Analysis of Digital Transformation's Impact on the Taxi Industry

This report analyzes the current and future impacts of digital transformation on the taxi industry, exploring how technologies like social media, GPS tracking, and IoT are reshaping the sector. It examines the role of influencer marketing, the benefits of mobile applications, and the integration of technologies like AR and beacon technology. The report also addresses challenges such as competition from ride-sharing services and governmental changes, while offering key strategic recommendations, including leveraging social media, implementing efficient payment systems, and adopting advanced technologies like GPS and autonomous vehicles, to maintain competitiveness and enhance customer experience. The report emphasizes the importance of adapting to digital trends to ensure the taxi industry's survival and growth.

Running head: Current and future impacts of the Digital Transformation on Taxi Industry
CURRENT AND FUTURE IMPACTS OF THE DIGITAL TRANSFORMATION ON
TAXI INDUSTRY
Name of the Student
Name of the University
Author Note

1Current and future impacts of the Digital Transformation on Taxi Industry
Table of Contents
PART 1 Topic: Current and future impacts of the Digital Transformation on the Taxi Industry
....................................................................................................................................................2
Part 02: key strategic recommendations with rationale.............................................................5
References:.................................................................................................................................9

2Current and future impacts of the Digital Transformation on Taxi Industry
PART 1 Topic: Current and future impacts of the Digital Transformation
on the Taxi Industry
Taxi Industry is growing rapidly with the help of digital transformation. Taxi
industries consist of two types of taxis the public taxis and private taxis. The public taxis are
old taxis in the modern market, and they are unable to offer various feature like private taxis.
While private taxis offer advanced features like GPS, comfort and other benefits. Nowadays
digital transformation helps most of the taxi companies to surviving. It is one of the game-
changing processes in taxi industry.
The impact of digital transformation in social media in the Taxi
industry:
In taxi industry, one of the essential role social media can play in digital
transformation. Social media influencers are always using a different kind of
social media platform to promote taxi services and attract audiences. In
taxi industry, using of social media platform also known as influencer
marketing.
Taxi industry can gather a huge customer base by using different
social media platform. Promoting the taxi business by the help of social
media platform is best way to build a customer base. With the help of the
right influencer taxi industries can a large group of audience easily.
Inventing a huge amount of money in marketing is one of the most
challenging tasks for the taxi industry. But when it comes to social media,
the cost is very minimal. Influencers not only use one social media
platform for the advertisement, they use several platforms and in another

3Current and future impacts of the Digital Transformation on Taxi Industry
medium also. With the help of different social media, this industry can
influence more people and achieving success in this sector.
When taxi industries use a different technique to promote their
industry, there is very less chance to attract an audience. When a social
media influencer promotes the same feature, the response can be higher.
That is the power of social media when it comes to digital transformation
in this industry. They can offer limited free rides to promote their service
in a social media platform to attract more customer.
When a social media influencer or individuals post their valuable
feedback on social media sites, it can attract many people and increase
the industries credibility. If influencers highlighted exclusive features, that
can easily attract more people and increase the reputation of this
industry.
Strength and relevance of Digital Transformation on the Taxi Industry:
Most of the digital technologies contain the different revolutionary impact on the
Taxi industry. Digital transformation is connected to our every day's life (Westerman &
Bonnet, 2015). Not only in the taxi industry. This digital revolution can be found in other
enterprises as well. Most of the industry understand the benefits of digitalizing their business.
Digital transformation comes with different new possibilities, challenges and many
innovative ideas to improve different industries.
Apart from the Taxi industry, many industries such as health care, manufacturing
industry utilize this transformation because the most population is growing day by day.
People use a transportation service to move from one place to another place (Chinoracky &
Corejova, 2019). Technology is one of the main key features of comfort and ease.

4Current and future impacts of the Digital Transformation on Taxi Industry
One of the essential part of digital transformation is mobility. Because most of the
people using a smartphone nowadays. So digital transformation in mobility is a logical step.
There are many benefits to using different mobile application in the transportation industry.
Many applications are only designed for Taxi services. The main purposes of this
application are providing the customer with fast and important information in an easy way
(Demirkan, Spohrer & Welser, 2016). There are many user-centred methods available to
enhance user experiences.
One of the most common examples of this kind of application is a GPS tracking app.
This kind of app is the most popular app that is vastly implemented in the taxi industry. And
this kind of application is also frequently used by Taxi owner because they can monitor
what's happening with their vehicle and get a real-time update. With the help of GPS tracking
feature drivers are able to locate their taxi, and always stay connected with relevant
information. This kind of application can send every information in notifications form to their
smartphones.
Nowadays, AR or Augmented reality is becoming an essential part of the taxi
industry. Technologies like maps and smart glasses that can help a taxi driver to improve
their driving style and lead them towards safe roads.
Implementation of beacon technology in the taxi industry is one of the most common
examples of digital transformation (Piccinini et al., 2015). By using this technology taxi
owners or any people can perform several tasks such as open the trunk or boot through
Bluetooth connection that is wirelessly connected with an application on their smartphone.
This technology also can be used to forecast traffic. It also can detect road signs and guide a
driver for safe road.

5Current and future impacts of the Digital Transformation on Taxi Industry
IoT plays the most important role in digital transformation on taxi industries. The goal
of IoT is to connecting every object with the internet. Taxi, roads and other essential objects
in the taxi industry can be affected by this technology (Riasanow, Galic & Böhm, 2017).
Nowadays, most of the car manufacturer is adding this feature in most of the cares that every
passenger and driver can use IoT technologies. By implementing digital technology in the
taxi, and making them connected with the person can improve the driving experiences.
But how most of the Taxi manufacturer implement the digital transformation in their
business? they add several smart sensors in the entire car, and these sensors can be connected
through the Bluetooth or internet (Baker, 2015). With the help of these sensors, Taxi owners
can be connected with their vehicle by using the application in their smartphones. This type
of technology becoming popular in the last few years because it offers many advantages. This
kind of application can help car owners get specific information about their cars. With the
help of these technologies, smart cars can automatically send notifications in critical
situations such as when someone is trying to hit or steal their car, and when car tires do not
have sufficient air (Jenk, 2015). These kinds of notifications are beneficial for car owners to
keep their car safe and secure in every condition.
Part 02: key strategic recommendations with rationale
Taxi industries face several challenges from personalized public transports. These
transport include shuttle buses, private vehicles, public transportation, car hire and airport
buses. Taxis are costlier than public transport because the taxi industry is becoming more
innovative and they are implementing digital transformation in their industry. Most of the taxi
industries and their operators always focused on how their negatives part and continuously
stay connected with the general public. They also need o concentrate on a specific strategy
that can provide the price and features to the general public (Roedder, 2016). When a

6Current and future impacts of the Digital Transformation on Taxi Industry
customer starts losing their confidence from the taxi industry, they will start using other
cheap transport services. Increasing of Ridesharing facility that allows most of the Taxi
drivers to pick up passengers, and this facility increasing pressure on the Taxi industry.
Recently the transport industry facing massive governmental and disruption changes
that have been implemented by the government. However, taxi industries have successfully
identified these issues and adapted every challenge from these changes (Hars, 2015). Taxi
industries must be working on different methods to deal with these changes in a way that can
protect the industry and maintain overall interests and customer's safety.
Implementing digital transformation is not easy for existing taxi companies, but they
need to catch up with these trends if they want to attract more customer. If they are unable to
implement the digital transformation in these industries, they will face several challenges in
the transportation business. "Uber" has become the leader of digital transformation in taxi
industry, and their cost-cutting technique helps them to gain more customer base.
Incurrences is one of the best recommendations to implement digital transformation in
this industry. This strategy can attract many people. Taxi industries must implement call
centres that can help every customer to navigate taxis (Kane et al., 2015). They also can
register complaints against a specific driver or taxi.
They must provide taxi services by utilizing the computer. It can help to pick up a
customer, drop a customer and best customer care service. Taxi industry can use advanced
software and hardware systems to provide customers satisfaction by offering them to use
different cards for the payment.
Taxi industry needs to give focused on the credit /debit card system. This system is
helpful for passenger and driver as well. With the help of this technology, customers can use
their debit cards or credit cards in any City (Matt, Hess & Benlian, 2015). This technology

7Current and future impacts of the Digital Transformation on Taxi Industry
can approve the payment instantly. The swipe machine can locate in the back seat so it can
give the passenger privacy It can eliminate the need of phone call into the head office for
approval number. With the help of this system, this industry can reduce the convenience and
reliability problem. This industry also implements a computer system that can represent a
driver under their name. This industry needs a process of making to make Patriot a
trademark. Taxi industry needs to apply for a license so that they can run voice data
transmission system (Shaughnessy, 2018). The advantage of implementing high-level
technology is, it can attract many customers. Every industry must use new technology to keep
their customer base and gain their customer. Whereas other providers need to call in every
transaction for approval code, this system can get the spot approval. It can save lots of time
for passengers as well as for drivers.
This industry can use Global Positioning System (GPS) that can determine the nearest
driver, and it also helps drivers to find passengers. They must register a company name as a
trademark.
Taxi industry is already using social media for the advertisement. But they need to provide
more offers and facility to maintain the business. They must print ads in local newspapers and
TVs.
With the help of emerging technologies, taxi industries are enhancing themselves day
by day. Most of the government and private sectors are helping this industry to implement the
new technology. The recent development of autonomous vehicles creates significant
opportunities for this industry, and it was continuously enhancing customer experience. They
are increasing network utilization and improving the efficiency of service delivery.
The taxi industries continuously to establish relationships among other organizations
so that they can enhance professional growth. These organizations are valuable for the taxi

8Current and future impacts of the Digital Transformation on Taxi Industry
industry because they can implement and updates the technology and crate a presence in this
industry. They must provide every right to their applications.
Taxi industry must be focused on the cleaning process, friendly or polite drivers, and
the fastest route. This industry must deal with the proper vehicle's maintenance. They need to
provide extra money to drivers so that they can utilize the money on wheel alignments, and
other part repairs frequently.
Robust and reliable communication between customer and provider is essential under every
circumstance. This industry must use the KDT 5000 system design because it can provide the
proper reliability, so every passenger or driver can contact without any problem (Henriette,
Feki & Boughzala, 2016).
Taxi industries need to plans to respond according to the market needs. They can
introduce one type of taxi that contains a wheelchair. With the help of this plan, many
disabled people can easily use a cab. They introduce new ideas such as rent drivers or a taxi.
This industry believes the major future trends will be the complete dependency on
digital currency. Although this industry is unable to implement a high-level technology.
Various digital transformations have changed the way in taxi businesses. With the help of
computerized techniques, all taxi can be tracked and monitor by computer, and it also can
send dispatch instructions to the drivers and passengers. Computerization also can help to
solve a problem like "fare stealing".

9Current and future impacts of the Digital Transformation on Taxi Industry
References:
Chinoracky, R., & Corejova, T. (2019). Impact of Digital Technologies on Labor Market and
the Transport Sector.
Westerman, G., & Bonnet, D. (2015). Revamping your business through digital
transformation. MIT Sloan Management Review, 56(3), 10.
Demirkan, H., Spohrer, J. C., & Welser, J. J. (2016). Digital innovation and strategic
transformation. IT Professional, 18(6), 14-18.
Piccinini, E., Hanelt, A., Gregory, R., & Kolbe, L. (2015). Transforming industrial business:
the impact of digital transformation on automotive organizations.
Riasanow, T., Galic, G., & Böhm, M. (2017). Digital transformation in the automotive
industry: Towards a generic value network.
Baker, M. (2015). Digital transformation. Buckingham Business Monographs.
Jenk, J. (2015). Theory meets practice in the taxi industry: Coase and Uber.
Roedder, N., Dauer, D., Laubis, K., Karaenke, P., & Weinhardt, C. (2016, December). The
digital transformation and smart data analytics: An overview of enabling
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Data (Big Data) (pp. 2795-2802). IEEE.
Hars, A. (2015). Self-driving cars: The digital transformation of mobility. In Marktplätze im
Umbruch (pp. 539-549). Springer Vieweg, Berlin, Heidelberg.
Kane, G. C., Palmer, D., Phillips, A. N., Kiron, D., & Buckley, N. (2015). Strategy, not
technology, drives digital transformation. MIT Sloan Management Review and
Deloitte University Press, 14(1-25).

10Current and future impacts of the Digital Transformation on Taxi Industry
Matt, C., Hess, T., & Benlian, A. (2015). Digital transformation strategies. Business &
Information Systems Engineering, 57(5), 339-343.
Shaughnessy, H. (2018). Creating digital transformation: strategies and steps. Strategy &
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Henriette, E., Feki, M., & Boughzala, I. (2016, September). Digital Transformation
Challenges. In MCIS (p. 33).
Rahman, I., & Tadayoni, R. (2018, November). Digital Transformation of
Automobiles-from product to service. In 2018 11th CMI International Conference:
Prospects and Challenges Towards Developing a Digital Economy within the EU (pp.
7-13). IEEE.