Analyzing Taxi Industry and Decision-Making Factors

The given assignment is about analyzing the taxi industry and its decision-making factors. It involves reviewing multiple research papers and studies related to the topic, including a field experiment on fraud in the taxi market, public choice perspective on the Uber controversy, customer satisfaction and loyalty studies, and more. The analysis aims to understand what drives taxi drivers' behavior and what influences their decisions.

Running head: BIDTAXI
BidTaxi
Name of the Student
Name of the University
Author note

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Executive Summary
This study deals with the working operation of BidTaxi, which is online taxi booking
organization. This paper is for the ministry of the country, in order to gain approval from the
ministry. Further this paper also provides some of the strategic recommendations, that might be
commenced in order to gain better public allegiance and goodwill. The paper settles by
acknowledging the good work and initiative taken by the organization.

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Table of Contents
Introduction......................................................................................................................................3
Operation of BidTaxi.......................................................................................................................3
Suggestions for the Bid taxi organisation........................................................................................7
Conclusion.......................................................................................................................................9
Reference.......................................................................................................................................10

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Introduction
BidTaxi is one of the new platforms created with the help of the modern-day technology
for the travelers for better travelling experience in a cab. BidTaxi which is a new taxi hailing
service uses the technique of bidding of customers by the cab drivers, instead of the normal
approach of having a fixed price set by the cab hailing organizations. The process of the working
goes by, the best bid by the cab drivers is given the priority and gets selected. This paper briefly
discusses about the business operation of BidTaxi cab haling service. This discourse will also
bring in light about the benefits that are provided by the BidTaxi organization to their customers
that is the cab drivers as well the riders. The unique method that the organization has choose
separates them from the other taxi service providing platforms (Wong et al., 2014). The Ministry
of transportation concerns with the civil transport, rail transport, road safety and other
transportation systems of the country. This paper enricher the goods of the bid taxi to the
ministry of the transportation for convincing them for the approval.
Operation of BidTaxi
BidTaxi organization, which is one of the most unique cab service provider organization
in Australia came up with an entirely new concept of business, in terms of providing taxi hailing
services. The organization has already got global recognition due to their unique idea and easy
approach of the platform used by customers. The service is easily accessible to the customers
using the mobile technologies like the android and the iPhone, and in case the customer is unable
to use the mobile technology can easily access the website developed by the organization. The
idea which is developed by the organization is one of kind using the modern-day technologies.
The organization had moved on from the old and fixed idea of having a fix price for the distance,
where the fares are decided by the organization. Rather the organization uses the technique of

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bidding, that is when a customer is tries to book a cab, the cab drivers in the nearest fixed
location gets the option for bidding for the passenger and the bidding which gets best fit wins the
bidding and approved (Rizan, Fadillah & RP 2015). Once the customer starts the process, in the
background the servers starts notifying the available drivers about every detail of the customer
that is from where the customer is to be picked up, till where the customer will go and how many
passengers are getting booked. The drivers check the requirements and accepts the booking, and
now the drivers get the windows for starting the bidding process. In the bidding process, the
driver analyses the requirements and sets a price accordingly (Raines et al., 2015). The cost of
the ride is not only based on the distance and number of the passengers riding but may be subject
to condition of the car, services provided in the car (like AC) and other comforts. In some cases,
if only one cab is available for bidding, the bid placed by the driver gets confirmed if no other
driver intervenes (Wang & Cheu, 2013). The time efficiency of the service is judged by the
distance the driver is at from the pickup location. After choosing the taxi driver the particular
driver is sent a message of confirmation and the taxi service is booked by the client.
In order to achieve the desired goals which are set which are set by the organization in order ro
gain maximum success. These sets of the rules are as follows.
 Driver must be certified
Drivers, who are enthusiastic to be a part of the BidTaxi organization, needs to get proper
certification from the organization. Before the driver joins the driver has to pass some tests
provided by the organization’s driver needs to pass the minimum score set by the organization.
There are several types of drills that the driver needs to follow (Dyer, 2017). After the
completion of all the drills provided, the chauffeurs are gauged considering the time taken to

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complete the trainings and the slipups committed during the test process. After the process of the
test, the drivers are further trained by the organization. The training process includes some basic
driving skills enhancements and technique to use the application as a driver, that is how to bid,
when to bid and other such functions (Benz & Sumares, 2015). This process of hiring certified
drivers is to make sure that the passengers who are using the bid taxi platform get the most
secured drivers and there is minimum number of any cases of accidents. The credit score that the
driver earns during the test process and the training process, are present in the portal of the
chauffeur through which they apply for the bid (Xie, Nie & Liu, 2017). Customers accepting the
bid can check the score of the driver in order to stay confident regarding the quality of service
they are to receive.
 Insurance and road worthiness of the vehicle
The organizations check for proper paper works of the car and the driver before launching
the vehicle for the customers. The papers that are checked is the purchasing certificate of the car,
the insurance of the vehicle the driver’s license, the pollution of the car and other such papers.
This is done in order to avoid any kind of legal controversies during the service period of the
driver and the car (Tay & Choi, 2016). Any kind of legal controversies during the service period
affects the goodwill of the taxi driver as well as the platform that is providing support to the
uninsured vehicle.
The Bid taxi organization also checks the road worthiness of the vehicle before launching it
in the platform. The roadworthiness of the vehicle is put under scrutiny by the organization
(Bush, et al 2015). The vehicle is going to be used by the drivers are tested in various conditions,
for example the off-road conditions, congested areas, sharp turns in order to check the

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availability of the braking system, engine system and other (Binion, et al 2015). On passing all
the conditions in satisfactory terms the road worthiness of the vehicle is proved and the vehicle is
hired.
All these processes are done in order to maintain the goodwill that has been earned by the
company.
 Rating from both ends of the business
The organization also has a very effective ratings system. This is one of the best techniques
to review any passenger or any driver (Khuong & Dai, 2016). BidTaxi started using the policy
of the customer rating the chauffeur and the chauffeur rating the customer. This mutual rating
acts as the benefits for both the driver and the client. The entire system of the rating is
anonymous, that is the drivers cannot see which customer gave what rating and the customers
cannot see which driver gives what rating. The drivers as well as the customer can see the overall
rating provided (Gany et al.,2015). The entire rating can only be seen by the management
authorities. This process is to make sure that no one after the cab gets booked does any
misbehave mutually. This also enhances the security of the customer. with increase in the rating
of the driver the driver gets climb in position among the equivalent drivers and quantity of
chances for doing a bid also increases, also the chances of getting selected by the client increases
proportionally (Kong, et al 2017). There is a target benchmark of the rating system and on
meeting the target fixed by the organization the drivers are gifted with extra bonus. The rating of
the customers does not have any benchmark but only for the drivers to know how well the
customer is. If the rating of the customer is low in 5 to 6 rides consecutively, the chances of
getting a cab decreases. IF the rating is also low consecutively there are less chances for the

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driver to do a bid (Benz & Sumares, 2015). One of the major technique developed by the
organization in this process is that if the customer and the driver both has a low-ranking score,
they get merged up in the in a ride.
 Diversity in the booking system.
It may happen that a customer needs to use this unique platform but does not have any
smartphone or it may also happen that the customer is not having credit or debit card to pay. The
bid taxi has introduced many features for these types of the customers. If the customer is not
having any smartphone can book cab using the website of the platform which is similar to
smartphone application (Balafoutas et al., 2013). Also, in case no credit card can use the Osko or
purchase gift cards from any bid taxi authorized supermarkets. And these cards can be recharged
from any nearest bid taxi office. The bonus points in the Osko cards are also high as compared to
the other methods of the payment system.
 Other Features
The bonus points are achieved by the drivers can be used in future by the drivers as gift cards
provided by the drivers (Yuan et al., 2013). The tips that the customer gives to the drivers can
be used for donations in the charity. The points of the customers can be uses a discount coupon
in the future rides of the customer.
Suggestions for the Bid taxi organisation.
1. The organization is one of the well-established company and the norms are also
much advanced, but there is always some way for the betterment or improvement in
the systems. One of the strategy which may increase the fame of the organization is
complain generating system. This can help the drivers as well as the customers in

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terms of safety. The customer may complain about the things like the loss of any
item, misbehave by the driver or the fellow passenger, or in any case of accident.
Also, the same can be applicable for the drivers, the drivers can complain about any
misbehave by the customers, in case of the road legal issues or any case of theft or
mishandling of the car (Zeng & Oren, 2014). This can help the customer more
confident about the security and safety of both the customers and the drivers. This
system needs to merge with the rating system that the one who is rating after the ride
is completed can give comment about the ride or any issue in the system. A helpline
number can also be introduced to provide better facility. In case there is no internet
connection the customer or the driver can use this phone number for lodging any
complain. And further steps would be taken accordingly. One of the other security
measure that can be taken, is placing a emery button inside the car. If any one needs
any help can use this button to ask for help. Once the button gets triggered, the
indicators and the horn of the gets activated and any police or people outside can spot
such thing and run for help.
2. One of the other thing the organization can done for the betterment of the business, is
to sponsor the driver who are not having any car but is willing to join the service of
the bid taxi organization. This may intern increase the profits of the organization.
The organization can also hire car from the owners and use them for the platform.
This will help the driver to get employment (Chen, Cui & Li, 2018). The
organization also can merge up with any car making or car selling organization in
order to buy cars from that specified center and use them in their platform. This helps
the organization by, if the driver for some reason leaves the organization, the car

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would be left vacant and the organization can hire a new driver and use the car
further. Also, this will decrease the cost of car checking process again and again as
the car would belong to the organization itself.
Conclusion
Thus, concluding the topic it can be said that the BidTaxi has started the project with a
thought of making it a unique project and has been successful in achieving the target that they
had set for themselves. The operation of the project is very much smooth and is very easy to use
for both the customers and the drivers. The security services are of high standards as compared
to other such platforms. The technique used by the organization grabs the attention of many
customers as the prices to travel ha decreased because of the organization. The booking time and
the cost is also very low, and the drivers gets desired amount of sum. The demand of the services
is getting a increase day by day and would become of the feature business in future.

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Reference
Balafoutas, L., Beck, A., Kerschbamer, R., & Sutter, M. (2013). What drives taxi drivers? A
field experiment on fraud in a market for credence goods. Review of Economic
Studies, 80(3), 876-891.
Benz, A., & Sumares, E. (2015). The Uber Controversy: a Public Choice Perspective.
Binion, T., Minter, K. S., Brown-McCreery, H., Harris, M., Myers, J., Fields, B., & Harr, J.
(2015). U.S. Patent Application No. 14/047,256.
Chen, Z., Cui, W., & Li, X. (2018). Research on Decision-making of Urban Taxi Management
Organization. Business Administration and Management, 1(1).
Dyer, C. (2017). GP who certified taxi drivers without examining them gets 12 month
suspension. BMJ: British Medical Journal (Online), 358.
Gany, F., Rau-Murthy, R., Mujawar, I., Prasad, L., & Roberts, N. (2015). Increasing influenza
vaccination in New York City taxi drivers: A community driven
approach. Vaccine, 33(22), 2521-2523.
Khuong, M. N., & Dai, N. Q. (2016). The Factors Affecting Customer Satisfaction and Customer
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Kong, X., Xia, F., Wang, J., Rahim, A., & Das, S. K. (2017). Time-location-relationship
combined service recommendation based on taxi trajectory data. IEEE Transactions on
Industrial Informatics, 13(3), 1202-1212.

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Raines, R. T., Nesson, E. J., Lackey, D. A., Fritts, T., & Bush, I. (2015). U.S. Patent Application
No. 14/682,473.
Rizan, M., Fadillah, E., & RP, A. K. (2015). INFLUENCE OF SERVICE QUALITY AND
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Yuan, J., Zheng, Y., Xie, X., & Sun, G. (2013). T-drive: Enhancing driving directions with taxi
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220-232.

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Zeng, C., & Oren, N. (2014, August). Dynamic taxi pricing. In Proceedings of the Twenty-first
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