Enhancing Customer Relationship Management in Ride-Hailing Services

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AI Summary
Customer Relationship Management (CRM) is pivotal in the success of modern ride-hailing businesses like Uber and Ola. These firms face challenges such as ensuring customer satisfaction and addressing driver concerns, notably regarding earnings and fuel expenses. To tackle these issues effectively, companies must adopt a multi-faceted approach that includes technological solutions, comprehensive training programs for drivers, enhanced customer service protocols, and active engagement with both customers and drivers through surveys and feedback mechanisms. By directly interacting with users to understand their needs, ride-hailing services can create value propositions that significantly improve user experience, thereby fostering loyalty and setting themselves apart from competitors. Implementing CRM best practices will not only enhance operational efficiency but also contribute to sustained business growth in the competitive mobility sector.
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Jaipuria Institute of Management
CRM GROUP PROJECT
2019-2021
Submitted To: Submitted By:
Dr. Rekha Attri Sushmita Rathore
Sudeeti Maroo
Rana Pratap Singh
Shabhahat Khan
Sonika Kachhawaha
Swayam Kapoor
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INDEX
Table of Contents
1. INTRODUCTION .................................................................................................................................. 3
1.1 CRM ............................................................................................................................................. 3
1.2 Types of CRM solutions ................................................................................................................ 4
1.3 Taxi Industry and its major players in India…………………………………………………………………………………..4
1.3.1 OLA……………………………………………………………………………………………………………………………………5
a) Ola customer segment…………………………………………………………………………………………………..6
b) Value propositions of ola……………………………………………………………………………………………….6
c) Channels of ola………………………………………………………………………………………………………………7
d) Key Activities of Ola…………………………………………………………………………………………………..….7
1.3.2 UBER……………………………………………………………………………………………………………………………………8
a) Different cab models to cater to everyone……………………………………………………………………9
b) Key Activities of Uber………………………………………………………………………………………………… 10
c) Value propositions of uber………………………………………………………………………………………….11
2. COMPARING UBER VS OLA CABS ...................................................................................................... 12
3.CRM USED IN CAB SERVICES- OLA & UBER ......................................................................................... 14
3.1 How Uber uses CRM?......................................................................................................................14
3.2 How OLA uses CRM?....................................................................................................................... 14
3.3 CRM software used in cab services……………………………………………………………………………………………..15
4. SUGGESTIONS TO ENHANCE THE CRM EFFECTIVENESS…………………………………………………………………..17
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1. INTRODUCTION
1.1 CRM
Customer iRelationship iManagement iwas iinvented iin ithe iancient icommercial iworld iand
ihas ibeen iconstantly ievolving ithroughout ithe iyears iunder idifferent inames iuntil ithe iend iof
ithe i20th icentury. iThere iare iseveral iantecedents icontributed ito ithe idevelopment iof
irelationship imarketing isuch ias ienergy icrisis iof i1970’s iand itotal iquality imovement.
iHowever, ione iof ithe imain iforces, ithat ihas ibeen iconstantly ishaping iand iimproving ithe
ibusiness ienvironment, iwas ithe iadvent iof idigital itechnology. iThe iInformation iTechnology
i(IT) irevolution ihas iplayed ia ivital irole iin irapid igrowth iof ithe imarketing ifield iand ihas
iforever ichanged ithe iunderstanding iabout imodern iCRM. iIn ithe inew iera iof idigitalisation,
iwhich icovers ivirtually iall iexisting iindustries, iCRM iconnects icustomer idata iwith itarget-
group ioriented icommunication iactivities isuch ias ie-mail iand imobile imarketing. iIn iother
iwords, iCRM ihas ibecome ian iintegral ipart iof ithe icustomer ilifecycle imanagement. i(Sharma
i& iGupta i2003, ipp. i8-15; iPiskar i& iFaganel i2009, ipp. i199-200; iChakravorti i2006, ipp.
i20-28.) iFurthermore, ionline ishopping iand ibooking ihas igrown isteadily iduring ithe ipast
idecade i(Statista i2018). iIt iplays ia isignificant irole iin isocio-economic idevelopment iby
istimulating icompetitiveness ion ithe imarket. iFrom ithe ibusiness iperspective, iit iimproves
icompanies’ iperformance iby ireducing itransaction icosts iand iproviding iglobal iaccess ito ithe
igreater inumber iof icustomers. iAround-the-clock iavailability, idiversity iand ispeed iof iaccess
iare ithe ikey ifeatures iallowing icompanies ito imake imore imoney ithan iever ibefore.
However, ithe isuccess iof iany ibusiness iis iheavily idependent ion icustomer iloyalty itowards
ia ibrand ior iservice. iAs ia iresult, iСRM iimplementation ihas ibeen iadded ito ithe iagenda iof
imany ie-businesses. iFor iinstance, ithe iride-hailing iindustry iis ia ifastgrowing imobility
iservice iprovider, ithe ioverarching iidea iof iwhich iis ito ienable icab irequests ithrough ia
imobile iapplication i(Wang i2015, ipp. i2-4). iCompanies ioperating iin ithis ifield iattract iand
iretain itheir icustomers ipredominantly ivia ionline icommunication, iwhich imakes iCRM iand
ionline imarketing ithe ibackbone iof itheir idaily ioperations.
In irecent iyears, ithere ihas ibeen ian iincreased ifocus ion iCustomer iRelationship iManagement
iand iits iinfluence ion icompany iperformance. iPrior istudies ihave igenerally ifound ia ipositive
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irelationship ibetween iCRM iimplementation iand icustomer iacquisition ias iwell ias iretention
irations. iFor iexample, iDutu iand iHalmajan i(2011) ipointed iout ithat ithe iimprovement iof
ibusiness iperformance ican igenerally ibe iexplained iby ithe ifact ithat icustomer iretention itends
ito ibe iless iexpensive ithan ithe icustomer iacquisition iprocess.
1.2 iTypes iof iCRM isolutions
CRM isystems ienable icompanies ito istore iand iprocess idata, igenerate ireports iwhen irequired,
iand iperform imarketing iactivities. iHowever, iunderlying icompany ineeds idepend ion ithe
iindustry iin iwhich ithey ioperate. iThus, ithe idifferent itypes iof iCRM isystems iwere icreated.
iThese isystems imay ivary iin itheir imain ipurpose iof iutilization, ifunctionality, ilevel iof
iinformation iprocessing, iand imethod iof iorganization. iThere iare ithree imain itypes iof iCRM
iapplications:
Operational
Analytical
Collaborative
1.3 iTaxi iIndustry iand iits imajor iplayers iin iIndia
Gone iare ithose idays iwhen ipeople iwaited ito irickshaw ito itravel iinside icity, inow ithe
igloblization ichanged ithe iface iof iindian ibusiness. iIn ithe iquick ispan iof iyears, itaxi iservices
ihas ibecame ithe imajor itransportation imedium iin imany icities. iIn iIndia, itaxi ibooking iapps
iare imaking imillions iof iturnover iwhich ilisted ias ione iof ithe imajor igrowing iindustry.
In imajor icities iin iIndia ilike iMumbai, iDelhi, iBangalore, iChennai, iKolkata, iHyderabad iand
imore, ipeople iare iprefer ito ichoosing icab iservices ias itheir iprimary itransport imedium ifor
itravelling ito ioffice, ishopping, ihospital, iairport iand iall iother iplaces. iWith itechnology itook
iplace ievery isector iand ithe iinnovation iof imobile iapp idevelopment, itaxi ibooking iapps iin
iIndia imakes ilife ieasier ifor iusers. iBy iinstalling ithe itaxi ibooking iapps iand ilocating
idestination iusing iGPS, iuser ican ibook ithe icab iinstantly ifrom imobile iphone. The ionline
icab ibooking iservice iproviders icharges ithe icost iof itravelling ibased ion idistance iof itravel
iand itype iof ivehicle, itraffic iand iwaiting icharges. iThere iare imultiple iapps iavailable iin
iandroid iplay istore iand iapple iapp istore ifor icab ibooking iin iIndia i:
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1. iOla iCabs
2. iUber
3. iMeru iCabs
4. iCarzonrent
5. iSavaari iCar iRentals
6. iFasttrack iTaxi iApp
i7. iMega iCabs i
8. iTab iCab
9. iNTL iTaxi
10. iMy iTaxi iIndia
1.3.1 iOLA
iABOUT iTHE iCOMPANY
When iit icomes ito ireaching iyour idestinations ion itime, iseveral ion-demand itaxi
iservices iwould iprobably icome iinto iour imind. iUndoubtedly, ione iof ithem iwould ibe
iOla. iIndia’s ilargest idomestic iride-hailing iservice icompany iand iUber iis igreatest
CEO Bhavesh iAggarwal
Year iit iwas ifounded 2010
Headquarters Bengaluru
Number iof iemployees 8134
Product iand iservices ioffered Online iride-sharing iservices- iFood ideliver iservice-
iMobile iwallet
Competitors Uber-Swiggy- iPaytm- iUber iEats
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irival iin iIndia, iOla iwas ifounded iin i2011, ioffering iefficient itransportation iservices
ito ipeople.
Ola iis ibased ion ithe itwo-sided inetwork imodel; iOla iconnects icustomers iwhose
iseeking ion idemand itransportation iwith idrive ipartners ithrough ia imobile iapp.
Ola iservices iare iprovided ito imillions iof icustomers ievery iday iin iover i169 icities.
iOla iservices iare ialso iactive iin iAustralia, iNew iZealand, iand iUK.
A) OLA iCUSTOMER iSEGMENT
There iare itwo itypes iof icustomer isegment iin iOla i i
1. iUser iof iTaxi iService:
City iTaxi: i- iwhich imeans iRegular isuburbanites iwho ineed ito ibook ia itaxi ito ireach ifrom
ione ispot ito iother, iindividuals iwho ido inot icare ito idrive irather iappreciate iworking iwhile
iin ia ihurry.
Outstation ior iintercity itaxi: i- iin ithis iola iservice iwhere ifriends iand ifamilies iwho iwant ito
itravel ito isome iplace itogether ifor ioutstation itravel.
Ola iCorporate: i- icorporate icustomers iwho iwant ito imanage iemployee itravels ilike ipick,
idrop iservices, ior iinsurance, iexpenses, iand iinvoice ithrough ia icentralized iportal ior
idashboard.
2. iDrivers i(Taxi iService iproviders)
Drivers iservice iwhich imeans idriver ipartners iowning icars iwho iprovides itaxi iservices iand
iearn ithrough ithe iOla iplatform.
B) VALUE iPROPOSITIONS iOF iOLA:
For iPassengers i
Ola ifair iis iaffordable iand ilean ifares
High iquality iservice iand iconvenient irides
Certified idrivers
Criminal ibackground icheck
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Advance ibooking
Cashless irides
Multiple istops ifacility i
Hourly ipackage ifor irental icabs, ishare iand iexpress irides
For iDrivers iPartners
Choose iown iworking ihours
Access ito imore icustomers
Instant ibooking
Daily ipayments
24/7 ihelpline isupport
Lease icars iget ifree icar imaintenance iand i
Run iand imanage ithe ifleet iof icars
C) iCHANNELS iOF iOLA
The ichannels iof iOla iinclude:
Self-Serve i iits ihi-tech imobile iapplication iavailable ion iiOS, iAndroid, iand
iWindows. iIt ialso iutilizes iSMS iand iemails inotifications ito iwork iwith icustomers
iand idriver ipartners.
Partner iChannel i iOther idelivery ichannels iare iits iextensive irange iof ivehicles ithat
iinclude iautos, ibikes, imicro, imini, iPrime iSedan, iPrime iSUV, iPrime iPlay, iLUX, iE-
Rick, ietc.
Social iMedia i iIt ialso iefficiently imanages iits isocial imedia ipages iand ithrive iin
icommunications iwith icustomers. iIt ikeeps iasking ifor ifeedback ifrom icustomers ito
iimprove itheir iservices
D) IKEY IACTIVITIES IOF IOLA
Major ikey iactivities iof iOla iare igiven ias ibelow
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Platform igrowth i iManaging iand iupdating imobile iapp ion ia iconstant ibasis
Manage idaily ioperations, iwhich iincludes i
Manage irelationship i iManaging irelationships iwith icustomers, ipartners, iand
iinvestors
Government iCompliance i iUnderstanding iand icomplying igovernment iregulations
iand iRTO irules iin ithe iareas iwhere iit’s ioperating
Sales i& iMarketing i iPlanning iand iexecuting ipromotion iand imarketing itechniques
i iboth ionline iand ioffline.
The itaxi-based imodel iof iOla ihas iserved iit iquite iwell ias itheir iservices iare iearnestly
iwelcomed iby ialmost ieveryone. iAn iultimate isolution ito ireach idestination ipromptly,
iconveniently, iand isafely, iOla ihas itruly iredefined imobility ifor ibillions iof ipeople
iworldwide.
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1.3.2 UBER
ABOUT iTHE iCOMPANY
Founders Travis iKalanick iand iGarrett iCamp
Company iHeadquarters San iFrancisco, iCalifornia, iUnited iStates.
Funding ireceived iby iUber : i$22.2 iBillion. i(as iof iDecember i2017)
Company iValuation Over i$70 iBillion
Number iof iUsers : iMore ithan i50 iMillion. i
Number iof iregistered idrivers Approximately i7 iMillion i(as iof iNovember i2017).
Average inumber iof idaily
iUber iTrips
1 iMillion i
Uber iis ian ion-demand itransportation iservice iwhich ihas ibrought ia irevolution iin
ithe itaxi iindustry iacross ithe iworld. iThe ibusiness imodel ihas imade iit ipossible ifor
ipeople ito isimply itap itheir ismartphone iand ihave ia icab iarrive iat itheir ilocation iin
ithe iminimum ipossible itime, ileaving ia ilot iof ibudding istartups iyearning ifor ian
iApp ilike iUber.
Uber iis ione iof ithose ifew itech icompanies iin ithe iworld ithat ihas ibeen ivalued iover
i$70 iBillion. iUber ihas ialready ireceived ian iequity ifunding iof i$22.2B iand iis
ipresent iin i633 icities iworldwide. iThese ifacts isurely ishow ithe itrust iof iinvestors iin
ithe ibusiness imodel iand imake iit ieasy ifor iUber ito iimagine ihow imuch irevenue
iwill ithe iorganization ibe imaking ionce iit iattains iliquidity.
A) iDifferent icab imodels ito icater ito ieveryone:
Uber ihas inot ilimited iitself ito ia iparticular isegment iof icars ior ito ia iparticular
isegment iof ipeople. iThere iis iUber iX, iUber iBlack ifor ithose iwho ilove ito itravel iin
ia iblack icar, iUber iTaxi ifor ithose ilooking ifor icost-efficient isolutions iand iUber
iSUV ifor ithose iwho iwant iluxury.
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B) iKey iActivities iof iUber
Remove ifriction i(search icosts) ifrom iall iinteractions. iThis iincludes ithe imany
iimprovements iaround ipick-up ipoints, ie.g. ilocation iaccuracy, ispotlight iand imany
iother i(non-technological) iways
Improve ithe itechnical ilead ion ithe iproprietary itechnologies
Improve ithe iApp ias iwell ias ithe iinvolved iprocesses ibased ion iuser ifeedback
Develop inew iproducts: iUber iEats, iUber iFreight iand imany iother ispecific ivalue
iproposition irelated ito iRides iand iEats
Expand iand igrow iinto imore icities iand icountries i(more ion ithe igrowth istrategies
iin ithe ipremium iresources)
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C) iVALUE iPROPOSITIONS iOF iUBER:
Value iproposition ito iriders
Custom iride: ithe i“exact iride” ithat ithe iuser ineeds i(i.e. ipick-up iand idrop-off ipoint
iwithout itransit ion ieither iside)
On-demand ifrom ithe iApp, ino ineed ito ischedule ia ipre-order i(though ipossible).
iUber iaims ito iprovide ireliable irides iin ithat ipeople idon’t ihave ito iplan itrips iahead
iof itime
The iApp igives iyou iestimated ipick-up, iduration iand iETA iof ithe iride
Affordability: itypically ilower iprices ithan ia icomparable itaxi iride i(exception: isurge
ipricing); ian iestimated ifare iis iprovided iprior ito ithe iride
Ease iand iconvenience: iremoving ifriction ifrom iall iinteractions ito ithe iextent
ipossible, ie.g.
1. Fast ipick-ups i(often i3-5 imins) iand itracking ithe idriver iarriving
2. Choice iin iterms iof ivehicle itype i(economy, ipremium, ietc)
3. No ineed ito itell ithe idriver ithe idestination ior iroute
4. Cashless itransactions i(exceptions iexist)
Rating isystem ithat iallows ifor ifeedback
Value iproposition ito idrivers
Income igeneration iand ilow iidle itimes idue ito ithe ilarge iamount iof iactive iriders
Flexible iand ipredictable iwork ihours ias iwell ias iself-determined ishift idurations i(at
ileast iin itheory i ithe iactual iincentive isystem ican ilead ito iother ibehaviours)
Tracking ione’s iearnings i(in ireal-time) iand iability igenerate iimmediate iearnings iand
iability ito iget ipaid iout ifrequently i(esp. iin ithe iUS)
24/7 isupport: iability ito icontact iUber ianytime, ie.g. iin ithe icase iof iissues iwith ia
irider ias iwell ias iproviding ia irider irating
No iboss
The idriver iapp ithat ihelps iwith inavigation, ialerts, iplanning, iearnings, ietc
Ease iof ijoining: irequirements ito ijoin ican ibe imet iby imost idriver icar-owners
i(mainly: iidentification, ibackground icheck, ivehicle iinspection, i4-door icar)
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2. COMPARING iUBER iVS iOLA iCABS
EASE IOF ITHE IAPP’S IUSE
Both ithe iapps iare iquite istraightforward ito iuse. iWith iuncomplicated idesigns, ieven
ia inew iuser ishould ibe iable ito ifind itheir iway iaround ithe icab ibooking iapp. iWhen
iopened, iboth ithe i‘Uber’ iapp iand ithe i‘Ola iCabs’ iapp ifeature ia isimilar ilanding
ipage, ia imap ithat iplots iyour igeographical iposition ias iwell ias ithat iof ithe icabs
inearby ito iyou.
EASE IOF IBOOKINGS
Both iUber’s iand iOla iCabs’ iapp ibring icomfort ito ihailing ia icab. iBe iit ia iluxurious
iride ior ia isimple icab, iall iyou ihave ito ido iis ienter ithe idestination iyou iwould ilike
ito igo ito. iOnce iyou ihave iselected iyour idestination iand ithe itype iof icab iyou iwould
ilike ito iride iby, iboth iproviders iwill igive iyou ian iestimate ifor ithe ifare iyou iwill
iincur.
PRICES
Many iwould itell iyou ithat iUber iis icheaper ithan iOla iCabs. iBut iif iyou ido inot ifind
ian iUber iaround iyou iand ihave ito isettle ifor ian iOla iCab, iknowing iwhat iyou iwill
ipay ihelp. iOla iCabs ioffers ia ibasic icab iat ia iflat irate iof i80 ifor ithe ifirst i4 ikms
iand iRs.10/km, ia iflat irate iof i100 ifor ithe ifirst i4kms iand iRs.8/km, ia iflat irate iof
i100 ifor ithe ifirst i4 ikms iand iRs.11/km iin iBangalore, iDelhi iand iMumbai
irespectively.
Uber ioffers iits imost ibasic icab iat ia ibase irate iof iRs.35 iand iRs.7/km, ia ibase irate
iof iRs.40 iand iRs.7/km, ia ibase irate iof iRs.45 iand iRs.8/km iin iBangalore, iDelhi iand
iMumbai irespectively. Both iproviders icharge iRs.1/min ifor ithe iduration iof iyour iride
iand iUber ihas ia icancellation ifee iof iRs.15 iin iBangalore, iRs.60 iin iMumbai iand
iRs.80 iin iNew iDelhi.
EXPLICITLY ISHOWING ITHE IDIFFERENT ITYPES IOF ICABS
IAVAILABLE I
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