Introduction to Business Management – Presentation

Ecabs SWOT analysis

I will be discussing the SWOT analysis, whereby I will analyse eCabs’ strengths and weaknesses
in its internal environment and its opportunities and threats in the external environment.
Starting off with Strengths:

 eCabs have a solid reputation and customer base.

It was founded 10 years ago, thus being the longest established tech-driven cab company in
Malta and has the largest fleet of owned cars; making it a well-known company all around
the country.

 ECabs also provide customers the option to choose their preferred type of vehicle, in order
to suite everyone’s needs since they have various different car models. These include:
standard cabs, executive cabs, wheelchair accessible services and luxury cabs.

 Another strength is their newly redesigned booking app, which is providing a better user
interface with a reduced waiting time:
Through this app users can either book a cab for now or else schedule it for later, they can
set up the payment options and the cab type they prefer, as well as being able to track their
ride every step of the way.

 Moreover, they have a loyalty scheme incorporated in their app – called eCabs Circle. When
using this scheme, users will earn a point for every euro they spent on ecabs’ rides, which
can then be redeemed for a free ride and, from time to time exclusive benefits are offered
to ecabs circle members.

 Furthermore, eCabs have Diversification of services since they offer their services for
weddings and they are also joining forces with businesses to act as the delivery courier for
their products; besides their conventional taxi services.

 Additionally, the company’s fleet of vehicles is mainly based in Saint Julian’s which is a
great advantage for the firm since as of 2019 it was stated by eCabs’ CEO that 80% of trips
begin and end in St. Julians; thus this helps to reduce dead miles and idle time.

 ECabs also has a great marketing strategy, with its logo being immediately recognisable,
and by making best use of social media for advertising their brand. For example, they
previously had a strong promotion campaign to call a cab rather than drink and drive.

 Finally, eCabs is also getting recognised for being socially responsible, especially in terms of
inclusivity, where it managed to win the award for the most inclusive company in 2020; as
 well as for being environmentally conscious, since as we have previously mentioned Ecabs’
is aiming to turn green by 2025, by replacing all its vehicles to electric or hybrid ones.

Moving on to Weaknesses:

 Customers are not having much contact with the company, especially when booking
through the app, so the reputation of the firm held by customers is to a certain extent,
heavily dependable on their experience with the drivers.

 Furthermore, if the app experiences any bugs, or crashes down, the sales would be heavily
impacted since ride-booking is now mainly being advertised to be done on the app, rather
than on the phone.

 Another weakness is the cost of maintaining both the booking app, as well as the call
centre. The booking app itself is quite costly, since as previously mentioned it is run by a
team of in-house technicians and developers. However, as stated by the company’s CEO,
operating a call centre is much more expensive than running an app.

In terms of Opportunities:

 ECabs could introduce the concept of ride-sharing by incorporating an option within their
app which lets the customer choose whether they would be willing to share their ride with
others, at a cheaper price. This could increase their sales as potential customers may be
willing to go for this option rather than using a cheaper cab company alternative.

 Furthermore, the concept of using a cab to travel has practically become normalised in our
country, however it is still not commonly used by the older generation. ECabs could take
this as an opportunity to welcome them to the market by providing a reduction in price for
customers over a certain age.

 Potentially, ECabs could also follow the footsteps of other cab companies and provide the
service of being a food delivery courier for restaurants, diversifying its services further.

 Moreover, as previously stated in our PEST analysis, given the current situation, the interest
rates are quite low, making it a good time to take out loans for investment. ECabs could
take this period of opportunity to invest in electric cars in order to reach its 2025 goal.

 Finally, since as previously mentioned business declined in the past year due to the
pandemic, eCabs could potentially look into the option of merging with another prominent
cab company. A merger would help the companies to work together towards increasing
 business once again, rather than competing with one another; as well as having a greater
combined market share.

Regarding Threats:

 The main one is the rise in the number of entrants in the cab company industry in recent
years, namely Cool, Bolt, Bonju.
This is making the market a survival of the fittest, with competition rising in terms of both
the price offered to customers as well as the commission rate charged to drivers.

 Most new cab companies only own an app, they do not own any vehicles themselves,
making their initial investment as well as their daily expenses much cheaper than those of
eCabs. Furthermore, Cool for example, introduced ride sharing, thus managing to
accommodate different customers within the same trip. All these concepts may lead to
these new cab companies having the ability to keep prices lower than those offered by
eCabs.

 Furthermore, Currently eCabs charges the following commission rates to its partner drivers:
15% commission on ride hailing trips done in Malta.
10% commission for Hybrid or Electric vehicles. and
0% commission on ride hailing trips done in Gozo
Meaning they are quite favourable for the drivers; however, if other companies charge
lower rates, drivers may prefer to opt to work for other companies. This could be a threat
for eCabs since they could end up with a shortage of drivers or else they would be forced to
lower their rates as well, lowering their profits.

 Another threat is the price of fuel going up since that would result in a rise in the
company’s daily expenses, which will obviously affect the profits. However, this threat
should be eliminated by 2025 since they are opting for electric cars.

 Moreover, other forms of transportation, such as e-scooters and public transport could be
a threat especially if they are reliable. Furthermore, public transport is much cheaper and
for certain classes of the population, such as students, it is offered for free, making it more
favourable.

 And finally, the general amount of traffic congestion could also be a threat since if cabs
choose routes in which there are high levels of traffic congestion, the waiting time will
increase, making the option of booking a cab less favourable.

Conclusion:
In conclusion, following our strategic analysis, we believe that eCabs should continue to focus
on its various strengths, as well as trying to further minimise its weaknesses. In terms of
drivers’ behaviour, even though they already have rigorous screening techniques and training in
place, eCabs could introduce incentives to encourage them to be on their best behaviour. For
example, a system of rewards could be implemented after drivers get a certain amount of
successful rides. The company could also try updating their app more frequently, avoiding the
chances of it crashing down since it is highly dependent on it. By doing so, they would also be
increasing their strengths and consequently their competitiveness.
Moreover, eCabs could also make best use of the opportunities it faces, especially now given
the fact that business declined during the current pandemic. This can be achieved by branching
out to food delivery, thus decreasing its reliance on its current services. Especially since interest
rates are low, this would be the ideal time to take out a loan and invest in new ventures.
However, when following new projects, they should carry out an in-depth study to make sure
such a project would be profitable, and that it would decrease the threats that the company
faces, rather than increasing them. Finally, threats could also be minimised by ensuring that the
service provided is always efficient and affordable – creating a competitive edge.

These are the references we used for our research.

Does anyone has any qustions?