The Impact of Ride-Hailing Apps on Transportation

This assignment explores the significant impact of ride-hailing apps such as Uber and GoCatch on various aspects of transportation. It delves into how these apps have influenced traditional taxi services, reshaped urban mobility patterns, and contributed to changes in public transportation models. The analysis draws upon research studies, case examples (like Sydney's experience), and regulatory responses to the rise of these platform-based transportation solutions.

Running head: MASTERS OF SUPPLY CHAIN MANAGEMENT
Masters of supply chain management
Name of the Student
Name of the University
Author note

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Abstract
The study is based on the investigation of the use of real time information provided by the cab
service providers in Australia. There are many organizations that have adopted technology and
facilitated the cab service in Australia. The purpose of the study is to understand how the
commercial transport apps owners to strengthen the position in the market use real time
information. In order to conduct the analysis with practical facts and issues, the organization
UBER has been considered in the analysis. Based on the objectives provided in the introductory
section of the study, a critical analysis has been presented considering the finding of the previous
studies. The literature review indicates cab services providers in Australia using the real time
information flow accessing the large transport market. Due to the technological advancement in
the country, commercial transport apps owners have become successful in ruling the market. The
study includes a secondary analysis and to conduct the secondary analysis, the data has been
collected from the books, peer-reviewed journals, articles, magazines and other reliable
secondary sources. The findings indicate that with the help of technology such as the use of
GSM and GPS technology, the cab service provider- UBER enters the large remote market and
create a strong influence in the market. Moreover, as the nation is technologically advanced, it
has become easy for UBER to meet the growing demands.

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Acknowledgement
The completion of the dissertation gave me an enormous amount of knowledge in terms of
information technology. I have the opportunity to increase my knowledge in several fields of
business research. However, in the completion of the study, I would like to thank a number of
people who helped me to complete the project. Firstly, I would thank my supervisor for guiding
me throughout the research from selecting topic to collecting secondary data. I thank my
colleagues for helping me to find relevant journals. I would also like to thank my friends and
family for encouraging me to work on the project.
Thanking you all,

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Table of Content
CHAPTER 1: INTRODUCTION....................................................................................................5
1.1 Introduction................................................................................................................................5
1.2 Background to the study............................................................................................................5
1.3 Problem Statement.....................................................................................................................7
1.4 Research purpose-......................................................................................................................7
1.5 Research Aim and Objectives....................................................................................................8
1.6 Research Questions....................................................................................................................8
1.7 Significance of the study...........................................................................................................8
1.8 Dissertation Structure................................................................................................................9
CHAPTER 2- LITERATURE REVIEW.......................................................................................10
2.1 Introduction..............................................................................................................................10
2.2 Potential for growth.................................................................................................................10
2.3 Information efficiencies, reputations and accountability.........................................................11
2.4 Regulatory for hire –transport services....................................................................................14
2.5 Public Safety rules-..................................................................................................................15
2.6 Gaps in the literature................................................................................................................16
2.7 Conclusion...............................................................................................................................16
CHAPTER 3 – RESEARCH METHODOLOGY.........................................................................17
3.1 Introduction..............................................................................................................................17
3.2 Research philosophy................................................................................................................17
3.3 Research Approach..................................................................................................................18
3.4 Research Design......................................................................................................................19
3.5 Data collection techniques.......................................................................................................20

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3.6 Data Analysis...........................................................................................................................21
3.7 Research Limitation.................................................................................................................21
3.8 Ethical Consideration...............................................................................................................21
3.9 Research Timeline...................................................................................................................22
3. 10 Conclusion............................................................................................................................23
CHAPTER 4- DATA FINDINGS AND ANALYSIS...................................................................24
4.0 Introduction..............................................................................................................................24
4.1 Data Analysis...........................................................................................................................24
CHAPTER 5- CONCLUSION AND RECOMMENDATION.....................................................30
5.1 Conclusion...............................................................................................................................30
5.2 Linking the objectives with the literature review and secondary analysis..............................30
5.3 Recommendation.....................................................................................................................32
Reference and Bibliography..........................................................................................................33

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List of Figures
Figure 1: Structure of the dissertation...........................................................................................10
Figure 2: Research Philosophy......................................................................................................19
Figure 3: Research Approach........................................................................................................21
Figure 4: Research Design.............................................................................................................22
Figure 5: Data Collection Techniques...........................................................................................23
Figure 6: Growth of Uber in the transportation sector..................................................................28
Figure 7: Uber revenue gap...........................................................................................................30
Figure 8: Traffic data to traffic information..................................................................................31

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Topic: Critically investigating the use of real time information flow in Australian Taxi
industry- A Case Study of Uber
CHAPTER 1: INTRODUCTION
1.1 Introduction
It has been identified that due to the advancement and innovation of technology, the
organizations in the transportation industry have found new ways to speed up their operation.
The cab service providers in Australia use the technology to reach their customers and broaden
their customer base. Many organizations in the sector have started using the real time
information to create a strong influence in the market. The purpose of the study is to examine the
use of real-time information in taxi sector of Australia; this means the study focuses on how the
cab service providers in Australia uses this real time information by developing a Smart-Phone
app and reaching the passengers on the street. It has also been observed that in the recent time,
the real time information in the form of mobile application app have largely been accepted by the
people in Australia. In other words, the cab service providers in Australia have obtained a large
market. However, in order to gain an authentic outcome from the research, the present study
considered the organization UBER. This chapter presents the research questions and objective
and brief background to the study.
1.2 Background to the study
It has been observed that Australian taxi industry has observed a significant growth in the
sector due to embracement of technology. The Australia taxi sector plays a significant and
unique role in the overall public transport system. According to Nelson and Mulley (2013) taxis

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operate on demand, 24 hours a day, 365 days a year, providing door to door services. Each year
in Australia almost 20,000+ taxis move more than 350 million passengers and provide gainful
work as well as the business opportunities for more than 750000 people directly within the
sector. Almost 12% of the taxi fleet is wheelchair accessible. As put forward by Page (2013),
taxis plays a significant role in servicing the needs of the community in general and such practice
has now been effective as the organizations in the sector have using the digital mode of
transportation where they can track the information. Especially, taxis play a mandatory role in
the servicing the requirement of the community generally and key sections of the community in
particular.
The organizations in the transport sector have now been able to fulfill these needs more
effectively due to the advancement in the technology. As the development of this sector, the
ridesharing is a relatively a new class of point-to-point transport. Especially, businesses like
Uber, and its competitors include tend to operate in dynamic environment through which the
drivers offer their own vehicle as well as matched with the passengers who seek to reach a
particular destination (Hughes and MacKenzie 2016). It remains as the distinct point from the
traditional taxi service in that ridesharing services only the collect passengers who usually book
through their platforms. Another potential impact of the entry of real-time information flow to
the Australian market is the rethink by the governments around the regulatory reform of the taxi
sector. As put forward by Firnkorn and Müller (2011), the regulatory reform to enhance the
consequence in this sector has been urged by a number of significant reviews. Nonetheless, it has
also observed that as the cab service providers who use the real time information flow to reach
the customers, have been able to gain the control over the large market and as the consequence,

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such cab service providers set low price for the ride as their market and customer is high.
Nonetheless, the investigation conducted in the present study reveals the actual scenario.
1.3 Problem Statement
It is observable that taxi industry in Australia experienced significant rush of
transportation. It might not be possible for taxi drivers to cover the entire market with the
existing practice of offer the cab services. The scenario indicates that the technology is rapidly
developing and people have more advanced options to improve their lifestyle. Instead of waiting
for long for the cab on the street, they rather prefer the option that saves time and effort.
Nonetheless, even Uber provides a relevant transportation with the help of real time information
but there are some cases where the passengers have to wait for the cab to arrive (Marshall 2015).
This means once the cab is booked through the app, the passengers yet have to wait for the cab to
arrive at the pick-up point. Hence, waiting time for the arrival of cab is long, which means cabs
do not arrive within the expected time. This certainly affects purchase habit of the consumers.
Even though the customers pay a low price for their ride but they do not have reach on time due
to the delay in the arrival time.
1.4 Research purpose-
The major purpose of the research is to examine how cab service providers in Australia
are using the real-time information flow to reach the passenger in the transport sector. In addition
to this, the research also focuses on the facts such as issues related to real-time information flow.
The study also sheds light on how the organizations in such sector are overcoming these issues
and leading the operation.

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1.5 Research Aim and Objectives
The major aim of the research is to investigate how transportation service provider in
Australia to reach the passengers is using real-time information flow. The following are the key
objectives that shape the research appropriately.
 To critically investigate the use of real-time information flow in the transportation service
of Australia
 To analyze the impact of app-based cab booking services on traditional taxi market
 To develop suitable strategies for deriving the real-time information about the people in
remote areas of Australia
1.6 Research Questions
 How do the transportation service providers use the real-time information flow to provide
uninterrupted transpiration services?
 How do transportation service providers strengthen their market position in Australian
taxi industry with real-time information flow?
1.7 Significance of the study
It is certain that Australia is certainly effective for the establishment and expansion of
business. In addition, economy of the nation is stable and the nation has embraced the
technology; thereby, any business is rapidly growing. Moreover, in the recent time, the
information technology is also incorporated into the business. However, it is hardly known how
transportation sector- taxi industry is being influenced by the information technology. Thus, the

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present study helps to learn the impact of such trend where the organization use the real time
information flow and reach the customers.
1.8 Dissertation Structure
Figure 1: Structure of the dissertation
(Source: Self-Made)

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CHAPTER 2- LITERATURE REVIEW
2.1 Introduction
It is observed that drivers across the nation are getting used to large amount of
digital technology in their cabs. Now, the cab drivers in Australia recently have got the access to
real-time traffic information as well as personalized roadside assistance. The recent innovation
enabled the automobile to monitor as well as adjust their position on highway and such
technology alerts the drivers if they are drifting lout of their lane. However, the organizations
recently have become more aware of the use of technology in business. With the help of
information technology, the cab service providers are using the real-time information flow,
tracking the location of the customers, and providing the required services. It has been observed
that several cab service providers in Australia are using this real-time information flow-
smartphone app to provide the customers with the services they need on time.
2.2 Potential for growth
As put forward by Marshall (2015), there are some trends where the cab service providers
like Go Catch, Trinetra and others and it is expected that ridesharing could continue to increase
its market share over time. The scholars in the previous work have mentioned that if things go
like this way, the benefits outlined in the studies could be larger in the coming days. A study
conducted by Walton (2014) also indicate that the range of cab services through real-time
information in the four large cities of Australia- Gold Coast, Greelog, Canberra and Adelaide
have commenced operation. Therefore, it is expected that soon such cab service providers could
create a strong position in the taxi sector of Australia. According to Ji et al. (2014), growth of

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ridesharing could also have other related advantages. For instance, Uber has demonstrated an
intention to provide anonymised data to government bodies that could assist urban planner to
identify priorities in development on the basis of the commute patterns. Moreover, the additional
benefits could be experienced if the car-pooling features of such car service providers were to be
introduced in Australia. Based on the previous work, it can be mentioned that car pooling
service of Uber could deliver advantages rising from the increased infrastructure utilization as
well as decreased congestion. As put forward by Vishwanath et al. (2014), while ridesharing
services are widely considered synonymous in Australia, the idea of ridesharing for predates the
establishment of cab service providers. This has also been reviewed in the study conducted by
Tedjasaputra and Sari (2016,), real-time information observed a resurgence in the past six years,
with the help of the technology enabling a different service. Even though there is no academic
consensus as to the definition of this concept, it is possible to discern some particular
characteristics. According to Nelson and Mulley (2013), the real-time information use is usually
understood as the service provided by the technology based cab service providers provide such
as a dynamic platform on which the drivers and the passengers are matched to reach a
destination.
2.3 Information efficiencies, reputations and accountability
As put forward by Walton (2014), data efficiencies are relevant to decision-making
process and it unveils as well as discourages unwanted participants. In the context of hire
service, the information efficiency usually appears in the optimal vehicle. As put forward by
Firnkorn and Müller (2011) the process indicates that the radio dispatcher signifies the drivers in
a serial manner to indicate their availability and exact location signal the zone requested in which
the vehicles are running. It is also observed that app-based platforms might contribute to the

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collection information and here it becomes easy to track the location and send the nearest driver
to the location. The real-time information thereby provides the scope for significant
enhancement, which increases both speed and accuracy with the technique identified. The real-
time information or an app-based device in commercial transport certainly helps to gather as well
as process information to assess the drivers and the passengers. Hence, the customers observe
drivers courtesy and the condition of the vehicle, which they could send to the platform operator
and dissuade opportunistic behavior of the drivers. Significantly, such techniques collect
information, which remains difficult to analyze both the opportunistic behavior and the vehicle
condition.
So, this sort of platform also provides the opportunity for collecting feedback from the customers
regarding their experience they had during the ride. Hence, the platform operator could develop
the quality of their performance by eliminating those drivers who received negative feedback
from the customers (Attard, Haklay and Capineri 2016). Platforms could use the similar system
to evaluate customers. For instance, if a passenger appears to be unhygienic, the platform
operator could issue warning alert to the future service provider and remove customer’s account.
Thus, such practice of identifying the customers remains better than leaving to drivers’ denial to
passengers. Furthermore, it is also observed that reputation based system could serve their
intended purpose. There are several markets, where the customers could show their courtesy
from commerce transport apps and drivers and this might not remain as surprising in the field of
available incentive remedy. According to Firnkorn and Müller (2011), if a customer is not happy
with a taxi driver in terms of the service, could report to the authority and could file a complaint
to the fleet owner. Ji et al. (2014) also raised the fact that many customers do not complain
because they believe such complaints do not have large effect or adequate effect and this always

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remains difficult to file. Therefore, the submission of a negative evaluation to real-time
information provider is easier as well as it certainly provide a noticeable record and answers. In
this context,
App-based platforms – blurring consumer as well as regulatory lines
As mentioned by Moon (2015), from the perspective of a customer and for equal level of quality,
few differences may exist in the developed service delivered by taxi. However, the
accountability functions of smartphone application could help to ensure the quality of service for
the consumers utilizing the platforms because they could enhance the quality of service among
the available options by developing a healthy competition. As put forward by Chu (2015), while
some customers could be different to top quality service offered by taxi, the mode of securing a
ride remains as the matter to several customers. Hence, Surie and Koduganti (2016) also
mentioned that platform-based service provide larger transparency as well as certainty than
conventional modes of access with the inclusion of radio taxis. It is observed that Commerce
Transport App could deliver flexibility as well as a certain amount of value to the drivers. The
entry of real-time information platform could continue to eradicate the line between the
dispatched taxi and hire customer service, which usually begins with phone and radio dispatch
signal. Although, CTA platforms fulfilled the market demands till now and some cab service
providers as well as taxi owners continue to develop Smartphone enabling application like “Taxi
Magic”, which is certainly an oldest mobile phone app for cabs. Conversely, “International Road
Transport Union” amalgamates many of these activities through IRU ( A Global Taxi Network).
According to Mulley et al. (2012), the convergence of all such changes increases the question of
when and why would current regulatory framework hold differences. As argued by Ter Chian et

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al. (2015), the conflation of separation for the hire market could provide other scopes to consider
how these services need to be applied to reflect current scenarios. Tan et al. (2015,) mentioned
that a particular risk exists there to operate the least general denominator and leave the scope for
authentic reform in the regulatory system.
2.4 Regulatory for hire –transport services
As put forward by Finn (2012), a large proportion of the regulatory framework and social tension
covering the establishment of commerce based transport services associated with the fact that
they disobey the rules developed to operate cab and PHV service. According to Glöss, McGregor
and Brown (2016), the major role of commerce transport app is constrained to turn into a
technical intermediary, which could help to keep the customers and cab drivers connected on a
regular basis. Thus, this certain view could be sustained by the fact that CTA owns no vehicle as
well as employ no drivers. However, Haque, Chin and Debnath (2013) mentioned that some
particular regulator could consider the contradictory view that Commerce Transport Associates
are the major service providers who have the ability of getting into the competition with the
regional taxi drivers but this might not be possible without the implementation of regulations
applied to the commercial transport providers. Furthermore, it can be mentioned that CTAs are
inappropriately and legally compete with the cab and taxis. It could become easy to turn into a
large significant solutions to the questions at hand could pay attention to the particular instances.
Hence, the regulations are being breached without providing any logics behind. As put forward
by Cunha and Galvão (2014), this could remain as an unhelpful exercise since it does not allow
for the emergence of a different regulatory framework identifying the innovation that commerce
transport apps bring. Moreover, the participants working in the workshop were urged to first
focus on certain principles that may apply for-hire sector in general.

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2.6 Gaps in the literature
The previous works have only presented the fact that how the organizations in the taxi
industry have developed their operation by leveraging the real time information and accessing
the large market. However, the studies did not have focus on how real time information is being
used by the cab service providers. Instead of focusing on the base of real-time information, the
studies have focused on the regulatory framework. The study conducted by Nelson and Mulley,
(2013), have presented the fact that cab service providers with the help of real-time information
accessing the market and but this study did miss out the possible challenges and issues in
implementing the real time information and beating the traditional taxi services.
2.7 Conclusion
This chapter has presented the outcome of the previous studies where the scholars have
mentioned about the implementation of real time information in the taxi services. The literature
also includes a discussion on the regulatory framework in terms of the implementation of
commerce transport apps. The journals selected for review are found to be centralized on the
commerce transport apps.

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CHAPTER 3 – RESEARCH METHODOLOGY
3.1 Introduction
This chapter presents the type of research techniques used in the study. It is observed
that appropriate implementation of the techniques certainly provides the desired outcome. This
chapter describes the research methods, approaches and design intensively. As put forward by
Easterby-Smith, Thorpe and Jackson (2012), the methodology is the philosophical framework
within which the research is conducted or the establishment upon which the research is based.
Snyder (2012) insisted on the fact that methodology needs to be the most appropriate to meet the
objectives of the study. This chapter effectively describes how and why selected methodology
has been used in the present study. In addition to this, the chapter provides appropriate
justification of selecting the methods.
3.2 Research philosophy
Research philosophy helps to examine the source, nature and the development of
knowledge. Even though the idea of knowledge creation could appear to be intensive, the
knowledge creation can be tackled. The research philosophy in research project could reflect
author’s significant assumption as well as these assumptions serves as the foundation for the
research strategy. In general, research philosophy has several branches; however, in business
study, research philosophy is divided into four different categories such as positivism,
pragmatism, realism and interpretivism. The positivism research philosophy holds the view that
only factual knowledge derived through observation and it is reliable. As put forward by
Scotland (2012), positivism relies on the quantifiable observation that lead themselves to the

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statistical analysis. Interpretivism research philosophy helps to interpret the elements of the
research project, thereby, interepretivism collaborates the human interest into a research.
Furthermore, it is also observed that enhancement of interpretivist philosophy is developed based
on positivism in social science.
Figure 2: Research Philosophy
(Source: Scotland 2012)
Justification of selecting the positivism research philosophy
The positivism research philosophy has been selected in the present research, as this research
philosophy helps to extract the real facts and findings related to the context of the research. For
example, in the context of UBER’s initiatives of using real-time information and increasing the

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customer base, the positivism research philosophy helps to know how the organization is using
the smart app. This research philosophy with its own characteristics finds out the issues or the
challenges faced by the organization to implement such initiatives. In other words, it can be
mentioned that positivism deals with the real world context instead of relying on the existing the
theories.
3.3 Research Approach
Research approach can be divided into two different types such as deductive and
inductive research approach. When it comes to the distinction of these two approaches, the
existence and the relevance of the hypotheses remain as the distinctive point (Maxwell 2012).
This means that deductive research approach helps to examine the validity of assumption but
inductive research approach helps to form new theories as well as generalizations. Furthermore,
it has also been observed that in deductive research approach generalize the facts from general to
the specific. On the other side, inductive research approach helps to generalize the facts related
to the research context from a particular state to the general state (Maxwell 2012). In addition to
this, another significant difference found between these two approaches is the formulation of
hypotheses, which is usually done and tested by the deductive research approach. Conversely,
the inductive research did not include research hypotheses and it starts with research questions
and objectives.

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Figure 3: Research Approach
(Source: Maxwell 2012)
Justification of selecting inductive research approach
In the present study, inductive research approach has been selected as the study starts with the
research questions and objectives that are relevant to the present research context – Investigation
on the use of real time information. Hence, the research question is- How do the transportation
service providers use the real-time information flow to provide transpiration services?
3.4 Research Design
Research design is usually divided into three categories exploratory, explanatory and
descriptive research design. Exploratory research according to its aims to discover the elements
of the research area and it does not provide final as well as conclusive response to the research

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questions. In addition to this, the exploratory design could change the direction of the research
context but not significantly, in accordance to the new evidences obtained during the research
techniques. On the other side, the descriptive research design can be described as the statement
as simply the attempt to determine and describe what is, while analytical research attempts. As
put forward by Kuada (2012), descriptive research aims at casting light on the present issues and
problems during the research process. In the present study, descriptive research design has been
selected.
Figure 4: Research Design
(Source: Kuada 2012)
Justification for selecting the research design
This research philosophy has been effective to non-quantified topic and issues and it
provides the possibility to observe the phenomenon in a completely natural as well as unchanged
natural environment. In addition to this, the descriptive research design also provides the broader

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scope for making a broad analysis with the practical data. This study is with associated with the
observational study but it is not constrained with the observation and data collection methods.
3.5 Data collection techniques
The data collection techniques are usually divided into different categories namely primary data
collection and secondary data collection.
Figure 5: Data Collection Techniques
(Source: Mackenzie 2012)
Secondary data collection

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Secondary data collection remains as the type of the data that has already been disclosed
or published in books, journals, article, blogs, magazines as well as online portals. As put
forward by Mackenzie (2012), in secondary research, there is abundance of data available in the
present sources regarding the research context. Thus, the application of relevant set of criteria to
choose secondary data to be utilized in the study plays a great role in respect with increasing the
levels of research reliability and validity. More specifically, these criteria could include but it is
usually constrained to the publication, credential of authors and the reliability of the sources. In
the context of present study, the secondary analysis has been conducted. Particularly, the data
has been collected from books, journals, articles, magazines that include the information
regarding the present trends and other reliable sources.
3.6 Data Analysis
Firstly, the data has been collected from the reliable secondary sources and then they
presented with graphs and table. To make the analysis, thematic research method has been
applied. During the analysis process, the thematic analysis has been supported with some
scholarly journals, books, magazines and other real-world evidences.
3.7 Research Limitation
The present study includes has certain limitations. The study is restricted to secondary
analysis only, which means the study did not include primary data. The study would have been
more effective and intensive, if primary data was included in the present study. In addition to
this, the study also lacks a comparative analysis, which could have been done between two
different organizations in the same sector.

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3.8 Ethical Consideration
Ethical considerations could be specified as one of the most significant factor of the
research. While conducting the research, certain ethical grounds have been followed such as
adequate extent of confidentiality of the study data should be gained from the participants prior
to the research. In addition to this, anonymity of individual and organizations taking part in the
study has been ensured. All sort of communication in respect to the research context has been
done with the honesty and transparency. It has been ensured that the data collected for the study
has only been used for academic research purpose. In order to protect the confidentiality of the
data, the principles of Data Protection Act 1998 has been considered in the study.
3.9 Research Timeline
Main activities/ stages Month
Aug-
2017
Month
Aug-
Sept-
2017
Month
Sept-
2017
Month
Sept-
Oct-
2017
Month
Sept-
Oct-
2017
Month
October-
2017
Topic Selection 
Data collection from secondary
sources
 
Framing layout of the research 
Literature review   
Formation of the research Plan  
Selection of the Appropriate
Research Techniques
 
Primary data collection  

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Analysis & Interpretation of
Data Collection
 
Conclusion of the Study 
Formation of Rough Draft 
Submission of Final Work 
3. 10 Conclusion
This chapter presents the set of research techniques that have been used in the study.
Among different research philosophy, positivism research philosophy helps to derive the hidden
truth from the fact and it provides broader scope for observation. Likewise, the inductive
research approach helps to carry forward the research on the basis of research questions and
objectives.

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CHAPTER 4- DATA FINDINGS AND ANALYSIS
4.0 Introduction
This chapter presents the data that have been collected for the analysis. For conducting the
analysis, thematic analysis method has been applied to the present study. The data has been
linked to the findings of the previous studies. This means while conducting the analysis, the data
has been supported with the scholarly journals, books, magazine, blogs and other secondary
sources. It has been identified that hardly a research has contested the popularity of commercial
transport apps, nonetheless the discussion underscored the fact that the much of the popularity
and demand of such service are related to the transactional efficiencies provided by the app-
based platforms. The previous works have provided the following ways that help to understand
how app-based platforms help the cab service providers in Australia to acquire a large market.
4.1 Data Analysis
Theme 1: “Use of floating car survey link data to real time data use in transportation”
As put forward by Kumar et al. (2016), floating car survey has long been used by the
road agencies to gather information regarding the information about the average travel speeds as
well as travel conditions across the network. Hence, the network coverage developed by UBER
is supposed to cover the budget constraining the number as well as operational scope of survey
vehicles. A study conducted by Anable (2012), usually proved that methods did not provide real-
time information. On the other side, the GPS data, by contrast, provide real time augmentation or
the replacement with larger network coverage. Hence, the transport owner UBER use the
estimated travel times on road networks that come into two varieties and one of them is being

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fixed sensors on the side of the road such as magnetometer detectors or the highway concerns.
UBER developed a floating car data are position fixes of vehicles travelling the streets
throughout the day. With such devices, UBER access the large Australian market. It can be
mentioned that as Australia market is technologically developed, the cab service providers like
UBER has been able to gain a large market share.
Figure 6: Growth of Uber in the transportation sector
(Source: Kumar et al. 2016)
Theme 2: “Growing popularity of Uber in Australian taxi industry”
As put forward by Visentin (2017), about one third of Australian residence are using the
ride-sharing service; however, there has been no drop in the business for country’s taxis. A

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survey conducted by Visentin (2017), mentioned Uber seems to be appearing to be capitalizing
on growing amounts of trips considered in Sydney through a point to point transport. In a survey
of more than 2000 Sydneysider in December 2016, conducted by ABC News (2017), on
Regulatory Tribunal implies that almost 33% of the customers have mentioned that they use a
ride-sharing service such as Uber, GoCar, GoBuggy in the last six months. The outcome
demonstrated that almost 19% of the customers said the same in 2015 and 11% in 2014 (ABC
News 2017). Therefore, it can be mentioned that ride-sharing service certainly strengthened their
position in the market. Likewise, the popularity of these services has also been observed in the
regional centers such as Newcastle, Wollongong as well as Gosford. In all these regions, the use
of such service increased to 18%, which doubled the level observed in 2015.
Years Use of ride sharing transport service in
percentage (%)
2014 11%
2015 14%
2016 33%
Table 1: Percentage of ride sharing service in Australia
(Source: Visentin 2017)

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2014 2015 2016
11%
14%
33%
Growing percentage of ride sharing transport
service in Australia
Graph 1: Growing percentage of ride sharing transport service in Australia
However, Visentin (2017) mentioned that if the outcome of the survey is analyzed, it can
be observed that none of the customers is exclusively using the ride sharing service. People
maintain a balanced approach to how they access point-to-point transport service. On the other
side, the survey indicates that only 28% of normal taxi users considered that they were getting
adequate values in comparison with 75% of ride sharing users.
Theme 3- “New Traffic data source embedded with the real time information use”
Use of new traffic data sources from the roadside wireless traffic sensors technologies
like the microwave radar technologies that measure the traffic fixed on the road network, to GPS,
GSM as well as the Bluetooth data sources. This could provide the real time measures of traffic
as well as the road operating conditions across the whole network. In addition to this, Zuluaga
(2016) mentioned that GPS-based HTS could provide more intensive and potentially more

30MASTERS OF SUPPLY CHAIN MANAGEMENT
intensive data. Hughes and MacKenzie (2016) mentioned that road-side traffic sensors could
help to operate through wireless detection of vehicle at the highway site. This experimental study
has proved that these sensors provide a less-intrusive alternative to road pavements or the surface
based sensors. Hence, the common road-side sensor traffic sensor technology may include
microwave rader, acoustic sensor, video image detection as well as lidar and active infrared
sensors. Here, the radio frequency identification RFID tags also work effectively to form the
transport communication.
Figure 7: Uber revenue gap
(Source: Hughes and MacKenzie 2016)
Theme 4- “Commercial transport Apps”

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According to Marshall (2015), the commercial transport apps developed by
UBER take the advantages of technological advancements to better match passengers with
available vehicles. The major significant element of such vehicle is the global navigation system
services such as the GPS, mobile based sensor platforms, commercial navigation service and
open digital maps. All these applications and devices developed by UBER helps facilitate the
actions for the customers and drivers who use such apps and the user are usually connected and
registered with centralized app-based platforms to remain connected. For example, client
requests for a trip and the nearby driver accepts the request. . Hence, the prospective customers
could specify their destinations as well as could evaluate the appropriate and anticipated fare.
Similarly, when the request for a ride is matched through the platforms, the prospective customer
might observe the arrival of the cab to the request location, which means the pick-up point.
During this process, the passenger could see the name off the driver, license plate number and
contact number. . According to Ji et al. (2014) the information about the expected arrival time
and the route is shown using a network map to the customers. When the trip is finally completed,
the app automatically calculates the fare and processes the transactions. Once the payment is
done, both the client and the driver could rate each other, which will be used for evaluation. For
example, hence, if the behavior and attitude of the driver is not professional or inappropriate, the
client could give poor rating; thereby, app-based platform operator could enhance the
performance by responding to customer’s dissatisfaction such as eliminating the driver from the
service.

32MASTERS OF SUPPLY CHAIN MANAGEMENT
Figure 8: Traffic data to traffic information
(Source: Surie and Koduganti 2016),
Furthermore, it is also studied the research conducted by Moon (2015), apart from the data
regarding registered clients, the drivers and the clients, such platforms could store the data of the
trip including a pick-up and the drop location. As put forward by Surie and Koduganti (2016),
the commercial transport apps are not usually registered as well as are elements involving both
distance and time despite the fact that Uber provides flat rate for some specific service.
According to Mulley et al. (2012) some particular CTA could apply peak period multipliers to
the fundamental fare modulating the demand as well as attracting few more drivers to take up
services to fulfill the peak demand. In the real context, it is usually seen that the applicable rate
multiplier is finalized to the passengers before they complete the booking. Furthermore, it is also

33MASTERS OF SUPPLY CHAIN MANAGEMENT
observed that dynamic pricing is usually caped in cases of local emergency. Hence, Vishwanath
(2014) mentioned that Uber builds a national partnership collaborating with the “American
Cross” to restrict the multiplier when the need is identified and share the rides to the community
events
Theme 5: “App-based platforms changing the mobility market”
Minimizing transaction cost
As put forward by Tedjasaputra and Sari (2016), UBER developed a app-based software
platforms which reduces the cost of finding a perfect match to process and complete the
transaction. Particularly, platforms remove the cost of dispatchers and omit the specialized
equipment such as the purpose built radios, credit card and credit card processors and taximeters
as the service provided by these could be provided through via-mass produced smartphone as
well as centralized services. In addition to this, by minimizing the cost of communication,
platforms permit more relevant information to be communicated to the customers and to
derivers. In this context, Surie and Koduganti (2016) mentioned that app-based platforms could
show a driver’s face, license, vehicle plate to passengers as well as customers’ to the drivers.
Such process certainly helps both parties- driver and the passengers to identify each other.
According to Finn (2012) where a passenger is concerned by a delayed may have called a phone
dispatcher to inquire and receive potentially inaccurate data about the location of the vehicle. As
app-based platforms is embedded of the real time information, it could continuously provide
continuous real-time localization updates minimizing the uncertainty as well as anxiety related
with waiting for a taxi on the street.
Theme 6-“Enhanced allocation of resource”

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Software platforms could enhance the efficiency and in fact, they could increase relevancy
of work by the cars over the course of the day matching with supply and demand. Therefore,
they could promote the efficient use of resource by ensuring that expensive asset remains active.
The enhanced efficiency is not just the domain of commercial transport app. As put forward by
Haque, Chin and Debnath (2013), taxi that employ app-based platforms could also achieve
enhanced efficiency. Hence, a significant thing that needs to be considered is thee algorithmic
skills in matching real-time request for rides with available drivers with the scale effects. A study
conducted by Page (2013) discovered that commerce transport app drivers under UBER spent a
large share of their time with the passengers on board than the taxi drivers do in the same sector
and this thing could hold true for distance driven. Developed algorithms, large-scale effect as
well as inefficient regulations damaging taxis as well as more flexible labor supply were
mentioned as factors explaining commerce transport apps’ larger occupancy performance.
Hence, Cunha and Galvão (2014) mentioned that a different source of allocated efficiency
usually appears by placing the same vehicles to many customers. Furthermore, it has also been
studied that a driver could use a cab for personal use in some particular time of the day and he
could use it particularly for business at other times of the day. As mentioned by Walton (2014)
commerce based apps motivates the part-time drivers to drive vehicles when the demand is peak
to increase the allocated efficiency. It has also been identified that drivers may avoid the
commute, by personal vehicle or public transit to select the dedicated vehicle from a particular
depot. Instead of this, a driver could begin services from home as well as any other location. This
could minimize the commuting time as well as the cost for the drivers and enhance the service
availability to the passengers. It could minimize the impact of congestion. Going forward, the
replacement of advance booking with the real-time adjustment also provides the potential

35MASTERS OF SUPPLY CHAIN MANAGEMENT
efficiencies. In the earlier stage, a driver would decline a booking close to a future commitment;
however, the on-demand platforms could allow for continuous adjustments. It has also been
found out that scale effect minimizes the latency in dealing with these requests. Such progresses
facilitate larger utilization of cabs, with the including less time without a passenger and less time
waiting, and both of these could minimize the price to customers while dealing with the
payment. In addition to this, Marshall (2015) mentioned that by leveraging the benefits of
efficient algorithm as well as concentrated computational energy, the software platforms capable
of offering the services that could be ineffective. These advances could allow commerce to
accommodate and coordinate the pick-up, shared ride as well as the drop of multiple unrelated
parties with the minimal time penalties. However, it could be difficult to conceptualize the radio
dispatchers gathering as well as organizing enough data regarding the customer requirement as
well as the vehicle location to provide a similar service.

36MASTERS OF SUPPLY CHAIN MANAGEMENT
CHAPTER 5- CONCLUSION AND RECOMMENDATION
5.1 Conclusion
The study has been conducted on the investigation of real-time information used by the
cab service providers in Australia. The introductory chapter of the dissertation shows the
relevance of the study presenting the popularity of smartphone apps. The introductory section of
the study presents the facts that people in Australia embrace the advancement of technology in
the transportation services. In the literature review, it was found that cab service sector in
Australia has observed a tremendous growth due to the entry commercial transportation apps
service providers. The literature claims that as people in Australia have access to technology
such as smartphone, they always prefer the easiest options, which are provided by the cab service
providers like UBER and Go Catch. In the third section of the study, the research techniques
such as positivism, inductive research approach and other relevant methods that are used in the
study have been presented. The findings indicate that commercial transport apps owner like
UBER with the help of the technology use the real time information track the location of the
passengers and reach the pick-up point. In addition to this, the findings indicate that UBER
implements the Information Technology embedded with the technological devices like GPS and
GSM to keep the track of the passengers.
5.2 Linking the objectives with the literature review and secondary analysis
Objective 1: To critically investigate the use of real-time information flow in the
transportation service of Australia

37MASTERS OF SUPPLY CHAIN MANAGEMENT
This particular objective focuses on the real-time information flow that has been used in
the transportation services in Australia. Hence, the literature review indicates that transport
industry- especially, the taxi industry in the nation has observed a sudden and significant growth
due to the advancement and the implementation of technology. The literature review also
indicates that ride-sharing practices in the transportation certainly increase the popularity real
time information use. The previous works have demonstrated a relationship between blurring
consumer and the regulatory lines. In addition to this, previous studies also paid attention to the
regulatory framework in the use of commercial transport apps. On the other side, the findings did
not include any facts related to the regulatory framework. Moreover, the findings talk about the
supply and demand of commercial transport apps services.
Objective 2: To analyze the impact of app-based cab booking services on traditional taxi
market
This objective focuses on the impact of app-based cab booking services on the conventional taxi
sector. The literature review indicates that due to the use of real-time information flow in the
form of commercial transport apps. This means the traditional taxi sector has negatively been
affected by such new trend because the commercial transports apps owners acquire the large
market due to its capacity of reaching the wide market. In addition to this, the commercial
transports apps owners provide more sophisticated as well as an enhanced service compared to
the traditional taxi drivers. Thus, due to the quality of services and less of capability of covering
the market affects the traditional taxi service providers.
Objective 3- To develop suitable strategies for deriving the real-time information about the
people in remote areas of Australia

38MASTERS OF SUPPLY CHAIN MANAGEMENT
This recommendation is on the development of suitable strategies for obtaining the real-
time information regarding the people in the remote areas of Australia. The literature review
indicates that even though the commercial transports app is a relevant and an easy option for the
people in Australia when they need to hire a cab, the arrival time to the pick-up point is much,
which certainly affects consumer-buying behavior. The following strategies have been provided
to deal with such issues.
5.3 Recommendation
The above-mentioned discussion in theme 1 indicates that due to the ride sharing
services in Australia, the traditional taxi sector is lagging behind. The percentage of profits
continues to go down. Therefore, to back the sector, the traditional taxi service providers could
implement the following suggestion.
“Get Appier” at the same fare
The traditional taxi service providers could follow an app-based approach, which includes some
quality coding. Such practice could go a long way to acquire the customers, as it would make
easier to perform. This means the app should indicate where nearby cab rank and the location of
a booked car. The taxi sector also needs to focus on the advertising to launch this new service.
However, the fare for the service should not increase; if the price is high, the new service does
not make any difference. To acquire, the market, the taxi sector should keep the price low for the
rides.
Development of the smart apps

39MASTERS OF SUPPLY CHAIN MANAGEMENT
To minimize the required time between when the cab is booked and the time when the
cab reached the pick-point, the app can be developed in a way where that resolves this issues.
More specifically, the apps should be designed in a way where the customers can book the most
nearest cab. This will certainly reduce the waiting time. This means that cabs should not be
allocated on a randomly; instead, they should be allocated on a logical manner. For example, if a
driver is passing through the downturn of Adelaide, the consumer should get the nearest cab
passing by him in the downturn of Adelaide.

40MASTERS OF SUPPLY CHAIN MANAGEMENT
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