page 42
Options No of respondents Total respondents Response %
Male 28 50 56%
Female 22 50 44%
Table 4.1: Gender
Figure 4.1: Gender
From the above figure, it is found that out of 50 respondents, 56% of the respondents are
male and 44% of them are female those are interested and provided their responses to participate in
the research study.
2. Age
Options No of respondents Total respondents Response %
21-29 years 39 50 78%
Page 42
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DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
30-39 years 5 50 10%
40-49 years 4 50 8%
Above 50 years 2 50 4%
Table 4.2: Age
Figure 4.2: Age
From the above figure, it is found that out of 50 respondents, 78% of the respondents are
between 21-29 years, 10% of them are 30-39 years, 8% of them are between 40-49 years and 4% of
them are above 50 years. Therefore, most of the respondents are young those are involved into the
research learning as they are between 21-29 years and used the cab services mostly.
3. How often do you travel by cab?
Options No of respondents Total respondents Response %
Every day 8 50 16%
Page 43
30-39 years 5 50 10%
40-49 years 4 50 8%
Above 50 years 2 50 4%
Table 4.2: Age
Figure 4.2: Age
From the above figure, it is found that out of 50 respondents, 78% of the respondents are
between 21-29 years, 10% of them are 30-39 years, 8% of them are between 40-49 years and 4% of
them are above 50 years. Therefore, most of the respondents are young those are involved into the
research learning as they are between 21-29 years and used the cab services mostly.
3. How often do you travel by cab?
Options No of respondents Total respondents Response %
Every day 8 50 16%
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DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
Every week 12 50 24%
Every 2-3 weeks 10 50 20%
Every month 20 50 40%
Table 4.3: Time to travel by cab
Figure 4.3: Time to travel by cab
From the above figure, it is found that out of 50 respondents, 40% of the respondents are
travelling by cab on every month, 24% of them are traveling every week, 20% of them are travelling
every 2-3 weeks and 16% of them are using it for every day. Therefore, the cab services are mostly
used by the travelers on every month. It means most people are used monthly basis cab services
available for the daily office traveling means daily pick as well as drop to the office. This service
contains fixed time to pick up from the home and then drop service in Delhi.
4. Do you use cab for personal or professional travel?
Page 44
Every week 12 50 24%
Every 2-3 weeks 10 50 20%
Every month 20 50 40%
Table 4.3: Time to travel by cab
Figure 4.3: Time to travel by cab
From the above figure, it is found that out of 50 respondents, 40% of the respondents are
travelling by cab on every month, 24% of them are traveling every week, 20% of them are travelling
every 2-3 weeks and 16% of them are using it for every day. Therefore, the cab services are mostly
used by the travelers on every month. It means most people are used monthly basis cab services
available for the daily office traveling means daily pick as well as drop to the office. This service
contains fixed time to pick up from the home and then drop service in Delhi.
4. Do you use cab for personal or professional travel?
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DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
Options No of respondents Total respondents Response %
Personal travel 13 50 26%
Professional travel 4 50 8%
Both 22 50 66%
Table 4.4: Use cab for personal or professional travel
Figure 4.4: Use cab for personal or professional travel
From the above figure, it is found that out of 50 respondents, 66% of the respondents use
the cab services for both professional and personal travel. It is found that 26% of the respondents
use cab for personal travel and 8% of them use it for professional travel.
5. Which online cab aggregator do you typically use?
Options No of respondents Total respondents Response %
Ola cabs 16 50 32%
Uber 33 50 66%
Page 45
Options No of respondents Total respondents Response %
Personal travel 13 50 26%
Professional travel 4 50 8%
Both 22 50 66%
Table 4.4: Use cab for personal or professional travel
Figure 4.4: Use cab for personal or professional travel
From the above figure, it is found that out of 50 respondents, 66% of the respondents use
the cab services for both professional and personal travel. It is found that 26% of the respondents
use cab for personal travel and 8% of them use it for professional travel.
5. Which online cab aggregator do you typically use?
Options No of respondents Total respondents Response %
Ola cabs 16 50 32%
Uber 33 50 66%
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Meru cabs 0 50 0%
Local cab 1 50 2%
Others 0 50 0%
Table 4.5: Online cab aggregator typically use
Figure 4.5: Online cab aggregator typically use
From the above figure, it is found that out of 50 respondents, 66% of the respondents are
used Uber cab aggregator for travelling from one place to others, 32% of them are using Ola cabs
and 2% of them are using the local cab. Therefore, in Delhi Uber cab services are mostly used by
public to reach their destination.
6. Which of the following would you think better payment method for the online cab transportation?
Options No of respondents Total respondents Response %
Cash pay 15 50 30%
Wallet pay 16 50 32%
Page 46
Meru cabs 0 50 0%
Local cab 1 50 2%
Others 0 50 0%
Table 4.5: Online cab aggregator typically use
Figure 4.5: Online cab aggregator typically use
From the above figure, it is found that out of 50 respondents, 66% of the respondents are
used Uber cab aggregator for travelling from one place to others, 32% of them are using Ola cabs
and 2% of them are using the local cab. Therefore, in Delhi Uber cab services are mostly used by
public to reach their destination.
6. Which of the following would you think better payment method for the online cab transportation?
Options No of respondents Total respondents Response %
Cash pay 15 50 30%
Wallet pay 16 50 32%
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DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
Online payment method 19 50 28%
Table 4.6: Better payment method for the online cab transportation
Figure 4.6: Better payment method for the online cab transportation
From the above figure, it is found that out of 50 respondents, 38% of the respondents are
thinking that online payment method is better payment method for the online cab services. It is also
found that 32% of the respondents are going for wallet pay while 30% for cash pay. Therefore,
among all the payment methods for cab services, online transactions using credit or debit card is
considered as best method.
7. Which factor is most important for you when selecting a transportation form?
Options No of respondents Total respondents Response %
Price and transparency 10 50 20%
Ease of use 3 50 6%
Page 47
Online payment method 19 50 28%
Table 4.6: Better payment method for the online cab transportation
Figure 4.6: Better payment method for the online cab transportation
From the above figure, it is found that out of 50 respondents, 38% of the respondents are
thinking that online payment method is better payment method for the online cab services. It is also
found that 32% of the respondents are going for wallet pay while 30% for cash pay. Therefore,
among all the payment methods for cab services, online transactions using credit or debit card is
considered as best method.
7. Which factor is most important for you when selecting a transportation form?
Options No of respondents Total respondents Response %
Price and transparency 10 50 20%
Ease of use 3 50 6%
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DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
Safety and security 4 50 8%
All of the above 33 50 66%
Table 4.7: Factor important for selecting a transportation form
Figure 4.7: Factor important for selecting a transportation form
From the above figure, it is found that out of 50 respondents, according to 66% of the
respondent’s all the factors (price and transparency, ease of use, safety and security) are important
factors to select the transportation services. It is also found that 20% of the respondents responded
for price and transparency factor, 8% of them towards safety and security and 6% for ease of use.
The factors such as price and transparency, ease of use, safety and security have attracted the
passengers towards the cab services. Cheaper price of the cab services, ease of using the mobile
application and safety of female passengers attracted the customers and created higher demand.
8. Do you prefer to compare the cab operators availability plus transparency on fares from unified
platform?
Page 48
Safety and security 4 50 8%
All of the above 33 50 66%
Table 4.7: Factor important for selecting a transportation form
Figure 4.7: Factor important for selecting a transportation form
From the above figure, it is found that out of 50 respondents, according to 66% of the
respondent’s all the factors (price and transparency, ease of use, safety and security) are important
factors to select the transportation services. It is also found that 20% of the respondents responded
for price and transparency factor, 8% of them towards safety and security and 6% for ease of use.
The factors such as price and transparency, ease of use, safety and security have attracted the
passengers towards the cab services. Cheaper price of the cab services, ease of using the mobile
application and safety of female passengers attracted the customers and created higher demand.
8. Do you prefer to compare the cab operators availability plus transparency on fares from unified
platform?
Page 48
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Options No of respondents Total respondents Response %
Yes 45 50 90%
No 5 50 10%
Table 4.8: Prefer to compare the cab operators availability plus transparency on fares
from unified platform
Figure 4.8: Prefer to compare the cab operators availability plus transparency on
fares from unified platform
From the above figure, it is found that out of 50 respondents, 90% of the respondents are
preferred to compare the cab operators availability plus transparency on fares from unified platform.
It is found that 10% of the respondents are not preferred for comparing availability of car operators
and transparency on fares.
9. In your opinion, are prices of cab affordable?
Page 49
Options No of respondents Total respondents Response %
Yes 45 50 90%
No 5 50 10%
Table 4.8: Prefer to compare the cab operators availability plus transparency on fares
from unified platform
Figure 4.8: Prefer to compare the cab operators availability plus transparency on
fares from unified platform
From the above figure, it is found that out of 50 respondents, 90% of the respondents are
preferred to compare the cab operators availability plus transparency on fares from unified platform.
It is found that 10% of the respondents are not preferred for comparing availability of car operators
and transparency on fares.
9. In your opinion, are prices of cab affordable?
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DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
Options No of respondents Total respondents Response %
Completely affordable 3 50 6%
Moderately affordable 39 50 78%
Unaffordable 7 50 14%
Extremely expensive 1 50 2%
Table 4.9: Prices of cab affordable
Figure 4.9: Prices of cab affordable
From the above figure, it is found that out of 50 respondents, 78% of the respondents are
opined that the prices of cab are moderately affordable. It is also found that 14% responded for
unaffordable, 6% for completely affordable and 2% for extremely affordable.
10. What are the offers do you require to provide in the cab services?
Page 50
Options No of respondents Total respondents Response %
Completely affordable 3 50 6%
Moderately affordable 39 50 78%
Unaffordable 7 50 14%
Extremely expensive 1 50 2%
Table 4.9: Prices of cab affordable
Figure 4.9: Prices of cab affordable
From the above figure, it is found that out of 50 respondents, 78% of the respondents are
opined that the prices of cab are moderately affordable. It is also found that 14% responded for
unaffordable, 6% for completely affordable and 2% for extremely affordable.
10. What are the offers do you require to provide in the cab services?
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DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
Options No of respondents Total respondents Response %
Free ride promo code 10 50 20%
20% discount on the ride 3 50 36%
First 3 rides free offer 4 50 8%
Coupon code 33 50 66%
Table 4.10: Offers require providing in the cab services
Figure 4.10: Offers require providing in the cab services
From the above figure, it is found that out of 50 respondents, 38% of the respondents
responded for coupon code to get the cab services as offers. It is found that 36% of the respondents
responded for 20% discount on the ride, 20% towards free ride promo code and 8% for first 3 rides
free offer.
Page 51
Options No of respondents Total respondents Response %
Free ride promo code 10 50 20%
20% discount on the ride 3 50 36%
First 3 rides free offer 4 50 8%
Coupon code 33 50 66%
Table 4.10: Offers require providing in the cab services
Figure 4.10: Offers require providing in the cab services
From the above figure, it is found that out of 50 respondents, 38% of the respondents
responded for coupon code to get the cab services as offers. It is found that 36% of the respondents
responded for 20% discount on the ride, 20% towards free ride promo code and 8% for first 3 rides
free offer.
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11. Do you think that it is preferable to get female drivers at any time of the day for the female
passengers?
Options No of respondents Total respondents Response %
Yes 39 50 78%
No 11 50 22%
Table 4.11: Preferable to get female drivers at any time of the day for the female
passengers
Figure 4.11: Preferable to get female drivers at any time of the day for the female
passengers
From the above figure, it is found that out of 50 respondents, according to 78% of the
respondents, it is preferable to get female drivers at any time of the day for the female passengers. It
is found that 22% of them are not preferred for the female drivers.
Page 52
11. Do you think that it is preferable to get female drivers at any time of the day for the female
passengers?
Options No of respondents Total respondents Response %
Yes 39 50 78%
No 11 50 22%
Table 4.11: Preferable to get female drivers at any time of the day for the female
passengers
Figure 4.11: Preferable to get female drivers at any time of the day for the female
passengers
From the above figure, it is found that out of 50 respondents, according to 78% of the
respondents, it is preferable to get female drivers at any time of the day for the female passengers. It
is found that 22% of them are not preferred for the female drivers.
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DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
12. In which situation do you prefer to get carpool?
Options No of respondents Total respondents Response %
Only with someone I know 7 50 14%
I would share with the stranger to
know more about them 2
50 4%
Possibly subject to the
considerations 26
50 52%
I am not interested in car sharing 15 50 30%
Table 4.12: Situation prefer to get carpool
Figure 4.12: Situation prefer to get carpool
From the above figure, it is found that out of 50 respondents, according to 52% of the
respondents, it is preferred to get carpool as possibly subject to the considerations. It is found that
Page 53
12. In which situation do you prefer to get carpool?
Options No of respondents Total respondents Response %
Only with someone I know 7 50 14%
I would share with the stranger to
know more about them 2
50 4%
Possibly subject to the
considerations 26
50 52%
I am not interested in car sharing 15 50 30%
Table 4.12: Situation prefer to get carpool
Figure 4.12: Situation prefer to get carpool
From the above figure, it is found that out of 50 respondents, according to 52% of the
respondents, it is preferred to get carpool as possibly subject to the considerations. It is found that
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DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
30% of them are responded that they are not interested in car sharing, 14% responded for only with
someone I know and 4% for those would share with the stranger to know more about them.
13. What would be primary reason to opt car pool?
Options No of respondents Total respondents Response %
To save fuel costs 10 50 18%
For environmental benefit 13 50 20%
To save cost of car ownership 18 50 26%
Efficient services to desired
destination 9
50 36%
Table 4.13: Primary reason to opt car pool
Page 54
30% of them are responded that they are not interested in car sharing, 14% responded for only with
someone I know and 4% for those would share with the stranger to know more about them.
13. What would be primary reason to opt car pool?
Options No of respondents Total respondents Response %
To save fuel costs 10 50 18%
For environmental benefit 13 50 20%
To save cost of car ownership 18 50 26%
Efficient services to desired
destination 9
50 36%
Table 4.13: Primary reason to opt car pool
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Figure 4.13: Primary reason to opt car pool
From the above figure, it is found that out of 50 respondents, 36% of the respondents
responded that primary reason to opt car pool is saving cost of car ownership. It is also found that
according to 26% respondents they go for environmental benefit, 20% for saving fuel cost and 18%
towards efficient services to desired destination.
14. What information would you require about the car owner related to security perspective?
Options No of respondents Total respondents Response %
Brief profile 23 50 46%
Insurance details 3 50 6%
Ratings from the previous
passengers 24
50 48%
Type of vehicle 0 50 0%
Table 4.14: Information require about the car owner related to security perspective
Page 55
Figure 4.13: Primary reason to opt car pool
From the above figure, it is found that out of 50 respondents, 36% of the respondents
responded that primary reason to opt car pool is saving cost of car ownership. It is also found that
according to 26% respondents they go for environmental benefit, 20% for saving fuel cost and 18%
towards efficient services to desired destination.
14. What information would you require about the car owner related to security perspective?
Options No of respondents Total respondents Response %
Brief profile 23 50 46%
Insurance details 3 50 6%
Ratings from the previous
passengers 24
50 48%
Type of vehicle 0 50 0%
Table 4.14: Information require about the car owner related to security perspective
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DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
Figure 4.14: Information require about the car owner related to security perspective
From the above figure, it is found that out of 50 respondents, 48% of the respondents are
responded that they require the information on ratings from previous passengers about the car owner
from security perspective. It is found that 46% towards brief profile of car owner and 6% towards
insurance details.
15. What would you consider as suitable pricing system for the shared journey?
Options No of respondents Total respondents Response %
Fixed cost agreed with the car
owner 17
50 34%
A cost per mile 26 50 52%
Others 7 50 14%
Table 4.15: Suitable pricing system for the shared journey
Page 56
Figure 4.14: Information require about the car owner related to security perspective
From the above figure, it is found that out of 50 respondents, 48% of the respondents are
responded that they require the information on ratings from previous passengers about the car owner
from security perspective. It is found that 46% towards brief profile of car owner and 6% towards
insurance details.
15. What would you consider as suitable pricing system for the shared journey?
Options No of respondents Total respondents Response %
Fixed cost agreed with the car
owner 17
50 34%
A cost per mile 26 50 52%
Others 7 50 14%
Table 4.15: Suitable pricing system for the shared journey
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DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
Figure 4.15: Suitable pricing system for the shared journey
From the above figure, it is found that out of 50 respondents, 52% of the respondents
responded for a cost per mile pricing system for shared journey. It is also found that 34% of them
towards fixed cost agreed with the car owner and 14% of them towards others.
16. Would you recommend cab services to friend or colleague?
Options No of respondents Total respondents Response %
Yes 47 50 94%
No 3 50 6%
Table 4.16: Recommend cab services to friend or colleague
Page 57
Figure 4.15: Suitable pricing system for the shared journey
From the above figure, it is found that out of 50 respondents, 52% of the respondents
responded for a cost per mile pricing system for shared journey. It is also found that 34% of them
towards fixed cost agreed with the car owner and 14% of them towards others.
16. Would you recommend cab services to friend or colleague?
Options No of respondents Total respondents Response %
Yes 47 50 94%
No 3 50 6%
Table 4.16: Recommend cab services to friend or colleague
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Figure 4.16: Recommend cab services to friend or colleague
From the above figure, it is found that out of 50 respondents, 94% of the respondents would
recommend cab services to friend or colleague. It is found that 6% of the respondents are not
recommended the cab services to others.
Statistical data analysis
Hypothesis 1: There is positive relationship between price and coupon redemption
behaviour among the customers of cab services.
The details of the regression analysis conducted on the above mentioned model has been
presented in the table below:
SUMMARY OUTPUT
Regression Statistics
Multiple R 0.24912
Page 58
Figure 4.16: Recommend cab services to friend or colleague
From the above figure, it is found that out of 50 respondents, 94% of the respondents would
recommend cab services to friend or colleague. It is found that 6% of the respondents are not
recommended the cab services to others.
Statistical data analysis
Hypothesis 1: There is positive relationship between price and coupon redemption
behaviour among the customers of cab services.
The details of the regression analysis conducted on the above mentioned model has been
presented in the table below:
SUMMARY OUTPUT
Regression Statistics
Multiple R 0.24912
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DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
R Square 0.062061
Adjusted R Square -0.04452
Standard Error 1.037339
Observations 50
Table 4.17: Summary output of regression analysis conducted for hypothesis 1
ANOVA
df SS MS F Significance F
Regression 5 3.132828 0.626566 0.582271 0.713328
Residual 44 47.34717 1.076072
Total 49 50.48
Table 4.18: ANOVA table of regression analysis conducted for hypothesis 1
Coefficients
Standard
Error t Stat P-value
Intercept 1.779 1.307193 1.360932 0.180465
Usage of online cab aggregator -0.0515 0.263851 -0.19517 0.846159
Better payment method for the online cab transportation 0.073697 0.189212 0.389495 0.698789
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R Square 0.062061
Adjusted R Square -0.04452
Standard Error 1.037339
Observations 50
Table 4.17: Summary output of regression analysis conducted for hypothesis 1
ANOVA
df SS MS F Significance F
Regression 5 3.132828 0.626566 0.582271 0.713328
Residual 44 47.34717 1.076072
Total 49 50.48
Table 4.18: ANOVA table of regression analysis conducted for hypothesis 1
Coefficients
Standard
Error t Stat P-value
Intercept 1.779 1.307193 1.360932 0.180465
Usage of online cab aggregator -0.0515 0.263851 -0.19517 0.846159
Better payment method for the online cab transportation 0.073697 0.189212 0.389495 0.698789
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DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
Availability plus transparency on fares from unified
platform 0.761356 0.562161 1.354339 0.182543
Travel by cab -0.06983 0.13199 -0.52902 0.599448
Prefer to get carpool 0.012448 0.185204 0.067212 0.946717
Table 4.19: Coefficient table of regression analysis conducted for hypothesis 1
The null and alternative hypothesis associated with hypothesis 1 are as follows:
Null hypothesis (H0): There is no positive relationship between price and coupon
redemption behaviour among the customers of cab services.
Alternative hypothesis (H1): There is positive relationship between price and coupon
redemption behaviour among the customers of cab services.
An analysis of the findings of the regression method indicates that the value of the
Significant F, for this particular hypothesis, is 0.7133. In this case the value of the Significant F, as
obtained through regression analysis, is found to be more than 0.05, the null hypothesis has to be
accepted essentially. Thus, it can be said that it has been proved that the statement “ There is no
positive relationship between price and coupon redemption behaviour among the customers of cab
services.” holds true.
Hypothesis 2: The level of comfort provided in the cab affects the cab market in Delhi.
The details of the regression analysis conducted on the above mentioned model has been
presented in the table below:
Page 60
Availability plus transparency on fares from unified
platform 0.761356 0.562161 1.354339 0.182543
Travel by cab -0.06983 0.13199 -0.52902 0.599448
Prefer to get carpool 0.012448 0.185204 0.067212 0.946717
Table 4.19: Coefficient table of regression analysis conducted for hypothesis 1
The null and alternative hypothesis associated with hypothesis 1 are as follows:
Null hypothesis (H0): There is no positive relationship between price and coupon
redemption behaviour among the customers of cab services.
Alternative hypothesis (H1): There is positive relationship between price and coupon
redemption behaviour among the customers of cab services.
An analysis of the findings of the regression method indicates that the value of the
Significant F, for this particular hypothesis, is 0.7133. In this case the value of the Significant F, as
obtained through regression analysis, is found to be more than 0.05, the null hypothesis has to be
accepted essentially. Thus, it can be said that it has been proved that the statement “ There is no
positive relationship between price and coupon redemption behaviour among the customers of cab
services.” holds true.
Hypothesis 2: The level of comfort provided in the cab affects the cab market in Delhi.
The details of the regression analysis conducted on the above mentioned model has been
presented in the table below:
Page 60
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SUMMARY OUTPUT
Regression Statistics
Multiple R 0.727149
R Square 0.528746
Adjusted R Square 0.450204
Standard Error 0.17788
Observations 50
Table 4.20: Summary output of regression analysis conducted for hypothesis 2
ANOVA
df SS MS F
Significance
F
Regression 7 1.491063 0.213009 6.731984 2.3E-05
Residual 42 1.328937 0.031641
Total 49 2.82
Table 4.21: ANOVA table of regression analysis conducted for hypothesis 2
Coefficients
Standard
Error t Stat P-value
Page 61
SUMMARY OUTPUT
Regression Statistics
Multiple R 0.727149
R Square 0.528746
Adjusted R Square 0.450204
Standard Error 0.17788
Observations 50
Table 4.20: Summary output of regression analysis conducted for hypothesis 2
ANOVA
df SS MS F
Significance
F
Regression 7 1.491063 0.213009 6.731984 2.3E-05
Residual 42 1.328937 0.031641
Total 49 2.82
Table 4.21: ANOVA table of regression analysis conducted for hypothesis 2
Coefficients
Standard
Error t Stat P-value
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DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
Intercept 0.601837 0.199555 3.015887 0.004336
Offers require to provide in the cab services 0.044581 0.021778 2.047058 0.046942
Information about the car owner related to security perspective 0.013891 0.02701 0.514283 0.60975
Personal and professional usage of cab -0.04769 0.030586 -1.55907 0.126484
Factor important when selecting a transportation form -0.03925 0.022442 -1.74892 0.087611
Affordability of cab prices 0.281867 0.050323 5.60116 1.49E-06
Preferable to get female drivers at any time of the day for the
female passengers 0.05008 0.062408 0.80246 0.426805
Suitable pricing system for the shared journey -0.05851 0.041013 -1.42654 0.161106
Table4.22: Coefficient table of regression analysis conducted for hypothesis 2
The null and alternative hypothesis associated with hypothesis 2 is as follows:
Null hypothesis (H0): The level of comfort provided in the cab are not affecting the cab
market in Delhi.
Alternative hypothesis (H1): The level of comfort provided in the cab affects the cab
market in Delhi.
An analysis of the findings of the regression method indicates that the value of the
Significant F, for this particular hypothesis, is 2.3E-05. In this case the value of the Significant F, as
obtained through regression analysis, is found to be less than 0.05, the null hypothesis has to be
rejected essentially. Thus, it can be said that it has been proved that the statement “ The level of
comfort provided in the cab affects the cab market in Delhi.” holds true.
Page 62
Intercept 0.601837 0.199555 3.015887 0.004336
Offers require to provide in the cab services 0.044581 0.021778 2.047058 0.046942
Information about the car owner related to security perspective 0.013891 0.02701 0.514283 0.60975
Personal and professional usage of cab -0.04769 0.030586 -1.55907 0.126484
Factor important when selecting a transportation form -0.03925 0.022442 -1.74892 0.087611
Affordability of cab prices 0.281867 0.050323 5.60116 1.49E-06
Preferable to get female drivers at any time of the day for the
female passengers 0.05008 0.062408 0.80246 0.426805
Suitable pricing system for the shared journey -0.05851 0.041013 -1.42654 0.161106
Table4.22: Coefficient table of regression analysis conducted for hypothesis 2
The null and alternative hypothesis associated with hypothesis 2 is as follows:
Null hypothesis (H0): The level of comfort provided in the cab are not affecting the cab
market in Delhi.
Alternative hypothesis (H1): The level of comfort provided in the cab affects the cab
market in Delhi.
An analysis of the findings of the regression method indicates that the value of the
Significant F, for this particular hypothesis, is 2.3E-05. In this case the value of the Significant F, as
obtained through regression analysis, is found to be less than 0.05, the null hypothesis has to be
rejected essentially. Thus, it can be said that it has been proved that the statement “ The level of
comfort provided in the cab affects the cab market in Delhi.” holds true.
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DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
4.2.1 Summary on quantitative findings
From the quantitative study, it is summarized that most of the respondents are male those
are age between 21-29 years. Therefore, the cab services are used by young customers. They are
using the cab services on each month basis to travel from home to office. Among all the cab
services operated in Delhi, Uber cab services are mostly used by the public. The respondents say
that online payment method is easier transactional way to pay the money for the ride. The
respondents are mostly going for cheaper price of the ride, advanced technology usage and safety of
their ride sharing so that more female passengers are attracted towards them. The price of cab is
moderately affordable by middle class people as the price is taken based on distance (km). Suitable
pricing system for shared journey is cost per mile. Most of the passengers are going for coupon code
as ride offers where coupon redemption helps them to take the ride at lowest price. Most of the
respondents say that they prefer to the carpool as it provides efficient services to their desired
location. The main concern which taking car sharing is security and safety of the customers,
therefore before riding in the car the passengers go for ratings from previous passengers. The cab
services are provided with better customer satisfaction, offers and cheaper price of cab sharing;
therefore, most of the respondents recommended the cab services to others.
4.3 Qualitative Data Analysis
This particular data analysis section is comprised of qualitative details of selected research
topic as stated by the customer relationship manager of Uber cab services that are suited across
Delhi. The qualitative data analysis is involved with proper sample as detailed procedures of cab
services as applied in the Indian market is described via the manager of Uber. The study is allowed
with analysis of the interview questions to better penetrate the selected research topic.
1. What are the complaints that your customers face while using the cab services?
Page 63
4.2.1 Summary on quantitative findings
From the quantitative study, it is summarized that most of the respondents are male those
are age between 21-29 years. Therefore, the cab services are used by young customers. They are
using the cab services on each month basis to travel from home to office. Among all the cab
services operated in Delhi, Uber cab services are mostly used by the public. The respondents say
that online payment method is easier transactional way to pay the money for the ride. The
respondents are mostly going for cheaper price of the ride, advanced technology usage and safety of
their ride sharing so that more female passengers are attracted towards them. The price of cab is
moderately affordable by middle class people as the price is taken based on distance (km). Suitable
pricing system for shared journey is cost per mile. Most of the passengers are going for coupon code
as ride offers where coupon redemption helps them to take the ride at lowest price. Most of the
respondents say that they prefer to the carpool as it provides efficient services to their desired
location. The main concern which taking car sharing is security and safety of the customers,
therefore before riding in the car the passengers go for ratings from previous passengers. The cab
services are provided with better customer satisfaction, offers and cheaper price of cab sharing;
therefore, most of the respondents recommended the cab services to others.
4.3 Qualitative Data Analysis
This particular data analysis section is comprised of qualitative details of selected research
topic as stated by the customer relationship manager of Uber cab services that are suited across
Delhi. The qualitative data analysis is involved with proper sample as detailed procedures of cab
services as applied in the Indian market is described via the manager of Uber. The study is allowed
with analysis of the interview questions to better penetrate the selected research topic.
1. What are the complaints that your customers face while using the cab services?
Page 63
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DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
Most of the passengers say that the cab drivers are arrogant and sometimes, they are
cancelling the ride when the destination is too far. At the time of rainy season, they are charging a
high price to reach the destination. The prices of Uber cab services are fluctuating at rainy season
and evening times. A sudden fluctuation in the price is a main complaint from the side of
passengers. When the driver is not able to reach the destination, then they are forcing the customers
for canceling the ride which costs extra cancel charge for the passenger.
2. In your point of view, how would you take action to overcome with passenger’s complaints?
I would suggest adding car pool options and frequency into the cab applications. There is an
increasing availability of the premium cab services. They should improve over the customer
relationship management in addition to cancellation services so that more customers are attached
towards their cab services. As the female passengers are not always comfortable with male drivers,
therefore we provide training to drivers focused on engaging conversation with the passengers and
stay friendly with them to feel them comfortable.
3. Are the passengers satisfied with your services?
Most of the customers are satisfied with the cab services as responsiveness offered by the
cab service providers are meeting with the customer’s expectations. The cab aggregators are
improving over the responsiveness dimensions for satisfying the customers. We are providing the
passengers with coupon code, free ride services and monthly discounts focused on customer
satisfaction level which makes them to retain preferred cab services. We are more empathetic
towards requirements of daily travelers.
4. In your point of view, is social media platform of Uber helpful in customer satisfaction?
As per the customer relationship manager, social media platform is required in case of Uber
cab for meeting with customer’s demands and needs. Social media plan is used by offering referral
credits and users enjoy months of free travelling by means of sharing unique code online. By getting
Page 64
Most of the passengers say that the cab drivers are arrogant and sometimes, they are
cancelling the ride when the destination is too far. At the time of rainy season, they are charging a
high price to reach the destination. The prices of Uber cab services are fluctuating at rainy season
and evening times. A sudden fluctuation in the price is a main complaint from the side of
passengers. When the driver is not able to reach the destination, then they are forcing the customers
for canceling the ride which costs extra cancel charge for the passenger.
2. In your point of view, how would you take action to overcome with passenger’s complaints?
I would suggest adding car pool options and frequency into the cab applications. There is an
increasing availability of the premium cab services. They should improve over the customer
relationship management in addition to cancellation services so that more customers are attached
towards their cab services. As the female passengers are not always comfortable with male drivers,
therefore we provide training to drivers focused on engaging conversation with the passengers and
stay friendly with them to feel them comfortable.
3. Are the passengers satisfied with your services?
Most of the customers are satisfied with the cab services as responsiveness offered by the
cab service providers are meeting with the customer’s expectations. The cab aggregators are
improving over the responsiveness dimensions for satisfying the customers. We are providing the
passengers with coupon code, free ride services and monthly discounts focused on customer
satisfaction level which makes them to retain preferred cab services. We are more empathetic
towards requirements of daily travelers.
4. In your point of view, is social media platform of Uber helpful in customer satisfaction?
As per the customer relationship manager, social media platform is required in case of Uber
cab for meeting with customer’s demands and needs. Social media plan is used by offering referral
credits and users enjoy months of free travelling by means of sharing unique code online. By getting
Page 64
DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
better customer services, they become loyal and enhance in market recognition of Uber. Uber
support is having approximately 370,000 followers on social media for responding to the complaints
which are dropped.
5. What are possible opportunities gained with the implementation of marketing strategy of
Uber cab services?
As per the thought of the customer relationship manager, marketing is an opportunity to
deliver to the Uber. The marketing strategy provides with edge to performance level of Uber.
Increase into the customer satisfaction can extend profit of cab services with added benefits. It also
leads to improve over profitability of Uber. Attraction of large passengers helps in expanding of cab
market and enjoys market opportunities.
4.3.1 Learning from qualitative findings
From the qualitative study, following are the things which are learned such as:
i. It was learned that qualitative data are provided with theoretical concepts or words related
to the development of cab business models. The customer relationship manager provides
some recommendations to improve their customer’s complaints helpful for business
profitability.
ii. Learned about the issues and problems which the customers are facing while using the cab
services. Based on the complaints, actions are taken to overcome with them.
iii. Leaned about the factors of customer satisfaction to provide better services to the
passengers and lead to increase in customer retention.
4.4 Summary
It is summarized that the research study is highlighted on relationship between the demand
of the customers and customer expectations. Based on the primary research, coupon redemption and
price of cab services are not providing positive impact towards the customer’s behaviors. It is also
Page 65
better customer services, they become loyal and enhance in market recognition of Uber. Uber
support is having approximately 370,000 followers on social media for responding to the complaints
which are dropped.
5. What are possible opportunities gained with the implementation of marketing strategy of
Uber cab services?
As per the thought of the customer relationship manager, marketing is an opportunity to
deliver to the Uber. The marketing strategy provides with edge to performance level of Uber.
Increase into the customer satisfaction can extend profit of cab services with added benefits. It also
leads to improve over profitability of Uber. Attraction of large passengers helps in expanding of cab
market and enjoys market opportunities.
4.3.1 Learning from qualitative findings
From the qualitative study, following are the things which are learned such as:
i. It was learned that qualitative data are provided with theoretical concepts or words related
to the development of cab business models. The customer relationship manager provides
some recommendations to improve their customer’s complaints helpful for business
profitability.
ii. Learned about the issues and problems which the customers are facing while using the cab
services. Based on the complaints, actions are taken to overcome with them.
iii. Leaned about the factors of customer satisfaction to provide better services to the
passengers and lead to increase in customer retention.
4.4 Summary
It is summarized that the research study is highlighted on relationship between the demand
of the customers and customer expectations. Based on the primary research, coupon redemption and
price of cab services are not providing positive impact towards the customer’s behaviors. It is also
Page 65
DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
analyzed that the levels of comfort provided in the cab are not affecting the cab market in Delhi. In
this chapter, it describes responses of the daily travelers and customer relationship manager for
analyzing development of cab business model. The collected data are used to highlight the demand
of cab services, offers and level of customer satisfaction while making the cab services more
attractive. In the next chapter, there is discussion of the survey findings in details so that the reader
can better understand importance of the cab services among the population of Delhi and importance
of customer satisfaction in providing cab services.
Page 66
analyzed that the levels of comfort provided in the cab are not affecting the cab market in Delhi. In
this chapter, it describes responses of the daily travelers and customer relationship manager for
analyzing development of cab business model. The collected data are used to highlight the demand
of cab services, offers and level of customer satisfaction while making the cab services more
attractive. In the next chapter, there is discussion of the survey findings in details so that the reader
can better understand importance of the cab services among the population of Delhi and importance
of customer satisfaction in providing cab services.
Page 66
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DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
Chapter 5: Discussion
5.1 Discussion on the cab business model
As an existing business model, the cab companies are provided their customers with option
of cab booking to reach their destination. The clients can book cabs throughout using the site, call
centre and also using the mobile application. This is the older business model for the cab industry.
Now-a-days, the cab companies such as Ola and Uber used to make appointment throughout
applications (Hira and Reilly 2017). The drivers can get availability to choose their own time to log
in the mobile app as well as acknowledge demands of the rides through the clients.
It is commented from the literature analysis that the source of income of the cab drivers is
through commission and costs they are bringing which is low as they are required to give on
technical innovation. Ola and Uber, both the cab companies are turned to be an innovation stage to
transport and offer alternatives of booking of cab throughout the (Zhang, Sia and Lee 2017). In this
technology driven market, the cab companies are connected to the drivers through using mobile
application. By means of new cab business model, Uber as well as Ola are focused on meeting with
demand as well as supply of the customers to create win-win situations for the drivers, cab
aggregators as well as passengers. The cab companies are facing an issue when the drivers are
signed up for both Uber and Ola to make extra income. Therefore, in order to make improvement
over its business trend, both the companies are trying to shift its existing business model to
inventory (Horsu and Yeboah 2015). The new model is providing luxury services to the end users
and middle class family those have no car of their own, so that they can get reasonable cab rides. In
current time, it is seen that the cab aggregators are shifting their business model to inventory by
means of buying of cars as well as leasing the car to the drivers. It will help the cab companies to
get exclusive drivers working into the network and to meet with demand as well as supply of the
companies.
Page 67
Chapter 5: Discussion
5.1 Discussion on the cab business model
As an existing business model, the cab companies are provided their customers with option
of cab booking to reach their destination. The clients can book cabs throughout using the site, call
centre and also using the mobile application. This is the older business model for the cab industry.
Now-a-days, the cab companies such as Ola and Uber used to make appointment throughout
applications (Hira and Reilly 2017). The drivers can get availability to choose their own time to log
in the mobile app as well as acknowledge demands of the rides through the clients.
It is commented from the literature analysis that the source of income of the cab drivers is
through commission and costs they are bringing which is low as they are required to give on
technical innovation. Ola and Uber, both the cab companies are turned to be an innovation stage to
transport and offer alternatives of booking of cab throughout the (Zhang, Sia and Lee 2017). In this
technology driven market, the cab companies are connected to the drivers through using mobile
application. By means of new cab business model, Uber as well as Ola are focused on meeting with
demand as well as supply of the customers to create win-win situations for the drivers, cab
aggregators as well as passengers. The cab companies are facing an issue when the drivers are
signed up for both Uber and Ola to make extra income. Therefore, in order to make improvement
over its business trend, both the companies are trying to shift its existing business model to
inventory (Horsu and Yeboah 2015). The new model is providing luxury services to the end users
and middle class family those have no car of their own, so that they can get reasonable cab rides. In
current time, it is seen that the cab aggregators are shifting their business model to inventory by
means of buying of cars as well as leasing the car to the drivers. It will help the cab companies to
get exclusive drivers working into the network and to meet with demand as well as supply of the
companies.
Page 67
DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
5.2 Discussion on the success story of cab services in Delhi
From the findings of data analysis in chapter 4, it is analyzed that among all the cab services
and local cabs, Uber is mostly used by the customers in Delhi marketplace. As per 66% of the
research respondents, Uber is prominent ride sharing business in Delhi, spreads wings in each
transportation mode as well as acts as successor in the cab business. It is discussed in this section so
that the researcher can understand the success factors of Uber to determine the development of
business factors in the organization (Govinda 2019). Among the customers, Uber is getting success
level due to its various transportation services in addition to rated better rating for their cab services.
This section is linked with the findings from the analysis results. While riding the cab, the
passengers are facing security issues when the ride sharing is not safe for them. Sometimes, there
are some incidents which cause security risks mainly to the female passengers. The researcher is
discussing it to analyze the fourth research objective “To identify the safety concerns towards
booking of cab”. The cab companies are concerned on secure ride sharing for the female
passengers; therefore 78% of the respondents are preferable to get female drivers at any time of the
day for the female passengers (Welch, Gehrke and Widita 2018). This service is not started yet in
Ola and Uber, but it is recommended to the companies to start the service so that they can attract
more of the female passengers to their cab services. It can lead to increase in their profit and
services along with increase in cab demands.
Page 68
5.2 Discussion on the success story of cab services in Delhi
From the findings of data analysis in chapter 4, it is analyzed that among all the cab services
and local cabs, Uber is mostly used by the customers in Delhi marketplace. As per 66% of the
research respondents, Uber is prominent ride sharing business in Delhi, spreads wings in each
transportation mode as well as acts as successor in the cab business. It is discussed in this section so
that the researcher can understand the success factors of Uber to determine the development of
business factors in the organization (Govinda 2019). Among the customers, Uber is getting success
level due to its various transportation services in addition to rated better rating for their cab services.
This section is linked with the findings from the analysis results. While riding the cab, the
passengers are facing security issues when the ride sharing is not safe for them. Sometimes, there
are some incidents which cause security risks mainly to the female passengers. The researcher is
discussing it to analyze the fourth research objective “To identify the safety concerns towards
booking of cab”. The cab companies are concerned on secure ride sharing for the female
passengers; therefore 78% of the respondents are preferable to get female drivers at any time of the
day for the female passengers (Welch, Gehrke and Widita 2018). This service is not started yet in
Ola and Uber, but it is recommended to the companies to start the service so that they can attract
more of the female passengers to their cab services. It can lead to increase in their profit and
services along with increase in cab demands.
Page 68
DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
Figure 5.1: Demand trend- Delhi Taxi Demand Point
(Source: Bashir, Yousaf and Verma 2016, pp.57 )
The above chart shows the key demand point for the taxi services in Delhi. Based on the
statistical data, it is seen that based on booking trends of cab, South Delhi has higher demand of the
cab services.
This section is linked with the findings from the analysis results. Uber offered more options
in terms of the mode of payment to their passengers as compared to Ola and other cab services.
Uber provided with options of payment such as Paytm wallet, cash, and debit as well as credit card
payments, Airtel wallet and others (Parsheera, Shah and Bose 2017). Due to rise in profit margins of
Uber and Ola, the cab drivers can get higher income levels. Considering the current business model
of Uber, it is analyzed that there is scope of improvement among the customers as well as
satisfaction level of drivers. The main problem is that the customers are not happy with varied
prices throughout the peak hours where the drivers are not happy regarding sharing of revenues as
well as minimum ride criteria set by the cab aggregators. It is found that the customers are not
happy with surge pricing while the drivers are happy with surge pricing mode (Rao and Alexander
2017). With higher level of customer satisfaction, the organization is retained to get competitive
advantage as well as sustained growth in the cab business.
Page 69
Figure 5.1: Demand trend- Delhi Taxi Demand Point
(Source: Bashir, Yousaf and Verma 2016, pp.57 )
The above chart shows the key demand point for the taxi services in Delhi. Based on the
statistical data, it is seen that based on booking trends of cab, South Delhi has higher demand of the
cab services.
This section is linked with the findings from the analysis results. Uber offered more options
in terms of the mode of payment to their passengers as compared to Ola and other cab services.
Uber provided with options of payment such as Paytm wallet, cash, and debit as well as credit card
payments, Airtel wallet and others (Parsheera, Shah and Bose 2017). Due to rise in profit margins of
Uber and Ola, the cab drivers can get higher income levels. Considering the current business model
of Uber, it is analyzed that there is scope of improvement among the customers as well as
satisfaction level of drivers. The main problem is that the customers are not happy with varied
prices throughout the peak hours where the drivers are not happy regarding sharing of revenues as
well as minimum ride criteria set by the cab aggregators. It is found that the customers are not
happy with surge pricing while the drivers are happy with surge pricing mode (Rao and Alexander
2017). With higher level of customer satisfaction, the organization is retained to get competitive
advantage as well as sustained growth in the cab business.
Page 69
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DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
Figure 5.2: Installation of cab hailing application of Uber and Ola
(Source: Kashyap and Bhatia 2018, pp.178)
From the above chart, it is seen that there is tight race between Uber and Ola. It is seen that
Uber accounted towards 47.3% of cab hailing app installed at end of the month of March 2017. It is
higher than Ola as it accounted for 43.7% (Anirvinna and Deshmukh 2019). Therefore, in Delhi,
Uber becomes more popular among the customers furthermore therefore its usage is also increasing
among the customers leading to increase in market share as well as profitability of Uber in Indian
cab service market. This section is linked with the findings from the analysis results. This statistical
data will be helpful in the project to implement that in Delhi, Uber is mostly used by the population
of Delhi as compared to Ola which proved the survey question no 5.
5.3 Discussion on importance of consumer behaviour and perception towards
the cab aggregators
Bashir, Yousaf and Verma (2016) stated that the cab industry is being exposed to different
challenges including rapid change into the preferences of the customers, technological changes with
innovations, higher level of competitive market, globalization and others. Those challenges are
required to overcome by the cab industry by establishing as well as maintaining loyal customer
bases. It is mainly required to understand the requirements of customers by improving over quality
of existing customer services (Zhang, Sia and Lee 2017). Based on the findings from the literature
study, the statement discussed that cab services provide importance to the customer perception as
well as expectations towards mobile based cab booking app. Through complete analysis, it is
focused to make improvement over the cab services for meeting with customer’s expectations where
it will exceed perception and customer behaviour (Sharma and Das 2017). From the analysis results,
the researcher compared the survey questions with SERVQUAL model which is used to capture the
expectations of the customers along with its perception of the services based on five dimensions to
Page 70
Figure 5.2: Installation of cab hailing application of Uber and Ola
(Source: Kashyap and Bhatia 2018, pp.178)
From the above chart, it is seen that there is tight race between Uber and Ola. It is seen that
Uber accounted towards 47.3% of cab hailing app installed at end of the month of March 2017. It is
higher than Ola as it accounted for 43.7% (Anirvinna and Deshmukh 2019). Therefore, in Delhi,
Uber becomes more popular among the customers furthermore therefore its usage is also increasing
among the customers leading to increase in market share as well as profitability of Uber in Indian
cab service market. This section is linked with the findings from the analysis results. This statistical
data will be helpful in the project to implement that in Delhi, Uber is mostly used by the population
of Delhi as compared to Ola which proved the survey question no 5.
5.3 Discussion on importance of consumer behaviour and perception towards
the cab aggregators
Bashir, Yousaf and Verma (2016) stated that the cab industry is being exposed to different
challenges including rapid change into the preferences of the customers, technological changes with
innovations, higher level of competitive market, globalization and others. Those challenges are
required to overcome by the cab industry by establishing as well as maintaining loyal customer
bases. It is mainly required to understand the requirements of customers by improving over quality
of existing customer services (Zhang, Sia and Lee 2017). Based on the findings from the literature
study, the statement discussed that cab services provide importance to the customer perception as
well as expectations towards mobile based cab booking app. Through complete analysis, it is
focused to make improvement over the cab services for meeting with customer’s expectations where
it will exceed perception and customer behaviour (Sharma and Das 2017). From the analysis results,
the researcher compared the survey questions with SERVQUAL model which is used to capture the
expectations of the customers along with its perception of the services based on five dimensions to
Page 70
DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
determine quality of cab services. Following are five dimensions of SERVQUAL model which is
discussed as:
Tangibles:
It is referred to the physical facilities, equipments as well as appearance of the staffs of the
cab service firm. Job of tangible as well as physical evidences are multi-functional, therefore this
dimension is provided the customers with proof of the quality of cab services (Das, Bhatt and Path
2017).
Reliability:
This particular dimension is termed as higher influence of the perception of the customers
towards quality of cab services. Through this dimension, the cab company can offer promised
services accurately as well as efficiently. When the service delivery is failed at initial time, then the
service provider can get a chance to offer same services to the customers. At the recovery phase,
expectations level of the target customers are higher than earlier due to preliminary failures. The
service provider comes under greater inspection leads to dissatisfaction of the customers (Horsu and
Yeboah 2015). Reliability dimension is makes sure to provide the customers with timely delivery
and helps the provider to meet with their expectations at lower level of the service opportunities.
Responsiveness:
It is willingness of the cab service’s staffs to assist the customers as well as offer with
prompt services. The customers have queries, and complaints regarding the cab services provided
by the cab companies. Each of the customers have issues of their own. It is required that employees
should be trained to convey standardized services to the customers so that they can meet with their
expectations. The customers want to go outside its limits. Based on this dimension, it helps the
Page 71
determine quality of cab services. Following are five dimensions of SERVQUAL model which is
discussed as:
Tangibles:
It is referred to the physical facilities, equipments as well as appearance of the staffs of the
cab service firm. Job of tangible as well as physical evidences are multi-functional, therefore this
dimension is provided the customers with proof of the quality of cab services (Das, Bhatt and Path
2017).
Reliability:
This particular dimension is termed as higher influence of the perception of the customers
towards quality of cab services. Through this dimension, the cab company can offer promised
services accurately as well as efficiently. When the service delivery is failed at initial time, then the
service provider can get a chance to offer same services to the customers. At the recovery phase,
expectations level of the target customers are higher than earlier due to preliminary failures. The
service provider comes under greater inspection leads to dissatisfaction of the customers (Horsu and
Yeboah 2015). Reliability dimension is makes sure to provide the customers with timely delivery
and helps the provider to meet with their expectations at lower level of the service opportunities.
Responsiveness:
It is willingness of the cab service’s staffs to assist the customers as well as offer with
prompt services. The customers have queries, and complaints regarding the cab services provided
by the cab companies. Each of the customers have issues of their own. It is required that employees
should be trained to convey standardized services to the customers so that they can meet with their
expectations. The customers want to go outside its limits. Based on this dimension, it helps the
Page 71
DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
customers to go added distance which is responsiveness (Verma, Kansal and Malvi 2018). The
second aspect of this dimension is speedy responses to the requests of the customers.
Assurance:
It is termed as ability of company to inspire as well as confidence into delivery of the
services. There is capability to motivate faith as well as confidences into the customers towards the
service company. This particular dimension is considered to be vital for the services which involves
with higher risks as the customers are not able to assess doubts involved into the business processes
(Potts et al. 2018).
Empathy:
It is referred to caring and providing attention towards the service providers so that the
customers are satisfied with the cab services provided by cab aggregator. The service provider
should require seeing the demands from point of view of the customers (Welch, Gehrke and Widita
2018). At the time when the customers are feeling that they are providing with better effort, then
they are satisfied with their services.
Therefore, this particular model is used for measuring the service quality as well as level of
the customer satisfaction levels. In order to improve over the customer services and quality of
services, it is required to design new ride packages as well as ride offers for the customers so that
they are more attracted towards the services (Lewis and Williams 2019). The cab aggregator should
be customer centric along with highly technological innovation to keep the customers happy and
satisfied.
5.4 Discussion on data analysis results and findings
From the previous chapter findings and based on the collected data from the research
participants, it is discussed that most of the population of Delhi is using cab services to travel from
Page 72
customers to go added distance which is responsiveness (Verma, Kansal and Malvi 2018). The
second aspect of this dimension is speedy responses to the requests of the customers.
Assurance:
It is termed as ability of company to inspire as well as confidence into delivery of the
services. There is capability to motivate faith as well as confidences into the customers towards the
service company. This particular dimension is considered to be vital for the services which involves
with higher risks as the customers are not able to assess doubts involved into the business processes
(Potts et al. 2018).
Empathy:
It is referred to caring and providing attention towards the service providers so that the
customers are satisfied with the cab services provided by cab aggregator. The service provider
should require seeing the demands from point of view of the customers (Welch, Gehrke and Widita
2018). At the time when the customers are feeling that they are providing with better effort, then
they are satisfied with their services.
Therefore, this particular model is used for measuring the service quality as well as level of
the customer satisfaction levels. In order to improve over the customer services and quality of
services, it is required to design new ride packages as well as ride offers for the customers so that
they are more attracted towards the services (Lewis and Williams 2019). The cab aggregator should
be customer centric along with highly technological innovation to keep the customers happy and
satisfied.
5.4 Discussion on data analysis results and findings
From the previous chapter findings and based on the collected data from the research
participants, it is discussed that most of the population of Delhi is using cab services to travel from
Page 72
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DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
one place to other on each month. Approximately about 66% of the respondents are used the cab
services for personal and professional travelling. For personal reason, the cab is hired to go for road
trip and long distance trip (Panigrahi, Shahi and Rathore 2018). The cab services are also used by
Indian citizens to commute to the workplaces, go for shopping with the family, holidays, airport and
others. For professional reason mainly cab is used to travel from home to office. It is discussed that
66% of the respondents use Uber cab aggregator for travelling from their location to destination
place using mobile app for booking cab (Téguia, Chambost and Stuart 2018). At the time of
booking cabs, the mobile app provides the customers with payment options like cash pay, wallet
pay, online payment method and others.
The cab services are changing personal transportation industry which is resulting to provide
benefits for both passengers along with drivers. It is analyzed that 38% of the respondents are going
for online payment method where the credit card of passenger is linked to passenger’s account;
therefore, there is no requirement to put cash in pocket (Kashyap and Bhatia 2018). After arriving to
destination, the driver can bring ride to halt as well as passenger can walk out of the cab. Finally, a
receipt is being sent to the email of the passenger.
From the results of previous chapter, it is discussed that 66% of the respondents go for price
and transparency, ease of use and safety and security factors as important to select the transportation
form. Price and transparency leads to cost of transportation added to cost of cab services. Uber cab
services are cheaper as compared to other cab services over long distances (Sharma and Das 2017).
There is higher ease of use of the cab services that is why it is easily used by the passengers and
they can book the cab efficiently. With just matter of a click, the passenger can book the cab as well
as rid the worries of travelling from one place to other. The journey is fixed by just tapping the
details of pick up and drop off and the cab can reach to its destination points (Dudley, Banister and
Schwanen 2017). There is higher level of safety as well as security of cab services so that the female
passengers are secure while travelling at the night time.
Page 73
one place to other on each month. Approximately about 66% of the respondents are used the cab
services for personal and professional travelling. For personal reason, the cab is hired to go for road
trip and long distance trip (Panigrahi, Shahi and Rathore 2018). The cab services are also used by
Indian citizens to commute to the workplaces, go for shopping with the family, holidays, airport and
others. For professional reason mainly cab is used to travel from home to office. It is discussed that
66% of the respondents use Uber cab aggregator for travelling from their location to destination
place using mobile app for booking cab (Téguia, Chambost and Stuart 2018). At the time of
booking cabs, the mobile app provides the customers with payment options like cash pay, wallet
pay, online payment method and others.
The cab services are changing personal transportation industry which is resulting to provide
benefits for both passengers along with drivers. It is analyzed that 38% of the respondents are going
for online payment method where the credit card of passenger is linked to passenger’s account;
therefore, there is no requirement to put cash in pocket (Kashyap and Bhatia 2018). After arriving to
destination, the driver can bring ride to halt as well as passenger can walk out of the cab. Finally, a
receipt is being sent to the email of the passenger.
From the results of previous chapter, it is discussed that 66% of the respondents go for price
and transparency, ease of use and safety and security factors as important to select the transportation
form. Price and transparency leads to cost of transportation added to cost of cab services. Uber cab
services are cheaper as compared to other cab services over long distances (Sharma and Das 2017).
There is higher ease of use of the cab services that is why it is easily used by the passengers and
they can book the cab efficiently. With just matter of a click, the passenger can book the cab as well
as rid the worries of travelling from one place to other. The journey is fixed by just tapping the
details of pick up and drop off and the cab can reach to its destination points (Dudley, Banister and
Schwanen 2017). There is higher level of safety as well as security of cab services so that the female
passengers are secure while travelling at the night time.
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DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
Based on the fares of cab, there is availability of cab operators and transparency from the
unified platform which is responded by 90% of the research participants. The prices of cab are also
affordable mainly when booking of cab at best prices. Uber is increasing minimum fare from price
40 to 60 Rs. Uber is charges at 6 per km to 20 km and after that it is Rs 12 per km. Minimum fare of
Ola in Delhi is 60 Rs. In case of Micro Ola, there is a price of 6 per km and 1 per min. Ola company
provides cars on hire as well as taxi services towards local and outstation (Panigrahi, Shahi and
Rathore 2018). The cabs are to be booked on online basis. The booking process is clear as well as
simple and there are no such hidden charges and each thing is communicated upfront.
From the analyzed data, it is discussed that 66% of the respondents have responded that
coupon code offer is required. The customers those are price conscious are likely to go for coupon
code at the time of booking of cabs. The innovative customers are more interested to adopt
innovative technology such as usage of mobile app to book the cabs plus other services (Smith and
McCormick 2019). Redemption of coupons code is considered as motivating factor for the
customers to consume for cab services. From the study, it is observed that middle aged adults are
consuming more cab services as compared to the age group of old aged people (Panda and Dash
2018). It is discussed that female drivers is the requirement for female passengers.
Mostly 78% of the respondents said that it is preferable to get female drivers at any time of
the day for the female passengers. While taking the cab services, it is encountered that women think
twice before travelling with the male drivers due to safety and security concerns (Surie and Sharma
2019). For the passengers, safety and security is a concern as driver of the cab could use fake driver
license. Therefore, verification of cab driver is required based on fraudulent papers otherwise it is
possible to do crime. The cab services are not guaranteed with suitability as well as safety of the
services. In Delhi, incidents occurred due to app-based cab drivers as they misbehaved with the
female passengers (Mahapatra and Patra 2016). Therefore, most of the respondents said to go for
Page 74
Based on the fares of cab, there is availability of cab operators and transparency from the
unified platform which is responded by 90% of the research participants. The prices of cab are also
affordable mainly when booking of cab at best prices. Uber is increasing minimum fare from price
40 to 60 Rs. Uber is charges at 6 per km to 20 km and after that it is Rs 12 per km. Minimum fare of
Ola in Delhi is 60 Rs. In case of Micro Ola, there is a price of 6 per km and 1 per min. Ola company
provides cars on hire as well as taxi services towards local and outstation (Panigrahi, Shahi and
Rathore 2018). The cabs are to be booked on online basis. The booking process is clear as well as
simple and there are no such hidden charges and each thing is communicated upfront.
From the analyzed data, it is discussed that 66% of the respondents have responded that
coupon code offer is required. The customers those are price conscious are likely to go for coupon
code at the time of booking of cabs. The innovative customers are more interested to adopt
innovative technology such as usage of mobile app to book the cabs plus other services (Smith and
McCormick 2019). Redemption of coupons code is considered as motivating factor for the
customers to consume for cab services. From the study, it is observed that middle aged adults are
consuming more cab services as compared to the age group of old aged people (Panda and Dash
2018). It is discussed that female drivers is the requirement for female passengers.
Mostly 78% of the respondents said that it is preferable to get female drivers at any time of
the day for the female passengers. While taking the cab services, it is encountered that women think
twice before travelling with the male drivers due to safety and security concerns (Surie and Sharma
2019). For the passengers, safety and security is a concern as driver of the cab could use fake driver
license. Therefore, verification of cab driver is required based on fraudulent papers otherwise it is
possible to do crime. The cab services are not guaranteed with suitability as well as safety of the
services. In Delhi, incidents occurred due to app-based cab drivers as they misbehaved with the
female passengers (Mahapatra and Patra 2016). Therefore, most of the respondents said to go for
Page 74
DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
female drivers. The problem is that it is not still implemented in Uber and Ola cab services;
therefore, in the future the cab aggregators should focus to work on this area.
According to 36% of the respondents, efficient services to desired destination is the primary
reason to opt for the carpool. Carpooling is environment friendly as well as sustainable means to
travel as car sharing leads to reduced pollution, emissions of carbon, congestion on the road along
with problem of parking spaces. Most of the customers are going for efficient service desired
destination option instead of other options such as save fuel costs, environment benefits and save
cost of car ownership (Pandya, Rungta and Iyer 2017). Efficient services are included with
providing safety of passengers in the cab. The other reasons included are cheap option, privacy in
travelling and other elements for the travelling modes.
It is discussed that as per 48% of the respondents, they require the information on ratings
from previous passengers about the car owner related to security perspective. The passenger can get
to know about rating through opening mobile app, tap the profile of the driver and know the rating.
Based on the feedback or rating of other passengers, the customers can get to know about the
behaviour of the cab driver. Through previous passenger complaints, the customers can get to know
about intention of driver (Srivastava 2019). The user can see the driver’s rating only when the driver
accepts the cab ride request. The driver’s ratings are based on 1-5-star scale. The rating experience
of the ride can build track of the driver behavior and can track his performance can be tracked
accordingly.
From the collected data, it is seen that 52% of the respondents go for a cost per mile pricing
system for shared journey. After comparing the price of both cab companies such as Ola as well as
Uber, it is seen that Uber pricing strategy is best as compared to Ola cab services. The cab ride time
is charged as well as calculated based on total time of the ride which is to be taken. For UberPOOL
as well as UberX , there is a hike to Rs. 1.5 per minute. Sometimes, there are changes in the pricing
structure in Delhi-NCR for serving the city efficiently (Wieland, Hartmann and Vargo 2017).
Page 75
female drivers. The problem is that it is not still implemented in Uber and Ola cab services;
therefore, in the future the cab aggregators should focus to work on this area.
According to 36% of the respondents, efficient services to desired destination is the primary
reason to opt for the carpool. Carpooling is environment friendly as well as sustainable means to
travel as car sharing leads to reduced pollution, emissions of carbon, congestion on the road along
with problem of parking spaces. Most of the customers are going for efficient service desired
destination option instead of other options such as save fuel costs, environment benefits and save
cost of car ownership (Pandya, Rungta and Iyer 2017). Efficient services are included with
providing safety of passengers in the cab. The other reasons included are cheap option, privacy in
travelling and other elements for the travelling modes.
It is discussed that as per 48% of the respondents, they require the information on ratings
from previous passengers about the car owner related to security perspective. The passenger can get
to know about rating through opening mobile app, tap the profile of the driver and know the rating.
Based on the feedback or rating of other passengers, the customers can get to know about the
behaviour of the cab driver. Through previous passenger complaints, the customers can get to know
about intention of driver (Srivastava 2019). The user can see the driver’s rating only when the driver
accepts the cab ride request. The driver’s ratings are based on 1-5-star scale. The rating experience
of the ride can build track of the driver behavior and can track his performance can be tracked
accordingly.
From the collected data, it is seen that 52% of the respondents go for a cost per mile pricing
system for shared journey. After comparing the price of both cab companies such as Ola as well as
Uber, it is seen that Uber pricing strategy is best as compared to Ola cab services. The cab ride time
is charged as well as calculated based on total time of the ride which is to be taken. For UberPOOL
as well as UberX , there is a hike to Rs. 1.5 per minute. Sometimes, there are changes in the pricing
structure in Delhi-NCR for serving the city efficiently (Wieland, Hartmann and Vargo 2017).
Page 75
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DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
Affordable pricing structure is considered as key significant factor to drive uptake of the on-demand
cab services in Indian cab market. It is concluded that Uber is being engaged in battle with the
Indian cab market with the local cabs, Ola in addition to radio taxi operations such as Meru (Kumar
and Kumar 2016). Therefore, based on varieties of cab, the prices are also different for each cab
company and cab varieties are based on features in addition to offers provide by cab aggregators.
It is seen that 94% of the respondents said that they recommend the cab services to their
friends as well as families as cab services in Delhi are always on time as well as there are no such
hidden charges into the taxi fares. Therefore, the cab services are highly recommended to people
those are coming to Delhi on trip. The Indian cab services are provided with safe, secured services
to each of the customers (Das, Bhatt and Path 2017). The mission of cab industry is providing with
best ride to the customers by means of pocket friendly fares. There is higher priority to
transparency into pricing as well as dealing with the services. Most preferred cab services are
provided in Delhi NCR such as Delhi, Noida, Gurgaon, New Delhi, as well as Ghaziabad. The
customers or passengers can book the cab by going to the mobile app via the Smartphone and tablet.
The booking is to be performed by first downloading of the application from the Google Play Store
and making of the phone calls to the cab driver for confirming the cabs (Basa 2018). The enquiries
as well as bookings are done throughout 24*7 customer services. Therefore, in Delhi the cab
services are becoming popular to get hassle free experiences to the passengers and riders.
Page 76
Affordable pricing structure is considered as key significant factor to drive uptake of the on-demand
cab services in Indian cab market. It is concluded that Uber is being engaged in battle with the
Indian cab market with the local cabs, Ola in addition to radio taxi operations such as Meru (Kumar
and Kumar 2016). Therefore, based on varieties of cab, the prices are also different for each cab
company and cab varieties are based on features in addition to offers provide by cab aggregators.
It is seen that 94% of the respondents said that they recommend the cab services to their
friends as well as families as cab services in Delhi are always on time as well as there are no such
hidden charges into the taxi fares. Therefore, the cab services are highly recommended to people
those are coming to Delhi on trip. The Indian cab services are provided with safe, secured services
to each of the customers (Das, Bhatt and Path 2017). The mission of cab industry is providing with
best ride to the customers by means of pocket friendly fares. There is higher priority to
transparency into pricing as well as dealing with the services. Most preferred cab services are
provided in Delhi NCR such as Delhi, Noida, Gurgaon, New Delhi, as well as Ghaziabad. The
customers or passengers can book the cab by going to the mobile app via the Smartphone and tablet.
The booking is to be performed by first downloading of the application from the Google Play Store
and making of the phone calls to the cab driver for confirming the cabs (Basa 2018). The enquiries
as well as bookings are done throughout 24*7 customer services. Therefore, in Delhi the cab
services are becoming popular to get hassle free experiences to the passengers and riders.
Page 76
DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
5.5 Factors affecting the customer satisfaction in cab service market in India
The cab services industry within India is reviewing a growth in past 6-7 years. In the past 4
years, over INR 2400 crores of the venture capital money is being injected towards the cab service
companies. The unorganized sector is constituted 88% of the Indian cab market, radio cabs are
included market share of 7% while 5% is included with aggregators as well as affiliators of market
share (Pandya, Rungta and Iyer 2017).
Figure 5.3: Market size of taxi service market in India
(Source: Pandya, Rungta and Iyer 2017, pp. 102)
The following table shows five dimensions of SERVQUAL model and its respective
statements aligned with the factors affecting the customer’s satisfaction level into the online cab
services. Based on the findings from the literature study and analysis, the researcher linked it with
SERVQUAL model:
Dimensions of SERVQUAL Statements
Page 77
5.5 Factors affecting the customer satisfaction in cab service market in India
The cab services industry within India is reviewing a growth in past 6-7 years. In the past 4
years, over INR 2400 crores of the venture capital money is being injected towards the cab service
companies. The unorganized sector is constituted 88% of the Indian cab market, radio cabs are
included market share of 7% while 5% is included with aggregators as well as affiliators of market
share (Pandya, Rungta and Iyer 2017).
Figure 5.3: Market size of taxi service market in India
(Source: Pandya, Rungta and Iyer 2017, pp. 102)
The following table shows five dimensions of SERVQUAL model and its respective
statements aligned with the factors affecting the customer’s satisfaction level into the online cab
services. Based on the findings from the literature study and analysis, the researcher linked it with
SERVQUAL model:
Dimensions of SERVQUAL Statements
Page 77
DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
model
Tangibles The cab should contain GPS system.
The exterior as well as interior facilities of the cab should
offer comfort to their passengers.
The cab driver should require to neat in their appearances.
The services should not over the price (Yulia 2016).
At end of the journey, the bill is required hand over to the
passenger.
Reliability The cab driver should ensure that passenger should reach
their destination point on a particular period of time.
When the passengers are facing problems, then the cab
services should overcome their issues and take it at first
priority.
Better cab services should require to dependable (Rayle et
al. 2016).
There are no such security and privacy issues for the
female passengers.
Responsiveness A cab service should pick up the passenger from its
destination point without any delay.
The cab company should listen to the problems of
passengers and improve it on time (Hall, Palsson and Price
Page 78
model
Tangibles The cab should contain GPS system.
The exterior as well as interior facilities of the cab should
offer comfort to their passengers.
The cab driver should require to neat in their appearances.
The services should not over the price (Yulia 2016).
At end of the journey, the bill is required hand over to the
passenger.
Reliability The cab driver should ensure that passenger should reach
their destination point on a particular period of time.
When the passengers are facing problems, then the cab
services should overcome their issues and take it at first
priority.
Better cab services should require to dependable (Rayle et
al. 2016).
There are no such security and privacy issues for the
female passengers.
Responsiveness A cab service should pick up the passenger from its
destination point without any delay.
The cab company should listen to the problems of
passengers and improve it on time (Hall, Palsson and Price
Page 78
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DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
2018).
Assurance The behaviour of cab driver should require pleasing the
passenger.
Either it is male or female customers should feel secured
while travelling in the cab (Welch, Gehrke and Widita
2018).
The driver should require knowing other routes for
reaching destination in case usual route have traffic
congestions / blockades.
Empathy The cab services should require offering 24*7 services to
the passengers.
Better cab services should have passenger’s interest at the
mind (Lewis and Williams 2019).
The cab services are keeping the customers informed of
any such delays and inability to deliver the services.
The cab services are provided towards security throughout using GPS system and female
taxi drivers for the female passengers at the night times. The variables like continuous cab services,
comfort, as well as affordability are providing impact on the satisfaction level of the customers
(Sharma and Das 2017). The mobile technology is helping the commuters to access to the data
related to the cab services and that technology can change role of the customers as well as
companies. Adoption of the cab service app is being impacted with factors of SERVQUAL model.
Page 79
2018).
Assurance The behaviour of cab driver should require pleasing the
passenger.
Either it is male or female customers should feel secured
while travelling in the cab (Welch, Gehrke and Widita
2018).
The driver should require knowing other routes for
reaching destination in case usual route have traffic
congestions / blockades.
Empathy The cab services should require offering 24*7 services to
the passengers.
Better cab services should have passenger’s interest at the
mind (Lewis and Williams 2019).
The cab services are keeping the customers informed of
any such delays and inability to deliver the services.
The cab services are provided towards security throughout using GPS system and female
taxi drivers for the female passengers at the night times. The variables like continuous cab services,
comfort, as well as affordability are providing impact on the satisfaction level of the customers
(Sharma and Das 2017). The mobile technology is helping the commuters to access to the data
related to the cab services and that technology can change role of the customers as well as
companies. Adoption of the cab service app is being impacted with factors of SERVQUAL model.
Page 79
DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
The mobile application can help drivers as well as passengers to reach each other. At present time,
the mobile app is helping the customers to find the cabs.
The cab industry is growing in metropolitan cities such as Delhi. Uber is a foreign company
which makes foray in Indian cab market and the Indian cab companies such as Ola, Meru cabs are
providing stiff competition with Uber. It will help to achieve into sustainable competitive advantage
over rivals as well as gain earlier market share into the Indian marketplace (Lewis and Williams
2019). The cab company should require understanding the customer’s demands as well as
expectations so that the cab market in India should grow in coming years. Due to huge competition
into the cab service industry, the organization should motivate the passengers through coupon code
as offers to attract more passengers.
Innovative behavior of the companies will help customers to download the cab mobile app
and motivate them to redeem of coupons at the time of booking cabs. The modern customers are
more price sensitive, therefore coupon code redemption should help towards the customer retention
(Téguia, Chambost and Stuart 2018). Brand image is also playing a key role into customer retention
behind providing of coupon code offerings.
Page 80
The mobile application can help drivers as well as passengers to reach each other. At present time,
the mobile app is helping the customers to find the cabs.
The cab industry is growing in metropolitan cities such as Delhi. Uber is a foreign company
which makes foray in Indian cab market and the Indian cab companies such as Ola, Meru cabs are
providing stiff competition with Uber. It will help to achieve into sustainable competitive advantage
over rivals as well as gain earlier market share into the Indian marketplace (Lewis and Williams
2019). The cab company should require understanding the customer’s demands as well as
expectations so that the cab market in India should grow in coming years. Due to huge competition
into the cab service industry, the organization should motivate the passengers through coupon code
as offers to attract more passengers.
Innovative behavior of the companies will help customers to download the cab mobile app
and motivate them to redeem of coupons at the time of booking cabs. The modern customers are
more price sensitive, therefore coupon code redemption should help towards the customer retention
(Téguia, Chambost and Stuart 2018). Brand image is also playing a key role into customer retention
behind providing of coupon code offerings.
Page 80
DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
Chapter 6: Conclusion
6.1 Conclusion
It can be concluded after completing the research that there is a huge scope of cab service
industry in India. The study analyzed that innovation in the cab industry with the help of mobile
applications has been creating opportunity for the technical advances in Delhi. This paper has
focused on developing a business model for a cab business that has helped in connecting drivers and
customers. This research has successfully RIDE business model in order to perform the research in
the market. This research has helped in maintaining a keen approach in providing a better
understanding between drivers and customers. The mobile application has been facing challenges in
creating and maintaining its market. However, the researcher identified transportation issues in
Delhi regarding cab services. Therefore, this research has focused on its appropriate market research
in Delhi. It has found that the cab aggregators used market revenue to expand its fleet of cab
vehicles and expanded geologically across the nation.
Cash payment in India provides an impact on the business operation of Ola, Uber and Meru.
The demand of cab services has been increasing in daily basis in the market. Therefore, it has been
creating bright opportunity in the market. The uses of various technologies have been helping in
maintaining a keen approach in the development of the project. This research has helped in
identifying various issues faced by customers in the cab services industry. The major problems that
were identified have been related to high charges offered by these big companies in this industry.
This application has focused on enhancing relation between customers while booking a cab. This
research has discussed abut benefits cab booking mobile applications for cab aggregators as the
drivers are not getting to reject the passenger's request; the passenger can check for driver's profile
and leave feedback after using the cab services. For the payment method, the passengers are
selecting cash, card, online payments and others. The cab applications are also offered with
Page 81
Chapter 6: Conclusion
6.1 Conclusion
It can be concluded after completing the research that there is a huge scope of cab service
industry in India. The study analyzed that innovation in the cab industry with the help of mobile
applications has been creating opportunity for the technical advances in Delhi. This paper has
focused on developing a business model for a cab business that has helped in connecting drivers and
customers. This research has successfully RIDE business model in order to perform the research in
the market. This research has helped in maintaining a keen approach in providing a better
understanding between drivers and customers. The mobile application has been facing challenges in
creating and maintaining its market. However, the researcher identified transportation issues in
Delhi regarding cab services. Therefore, this research has focused on its appropriate market research
in Delhi. It has found that the cab aggregators used market revenue to expand its fleet of cab
vehicles and expanded geologically across the nation.
Cash payment in India provides an impact on the business operation of Ola, Uber and Meru.
The demand of cab services has been increasing in daily basis in the market. Therefore, it has been
creating bright opportunity in the market. The uses of various technologies have been helping in
maintaining a keen approach in the development of the project. This research has helped in
identifying various issues faced by customers in the cab services industry. The major problems that
were identified have been related to high charges offered by these big companies in this industry.
This application has focused on enhancing relation between customers while booking a cab. This
research has discussed abut benefits cab booking mobile applications for cab aggregators as the
drivers are not getting to reject the passenger's request; the passenger can check for driver's profile
and leave feedback after using the cab services. For the payment method, the passengers are
selecting cash, card, online payments and others. The cab applications are also offered with
Page 81
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DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
discounts, coupons as well as promotion that local cabs are not provided to their passengers. This
mobile application has focused on implementing a better experience of customers with the drivers
of the cab. Various researchers have focused on the importance of good experiences of customers
with the can services companies.
The navigation systems of the companies have been an important pointing providing a
better quality of services to customers. GPS technology has been helping in retrieving coordinates
and location of customers and cab drivers. The developments of various individual startup
companies have been facing issues in the setting up company in the market. This help customers xto
find out the actual location of cab drivers and vice versa. Revenue Model has been used in which
cab aggregators generate revenue throughout pay for performance model. The capital has been
invested in the business need to be return back with profit. This has been main agenda of this
business model. Therefore, customer satisfaction has been an important section of this model. This
research has focused on satisfaction level of customers. Various researchers have focused on
developing their thoughts and views on enhancing customer satisfaction.
This research has also focused on the challenges faced by the customers in the cab booking
system. One of the major challenges faced by customer is unavailability of cabs nearby. The
algorithms used in cab booking applications have been delaying search for cab booking. There are
another possibility of unavailability of cabs during rush hours and office hours. Therefore, this has
been creating negative impression in the mind of customers. When a price is high, plus the cost of
switching is lower, then it is critical to gain the loyalty of the customers. Due to rise in the cab
services, it is critical to solve the problems of the customers when they complained about any issues
faced while using the services. The use of cab system has been helping in maintaining keen
approach in the development of the transportation industry in the market. Most popular cab
companies are Ola and Uber as both of them are using GPS technology and innovative business
model to capture market share. The users are using innovative cab aggregator’s mobile application
Page 82
discounts, coupons as well as promotion that local cabs are not provided to their passengers. This
mobile application has focused on implementing a better experience of customers with the drivers
of the cab. Various researchers have focused on the importance of good experiences of customers
with the can services companies.
The navigation systems of the companies have been an important pointing providing a
better quality of services to customers. GPS technology has been helping in retrieving coordinates
and location of customers and cab drivers. The developments of various individual startup
companies have been facing issues in the setting up company in the market. This help customers xto
find out the actual location of cab drivers and vice versa. Revenue Model has been used in which
cab aggregators generate revenue throughout pay for performance model. The capital has been
invested in the business need to be return back with profit. This has been main agenda of this
business model. Therefore, customer satisfaction has been an important section of this model. This
research has focused on satisfaction level of customers. Various researchers have focused on
developing their thoughts and views on enhancing customer satisfaction.
This research has also focused on the challenges faced by the customers in the cab booking
system. One of the major challenges faced by customer is unavailability of cabs nearby. The
algorithms used in cab booking applications have been delaying search for cab booking. There are
another possibility of unavailability of cabs during rush hours and office hours. Therefore, this has
been creating negative impression in the mind of customers. When a price is high, plus the cost of
switching is lower, then it is critical to gain the loyalty of the customers. Due to rise in the cab
services, it is critical to solve the problems of the customers when they complained about any issues
faced while using the services. The use of cab system has been helping in maintaining keen
approach in the development of the transportation industry in the market. Most popular cab
companies are Ola and Uber as both of them are using GPS technology and innovative business
model to capture market share. The users are using innovative cab aggregator’s mobile application
Page 82
DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
for booking the cabs. The cab hailing service companies are introduced with ride passes as well as
Uber announced with vouchers for locking in utilizing of the cab services.
The new cab hailing service companies can scale up, focused on the loyalty of the
customers, gain of trust as well as provide with a sense of fairness of price when it turns profitable.
Lacks of skilled resources have been creating issues in the industry. There are some drivers who do
not have proper training about driving and customers are not satisfied with their way of driving.
This create bad image of company in the mind of customers. Therefore, companies need to be
aware of these issues. Increase in cost of cab has been another issue in this industry. Due to external
causes and inflation, cab companies have been increasing their prices to gain profit in the market.
This has been degrading the image of companies in the mind of people. Customers are loyal to the
cab aggregators if they are offered at lower prices. The offers which the customers are mainly
received, such as referral, provide with discounts and free ride services. The digital innovation helps
the companies to attract more customers by providing them with the usage of mobile applications
and websites to cash in internet users. As a new cab business model development for cab services,
the cab aggregators should make up with flyers with the promo codes as well as distribute the flyers
in the public places such as colleges, exhibitions, art events and others. It should provide with
higher class services as value in the coupons should higher and spread across various places. There
is also sharing of coupons online like public posts with promo codes on social media accounts.
Online system should provide the passengers with opportunity to share promo codes via sharing
existed with the cab application. Therefore, using those two channels the customers should know
about offers and discounts provided by cab companies.
This research has utilized several journals and previous researches regarding topic of the
research. This has helped in gaining as much knowledge and data regarding the research. The
customer satisfaction levels of the customers in the market have been an important segment in all of
these papers and journals. This has been focused by most of the previous researchers. The literature
Page 83
for booking the cabs. The cab hailing service companies are introduced with ride passes as well as
Uber announced with vouchers for locking in utilizing of the cab services.
The new cab hailing service companies can scale up, focused on the loyalty of the
customers, gain of trust as well as provide with a sense of fairness of price when it turns profitable.
Lacks of skilled resources have been creating issues in the industry. There are some drivers who do
not have proper training about driving and customers are not satisfied with their way of driving.
This create bad image of company in the mind of customers. Therefore, companies need to be
aware of these issues. Increase in cost of cab has been another issue in this industry. Due to external
causes and inflation, cab companies have been increasing their prices to gain profit in the market.
This has been degrading the image of companies in the mind of people. Customers are loyal to the
cab aggregators if they are offered at lower prices. The offers which the customers are mainly
received, such as referral, provide with discounts and free ride services. The digital innovation helps
the companies to attract more customers by providing them with the usage of mobile applications
and websites to cash in internet users. As a new cab business model development for cab services,
the cab aggregators should make up with flyers with the promo codes as well as distribute the flyers
in the public places such as colleges, exhibitions, art events and others. It should provide with
higher class services as value in the coupons should higher and spread across various places. There
is also sharing of coupons online like public posts with promo codes on social media accounts.
Online system should provide the passengers with opportunity to share promo codes via sharing
existed with the cab application. Therefore, using those two channels the customers should know
about offers and discounts provided by cab companies.
This research has utilized several journals and previous researches regarding topic of the
research. This has helped in gaining as much knowledge and data regarding the research. The
customer satisfaction levels of the customers in the market have been an important segment in all of
these papers and journals. This has been focused by most of the previous researchers. The literature
Page 83
DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
review of the research has focused on critical analysis of cab industry in India. Loyal customers
have been an essential segment of a business. Loyal customers help in gaining profit in the
market.Uber has cab hailing service providers required to focus on the loyalty of the customers and
provided with price fairness. When a price is high, plus the cost of switching is lower, then it is
critical to gain the loyalty of the customers. The cab hailing service companies are introduced with
ride passes as well as Uber announced with vouchers for locking in utilizing of the cab services. The
new cab hailing service companies can scale up, focused on the loyalty of the customers, gain of
trust as well as provide with a sense of fairness of price when it turns profitable.
This research has selected positivism philosophy which has researcher to gather hidden data
and information regarding development of business model of cab services among tourists and
passengers. This research has used deductive approach which has helped researchers for solving
issues and challenges during data collection and hypothesis development. The use of deductive
approach has helped in maintaining keen approach of developing hypothesis for the research.
Descriptive research design has been selected in the research which has helped in evaluating
development factors of new cab business model and its performance. Data has been collected from
both primary and secondary method of data collection including primary and secondary method.
The analysis of data has been done using regression method for which Significant F is 0.7133. The
null hypothesis one has been accepted as there is no positive relationship between price and coupon
redemption behavior among the customers of cab services. The Significant F value for hypothesis 2
has been 2.3E-05 which has been less than 0.5 and null hypothesis is rejected in this case.
The qualitative analysis found that most of the customers are happy with the cab services
provided by cab providers. The cab aggregators have been enhancing their responsiveness for
satisfying their customers in the market. The application has been providing coupon code with free
ride services for passengers. Therefore, it can be concluded from the research that the study has
highlighted relationship between demand of customers and expectation of customers. As obtained
Page 84
review of the research has focused on critical analysis of cab industry in India. Loyal customers
have been an essential segment of a business. Loyal customers help in gaining profit in the
market.Uber has cab hailing service providers required to focus on the loyalty of the customers and
provided with price fairness. When a price is high, plus the cost of switching is lower, then it is
critical to gain the loyalty of the customers. The cab hailing service companies are introduced with
ride passes as well as Uber announced with vouchers for locking in utilizing of the cab services. The
new cab hailing service companies can scale up, focused on the loyalty of the customers, gain of
trust as well as provide with a sense of fairness of price when it turns profitable.
This research has selected positivism philosophy which has researcher to gather hidden data
and information regarding development of business model of cab services among tourists and
passengers. This research has used deductive approach which has helped researchers for solving
issues and challenges during data collection and hypothesis development. The use of deductive
approach has helped in maintaining keen approach of developing hypothesis for the research.
Descriptive research design has been selected in the research which has helped in evaluating
development factors of new cab business model and its performance. Data has been collected from
both primary and secondary method of data collection including primary and secondary method.
The analysis of data has been done using regression method for which Significant F is 0.7133. The
null hypothesis one has been accepted as there is no positive relationship between price and coupon
redemption behavior among the customers of cab services. The Significant F value for hypothesis 2
has been 2.3E-05 which has been less than 0.5 and null hypothesis is rejected in this case.
The qualitative analysis found that most of the customers are happy with the cab services
provided by cab providers. The cab aggregators have been enhancing their responsiveness for
satisfying their customers in the market. The application has been providing coupon code with free
ride services for passengers. Therefore, it can be concluded from the research that the study has
highlighted relationship between demand of customers and expectation of customers. As obtained
Page 84
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DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
from primary research study, the impact of marketing has no issues in providing positive approach
towards the behavior of customers. Responses from daily travelers and customer relationship
manager are used for analyzing development of cab business model. The collected data have been
utilized for highlighting demand of cab services and offers level of customer satisfaction during
making cab services more attractive.
6.2 Linking with the objectives
The results and outcomes of the research have been focused on the objectives of the
research that were initiated in the first section. Therefore, it has been necessary that the outcomes
and results need to be linked with the objectives.
Linking with objective 1: To determine the perspective of the customers towards the cab services
The perspectives of customers towards cab services have been positive. A better
observation can be looked in literature review section 2.2 and survey questionnaire in question 3, 4
and 7. A proper analysis about the perspective of customers towards using cab services have been
provided in the research. The factors which are key significant for the customers to choose cab
services are price, coupons and brand image of the cab company. In the literature study, there is also
discussion on factors affecting the customer satisfaction level in the cab market in Delhi. Therefore,
this objective is linked with the results and outcomes of the research.
Linking with objective 2: To create cab business model for entering the market of cab industry
These researchers have proposed a cab business model named as RIDE model which is
different from Uber and Ola cab services. This business model has provided in depth understanding
on demand business model which has helped in developing a new start up business in India. The
RIDE has helped cab companies in generating strong value propositions for passengers and cab
drivers in order to obtain onboard platform and produce disruption in cab industry. Discussion about
Page 85
from primary research study, the impact of marketing has no issues in providing positive approach
towards the behavior of customers. Responses from daily travelers and customer relationship
manager are used for analyzing development of cab business model. The collected data have been
utilized for highlighting demand of cab services and offers level of customer satisfaction during
making cab services more attractive.
6.2 Linking with the objectives
The results and outcomes of the research have been focused on the objectives of the
research that were initiated in the first section. Therefore, it has been necessary that the outcomes
and results need to be linked with the objectives.
Linking with objective 1: To determine the perspective of the customers towards the cab services
The perspectives of customers towards cab services have been positive. A better
observation can be looked in literature review section 2.2 and survey questionnaire in question 3, 4
and 7. A proper analysis about the perspective of customers towards using cab services have been
provided in the research. The factors which are key significant for the customers to choose cab
services are price, coupons and brand image of the cab company. In the literature study, there is also
discussion on factors affecting the customer satisfaction level in the cab market in Delhi. Therefore,
this objective is linked with the results and outcomes of the research.
Linking with objective 2: To create cab business model for entering the market of cab industry
These researchers have proposed a cab business model named as RIDE model which is
different from Uber and Ola cab services. This business model has provided in depth understanding
on demand business model which has helped in developing a new start up business in India. The
RIDE has helped cab companies in generating strong value propositions for passengers and cab
drivers in order to obtain onboard platform and produce disruption in cab industry. Discussion about
Page 85
DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
RIDE model has been mentioned in the first chapter of the research. Therefore, this objective has
been linked with results and outcomes of the research.
Linking with objective 3: To determine the key significant factors required while booking of the
cab
There are various significant factors discussed in the literature review of the research which
include payment method, offers attract the customers, cheapest price rate and safety concerns. These
factors have been discussed in the literature review chapter. The customers from metros have shown
loyalty towards Uber due to quality ride plus lower rates. In case of Meru, cab availability is not so
much when the customers have required it. It offers reliable pre-booking for long-distance or airport
as well as rental facilities. The price is the same as Ola Prime, and the disadvantage is that there is
no in-cab entertainment system. Therefore, this research has focused on this objective and properly
linked with it.
Linking with objective 4: To identify the safety concerns towards booking of cab
Safety concerns have been one of the important sections in the cab industry. In Delhi, there
is higher concern for women safety. As a new cab business model development for cab services, the
cab aggregators should make up with flyers with the promo codes as well as distribute the flyers in
the public places such as colleges, exhibitions, art events and others. There are a number of crimes
that occurred against the women committed by drivers of the cab application. This has been
discussed in the literature review section 2.5.2. A critical analysis about safety concerns have been
provided in this mentioned section. Therefore, it is conformed that these objectives has been linked
to the results and outcomes of the research.
6.3 Recommendations
There are various recommendations provided below for enhancing mobile application of
cab services.
Page 86
RIDE model has been mentioned in the first chapter of the research. Therefore, this objective has
been linked with results and outcomes of the research.
Linking with objective 3: To determine the key significant factors required while booking of the
cab
There are various significant factors discussed in the literature review of the research which
include payment method, offers attract the customers, cheapest price rate and safety concerns. These
factors have been discussed in the literature review chapter. The customers from metros have shown
loyalty towards Uber due to quality ride plus lower rates. In case of Meru, cab availability is not so
much when the customers have required it. It offers reliable pre-booking for long-distance or airport
as well as rental facilities. The price is the same as Ola Prime, and the disadvantage is that there is
no in-cab entertainment system. Therefore, this research has focused on this objective and properly
linked with it.
Linking with objective 4: To identify the safety concerns towards booking of cab
Safety concerns have been one of the important sections in the cab industry. In Delhi, there
is higher concern for women safety. As a new cab business model development for cab services, the
cab aggregators should make up with flyers with the promo codes as well as distribute the flyers in
the public places such as colleges, exhibitions, art events and others. There are a number of crimes
that occurred against the women committed by drivers of the cab application. This has been
discussed in the literature review section 2.5.2. A critical analysis about safety concerns have been
provided in this mentioned section. Therefore, it is conformed that these objectives has been linked
to the results and outcomes of the research.
6.3 Recommendations
There are various recommendations provided below for enhancing mobile application of
cab services.
Page 86
DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
The young people have been main source of market with regards to cab service provider.
Therefore, attracting offers and rewards need to be provided to them to gain loyalty.
The drivers and call center executives need to be properly trained in order to communicate
properly with customers.
The service providers need to provide facilities in order to privilege their customers.
Drivers need to be trained properly in order to know shortest route of journey in an efficient
manner.
The price rate of journey needs to be lower than other companies during peak hours which
will help in acquiring more customers in the market.
The infrastructure facilities need to be in order to be increased that helps passengers for
pleasant travel.
Technical faults need to be handled properly with technical experts which help in easy
usage of mobile application for users.
Proper training based on usage of GPS software need to be provided to drivers that will help
in driving in a smooth way.
Company need to take feedbacks from customers regarding their services in the market.
This can be achieved using a survey form and send to their customers. Company need to
look after those feedbacks and comments of customers.
6.4 Further scope of the study
The proposed model has been undergoing process. There has been need of more
modifications in the proposed model in this research. Various legal and ethical issues are interlinked
with the implementation of this proposed model. The digital innovation helps the companies to
Page 87
The young people have been main source of market with regards to cab service provider.
Therefore, attracting offers and rewards need to be provided to them to gain loyalty.
The drivers and call center executives need to be properly trained in order to communicate
properly with customers.
The service providers need to provide facilities in order to privilege their customers.
Drivers need to be trained properly in order to know shortest route of journey in an efficient
manner.
The price rate of journey needs to be lower than other companies during peak hours which
will help in acquiring more customers in the market.
The infrastructure facilities need to be in order to be increased that helps passengers for
pleasant travel.
Technical faults need to be handled properly with technical experts which help in easy
usage of mobile application for users.
Proper training based on usage of GPS software need to be provided to drivers that will help
in driving in a smooth way.
Company need to take feedbacks from customers regarding their services in the market.
This can be achieved using a survey form and send to their customers. Company need to
look after those feedbacks and comments of customers.
6.4 Further scope of the study
The proposed model has been undergoing process. There has been need of more
modifications in the proposed model in this research. Various legal and ethical issues are interlinked
with the implementation of this proposed model. The digital innovation helps the companies to
Page 87
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DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
attract more customers by providing them with the usage of mobile applications and websites to
cash in internet users. It should provide with higher class services as value in the coupons should
higher and spread across various places. Therefore, future studies might focus on improving the
proposed model in this research. Along with that, Revenue model needs to be considered with
Reverse Auction Pricing Model. This enhancement in research may be a topic for research for
future researchers.
Page 88
attract more customers by providing them with the usage of mobile applications and websites to
cash in internet users. It should provide with higher class services as value in the coupons should
higher and spread across various places. Therefore, future studies might focus on improving the
proposed model in this research. Along with that, Revenue model needs to be considered with
Reverse Auction Pricing Model. This enhancement in research may be a topic for research for
future researchers.
Page 88
DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
Chapter 7: Reflection
In order to perform work based on selected topic for analyzing development of cab business
model, we had collected information from both primary and secondary sources. After collecting the
data, it helped us to form our research points. We had allocated our tasks based on our interest and
knowledge to perform it. Our focus was to complete the work on scheduled timeframe along with
coming good quality analysis. In order to work in this study, pro-activeness in addition to
participative attitude is needed. Unless when any unforeseen situations are raised, the team members
had to inform others and project supervisor about it. Through entire course work, when any doubts
as well as clarifications were required, team member has initiated discussion as well as
communicated with others to resolve it so that it cannot provide impact on purpose, data findings
and project outcomes of this project work. Things would have been very difficult without the
supervisor’s support. Supervisor guided us and broadened up our thinking at every step during the
research.
In order to provide answer to the selected research questions, we performed this work and
used analytical tools for my work. We collected data from different sources through responses from
daily travelers used cab services to travel from home to workplace and vice versa. In order to
perform the literature study, it increased our personal learning on critically analysis of academic
articles related to selected topic and increased our level of professional competency in different
ways. Our project supervisor made us clear that we should describe the research topic clearly and
then analyze problems raised in the report. We focused on critical analysis of the topic and its
discussion as elements of research work provide value to our research study.
While working in the thesis paper, we learned to search the information related to the topic
from the literature sources. We had gone through various sources to record data. In this work, we
learned to perform regression analysis to analyse the collected data and check for its validity and
Page 89
Chapter 7: Reflection
In order to perform work based on selected topic for analyzing development of cab business
model, we had collected information from both primary and secondary sources. After collecting the
data, it helped us to form our research points. We had allocated our tasks based on our interest and
knowledge to perform it. Our focus was to complete the work on scheduled timeframe along with
coming good quality analysis. In order to work in this study, pro-activeness in addition to
participative attitude is needed. Unless when any unforeseen situations are raised, the team members
had to inform others and project supervisor about it. Through entire course work, when any doubts
as well as clarifications were required, team member has initiated discussion as well as
communicated with others to resolve it so that it cannot provide impact on purpose, data findings
and project outcomes of this project work. Things would have been very difficult without the
supervisor’s support. Supervisor guided us and broadened up our thinking at every step during the
research.
In order to provide answer to the selected research questions, we performed this work and
used analytical tools for my work. We collected data from different sources through responses from
daily travelers used cab services to travel from home to workplace and vice versa. In order to
perform the literature study, it increased our personal learning on critically analysis of academic
articles related to selected topic and increased our level of professional competency in different
ways. Our project supervisor made us clear that we should describe the research topic clearly and
then analyze problems raised in the report. We focused on critical analysis of the topic and its
discussion as elements of research work provide value to our research study.
While working in the thesis paper, we learned to search the information related to the topic
from the literature sources. We had gone through various sources to record data. In this work, we
learned to perform regression analysis to analyse the collected data and check for its validity and
Page 89
DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
reliability. The high points of this thesis paper are that we had provided detailed information related
to complex project issues. While performing the qualitative method, we found that collected data
are reliable as well as consistent. The low points in this study which we faced are that while
working in literature review chapter, it was difficult to search for business models perfectly related
to the cab services. We had analyzed various models and then we added some models in the
literature study. We also found difficulties to perform regression analysis as we have lack of
knowledge on it, therefore firstly we had learned how to do it and then we did it to analyze collected
data.
While performing the research work, we focused on ethical considerations so that collected
data were kept secured and it was not shared with any third-party person. After going through
background of cab services in Delhi, we developed the research hypothesis based on selected
research title. We developed our skills to manage time while working on thesis paper which is a
long work time period study. We developed the skills throughout entire research process required to
complete the report to manage the project work in future. Time management was taken into
consideration in research work so that there is no possibility of research delays. We used our own
ideas as well as opinions to work and avoided any type of copying. We have used the ideas of other
authors in the literature study and from the journal articles, news articles and websites to gain
information related to our research topic. We used the theories related to customer behaviour in
addition to customer satisfaction so that demands of cab among the passengers were analyzed
efficiently and it helped in critical analysis of the work. We provided with recommendations at final
stage to resolve the issues related to transportation industry’s business performance in future. All the
research done will help us in the development of our cab business. Therefore, the team members
always helped each other in the work to complete it on estimated timeline. Supervisor’s guidance at
every step helped us a lot.
Page 90
reliability. The high points of this thesis paper are that we had provided detailed information related
to complex project issues. While performing the qualitative method, we found that collected data
are reliable as well as consistent. The low points in this study which we faced are that while
working in literature review chapter, it was difficult to search for business models perfectly related
to the cab services. We had analyzed various models and then we added some models in the
literature study. We also found difficulties to perform regression analysis as we have lack of
knowledge on it, therefore firstly we had learned how to do it and then we did it to analyze collected
data.
While performing the research work, we focused on ethical considerations so that collected
data were kept secured and it was not shared with any third-party person. After going through
background of cab services in Delhi, we developed the research hypothesis based on selected
research title. We developed our skills to manage time while working on thesis paper which is a
long work time period study. We developed the skills throughout entire research process required to
complete the report to manage the project work in future. Time management was taken into
consideration in research work so that there is no possibility of research delays. We used our own
ideas as well as opinions to work and avoided any type of copying. We have used the ideas of other
authors in the literature study and from the journal articles, news articles and websites to gain
information related to our research topic. We used the theories related to customer behaviour in
addition to customer satisfaction so that demands of cab among the passengers were analyzed
efficiently and it helped in critical analysis of the work. We provided with recommendations at final
stage to resolve the issues related to transportation industry’s business performance in future. All the
research done will help us in the development of our cab business. Therefore, the team members
always helped each other in the work to complete it on estimated timeline. Supervisor’s guidance at
every step helped us a lot.
Page 90
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DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
Chapter 8: Limitation of the study
The research study has helped to gain results of the selected research topic allowed to
encounter list of the restrictions which were raised while performing the research study.
Panneerselvam (2014) discussed that limitations of the research topic are natural when there is
restricted research scope plus capabilities to perform the work. Following are list of the research
limitations which are considered such as:
Reliability: The researcher had run after the participants to fill the survey form. Due to busy
time schedule, some of the participants were not filling the form and some said that they would do it
later but never did. Some of the participants were not active on the social platform, so they were
filling the form after it closed down for analysis part. Therefore, reliability issues were raised in this
particular study.
Time constraint: Due to cross sectional nature of this research study, the researcher faced
limitations in the study as it was performed in short period of time. In some cases, in-depth analysis
of selected topics was not performed due to time limitation.
Budget constraint: In limited budget, the researcher faced limitations of budget to perform
the work in proper and organized way. SPSS is downloaded free, but it does not provide better
reliability and validity of data, therefore purchasing of SPSS software provides better result of data
analysis. Lack of finance for this research work limited usage of SPSS software help to enhance
quality of collected data by means of statistical tools.
Page 91
Chapter 8: Limitation of the study
The research study has helped to gain results of the selected research topic allowed to
encounter list of the restrictions which were raised while performing the research study.
Panneerselvam (2014) discussed that limitations of the research topic are natural when there is
restricted research scope plus capabilities to perform the work. Following are list of the research
limitations which are considered such as:
Reliability: The researcher had run after the participants to fill the survey form. Due to busy
time schedule, some of the participants were not filling the form and some said that they would do it
later but never did. Some of the participants were not active on the social platform, so they were
filling the form after it closed down for analysis part. Therefore, reliability issues were raised in this
particular study.
Time constraint: Due to cross sectional nature of this research study, the researcher faced
limitations in the study as it was performed in short period of time. In some cases, in-depth analysis
of selected topics was not performed due to time limitation.
Budget constraint: In limited budget, the researcher faced limitations of budget to perform
the work in proper and organized way. SPSS is downloaded free, but it does not provide better
reliability and validity of data, therefore purchasing of SPSS software provides better result of data
analysis. Lack of finance for this research work limited usage of SPSS software help to enhance
quality of collected data by means of statistical tools.
Page 91
DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
References
Agarwal, D., 2019. Indian Competition Authority Rules that Uber Does not Facilitate Hub and
Spoke Arrangements. Journal of European Competition Law & Practice.
Anirvinna, C. and Deshmukh, A.K., 2019. Pricing strategy of cab aggregators in India. Journal of
Revenue and Pricing Management, pp.1-7.
Bansal, V. 2017. Meru slashes fares in Delhi to retain passengers amid Ola, Uber protests. [online]
The Economic Times. Available at: https://economictimes.indiatimes.com/small-biz/startups/meru-
slashes-fare-in-delhi-ncr/articleshow/57373167.cms [Accessed 7 Aug. 2019].
Basa, C., 2018. Does Price Fixing, by App Based On-Demand Taxi Services Pose a Competition
Law Concern in India?. Competition Policy International.
Bashir, M., Yousaf, A. and Verma, R., 2016. Disruptive business model innovation: How a tech
firm is changing the traditional taxi service industry. Indian Journal of Marketing, 46(4), pp.49-59.
Basu, A., 2019. Viability assessment of emerging smart urban para-transit solutions: Case of cab
aggregators in Kolkata city, India. Journal of Urban Management.
Das, S.P., Bhatt, D. and Path, S., 2017. Transformation Of Urban Transportation-Strategic
Perspective A Case Of Uber Technologies, Inc. International, Journal of Research in Business
Management, 5(3), pp.69-78.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Dudley, G., Banister, D. and Schwanen, T., 2017. The rise of Uber and regulating the disruptive
innovator. The political quarterly, 88(3), pp.492-499.
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References
Agarwal, D., 2019. Indian Competition Authority Rules that Uber Does not Facilitate Hub and
Spoke Arrangements. Journal of European Competition Law & Practice.
Anirvinna, C. and Deshmukh, A.K., 2019. Pricing strategy of cab aggregators in India. Journal of
Revenue and Pricing Management, pp.1-7.
Bansal, V. 2017. Meru slashes fares in Delhi to retain passengers amid Ola, Uber protests. [online]
The Economic Times. Available at: https://economictimes.indiatimes.com/small-biz/startups/meru-
slashes-fare-in-delhi-ncr/articleshow/57373167.cms [Accessed 7 Aug. 2019].
Basa, C., 2018. Does Price Fixing, by App Based On-Demand Taxi Services Pose a Competition
Law Concern in India?. Competition Policy International.
Bashir, M., Yousaf, A. and Verma, R., 2016. Disruptive business model innovation: How a tech
firm is changing the traditional taxi service industry. Indian Journal of Marketing, 46(4), pp.49-59.
Basu, A., 2019. Viability assessment of emerging smart urban para-transit solutions: Case of cab
aggregators in Kolkata city, India. Journal of Urban Management.
Das, S.P., Bhatt, D. and Path, S., 2017. Transformation Of Urban Transportation-Strategic
Perspective A Case Of Uber Technologies, Inc. International, Journal of Research in Business
Management, 5(3), pp.69-78.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Dudley, G., Banister, D. and Schwanen, T., 2017. The rise of Uber and regulating the disruptive
innovator. The political quarterly, 88(3), pp.492-499.
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DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
Flick, U., 2015. Introducing research methodology: A beginner's guide to doing a research project.
Sage.
Ganapathy, V., 2017. Urban mobility in the era of sharing economy: An empirical study of
smartphone app based ridesourcing services. Journal of Global Economy, 13(4), pp.268-289.
Ge, Y., Jabbari, P., MacKenzie, D. and Tao, J., 2017. Effects of a public real-time multi-modal
transportation information display on travel behavior and attitudes. Journal of Public
Transportation, 20(2), p.3.
Glesne, C., 2015. Becoming qualitative researchers: An introduction. Pearson.
Goel, R., Jain, P., Singhal, R., Jhunjhunwala, R. and Doshi, R., 2018. Operation analytics: Uber and
ola logistics optimization.
Govinda, R., 2019. From the taxi drivers’ rear-view mirror: masculinity, marginality and sexual
violence in India’s capital city, Delhi. Gender, Place & Culture, pp.1-17.
Hair Jr, J.F., Wolfinbarger, M., Money, A.H., Samouel, P. and Page, M.J., 2015. Essentials of
business research methods. Routledge.
Hall, J.D., Palsson, C. and Price, J., 2018. Is Uber a substitute or complement for public
transit?. Journal of Urban Economics, 108, pp.36-50.
Hanrahan, B.V., Ma, N.F. and Yuan, C.W., 2018. The Roots of Bias on Uber. arXiv preprint
arXiv:1803.08579.
Hira, A. and Reilly, K., 2017. The emergence of the sharing economy: Implications for
development. Journal of Developing Societies, 33(2), pp.175-190.
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Flick, U., 2015. Introducing research methodology: A beginner's guide to doing a research project.
Sage.
Ganapathy, V., 2017. Urban mobility in the era of sharing economy: An empirical study of
smartphone app based ridesourcing services. Journal of Global Economy, 13(4), pp.268-289.
Ge, Y., Jabbari, P., MacKenzie, D. and Tao, J., 2017. Effects of a public real-time multi-modal
transportation information display on travel behavior and attitudes. Journal of Public
Transportation, 20(2), p.3.
Glesne, C., 2015. Becoming qualitative researchers: An introduction. Pearson.
Goel, R., Jain, P., Singhal, R., Jhunjhunwala, R. and Doshi, R., 2018. Operation analytics: Uber and
ola logistics optimization.
Govinda, R., 2019. From the taxi drivers’ rear-view mirror: masculinity, marginality and sexual
violence in India’s capital city, Delhi. Gender, Place & Culture, pp.1-17.
Hair Jr, J.F., Wolfinbarger, M., Money, A.H., Samouel, P. and Page, M.J., 2015. Essentials of
business research methods. Routledge.
Hall, J.D., Palsson, C. and Price, J., 2018. Is Uber a substitute or complement for public
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of minicab taxi services in Cape Coast, Ghana. International journal of economics, commerce and
management, 3(5), pp.1451-1464.
Kargl, F., Schmidt, R. and Bösch, C., 2018, December. iRide: A Privacy-Preserving Architecture
for Self-Driving Cabs Service. In 2018 IEEE Vehicular Networking Conference (VNC) (pp. 1-8).
IEEE.
Kashyap, R. and Bhatia, A., 2018. Taxi drivers and taxidars: a case study of Uber and Ola in
Delhi. Journal of Developing Societies, 34(2), pp.169-194.
Kaushal, L.A., 2018. The Sharing Economy and Sustainability: a Case Study of India. Valahian
Journal of Economic Studies, 9(2), pp.7-16.
Khupse, M.H., 2017. A study of passenger’s motives for using mobile app based cabs. Kaav,
International Journal of Economics, Commerce and Business Management, 4(3), pp.474-480.
Kumar, P.K. and Kumar, N.R., 2016. A Study on Factors Influencing the Consumers in Selection of
Cab Services. International Journal of Social Science and Humanities Research, 4(3), pp.557-561.
Ledford, J.R. and Gast, D.L., 2018. Single case research methodology: Applications in special
education and behavioral sciences. Routledge.
Lenhart, A., Purcell, K., Smith, A. and Zickuhr, K., 2010. Social Media & Mobile Internet Use
among Teens and Young Adults. Millennials. Pew internet & American life project.
Lewis, D. and Williams, F.L., 2019. Policy and planning as public choice: Mass transit in the
United States. Routledge.
Lewis, S., 2015. Qualitative inquiry and research design: Choosing among five approaches. Health
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DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
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Case Studies.
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manufacturing industries: case studies using large vehicle-related databases. Journal of Intelligent
Manufacturing, 29(3), pp.497-508.
Litman, T., 2015. Evaluating public transit benefits and costs. Victoria, BC, Canada: Victoria
Transport Policy Institute.
Mackey, A. and Gass, S.M., 2015. Second language research: Methodology and design. Routledge.
Mahapatra, D.M. and Patra, S.K., 2016. Payments and Banking with Mobile Devices: A study of E-
Wallet and Apps with Pragmatic view. JIM QUEST, 12(2), p.51.
Maheshwari, N., 2017. Uber taxi cab-handling crisis communication. Emerald Emerging Markets
Case Studies.
Muralidhar, S.H., 2016. How Ola Disrupted Taxi Services in India?. Review of Management, 6(3/4),
pp.5-17.
Northouse, P.G., 2010. Leadership: Theory and practice. E-Content Generic Vendor..
Panda, S. and Dash, S.K., 2018. ‘Surge’Pricing for Railway Tickets as Tax by Stealth. Economic &
Political Weekly, 53(5), p.25.
Pandya, U., Rungta, R. and Iyer, G., 2017. Impact of use of mobile app of OLA cabs and TAXI for
sure on Yellow and Black cabs. Pacific Business Review International, 9(9), pp.91-105.
Panigrahi, D., Shahi, S. and Rathore, A., 2018. Success Story of a Start-Up–A Case Study of OLA
Cabs. IOSR Journal of Business and Management, 20(2), pp.30-37.
Panneerselvam, R., 2014. Research methodology. PHI Learning Pvt. Ltd..
Parsheera, S., Shah, A. and Bose, A., 2017. Competition Issues in India's Online Economy.
Page 95
DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
Potts, J., Goodwin, G.C., Lewis, C.A. and Southern, V., 2018. Invited Student Paper-Social
Parameters as a Component of Transit Network Analysis: Examining Public Transit in Minority
and Low-Income Areas Without Service (No. 18-05346).
Rajesh, R. and Chincholkar, S., 2018. A Study on Consumer Perception of Ola and Uber Taxi
Services. Indian Journal of Computer Science, 3(5), pp.25-31.
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Development, 4(01), pp.107-113.
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scenario, issues and possibilities for consolidation. International Journal of Scientific Development
and Research, 1(4), pp.317-324.
Shah, D., Kumaran, A., Sen, R. and Kumaraguru, P., 2019, May. Travel Time Estimation Accuracy
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Potts, J., Goodwin, G.C., Lewis, C.A. and Southern, V., 2018. Invited Student Paper-Social
Parameters as a Component of Transit Network Analysis: Examining Public Transit in Minority
and Low-Income Areas Without Service (No. 18-05346).
Rajesh, R. and Chincholkar, S., 2018. A Study on Consumer Perception of Ola and Uber Taxi
Services. Indian Journal of Computer Science, 3(5), pp.25-31.
Rao, D.H.M.S. and Alexander, C.M., 2017. Paradigm Shift in Indian Taxi Industry—A Competitive
Analysis on Taxi Aggregation Model. International Journal of Advanced Scientific Research
Development, 4(01), pp.107-113.
Rayle, L., Dai, D., Chan, N., Cervero, R. and Shaheen, S., 2016. Just a better taxi? A survey-based
comparison of taxis, transit, and ridesourcing services in San Francisco. Transport Policy, 45,
pp.168-178.
Sachitanand, R. 2018. The challenges before cab aggregators in India. [online] The Economic
Times. Available at: https://economictimes.indiatimes.com/industry/transportation/shipping-/-
transport/the-challenges-before-cab-aggregators-in-india/articleshow/66394551.cms?from=mdr
[Accessed 6 Aug. 2019].
Sanghi, A., 2016. E-Commerce Valuations in India and It's Effect on Competition. Available at
SSRN 2812504.
Sarvepalli, S. and Prakash, N., 2016. Cab Aggregation Industry in India-An overview, current
scenario, issues and possibilities for consolidation. International Journal of Scientific Development
and Research, 1(4), pp.317-324.
Shah, D., Kumaran, A., Sen, R. and Kumaraguru, P., 2019, May. Travel Time Estimation Accuracy
in Developing Regions: An Empirical Case Study with Uber Data in Delhi-NCR✱. In Companion
Proceedings of The 2019 World Wide Web Conference (pp. 130-136). ACM.
Page 96
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DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
Sharma, K. and Das, S., 2017. Service quality and customer satisfaction-with special focus on the
online cab industry in India. International Journal of Business and Management, 12(7), pp.192-200.
Shrivastava, A. 2018. Speed bump: Uber, Ola face sharp slowdown in growth of rides in 2018.
[online] The Economic Times. Available at:
https://m.economictimes.com/small-biz/startups/newsbuzz/uber-ola-enter-slow-lane-in-2018/
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Srivastava, D.K., 2019. Smart Services for Smart Cities: New Delhi Versus Jaipur. In Advances in
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guidebook and resource. John Wiley & Sons.
Téguia, C.D., Chambost, V. and Stuart, P.R., 2018. Systematic assessment of triticale‐based
biorefinery strategies: market competitive analysis for business model development. Biofuels,
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Page 97
Sharma, K. and Das, S., 2017. Service quality and customer satisfaction-with special focus on the
online cab industry in India. International Journal of Business and Management, 12(7), pp.192-200.
Shrivastava, A. 2018. Speed bump: Uber, Ola face sharp slowdown in growth of rides in 2018.
[online] The Economic Times. Available at:
https://m.economictimes.com/small-biz/startups/newsbuzz/uber-ola-enter-slow-lane-in-2018/
articleshow/65927443.cms [Accessed 7 Aug. 2019].
Silverman, D. ed., 2016. Qualitative research. Sage.
Smith, J.A. ed., 2015. Qualitative psychology: A practical guide to research methods. Sage.
Smith, N.C. and McCormick, E., 2019. Uber and the Ethics of Sharing: Exploring the Societal
Promises and Responsibilities of the Sharing Economy. In Managing Sustainable Business(pp. 575-
607). Springer, Dordrecht.
Srivastava, D.K., 2019. Smart Services for Smart Cities: New Delhi Versus Jaipur. In Advances in
Computer Communication and Computational Sciences (pp. 65-76). Springer, Singapore.
Surie, A. and Sharma, L.V., 2019. Climate change, Agrarian distress, and the role of digital labour
markets: evidence from Bengaluru, Karnataka. DECISION, pp.1-12.
Taylor, S.J., Bogdan, R. and DeVault, M., 2015. Introduction to qualitative research methods: A
guidebook and resource. John Wiley & Sons.
Téguia, C.D., Chambost, V. and Stuart, P.R., 2018. Systematic assessment of triticale‐based
biorefinery strategies: market competitive analysis for business model development. Biofuels,
Bioproducts and Biorefining, 12, pp.S35-S45.
Venkatesh, G. and Easaw, G., 2015. Measuring the performance of taxi aggregator service supply
chain. Samvad, 10, pp.26-36.
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DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
Verma, N., Kansal, S. and Malvi, H., 2018. Development of Native Mobile Application Using
Android Studio for Cabs and Some Glimpse of Cross Platform Apps. International Journal of
Applied Engineering Research, 13(16), pp.12527-12530.
Wang, T., 2017. The W model, a systematic engineering for water source clearance, renewable
energy production, and ecological agriculture development-a proposal for sustainable
development. Journal of Sustainable Development, 10(5), pp.143-161.
Welch, T.F., Gehrke, S.R. and Widita, A., 2018. Shared-use mobility competition: a trip-level
analysis of taxi, bikeshare, and transit mode choice in Washington, DC. Transportmetrica A:
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of the Academy of Marketing Science, 45(6), pp.925-943.
Xu, F., Yuan, Q., Zhou, L., Zhu, Y., Li, Y., Wang, Q. and Kong, Q., 2018. Economic benefit
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Institutional Legitimacy.
Page 98
Verma, N., Kansal, S. and Malvi, H., 2018. Development of Native Mobile Application Using
Android Studio for Cabs and Some Glimpse of Cross Platform Apps. International Journal of
Applied Engineering Research, 13(16), pp.12527-12530.
Wang, T., 2017. The W model, a systematic engineering for water source clearance, renewable
energy production, and ecological agriculture development-a proposal for sustainable
development. Journal of Sustainable Development, 10(5), pp.143-161.
Welch, T.F., Gehrke, S.R. and Widita, A., 2018. Shared-use mobility competition: a trip-level
analysis of taxi, bikeshare, and transit mode choice in Washington, DC. Transportmetrica A:
Transport Science, pp.1-13.
Wieland, H., Hartmann, N.N. and Vargo, S.L., 2017. Business models as service strategy. Journal
of the Academy of Marketing Science, 45(6), pp.925-943.
Xu, F., Yuan, Q., Zhou, L., Zhu, Y., Li, Y., Wang, Q. and Kong, Q., 2018. Economic benefit
analysis of typical microbial fuel cells based on a cost-benefit analysis model. Desalination and
Water Treatment, 135, pp.59-93.
Yulia, T., 2016. Internationalization strategy of Internet transportation network companies (iTNCs):
Cross-country case study of Uber Technologies Inc.
Zhang, N., Sia, S.K. and Lee, G.W., 2017. Sharing Economy Disruption and the Quest for New
Institutional Legitimacy.
Page 98
DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
Appendix
1. Survey Questionnaires
Survey Topic: Development of cab business model for Delhi
1. Gender
Male
Female
2. Age
25-35 years
36-50 years
Above 50 years
3. How often do you travel by cab?
Every day
Every week
Every 2-3 weeks
Every month
4. Do you use cab for personal or professional travel?
Personal travel
Professional travel
Page 99
Appendix
1. Survey Questionnaires
Survey Topic: Development of cab business model for Delhi
1. Gender
Male
Female
2. Age
25-35 years
36-50 years
Above 50 years
3. How often do you travel by cab?
Every day
Every week
Every 2-3 weeks
Every month
4. Do you use cab for personal or professional travel?
Personal travel
Professional travel
Page 99
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DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
Both
5. Which online cab aggregator do you typically use?
Ola cabs
Uber
Meru cabs
Local cab
Others
6. Which of the following would you think better payment method for the online cab
transportation?
Cash pay
Wallet pay
Online payment method
7. Which factor is most important for you when selecting a transportation form?
Price and transparency
Ease of use
Safety and security
All of the above
8. Do you prefer to compare the cab operators availability plus transparency on fares from
unified platform?
Page 100
Both
5. Which online cab aggregator do you typically use?
Ola cabs
Uber
Meru cabs
Local cab
Others
6. Which of the following would you think better payment method for the online cab
transportation?
Cash pay
Wallet pay
Online payment method
7. Which factor is most important for you when selecting a transportation form?
Price and transparency
Ease of use
Safety and security
All of the above
8. Do you prefer to compare the cab operators availability plus transparency on fares from
unified platform?
Page 100
DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
Yes
No
9. In your opinion, are prices of cab affordable?
Completely affordable
Moderately affordable
Unaffordable
Extremely expensive
10. What are the offers do you require to provide in the cab services?
Free ride promo code
20% discount on the ride
First 3 rides free offer
Coupon code
11. Do you think that it is preferable to get female drivers at any time of the day for the female
passengers?
Yes
No
12. In which situation do you prefer to get carpool?
Only with someone I know
I would share with the stranger to know more about them
Page 101
Yes
No
9. In your opinion, are prices of cab affordable?
Completely affordable
Moderately affordable
Unaffordable
Extremely expensive
10. What are the offers do you require to provide in the cab services?
Free ride promo code
20% discount on the ride
First 3 rides free offer
Coupon code
11. Do you think that it is preferable to get female drivers at any time of the day for the female
passengers?
Yes
No
12. In which situation do you prefer to get carpool?
Only with someone I know
I would share with the stranger to know more about them
Page 101
DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
Possibly subject to the considerations
I am not interested in car sharing
13. What would be primary reason to opt car pool?
To save fuel costs
For environmental benefit
To save cost of car ownership
Efficient services to desired destination
14. What information would you require about the car owner related to security perspective?
Brief profile
Insurance details
Ratings from the previous passengers
Type of vehicle
15. What would you consider as suitable pricing system for the shared journey?
Fixed cost agreed with the car owner
A cost per mile
Others
16. Would you recommend cab services to friend or colleague?
Yes
No
Page 102
Possibly subject to the considerations
I am not interested in car sharing
13. What would be primary reason to opt car pool?
To save fuel costs
For environmental benefit
To save cost of car ownership
Efficient services to desired destination
14. What information would you require about the car owner related to security perspective?
Brief profile
Insurance details
Ratings from the previous passengers
Type of vehicle
15. What would you consider as suitable pricing system for the shared journey?
Fixed cost agreed with the car owner
A cost per mile
Others
16. Would you recommend cab services to friend or colleague?
Yes
No
Page 102
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DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
Page 103
Page 103
DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
2. Time Horizon
The research work is either longitudinal or cross-sectional and it is based on allocated time
to perform the study work. Based on the research timeline, cross sectional study is conducted which
can limit time period and therefore in this case Gantt chart is accounted into considerations to finish
the work. Gantt chart is used to schedule the project activities by its start and end date for
completing on proposed timeframe. The Gantt chart for this study is shown in table below:
No Task Start Date End Date
1 Group Formation & Topic Generation 10 May 2019 10 May 2019
2 Finalize Proposal 15 May 2019 15 May 2019
3 Complete Ethics Form and Proposed
Methodology
1 June 2019 1 June 2019
4 Secure Supervisor. Send Proposal 9 June 2019 9 June 2019
5 Rework Proposal based on Supervisor
Feedback
12 June 2019 12 June 2019
6 Send Proposal and Ethics form to
Strathclyde
20 June 2019 20 June 2019
7 Explore subject - Literature Review 30 June 2019 30 June 2019
8 Develop Research Questions 3 July 2019 3 July 2019
9 Checkpoint with Supervisor 6 July 2019 6 July 2019
10 Data Collection 12 July 2019 12 July 2019
Page 104
2. Time Horizon
The research work is either longitudinal or cross-sectional and it is based on allocated time
to perform the study work. Based on the research timeline, cross sectional study is conducted which
can limit time period and therefore in this case Gantt chart is accounted into considerations to finish
the work. Gantt chart is used to schedule the project activities by its start and end date for
completing on proposed timeframe. The Gantt chart for this study is shown in table below:
No Task Start Date End Date
1 Group Formation & Topic Generation 10 May 2019 10 May 2019
2 Finalize Proposal 15 May 2019 15 May 2019
3 Complete Ethics Form and Proposed
Methodology
1 June 2019 1 June 2019
4 Secure Supervisor. Send Proposal 9 June 2019 9 June 2019
5 Rework Proposal based on Supervisor
Feedback
12 June 2019 12 June 2019
6 Send Proposal and Ethics form to
Strathclyde
20 June 2019 20 June 2019
7 Explore subject - Literature Review 30 June 2019 30 June 2019
8 Develop Research Questions 3 July 2019 3 July 2019
9 Checkpoint with Supervisor 6 July 2019 6 July 2019
10 Data Collection 12 July 2019 12 July 2019
Page 104
DEVELOPMENT OF NEW CAB BUSINESS MODEL FOR DELHI
11 Checkpoint with Supervisor 17 July 2019 17 July 2019
12 Checkpoint with Supervisor 20 July 2019 20 July 2019
13 Data analysis and linking back to literature
review
28 July 2019 28 July 2019
14 Checkpoint with Supervisor 5 Aug 2019 5 Aug 2019
15 Write Up (Include Conclusions and
Reflections)
12 Aug 2019 12 Aug 2019
16 Checkpoint with Supervisor 15 Aug 2019 15 Aug 2019
17 Internal Review 18 Aug 2019 18 Aug 2019
18 Completed project through Turnitin 21 Aug 2019 21 Aug 2019
19 Printing & Binding 23 Aug 2019 23 Aug 2019
20 Submit to CDC 24 Aug 2019 24 Aug 2019
21 Submit to UK 25 Aug 2019 25 Aug 2019
Page 105
11 Checkpoint with Supervisor 17 July 2019 17 July 2019
12 Checkpoint with Supervisor 20 July 2019 20 July 2019
13 Data analysis and linking back to literature
review
28 July 2019 28 July 2019
14 Checkpoint with Supervisor 5 Aug 2019 5 Aug 2019
15 Write Up (Include Conclusions and
Reflections)
12 Aug 2019 12 Aug 2019
16 Checkpoint with Supervisor 15 Aug 2019 15 Aug 2019
17 Internal Review 18 Aug 2019 18 Aug 2019
18 Completed project through Turnitin 21 Aug 2019 21 Aug 2019
19 Printing & Binding 23 Aug 2019 23 Aug 2019
20 Submit to CDC 24 Aug 2019 24 Aug 2019
21 Submit to UK 25 Aug 2019 25 Aug 2019
Page 105
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