ITC563 - BidTaxi Implementation: Analysis and Service Improvement

This report provides an analysis of the proposed BidTaxi service, a new ride-sharing system that uses a bidding model for fares. It outlines the core concepts of BidTaxi, where drivers bid for rides based on customer-specified destinations, times, and passenger counts. The report emphasizes the importance of driver engagement and customer loyalty for successful implementation, recommending strategies such as reward programs, training, and service improvements. It also suggests branding initiatives, partnerships with fuel companies, and expansion of coverage areas to enhance BidTaxi's market presence and operational efficiency. Furthermore, the report proposes utilizing unused vehicles and establishing a dedicated maintenance garage to optimize costs and service quality. The document concludes by highlighting the significance of driver training and customer engagement to ensure the smooth operation and customer satisfaction of the BidTaxi service.

Running head: IMPLEMENTATION OF BIDTAXI SERVICES
IMPLEMENTATION OF BIDTAXI SERVICES
Name of the Student
Name of the University
Author Note

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Outline of BidTaxi services
The principal role of transport is to deliver access between spatially separated location
for the household sectors and business for person movement. For the household
sectors it involves connection to education facility, social recreational, medical facility,
work place and community (Ansari et al., 2015). In Australia the transport system is
project-centric and has a wide availability of vehicles for suitable transports. However
the accessibility to those vehicles are not suitable as needed in modern time. Private
vehicle travel system is been increasing over last 65 years. Survey result suggest that
the ridesharing is growing the overall transport market rather than capturing the existing
taxi market (Mozaffari et al., 2016).
Taxi use in Sydney
Before
ridesharing
2012
Before reform
2014
After reform
2016
2017
Demand
(people used
taxi in last six
month)
55 58 60-61 61
Frequency
(people who
use a taxi at
least once a
9 14 13-15 14

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week )
The increased supply may have instead ben taken up by otherwise latent consumer
demand for a differentiated service resulting in an expansion of the on-demand
transport market (Chen, Cui and Li, 2018). For over demand of ridesharing services in
Australia a new system of service is proposed as BidTaxi. Nowadays every taxi services
is depend on a fixed software services that decides the ride and price based on the time
and distance. It works simply by just checking the near rides and select the nearest one
for the traveler. Travelers are aware of the fixed price before riding and also selects the
pick-up and drop-point earlier before booking. This type of service is common and
popular among everybody, mostly the young ones. However all the controls of booking
is on passenger’s hand. In some certain situation where a specific driver is not willing to
take the booking for abhorrence of journey distance, price or place. This type of service
providing much viability and facility over last years. But recently this services facing
some obstacles for increasing demand of ridesharing. The population is growing
gradually so the demand of services. It has been a common situation where there is
multiple traveler waiting for a services while there are a few vehicle available. This type
of situations mainly occurred in end of concerts, games and racecourses where
enormous people left the places at same time and needed transporting service to travel
at same time. Previous ridesharing sharing services are facing this type of problems
however the travelers are effected more for this type of issues. So BidTaxi can be useful
to overcome this obstacle where many customers can bid over a single taxi rather than
getting first book first get services. Bidtaxi can solve many type of issues by shift the

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control of booking to the drivers. BidTaxi providing new system where for a particular
taxi number of passengers can bid and driver will have the choice to fix the ride. Both
parties will provided an estimated basic price base on the distance and time. Over the
basic price, drivers can bid and the system will broadcast the real time coordination to
the drivers. Only ten minutes will be allocated to all the interested drivers who is willing
to fix the book. The customers can access the real time responses by the drivers. Then
the payment will be done between the selected driver and passenger at the end of the
journey as determined by Global Positioning System (GPS) location. And the entire
journey will be locked. To embark this efficient system there are certain aspects needs
focus. Firstly interested drivers should enroll their vehicles with appropriate validation
report. BidTaxi will check upon the certification of this vehicles through thoroughly
checked for road worthiness and appropriate paid insurances details. This new system
will also allow the driver and customer to rate each other. After online verification of
valid IDs of customer and driver a star-rating system will appear for them after a
successful transportation. The booking will be done by smartphones but passengers
can also book rides from their official websites. Usually payments are made by credit or
debit cards. However passengers without debit or credit cards can use Osko payment
method or gift cards provided by supermarket. BidTaxi office will directly responsible for
the payments made by Osko. For increasing service loyalty each customer is given
status points for rides paid. This points can be utilized in future as discount. This point
can be gained by donate tips to drivers and charity. Drivers who will provide efficient
services by completing the journey within previously estimated time will be rewarded
with fuel-discount gift cards by the BidTaxi.

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Recommendation
1. Enhance Customer Loyalty:
Customer loyalty is still something of an afterthought among utility executives but it
is critical in every business to grow (Dileep et al., 2015). Customer loyalty is one of the
main aspects to focus to proper implement the service and get efficient results. BidTaxi
should consider the customer needs and wellbeing by providing better services. They
can provide an offer service that can only gain after completing some specific amount of
rides. After completing those specific rides a customer can gain the premium
membership. The premium membership will provides much offers than regular accounts
booking and passenger with premium membership will be treated as first priority if many
passengers are trying to get a specific vehicle at same time. That will surely enhance
the customer loyalty as they will be dedicated to the BidTaxi and will not think of getting
others company’s services. They can also provide gift coupons to the loyal customers
that will lure them to use the service again. For other customers they can provide status
points. Status points can be gain by donate tips to charity or drivers. This points can be
increased by getting star-rated by drivers for good approach and behavior. Customer
can gain more points by also recommend this service to other person such as relative,
co-worker and so on.
2. Driver Engagement:
According to the First research Industry profile on trucking, the top two major inputs
and expenses for the transportation industry are Drivers and fuel (Meyer et al., 2016).
To successfully implement this propose service driver engagement is essential using a
proactive reinforcement. Drivers will play a vital role in the implementation of BidTaxi.

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Reward Development: It is essential to choose suitable driver who are familiar with
this type of new system. Driver can be also rated by passenger and that can increase
their status point. By deliver effective services over a long time they should be
recognized and rewarded by BidTaxi. BidTaxi can implement those services to engage
with the drivers. This new system is mostly depend on the driver because they will fix
the rate of the price. BidTaxi can also provide wages and free fuels also. If some driver
provides extraordinary performance by taking multiple amount of booking for some long
particular period. Company can also give them coupon cards and free fuel some ride. If
they confirms booking for less payment company can reward them extra payment for
completing the journey. In holidays BidTaxi can provide the rate of payment for the
holidays. In time of low availability and deep night when many services are not available
drivers can gain more engagement point. This processes can be implement to increase
driver engagement.
3. Service implementation:
Branding: BidTaxi needs implement their service for better business. They need to
advertise their service for better branding. As it is a new service and not many people
will be familiar with the system. It is essential to branding the name throughout the
country. For this approach banners and advertise in paper can be useful. In most of the
cases, peoples are not likely interested to strain new services as there are multiple
option available. So it is also essential to convince them to adopt the new system by
offering discount and exciting offers.
Fixed Fuel Company: BidTaxi can deals with a fuel company for better offer and cost
enhancement. All taxis under them can pour fuel from the same fuel provider. By

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implementing this service drivers does not need to pay to get fuel and the payment can
be compromised by BidTaxi office. It will help them to keep better track of payment
procedure.
Expand coverage area
They can expand their coverage area to get more passenger. It will be highly
beneficial for them as they can gain more passenger and driver in almost every state.
They can also implement the migration process by extend their service to transport
people from one state to another. Most of the taxi services does not provide this type of
transportation. It could be highly beneficial to provide the new system of transportation.
For this services there should be some special drivers with certified permits to get
access over multiple states.
Suggestions for improving business service/operation offerings
For improvement of services there are some certain aspects BidTaxi can implement.
There are two suggestions as followed-
1. Driver Training:
BidTaxi can provide a training class to all the drivers associates with BidTaxi. This
training can be included the engagement with customers, the new bidding process and
some tips to drive efficiently. Almost every driver does need a training to drive but there
should be some rules and regulations they should follow as speed limit, service time,
the exchange rate and so on.

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Customer Engagement: This training should include the process of customer
engagement. A driver needs to engage with multiple customers throughout a day and
they needs to communicate with them in a suitable manner. This training can improve
their greeting procedure that will also can help them to get high rate from customers.
Additionally, every different people have their different approaches and requirement.
Some time it can bother the driver to meet all the requirement proposed by customers.
This training can also teach them how to tackle different people with unpleasant
requirement.
Bidding Process: The bidding process is an emerging concept in travelling industry.
Most of the drivers are not familiar with this new system. This is the main aspect to
focus while providing training. Drivers has to be familiar with the interface of the bidding
system. BidTaxi needs to train them about the interface and the limitation of bidding. It
is also essential to make them understand the importance of the approach and how
they can get benefits from it. As it is a bidding process service drivers should aware of
the limitation. If they choose to book any service at very low payment, the company and
they will be at loss.
Utilizing Unused Vehicle: BidTaxi can improve their services by dealing with the car
owners who does not used their car or have multiple car. They can take those cars and
provide drivers to add them in service. This will increase their vehicle amount as well as
services. They can pay to those car owners depend on the deal they are constructing.
They can utilize those extra vehicles when the demand is higher and close the deal
when the demand decreases. This deal can enhance the service and profitability as
their will be lot saving to buy new cars. Every drivers does not have their own car as

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they can use this cars to improve the services. It will be highly beneficial for BidTaxi as
they are recruiting drivers and borrowing cars separately. Utilizing these approach the
maintain cost will be also separated from the drivers concern. BidTaxi can implement
their own maintaining garage to save maintain cost to a higher level. The drivers with
their own cars can also take services from it. This will also help the company to gain
more driver engagement efforts. The owners of this car will be also pleased as they will
gain profit from their unused cars.

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Reference:
Ansari, M., Al-Awami, A. T., Sortomme, E., & Abido, M. A. (2015). Coordinated bidding
of ancillary services for vehicle-to-grid using fuzzy optimization. IEEE
Transactions on Smart Grid, 6(1), 261-270.
Chen, Z., Cui, W., & Li, X. (2018). Research on Decision-making of Urban Taxi
Management Organization. Business Administration and Management, 1(1).
Dileep, K. P., Devesh, G., Rao, A. R., Suman, M., & Srikanth, S. V. (2015). Verification
of Linux device drivers using device virtualization. In Computing for Sustainable
Global Development (INDIACom), 2015 2nd International Conference on (pp.
694-698). IEEE.
G. Meyer, G., Buijs, P., B. Szirbik, N., & Wortmann, J. C. (2014). Intelligent products for
enhancing the utilization of tracking technology in transportation. International
Journal of Operations & Production Management, 34(4), 422-446.
Maryam, A., Siddiqui, N., Qadeer, M. A., & Umar, M. S. (2016). Travel management
system using GPS & geo tagging on Android platform. In Wireless and Optical
Communications Networks (WOCN), 2016 Thirteenth International Conference
on (pp. 1-6). IEEE.
Mozaffari, M., Saad, W., Bennis, M., & Debbah, M. (2016). Unmanned aerial vehicle
with underlaid device-to-device communications: Performance and
tradeoffs. IEEE Transactions on Wireless Communications, 15(6), 3949-3963.

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