Assessment 2: Enhancing Customer Service in Australia's Taxi Sector

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Assessment 2
Improving customer service experience in the taxi industry
operating in Australia
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Contents
Literature Review............................................................................................................................3
References........................................................................................................................................9
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Literature Review
According to Lovelock & Patterson (2015), the need for a taxi has been increasing in past
decades and this has been affecting the development of the trade market and customer needs
subsequently. There have been various regulations imposed by the government to control the
operations of the Australian market subsequently. The government has adopted the strategy to
put the customer before anything else in the work. They have put regulations and priorities to set
a certain standard for commercial activities. Technical changes have been embraced in the
scenario. The need of ant modern customer is to take care of their needs and safety to the
development of safety needs and development features that can be taken into consideration
initially to deal with the needs of the customers. As per Lovelock & Patterson (2015), the
changes have been good enough for customers but they are imposing subsequent damages to the
people around them especially the drivers involved. The concept of ride sharing was introduced
in 2017 to give shared fare services to the customers but this feature has imposed a negative
impact on the cost of taxi fare and demand for a taxi. There is a need to understand the position
of people involved in the taxi industry has been affected greatly by these new government norms
in the country.
According to Weill & Woerner (2015), the famous taxi service Uber has been showing constant
performance in the customer satisfaction segment. Around 3.4 million users are travelling daily
through Uber thus contributing to the revenue of the taxi industry. The development in the
customer segment and the technical segment is very slow and this has been one of the major
reasons of this industry being vulnerable in the state and lacking customer values. This has been
observed in recent years that the number of users above the age of 35 has increased and their
response is comparatively better than others. As per Hajkowicz, et. al. (2016), to improve
customer experience certain issues are needed to be seen which includes giving premium and
quick response to the customers this also includes providing odour free and clean cars to the
customers and removing all faulty payment gateways like payment, receipts, credit cards and
EFTPOS machines that don't work at the end of your ride. Another factor involves the value of
the economic status of all travellers. If the customer prefers to go on a low rental car the taxi
company should have services for them also. There should be effective options for the
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customers to pay for in the taxi. As per Hajkowicz, et. al. (2016), another factor that can be
noticed by the taxi industry is to stop their reliability on legal values and regulations to deal with
the subsequent factors of the company. If any competition is providing low fare and easy to
reach ride the government will eventually favour public opinion. The development in the
response system to the public will help the industry to win back loyal customers.
In the context of Parolin & Rostami (2017), it is essential to have taxi services in Australia
because of the emerging needs of the customers. The article explains the supply of transport or
taxi services in Australia. The article covers the problems faced by the people because of the lack
of taxi services or transport facilities available in the country. Various government and non-
government agencies have taken attempt to resolve the matter but there were no quantitative
results about the fulfilment of the needs of the customers. Several approaches were used to
identify transportation needs, its merits, and demerits. In order to make developments in the
transportation facilities, various methods were applied and people were interestingly taking
participation in the same. They conducted a survey to know the needs of the people and changes
people expect from the transportation industry. One of the approaches used in the development
of the transport or taxi services in Australia is the development of the supplied measure to
determine the vehicle kilometer's density during the day time per square kilometre. This helped
in determining the kilometre transportation services have travelled.
In the opinion of Li (2016), the internet is the advanced and most developed technology network
and enhances the operational thinking which helps in the reformation of the taxi industry. The
article written by Han-run Li explains the positioning of the taxi industry in the domestic as well
as foreign cities. The article includes the study on the differences between the special cars and
taxis in the relation of positioning it into the market. It proposes recommendations about the
development of the taxi industry. Taxi services meet the demands of daily travellers or special
demand for travelling by the majority of the people. Taxies are in an addition to public transport
services. The development in the taxi industry was made with the technological up gradation and
usage of internet services. The Internet has increased the use of taxi services and has helped in
improving the efficiency of the transport or taxi industry. With the advanced technology, the taxi
industry should identify the changing and increasing demands and the industries must contribute
to making adjustments in accordance with the reflective conditions of the market and according
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to the competitors. The article discusses the changing needs and demands of the customers from
the taxi industries in various countries.
In the point of view of Ramezani & Nourinejad (2017), the taxi industry in major cities has to
become a well-known and essential mode of mobility because of its easy accessibility and the
higher level of convenience. There is an increased number of trips but the major concern is the
taxi industry caused increased traffic congestion because of unoccupied taxis due to non-
availability of passengers have been distributed favourably. For the development or
improvements in the taxi industry establishment of the taxi dispatch system is essential which
assist in matching the unoccupied taxi and passengers waiting for the taxis through dynamics of
search friction. The dispatch system helps in improving the performance of the taxi services and
helps in minimising the traffic congestion by balancing the network in the direction of under
saturated situations. Such dispatch system helps in emerging the mobility solutions for example
transit services in relation to demand-responsive and squadron of automated vehicles. The paper
has provided with sufficient information in relation to the taxi dispatch system and how this
scheme has helped the taxi industries in improving its operations and performance in both rural
and urban areas. This proposal has made improvements in relation to passengers’ waiting time,
etc.
From the context of Mulley (2017), it has been understood that with cities grow the population of
the cities keeps on growing and hence the cities become scattered which results in travelling
becoming a necessity. According to Corinne, transportation industry causes negative worldliness
such as air pollution, noise pollution, and congestion. As the population grows, the need for taxi
services increases. In Australia, the transportation industry contributes to 16% of the greenhouse
gas emissions of Australia and 10% to light vehicles. In the case of road traffic the condition of
Australia in comparison to other countries is adversely bad. Australia faces higher road traffic,
the inefficiency of the vehicles, etc. Hence, the transportation industry causes a negative impact
on sustainability. It has been found that technology has helped the taxi industry in making
several improvements and has helped in driving change. Advanced technologies make changes
in the taxi industry which helps in improving the conditions of not only just the country but of
the entire nation. Technology helps in understanding the needs of the customers and assist in the
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fulfilment of the same without harming the environment in an adverse manner. Technologies
help in saving the time, and money of the passengers.
According to Litman (2017), there is an increasing demand for the transportation services by the
people. And it is essential to have a fair and efficient system of transportation in order to serve
the increasing demands so as to increase the growth of the overall industry. There are several
means of transportation available for the people, but it has been understood through the research
and analysis that the most convenient mode of road transportation is taxi facility because the taxi
drivers pick the passengers from their doorstep and drop them to the destination. People find it
convenient and comfortable. But as the increasing demand, it is an integral part to make
improvements in the industry and provide the customers more satisfactory ride ever. The article
discusses the mere improvements which are necessary such as taking feedbacks from the
customers about the ride which includes feedback in relation to the driver, his/ her behaviour
towards the passenger, timely pick up and drop, etc. It is important to gather ratings and
feedbacks so as to make improvements in the industry for its growth and development. The taxi
industry should consider feedbacks and implement the recommendations for its effective
performance and operations.
In the opinion of Percy and Wanna (2018), it is important to make improvements in the taxi
industry according to the changing environment, changing marketing conditions, and increased
competitors or taxi service providers in Australia. The improvements include an increase in
productivity so as to minimise traffic congestion and making effective use of infrastructure
investment funds so as to provide better services to the customers. It is unsustainable of the
building of more roads in the future. The article explains that the road infrastructure has been an
improved feature and funding is been done by the Commonwealth for the same. The taxi
industry should focus on improvements such as making improvements in the driving
performance of the drivers. The drivers should follow the traffic and road rules while driving the
vehicle and must be given proper training including the driving training, behavioural training,
and training of reaching the pick-up location on time, and so on. The driver should be well
trained and managed as he/ she is the front facing person who represents the overall company.
The misconduct or mis-behaviour of the driver can result in a negative impact on the minds of
the customers and lead to negative feedbacks and ratings.
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According to the point of view of Litman (2017), the most valuable asset in the life of an
individual is time and not money or any other materialistic things. According to his study
approximately 4-6 hours of the individual spent on travelling on a regular basis. People aim to
perceive convenient and comfortable travel as it will affect the health, happiness, and wealth of
the individuals. The taxi industry shall make improvements in its services so as to minimise the
number of accidents, pollution emissions, energy consumption, and congestion. People in today's
era are willing and ready to pay an extra amount of money for their greater convenience and
comfort. The taxi industry shall conduct proper planning to improve its services and facilities.
The eagerness of people to pay extra for increased convenience shows their interest in the
facilities provided by the taxi industry or transportation industry. The improved services include
saving of travelling time of the passengers with picking up and dropping off facilities from the
place they are comfortable from. Improvements include providing various amenities to its
customers or passengers such as navigation systems, better and comfortable seats, and sound
system. Different type of people has varied travel conditions and preferences.
In the context of Palmer (2017), the demand for transport industry increases with the changing
time and environment. The demand for the transport services is the operation of human needs,
income, and wants and the changing structure in the industries helps in increasing the demand in
the sector. It is vital for the taxi industries to form a business model after conducting marketing
research and analysis to know the changing preferences, needs, desires, and wants of the
customers. The improvements in the taxi industry are essential because people most likely are
dependent on taxis and aim to have a comfortable journey no matter whether it's a short trip or
long trip. People are ready to make an extra payment for their comfort zone. Palmer in his article
discusses that making improvements in the taxi industries can help in increasing the economy of
the country as this sector contributes maximum share in the economy of the nation. The
companies shall make efforts in adapting the changes according to the changing marketing
conditions and shall focus on the changing tastes and preferences of its customers or passengers.
They should provide them a facility that the passengers need not wait for the driver which helps
in saving their time.
According to the point of view of Villiers, the taxi industry is a vast area which is connected with
several other industries and increased customers in the taxi industry can result in increased
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number of customers in several other industries as well. Airbnb is an online application which
provides accommodation facilities to the customers and is in contract with several taxi
companies so that the taxi drivers pick up the customers from the airports and drop them to the
destination location which not only increases the revenues of the Airbnb but also of the taxi
companies who work together. The companies make several marketing strategies to attract their
customers and make improvements in the same so as to keep their customers updated with all the
new facilities added by the companies. The companies or the sector as a whole should make
necessary changes as per the needs and demands of the customers because it has been understood
that customers are always considered to be the king and satisfying them can result in the
improvement in the goodwill of the companies and productivity and profitability of the company
and of the sector in a whole.
According to Lincoln & Gregory, (2015) taxi industry is the most developing sector in Australia
as people in Australia are more inclined towards their comfort. The article explains the need for
the taxi industry and improvements required in the same so as to improve the economy of the
country and increase the growth of the entire sector. Taxi industries include services of providing
car or bike facility to the passengers with a driver who picks up the passenger from his/ her
desirous location and drops them to their destination. It is essential to make changes in the taxi
services to increase the revenues and profits of the companies and improving the goodwill of the
same. People are highly focused towards the taxi and entirely dependent on it as they find it most
comfortable than travelling through public transport or riding own vehicle. Drivers can drop the
passengers at any place they want with the safe, secure and comfortable travel and this has
influenced people to focus more on taxi services. With taxi services, people also get their own
level of privacy. Improvements in the taxi industry can include providing pool or sharing
services to the customers by charging low cost from 2-4 people going in the same direction.
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References
 De Percy, M., & Wanna, J. (Eds.). (2018). Road Pricing and Provision: Changed Traffic
Conditions Ahead. ANU Press.
 De Villiers, B. (2017). Airbnb in Western Australia: New Issues for Policy Makers
Arising from a Disruptive Innovation. U. Notre Dame Austl. L. Rev., 19, 1.
 Hajkowicz, S. A., Reeson, A., Rudd, L., Bratanova, A., Hodgers, L., Mason, C., &
Boughen, N. (2016). Tomorrow’s digitally enabled workforce: Megatrends and scenarios
for jobs and employment in Australia over the coming twenty years. Australian Policy
Online.
 Li, H. R. (2016). Taxi positioning in the new age of internet and industrial development
research. Procedia engineering, 137, 811-816.
 Lincoln, R., & Gregory, A. (2015). Moving violations: A study of incivility and violence
against urban bus drivers in Australia. International Journal of Education and Social
Science, 2(1), 118-27.
 Litman, T. (2017). Introduction to multi-modal transportation planning. Victoria
Transport Policy Institute.
 Litman, T. (2017). Valuing transit service quality improvements. Victoria Transport
Policy Institute.
 Lovelock, C., & Patterson, P. (2015). Services marketing. Pearson Australia.
 Mulley, C. (2017). Mobility as a Services (MaaS)–does it have critical mass?.
 Palmer, G. (2017). Energetic Implications of a Post-industrial Information Economy: The
Case Study of Australia. Biophysical Economics and Resource Quality, 2(2), 5.
 Parolin, B., & Rostami, S. (2017). Identifying the Transport Needs of the Transport
Disadvantaged Groups in Rural Areas of New South Wales, Australia: A Case Study.
Journal of Sustainable Rural Development., 1(1), 15-26.
 Ramezani, M., & Nourinejad, M. (2017). Dynamic modelling and control of taxi services
in large-scale urban networks: A macroscopic approach. Transportation Research
Procedia, 23, 41-60.
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 Weill, P., & Woerner, S. L. (2015). Thriving in an increasingly digital ecosystem. MIT
Sloan Management Review, 56(4), 27.
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