Project Proposal of Improving Market Share of Taxi
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Added on 2020-06-03
Project Proposal of Improving Market Share of Taxi
Added on 2020-06-03
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LOG488 PROJECT PROPOSALIMPROVING MARKET SHARE OF TAXISubmitted byTAY WEE KENGSCHOOL OF BUSINESSPresented to Singapore University of Social Sciences in partial fulfilmentof the requirements for theDegree of Bachelor of Sciencein Logistics and Supply Chain Management2017
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TABLE OF CONTENTSTable of Contents.......................................................................................................................i Chapter 1: Introduction.............................................................................................................1 1.1 Background....................................................................................................................11.2 Objectives of this Study.................................................................................................71.3 Scope of this Study........................................................................................................8Chapter 2: Literature Review..................................................................................................10 2.1 Survey..........................................................................................................................102.2 Effects of questionnaire design on the quality of survey data.....................................112.3 Know sample quantity for clearer results....................................................................122.4 The rise of the sharing economy (Impact on the transportation space)..................14Chapter 3: Methodology......................................................................................................... 163.1 Research Design...........................................................................................................163.2 Data Collection............................................................................................................163.3 Survey Method.............................................................................................................173.4 Steps to conduct the survey....................................................................18Chapter 4: Proposed Analysis..................................................................................................204.1 Descriptive Statistics....................................................................................................204.2 Relationships and Trends.............................................................................................204.3 Analytical Tools/Techniques.......................................................................................21Chapter 5: Proposed Schedule................................................................................................ 22References................................................................................................................................23Appendices................................................................................................26i
CHAPTER 1: INTRODUCTION1.1 BackgroundThe traditional taxi industry is undergoing transformation since the entry of Grab and Uber.These new entrants leverage on the ride-hailing app technology to arrange on-demandchauffeured vehicles services. Uber is a technology platform that uses a smartphone application to connect riders withdrivers. This company was founded by Travis Kalanick and Garret Garret Camp in SanFrancisco back in 2009 (Our Story, 2017). They were determined to develop an app after theyhad great difficulties hailing for a cab at a snowy night back in 2008. They thought how itwould be wonderful to book a taxi by simply pressing a few buttons through smartphone.Thereafter, what started out as a simple idea turned into a game-changer for the taxi sector inthe transportation industry. Uber quickly expanded into major cities across continents andtoday, it is now in 633 cities serving millions of commuters daily. 1
Figure 1.1: Infographic on how Uber works Adapted from Linkedin - How to Build a Taxi Booking App Like Uber, Lyft, OLa &GrabTaxi?In Feburary 2013, it came to Singapore looking to break into the market dominated bydomestic taxi sector which already had a robust phone booking system for pairing passengers2
and drivers (Uber Sets Asia in Motion with Singapore Launch, 2013). Initially, the populationwas sceptical and reluctant to use Uber as it was completely new. However, it was laterwidely accepted which lead to their aggressive expansion in their fleets of vehicles to matchsupply with demand in order to compete. Grab first arrived in Singapore in October 2013 to expand its outreach in South East Asia.Using the same concept of phone app-booking, it targets itself as the best ride-hailing app inSouth East Asia. One of the Founder and group CEO, Anthony adopted a strategy to specifically focus onSoutheast Asia. Since their launch, Grab is now a US$3 billion company, raising overbillions of dollars in funding. With estimates of near 1 million drivers in 50 over cities, Grabmanages millions of rides each day, and is the leading ride-hailing platform in South-eastAsia (Ride-hailing company Grab likely to seek funds, eyes financial services, 2017). Figure 1.2: Grab on how passengers arranges for a ride which will be assigned to aDriver.3
Adapted from Grab – How it worksSingapore government warmly welcomes Grab/Uber as it encourage technopreneurshipthrough attractive subsidizes and tech-friendly policies. Both Grab and Uber is tapping on theinteresting new concept of called ‘The Sharing Economy’ (Bernard Marr, 2016). The sharingeconomy model is most likely to be used when the price of a particularassetis high and theasset is not fully utilized all the time (Sharing Economy, n.d.). Figure 1.3: The Sharing Economy4
Adopted from Sharing SkillsUsage of sharing economy in Singapore for transport can greatly alleviate traffic conditions by stretching the efficiency of car resources converting them into saving for all. Not only the way of hailing a taxi had changed, Grab/Uber have brought about other changessuch as the ways fares are charged. Taxi uses a simple temper-proof meter to chargecommuters based on the distance travelled as well as waiting time. The total amount is addedtogether with the surcharges depends on various factors such as peak hour and location wherethe job is assigned. Grab and Uber have introduced dynamic pricing (Adrian Lim, 2017). Using the telemetricand algorithm, a flat price will be formulated according to travel time, booking fees, as wellas any location- and time-based surcharges. It is subjected to surge pricing determined bydemand and supply resulting in competitive prices benefitting all. Also, flat pricing allows5
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