EVALUATION OF ORGANIZED TAXI

INDUSTRY

GROUP : 3

SECTION : F

SUBMITTED TO:

DR. SUSMI ROUTRAY

INDUSTRY BACKGROUND

• Second largest population in the world • India has one of the biggest transportation networks in the world• Indian public transport is in serious shambles and requires a

complete revamping and modernizing effort• Radio Cab industry is one such industry which was initially

perceived to be a mode of transportation for the elite• India primarily had three wheelered auto rickshaws and

ambassador taxis running on the road to serve the purpose of taxis• More recently, private taxi operators have also started using Toyota

Innova and Toyota Corolla as taxis for inter-state travel

KEY PARAMETERS RESPONSIBLE FOR THE EMERGENCE OF RADIO TAXI

• Often rowdy and unruly behavior of the private taxi operators• Non-adherence and lack of security measures for the vulnerable

people esp. women, children and senior citizens• Non-conformance of regulatory measures by the Government to

appease the driver community• Paucity of well-maintained vehicles which have tamper proof meter

meters installed in the cab• Demand for radio cabs esp. by the white collar executives and

MNC’s to provide hassle free, comfortable and reliable commuting alternative to its employees

CURRENT INDUSTRY SCENARIO

Evolution of Taxi (Organized) Sector in India

Phase 1 – Inception (FLEET FULLY OWNED)

Phase 2 – Transformation (FLEET AGGREGATION MODEL)

Phase 3 – Growth (Current Phase)

INDIAN CAB INDUSTRY TIMELINE

MARKET POTENTIAL OF RADIO CAB INDUSTRY

BUSINESS MODEL

INNOVATOR COMPANIES IN RADIO TAXI INDUSTRY

UBER BUSINESS MODEL

DOMINANT PLAYERS IN THE INDIAN MARKET

• Off late they have started several other services in addition to their main pool of taxis like:

– Meru4Kids– Meru4Parties– Meru4Emergencies– Meru4Business

SHE TAXI

• A taxi which is being operated just for the women commuters to provide them a safe travelling environment

• Project has been sponsored by Govt of Kerala and Department of Social Justice

• Latest technological gadgets are being provided to provide the highest degree of security to the commuters in these taxis

• First SafeBus: Improving Driving behavior of the She Force, control over speed, sudden break, sudden turn, engine safety conditions, safety meter etc

• SafetyMap: Map of all emergency Response Systems in the city including Police, Ambulance, Workshops & Puncture Stations, Fire force, Safe Night Shelters for women, Hospitals etc

• 24X7 Security Control Room: All alerts will be received and vehicles will be proactively monitored from this control room. Any challenges will be accordingly escalated to the appropriate and nearest emergency Response Systems available

CHALLENGES FACED BY THE INDUSTRY

• Even after offering high level of efficiency and service to commuters, Radio cabs are mostly used by corporate employees and higher middle income group whereas others prefer to use autorickshaws

• As seen in the UBER rape case in Delhi, the technological prowess of taxi aggregators has not been able to eliminate such heinous crimes but certainly they have helped to minimize them

• Government policy and regulatory framework is still very unstable and volatile corresponding t this industry which needs to be fixed immediately

ROAD AHEAD: FUTURE

• With proper Government support and technological innovations, this industry is poised to grow exponentially changing the way commuters travel esp. in emerging economies such as India

• Service assurance and quality will be the key differentiators to maintain leadership in this complex industry

• Foreign market leaders in the field of taxi aggregators will have to accustom themselves with the Indian mode of travelling and hence provide localized solutions

• Auxiliary software services for fleet management, fleet tracking, utilization reporting, driver management, cashless transactions will help this industry to gain edge over its competitors in the long run