CAT-I Examination 2022

Business Research Methods

Batch/Section: 6
Team No. 2

Topic Name:

Challenges and Problems of online Cab Industry in India

Name: Admission Number:

1. Naqueeb Khan 21gsob2010324
2. Sameer Sohail 21gsob2010467
3. Sazi Tabassum 21gsob2010366
4. Swati bhatt 21gsob2010310
5. Yousuf 21gsob2010337
 Challenges and Problems of online Cab Industry in India
I. Research Gap

There is a gap between consumer expectation and inability of service provider to understand/
interpret customer’s expectations

Research problem

To identify the problem areas of online cab industry in India.

2.
 Dependent variable
 Customer satisfaction
 Independent variable-
 Convenience
 Price
 Safety
 Offers
 Grievance handling
 Moderating variable-
 Age
 Income
 Education
 Location
 3. Secondary data research- Research paper analysis

TECHNOLOGICAL CHALLENGES

 Maps - You have to make multiple phone calls and often show directions (especially to
new drivers) to reach your destination
 Data Charges - Most of the Indians still uses limited data packs. Wi-Fi services are
unavailable on roads and data services are very expensive in India.
 Protection against Fraud - Tech savvy customers are coming up with innovative ways
to earn free rides. Using coupons etc.

CHALLENGES FACED BY THE INDUSTRY

 Drivers’ strike their own deal with customers- few cab drivers aske customers to
cancel the ride and pay them the full amount so that the drivers would not have to pay
any commission to the aggregator
 Driver’s grievances - Income level of drivers have fallen sharply making it difficult for
them to pay the instalments or to repay their debt which they usually have taken to buy a
car.
 Frequent strikes and drivers leaving the network - With falling incentives and income
for drivers due to change in change in policies of the companies they have logged out of
the portal of cab aggregators in the past
 Bleeding money- still a budding industry so both Ola/Ubers try their best to capture the
customers by giving offers and discounts. These expenses are borne by the companies.
 False booking allegations - creating false demand by creating fake accounts on their
portal and by making bookings which gets cancelled.

DRIVER PROBLEMS

 Application Usage Training - cancelling a ride even before it started, trouble

understanding map directions / customer’s location, etc. leading to a bad customer
experience.
 Multiple Affiliations - Many drivers are affiliated to both Ola and Uber. They keep
searching for customers on both applications.
  Unethical Extra Charges - Drivers especially at night demand extra cash apart from the
fare computed by the App.

ISSUES FROM CUSTOMER’S PERSPECTIVE

 Women safety - Safety of passengers has been one of the biggest concerns for the cab
aggregators. There have been many such cases that have made to headline and many
more that weren’t told.
 Arrival time - One of the biggest problems that customers face is the waiting time.
 Cancelling ride without Notice-Sometimes cab drivers take longer time than what is
shown and even cancel the ride without any notice which leaves the passengers
bewildered
 Surge Pricing- Peak hours, monsoon season, off road destinations
 Driver Ratings - Currently there is no mechanism to book a cab only with drivers whose
rating >= X (rated by at least 10 different rider)
Free Calls - Ola should provide riders with a feature to connect with drivers for free.
Each trip will require just 1 to 2 calls on average.
 Psychological aspect- a car in Indian consumer mind set is considered not just a mode of
transport but also a social status symbol.

There are people who enjoys driving and travel long distances they prefer personal cars
over cabs and

 It is more economical to travel long distances via personal car than cabs.
App-Based Shared Mobility in Indian Cities—The Case of Bengaluru
Smart cities put data and digital technology to work with the goal of improving the quality of
life. This study shows the global interference of technology advancement in cab hailing services
in smart cities which enables customers to hail taxis through their smart phones, become popular
worldwide. To provide a systematic account of the impact of e-hailing applications' wide
adoption on the taxi system, this study is made to analyze the customers’ perception and
upcoming improvements about Ola services. This study focuses on customers and the sample of
120 respondents is been collected and analyses is made for the future scope to retain the effective
services of OLA.

E- Cab Hailing: A Study On Consumer Behavior

This paper aims to identify the dimensions of service quality in the case of ride-sourcing services
in Indian context. The service quality dimensions of ride-sourcing services are identified using
an exploratory factor analysis (EFA). The service quality dimensions of ride-sourcing services
are identified: comfort, internal environment, safety and personnel, mobile convenience and
reliability, mobile system efficiency and availability, mobile customer service and billing and
mobile security and privacy.

Study On Individual's Preference About Online Cab Booking Services

India’s taxi industry has changed drastically from street-hail, unorganized taxi format to app-
based rides being used in all walks of life. Today, Taxi market is very modern and provides
number of benefits to its users in terms of convenience, comfort, estimated travelling time, real
time information, economy and safety. E-hailing of cabs has become an essential element of
metropolitan cities and they provide more customer value than most of the traditional taxi
services. For this paper, data has been collected from 120 respondents with the help of structured
questionnaire. The purpose of this paper is to study various factors that influence the riders’
behavior while hiring an app -based cab.

Brand Awareness and Customers Satisfaction towards OLA Cabs in Bengaluru North and South
Region
India is a country in the process of evolving., and it has been discovered that as a result of this
development, In India, the need for taxi services is growing. The introduction of an organized
car rental system using modern technologies has ushered in transformation in the taxi sector
during the last decade. The 'app cab booking' sector grew as a result of this. The taxi industry is
quite modern today, customers a variety of advantages in terms of convenience, travel time, real-
time information, economy, and consumer protection. Cab e-hailing is currently common in
large cities, and it offers customers a higher level of service than most traditional taxi services.
With the use of a standardized questionnaire, data was obtained from 275 respondents for this
article. The purpose of this article is to look at the various challenges that customers confront
while using the services of any company that offers app-based cab booking
•The operation which most of the consumer find most difficult is getting refund from the
company.•Tracking the cab and find or mark location is also difficult for consumer.•Many
people find it difficult to cancel a cab.•Most easiest and convenient operation is inbuilt payment
option.•Major thing upon which consumers look while looking for a cab is fare rates,
followed by safety and then service.•People come to know about Cab services mostly by
Friends and Family and then followed by Advertisements on TV/SM.

Scope of Cab Aggregators in India and Comparative Study on Ola and Uber.
The Tangibles, or the appearance of physical facilities, equipment, personnel and printed and
visual materials, play a significant role in Overall Customer Satisfaction derived from the Online
Cab Services. To attract customers, the cab companies must have up-to-date equipment, visually
appealing physical facilities within theca and the well-dressed cab drivers. The Responsiveness
or the willingness to help customers and provide prompt service plays a vital role in Overall
Customer Satisfaction. Hence, the cab services must maintain punctuality, explicitly reveal all
the services provided, provide prompt services and have round-the-clock operating hours.
Thirdly, Empathy, or trustworthiness, believability, honesty, caring, individualized attention
provided to customers also plays a critical role in determining Overall Customer Satisfaction.
Thus, the cab services and the drivers should be sympathetic and reassuring towards the
customer’s problems and they should also be courteous, helpful and sensitive to individual
customer requirements. Reliability and Assurance, or the ability to deliver the promised services
dependably and accurately, thereby being able to gain the trust and confidence of the customer,
are not significant enough in contributing to the Overall Customer Satisfaction. One of the
reasons for the above phenomena may be that the Indian customers aren’t yet as comfortable
using Online Cab Services like Ola, Uber or Meru as their counterparts in Western developed
countries. They still prefer the on-road running taxis to take them to their desired destinations.
Secondly, it may be due to the lack of trust with the billing and payment systems of the Online
Cab Services. Being used to the bill generated by local taxis at the end of the journey, getting
accustomed to the new bill generation and payment system will take some time for Indian
customers. Finally, in India, we face a lot of security concerns especially for women than in
Western countries. Hence, women in India are not as comfortable in travelling in taxis alone as
in the Western developed nations. Hence, reliability or the trust factor is low in India when
compared to other countries.
Service Quality and Customer Satisfaction - With Special focus on the Online Cab Industry in
India
This research paper is an attempt to explore the brand awareness and customer satisfaction
towards Olivas in Bengaluru region (South and North regions). To conclude, the market for OLA
Cabs depends on the customer preference, creating awareness and customer satisfaction. The
factors like convenient, brand, low cost, quick and safe, easy to book and timely pick and drop
facility etc. which influence the customer decision to opt for OLA cabs. In addition to this, brand
positioning and customer satisfaction will take place when personal transportation services (Cab
services) differentiate in terms of financial feasibility, time management, easy accessibility and
other services. To conclude, OLA cabs has positioned its brand and has created a good brand
image in the minds of customers concerned to personal transportation services compare to Uber
and Merucabs throughout Bengaluru.

Service quality dimensions of ride-sourcing services in Indian context.

Smart Sustainable city is an emerging concept of a complex long-term vision to overcome the
problems arising in the cities with the help of new technologies. Some of such problems in the
transport sector include congestion, carbon emissions, and inadequate public transit service
supply. One probable solution to these can be through optimum utilization of disruptive mobility,
which has hit this sector like a storm. This chapter presents the scenario of App-Based Shared
Mobility (ABSM) services in the city of Bengaluru and the consequent impact it is creating on
the urban travel trends, travel behavior, and car ownership. These services generate city-level
data, which can be utilized to judge various aspects of city-wide traffic to improve the overall
mobility. Moreover, the change in consumer desire from ownership to the accessibility of goods
and services has penetrated the transport sector in the form of Transport Network Companies
(TNCs), which has great potential to impact the public transit ridership as well as private vehicle
ownership which is further explored in the chapter.

Customer Perception and Problems towards Ola Services

Taxis play an important role as a mode of transportation for many people in different cities in
India. One requires taxis/cabs for various reasons, be it for commuting from workplace to home
or vice versa or taking family out when not wanting to drive when drunk and for many more
reasons.
The important part is that this industry is still unorganized, and the demand is growing. It shows
that there is a huge business opportunity from entrepreneur’s perspective and at the same not ups
the expectation service from consumer’s perspective to which cab aggregators evolved as a sure
shot solution. This research paper studies how OLA and Uber has impacted the automobile
industry of India, the current scenario, what are the challenges faced by the industry, Initiatives
taken by Ola & Uber, and The Motor Vehicles bill, 2019. It not only gives comparison between a
personal car & cab but also tells about the issues from customer’s perspective.
 References

Akhtar, N., Kuriakose, P.N. (2021). Disruptive Mobility in Pre- and Post-COVID Times: App-
Based Shared Mobility in Indian Cities—The Case of Bengaluru. In: Chakraborty, C.,
Roy, S., Sharma, S., Tran, T.A. (eds) The Impact of the COVID-19 Pandemic on Green
Societies. Springer, Cham. https://doi.org/10.1007/978-3-030-66490-9_3

Dhawan, S., Yadav, P. (2018). E- Cab Hailing: A Study On Consumer Behavior. Pacific Journal
of Marketing & Retail Management.

Gupta, A., Patel, B., Patel, D. (2022). Study On Individual's Preference About Online Cab
Booking Services. International Journal of Management, Public Policy and Research.
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Manjunath, G. (2019). Brand Awareness and Customers Satisfaction towards OLA Cabs in
Bengaluru North and South Region. https://ssrn.com/abstract=3358304

Nigotiya, S. (2020). Scope of Cab Aggregators in India and Comparative Study on Ola and Uber.
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Online Cab Industry in India. International Journal of Business and Management.
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