PROJECT REPORT

ON
STUDY ON THE IMPACT OF DIGITISATION IN
CAB INDUSTRY

SUBMITTED IN PARTIAL FULFILLMENT FOR THE

AWARD OF THE
DEGREE OF BACHELOR OF COMMERCE with
HONOURS
UNDER THE GUIDANCE OF
DR. VRINDA RAWAL

ASSISTANT PROFESSOR, VIPS

SUBMITTED BY:
YASH JAIN
ROLL NO. 05317788819

BCOM(H) SECTION 6B

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 TABLE OF CONTENTS
PARTICULARS PAGE NO.
1. Student Declaration. 3
2. Certificate from Guide 4
3. Acknowledgement 5
4. Chapter-1 Introduction 6
About the topic 7
Company Profiles 20
5. Chapter-2 Literature Review 23
6. Chapter-3 Research Methodology 43
Objectives of the study 44
Research Design 44
Data sources 44
7. Chapter-4 Finding and Analysis 45
8. Chapter-5 Conclusions 53
Conclusion 54
Limitations 54
9. Bibliography 56
10. Annexure 57

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STUDENT DECLARATION

This is to certify that I have completed the Project titled “STUDY ON IMPACT OF
DIGITALISATION IN CAB INDUSTRY” under the guidance of “DR.
VRINDA RAWAL” in partial fulfilment of the requirement for the award of degree of
Bachelor of Commerce with Honours at Vivekananda Institute of Professional
Studies, Vivekananda School of Business Studies, New Delhi. This is an original piece
of workand has not been submitted elsewhere.

YASH JAIN

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CERTIFICATE

This is to certify that the project titled “STUDY ON THE IMPACT OF DIGITALISATION

IN CAB INDUSTRY” is an academic work done by “YASH JAIN” submitted in the partial

fulfilment of the requirement for the award of the degree of BACHELOR of COMMERCE

(B.Com) with hons. from Vivekananda Institute of Professional Studies, Vivekananda School

of Business Studies, New Delhi., under my guidance & direction. To the best of my

knowledge and belief the data & information presented by him/her in the project has not been

submitted earlier.

DR. VRINDA RAWAL

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ACKNOWLEDGEMENT

I express my sincere gratitude and thanks to DR. VRINDA RAWAL for giving me an
opportunity to enhance my skill in my project. I am thankful for her guidance, patience and
consummate support. I extend my heartiest thanks to her for enlightening my path. Without
her sincere advice, this project has been impossible.

Moreover, I would also like to thank the various people who were involved with this project
and gave me invaluable guidance in this regard. Without their help, this project would not have
been as comprehensive and detailed as it is.

I also feel grateful and elated in expressing my indebtedness to all those who have directly or
indirectly helped me in accomplishing this research.

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 CHAPTER 01
DIGITIZATION IN
CAB INDUSTRY

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WHAT IS DIGITIZATION?

Digitization is the process of converting information into a digial format . In this format,
information is organized into discrete units of data (called bit s) that can be separately
addressed (usually in multiple-bit groups called byte s). This is the binary data that computers
and many devices with computing capacity (such as digital camera s and digital hearing aid s)
can process.

Text and images can be digitized similarly: a scanner captures an image (which may be an
image of text) and converts it to an image file, such as a bitmap . An optical character
recognition ( OCR ) program analyzes a text image for light and dark areas in order to identify
each alphabetic letter or numeric digit, and converts each character into an ASCII code.

Audio and video digitization uses one of many analog-to-digital conversion processes in which
a continuously variable ( analog ) signal is changed, without altering its essential content, into
a multi-level (digital) signal. The process of sampling measures the amplitude (signal strength)
of an analog waveform at evenly spaced time markers and represents the samples as numerical
values for input as digital data.

Digitizing information makes it easier to preserve, access, and share. For example, an original
historical document may only be accessible to people who visit its physical location, but if the
document content is digitized, it can be made available to people worldwide. There is a growing
trend towards digitization of historically and culturally significant data.

The Rise of Digitalisation in Businesses

Digitalisation is the process of converting material or information into a digital form.

Many businesses are now transitioning online in a bid to streamline the management and day
to day running of operations. This shift is being powered by a new wave of technology that

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allows companies of all shapes and sizes to be more strategic and efficient. This trend is set to
continue as more businesses understand the benefits of digitalisation and move to capitalise on
them.

From storing documents, online-backups, workflow and document management to remote

working, the possibilities are endless. The process is faster, more efficient and safer than offline
equivalents. The process of automation saves you time, space and money.

Key benefits:

 Increases efficiency

 Reduces operational costs

 Enables data to be analysed

 Safer data storage in the cloud

 Lack of human error

Here are three popular processes and how they can be improved by automation:

The Cloud

The role of technology in the workplace has changed dramatically. Cloud computing is
technology that can help your company gain a competitive edge in the marketplace. The
introduction of cloud computing has revolutionised how businesses operate, providing new
levels of flexibility and access via remote working.

Cloud computing is the delivery of IT services online in the ‘cloud’. A growing number of
businesses are adopting this application for their IT infrastructure. It is more secure – hosting
your systems on remote servers protects your information, prevents data loss and allows for a
more effective and protected storage solution. It is also more reliable with automated data
backups and disaster recovery.

Cloud computing comes in three forms: public clouds, private clouds, and hybrids clouds.

The right solution for you will depend on the scale and scope of business, as well as your data
requirements.

Workflow and Document Management

Another way to increase productivity is through automated workflow. This is a system that
digitally produces, tracks and manages documents associated with your business processes.

Many businesses find they have large paper archives and countless boxes of old documents
that are taking up valuable office space. Over the years it’s likely that the organisation and
storage of these documents will fall into disarray, leaving a large paper trail of archived work.

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Effective workflows are crucial; the more efficient, cost-effective and sustainable they are, the
better prepared you will be for the future workplace.

Effective workflows are crucial; the more efficient, cost-effective and sustainable they are, the
better prepared you will be for the future workplace. An improvement strategy will help
manage your documents whether they are paper, electronic or digital.

There are many benefits to this; reduced costs, improved efficiency, security, which is
especially important to those who must comply with rules around legal or sensitive data. You
can control when, who and to what capacity certain people access documents, with a solid
authorised paper trail.

Popular departments who benefit from this process includes digital mailrooms, recruitment,
HR and finance management divisions. Essentially it allows you to manage your information,
analyse current performance and optimise for continued improvement.

Data Capture

Intelligent data capture manages the process of capturing incoming information or data to your
business, ensuring it is processed and documented efficiently.

Information coming into an organisation typically arrives in paper, fax, web or email format.
With intelligent data capture solutions, information can be automatically classified, extracted,
validated and shared with digital workflows or existing ERP systems.

There are many data capture technologies that organisations can incorporate into their
processes, the most suitable will depend on the nature of the business. Digital pens, tablet or
OCR intelligent document and image scanning are the most popular. The information gathered
can then integrate with host systems and pre-defined databases – automating the process from
start to finish.

When data capture is #digitalised and #automated, it eliminates the #HumanError factor and
will increase data quality and accuracy.

When this process is digitalised and automated, it eliminates the human error factor and will
increase data quality and accuracy. It also saves a huge amount of time, increases efficiency
and productivity and lowers organisational and storage costs. It improves business processes
and increases transparency internally.

Popular for mailroom, field operations and accounts payable automation, data capture is a smart
digital solution for many businesses.

These three core processes used together or in isolation can have a dramatic effect on
operations. We now live in a digital age, and as the technology advances so will the way in
which we all work.

Digital transformation and disruption have been making waves lately across all industries. To
stay relevant, companies, departments and individuals need to know exactly where business
technology is headed and be sure to stay on top of each shifting digital trend.

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Those who embrace these technical advancements into their business structure will thrive,
those who don’t risk being left behind the digital revolution.

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Introduction to the Taxi Industry

The word “taxi” elicits nostalgic images of the black-and-yellow Premier Padmini (now Santro
and i10) cars for Mumbaikars or the ubiquitous yellow Ambassadors for Kolkatans. For many
of us who have seen the glory days of good old taxis, maybe a couple of decades ago, will
remember that these taxis were the very lifeline of cities. They would take you to places you
couldn’t travel to by bus or didn’t know where it was located. The genteel “taxiwala” would
crank down the meter and off you’d go!

But all cannot be well with something for too long. Competing associations, monopolistic
attitude, poor service and refusal to provide services eventually created a distressed customer
base. This was the spark that ignited an alternative taxi service. Better organized taxi service
with better rates and high level of customer service came into being in the form of Radio Cabs
at the beginning of the new millennium.

The Birth of the Organized Taxi Industry

In the early days, players like Mega Cabs and Fast Track Taxi started operations with their own
small fleets, with drivers as employees. Passengers could book rides through telephone calls
and payment was done in cash. In 2006, other players like Meru Cabs, Easy Cabs and Savaari
appeared on the horizon. They took on drivers as “subscribers” who placed a deposit with the
company. The company would buy a car, train the drivers in soft skills and charge a fixed
amount from them per day. In turn, the driver had to bear the cost of fuel, while maintenance
of the car was taken care of by the company. Some companies completely owned the car
throughout its lifetime, while others, like Easy Cab, had a system wherein after five years of
non-stop driving, the car became the property of the driver.

However, for obvious reasons, this was never a viable and scalable way of doing business and
the first phase of owning the entire fleets of taxis petered down considerably, although some
companies are still in business after tweaking their business models.

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2010 marked a historic year for the taxi business when Ola entered the scene with its fleet
aggregation model. This lean business model attracted many drivers who owned cars to join
the platform to offer services. TaxiForSure joined the bandwagon in 2011 and Uber arrived on
Indian shores a couple of years later. The phenomenal growth of these companies is intricately
tied to the mobile revolution in India. Riders could simply pull out their smartphones, enter the
app and book a taxi. The true ride-hailing revolution was born.

The Market Potential for Taxi Service in India

According to statistics, the market volume of taxi services in India is more than 2 million rides
per day. The market is expected to grow at a CAGR of 13.7 and reach around $14 billion by
2022. The changing lifestyles of the urban middle class and an increase in the disposable
income will drive the market.

It is noteworthy that the organized taxi market is still in its nascent stages and the aggregator
companies like Ola and Uber comprise a mere 4–5% of the market in terms of a number of
vehicles. The unorganized taxi services across the country still account for around 90% of the
market and radio cabs and affiliates like Meru and Savaari make up the remainder.

All of these statistics indicate that the taxi aggregator services have barely scratched the surface
of the Indian market that holds tremendous potential for growth and the number of investments
the two incumbents are attracting is a testimony to this potential.

But “all is not well”

While Ola and Uber are fighting tooth and nail for a bigger share of the lucrative Indian market
pie, the only stakeholder that is happy is the customer. Investors are still waiting to see green
on their Excel sheets. And probably the most important stakeholder of this ecosystem is getting
frustrated.

One might argue that the drivers of the ride-hailing ecosystem have always been short-changed.
While customers dictated service and quality parameters, who wants to listen to the drivers,
who are made to follow and serve?

That Uber is facing an existential crisis in its core market, the US, is all too well known. Internal
policy issues are being compounded by the disillusionment of drivers who are barely making
enough money to remain sustainable.

Ola, on the other hand, is trying to learn from the mistakes of Uber by keeping itself nimble
and going a few steps ahead to avoid these problems. However, drivers aren’t too happy with
them either. Driving for these companies seemed like a lucrative offer when it all started. But
with passing time, the focus has now shifted on increasing profitability. Drivers are paying
more commissions, paying for fuel and for the maintenance of the car and are also caught up
in the vicious circle of low fares that companies are charging from riders in a bid to expand
their markets.

The brunt, unfortunately, is being faced by the drivers. Many drivers bought cars on loans
which they are finding difficult to repay considering they aren’t left with much at the end of
the day. The promises that the companies made when they started operations attracted tens of

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thousands of drivers to join them. That rosy picture has now well and truly faded into
nothingness.

The problems are being percolated downwards and are being faced by riders too. Frustrated
drivers are getting into heated debates (sometimes, even physical assaults) with riders. Many
drivers are cancelling rides, leaving riders fuming and at the mercy of either private cabs or a
sketchy public transport system. Riders aren’t getting the kind of service they had tasted earlier.
And let us not even begin to discuss the problem of surge pricing. That is a discussion for
another time.

So, what is the solution?

Technological advancements are happening so fast that a new technology enters the market
before an earlier iteration has been fully monetized. Most often than not, the new iteration is a
solution for the pain points of the previous one. Blockchain technology is one such technology
that has the potential to address the pain points of many real-world problems. The taxi service
in India is no different.

Based on the democratic principles of decentralization, trustlessness and complete

transparency, any system that is based on blockchain technology also enjoys the benefits of its
core tenets. So why not create a ride-hailing service on the blockchain? Drife is seeking to do
just that.

What does Drife offer?

Drife is a NexGen ride-hailing platform that seeks to empower both the riders and the drivers.
A self-sustaining community that runs like a well-oiled machine without the control of a central
entity driven by capitalist tendencies seems like a Utopian dream. But it is not and is gradually
taking shape.

Drivers pay a nominal sum to become part of the platform. They keep all that they are paid as
fare for a ride. They pay no commission. All fares are transparent and there are no “surge
prices.” The platform does not just offer services, it endeavours to create a community wherein
every individual is vital to the smooth functioning of the platform. Members are rewarded for
good behaviour and for helping other community members. Drife seeks to make each
stakeholder important within the entire ecosystem.

Parting thoughts

A diverse country such as India comes with its own set of problems and opportunities. What is
important to note here that we are a nation that puts the community before self, unlike many
Western nations that celebrate an individualistic way of life. We are equally concerned with
the well-being of our brethren as much as we are concerned with ourselves.

Drife is basing its business model on exactly this kind of moral and societal obligation towards
our community. The thinking that “if my community is happy, I am happy” is the underlying
principle that will guide the platform. No doubt there will be monetary incentives, but a feeling
of mutual trust and respect will drive every stakeholder to give (and receive) the highest level
of service and satisfaction.

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The Pre-Cab Aggregator Era

Most of the regular cab users, mainly frequent airport travelers, might remember this as the
“Meru cabs era”. Well known for its quality services, disciplined drivers and punctuality, Meru,
a radio taxi provider, had garnered a loyal customer base during this time. Even though there
were other radio taxi providers like EasyCabs and Mega Cabs, Meru was the undisputed king
of the market despite its relatively higher pricing. But commuters looking for an economical
alternative for both within city and airport commute were at the mercy of the local cab agencies.

Cab agencies ideally do not own cars. They usually pass on the bookings they receive to the
cab drivers(mostly driver-cum-owners) associated with them for a fixed commission per
month. Most of the taxi bookings were done though call centers and a very few through the
web. Due to this, booking a cab on demand was a hassle. With their general marketing
strategies ie; newspaper inserts and bulk sms campaigns, customer acquisition was getting
difficult.

JustDial gave a hope of better business to cab agencies by connecting them with the customers
looking for a cab in their area. It soon became a popular lead generator charging upto Rs.15
lakhs per year as commission as reported by local cab agencies.

This was a golden period for the local cab agencies. However, most of the core problems of
cab users-like cab availability, driver reporting on time, timely intimation of cab details, cab
tracking and drivers demanding extra money after a ride- remained unaddressed.

The Era of Cab aggregators

Necessity is the mother of invention. In 2011 in order to ease the cab booking process,
Taxiforsure started as an online portal, aggregating multiple cab agencies. This relieved the
customers from contacting multiple cab agencies for booking a cab and also helped the cab
agencies to flourish. They charged cab agencies a small commission per booking instead of
charging a hefty annual fee like JustDial did. They grew in popularity by including an Android
based GPS system which helped customers track their ride.

Meanwhile, another cab aggregator, Ola which started in 2010, was following a different model
by associating directly with cab drivers, thereby eliminating the need for cab agencies. In 2013,
while Ola was gaining popularity, global taxi market leader Uber entered the Indian market,
heating up the competition further. However, Uber’s app-only model with credit card only as
a payment option hampered its growth.

To further increase its customer base, Ola started offering rides for as low as Rs.10 per km.
This was cheaper than an auto ride and the demand for Olacabs rose exponentially. When it
comes to the cab industry, the demand was always high but supply was an issue. Realizing this,
Ola started highly incentivizing the drivers due to which many of them started signing up with
Ola.

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Based on Ola’s cash burning rate, the rest of the industry didn’t expect it to last for a long time.
But when Ola raised a fund of $210 million in October 2014, it gave a clear sign to everyone
that it was here to stay. Soon Taxiforsure started attaching cab drivers directly and rolling out
exciting offers to its customers to compete with Ola. Understanding the Indian market, Uber
revised its strategy and introduced an Android app, Paytm mobile wallet, and cash payment
option.

Meru CEO Pawha observes, “The app-based aggregators are incentivizing their drivers at
around Rs 150 per trip to retain them in their network and compensate for their loss. Ola has a
burn rate of $15 million to $20 million a month, Uber around $8 million to $10 million while
Meru is at $1.5 million to $2 million per month.”

By the end of 2014, Ola and TaxiForSure had become major players in this industry and Uber
and Meru genie had very small market shares. After purchasing Taxiforsure, which was
struggling to raise funds, Ola’s market share zoomed to almost 80%, followed by Meru with
12% and Uber with 5% as per a report by brokerage India Infoline.merucabs

In 2015, armed with $1 billion fund, Uber was back in the race for the position of market leader.
Since 2015 till date, Ola raised around $ 1.2 billion funds and intensified the competition
further.

As on December 2015, an India Infoline report indicates that Uber’s market share is around
25-35% and Ola’s around 65-75%. Ola is handling approx.7.5 Lakhs booking per day whereas
Uber accounts for 5.8 Lakhs booking. Ola has a fleet size of 3.25 lakhs and Uber has a fleet of
2.5 lakhs and both are targeting 1 million bookings per day by the first quarter of 2016.

One must appreciate Ola for its execution. In spite of having heavyweight players like Uber, it
still holds the biggest market share. But as per the recent statement released by Eric Alexander,
Uber claims that it owns 50% market share and is going to beat Ola in the next 30 days and in
no time Ola has launched Ola Micro and as per the Ola spokesperson Raghuvesh Sarup, Ola
Micro itself has a potential to become bigger than Uber in a month’s time.

To say the least, the competition sure seems to be heating up.

Hurdles delaying the progress of the billion-dollar industry

One of the main purposes of cab aggregators is to reduce car ownership, which they have
succeeded in doing, partially (Anand Mahindra acknowledged it), due to the subsidized rates.
Many people in Urban India, who belong primarily to the middle and upper middle class
sections are thinking twice before purchasing cars and are relying more on cabs. But if the cab
aggregators increase the prices or start charging normal rates, people will shift back to driving
their own vehicles or purchasing their own cars.

So, while assessing the broader picture, I feel differential pricing models by cab aggregators
may not help in addressing the issue of rising car ownerships in the country.

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Meanwhile, at present, the entire game of the cab industry revolves around market shares.
While Ola claims to have around 65-75% market share owing to its cash burning strategies,
Uber has gained over half of it within a mere 3 years of its launch due to the very same cash
burning strategy.

But in reality, both of them have failed to acquire a loyal cstomer base. A cash burning strategy
is essential for acquiring the initial customer base but after that the aggregators are supposed
to draw a line. Here, by offering heavy discounts, the cab aggregators are losing around Rs 10-
20 crores everyday. So, even if they have raised such a huge amount, the money will not be
sufficient if they continue with this strategy. The moment they revive their pricing as per the
normal industry standards, it will become impossible for them to stick to the same market
shares.

Customer acquisitions have become tough indeed even for high valued cab aggregators like
Ola and Uber. No matter how innovative they are, people will run after discounts. In such cases,
high valuations will be of no use because with their constant cash burning strategies, they can’t
survive for a long period. With a high valuation, getting acquired by competitors will also get
really tough and for an IPO it will still take a long time.

There is no denying that cab aggregators have solved the problem of commuting and
availability of cabs. But in the process of solving problems, they have created new issues as
well. Cases of misbehaving drivers, drivers cancelling booking or rash driving to reach their
daily target for extra incentives have increased.

Drivers are running behind incentives and cab aggregators are busy achieving targets set by
their investors. So whether all these challenges will allow the Indian cab industry to evolve as
the next big thing or not is something we will have to wait and watch out for.

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How digital transformation is changing the cab industry?

Technological innovation has completely changed the way how we live, work and commute. In
recent years, every commuter has felt how technology and more specifically mobile apps have
completely transformed the rental cab hiring experience. From negotiating with cab drivers and
agencies on phones, days before the actual trips to tapping on phones minutes before, the cab
industry has come a long way.

But what does this mean for the future of cabs? How this transformation is slowly improving
the customer experience.

The Rise of App-based Services

In less than half a decade, the app-only trend has really picked up the pace in the taxi rental
domain. As stated above, riders are used to book the cabs on-the-go, anywhere, anytime. On top
of it, the penetration of global players in emerging markets has fueled industry growth. The
phenomenon has led to:

· Highly discounted service offerings due to the entry of deep-pocketed global players

· Ride-sharing solutions to drive home the idea of affordability

· Omni-channel customer support for addressing queries and handling grievances

Booking the Ride on a Fast Lane — Efficient Tech-driven Platform

With millennials acquiring the center stage in consumption pie, cab companies are revamping
their traditional systems. While apps simplify cab booking for the end-customers, the backend
infrastructure streamlines the operations flow.

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As customers demand agility and quick response, robust customer engagement and servicing
platforms have become a need of the hour.

Technology has made it possible to transform the booking process completely, reducing
booking times, significantly and enabling service providers to offer one-click booking.

Disruptions Paving way for Convenience, Safety & Greater User Connect

Apps have not only streamlined booking processes. They have also infused new life into the
ailing industry with obsolete cabs and no technological breakthrough. Now with the help of
sensors, GPS and other technologies, service providers can promise:

· Authenticated ride with verified drivers

· Doorstep service with real-time location tracking

· Instant emergency contact notifications

Way Ahead Towards a Better Cab Experience

The future beholds greater promise when it comes to cab rentals. Technologies are fast evolving
to create more user-centric experiences. Cab aggregation platforms are already investing heavily
in technology to promote faster bookings and onboarding of reliable driver partners/reputed
agencies.

The entry of AR/VR technologies in the cab booking domain might further fuel up an innovation
spark. Riders will get a chance to check out the cabs they are booking before they arrive for
pickup. Moreover, the industry is in for a massive makeover when it comes to riding scheduling,
client relationship management, and customer delight promise.

A number of players are driving digital transformation through their focused efforts. Through
their innovative services, they have carved a niche and made cabs more accessible, reliable and
secure. Beep n Ride is trying to improve the way how corporates and individuals perceive cabs
by blending innovation, technology, the customer connects and the promise of reliability under
a single package. By connecting users with reputed cab agencies from around the country, it is
promoting the freedom of choice, giving users the ability to hire a cab as per their budget and
preference. Try out the all-new Beep n Ride experience and ride the transformation wave now.

Here are a few factors that drive the growth of the ride-hailing service industry

The rise in the trend of on-demand transportation services

On-demand transportation services include taxis, passenger vehicles, and charter vehicles.
These services provide real-time feedback, tracking of the vehicle, and rating for service
experience as an option for the riders. The ride-hailing services ensure that the customers are
able to locate their rides easily and also track their journey as a safety measure. The taxi
booking platform allows a user to compare the prices before booking one.

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Increase in employment opportunities

The taxi booking services are offering the drivers to work for full or part-time. More than 40%
of drivers in America have opted to become full-time drivers for taxi booking companies.
According to a report, Uber agreed that the company is creating more than 50,000 new jobs
almost every month. The expansion of ride-hailing services like Lyft, Uber, OLA, Careem,
Taxify, and others is expected to create many employment opportunities worldwide.

Increase in trend of mobility-as-a-service

People who do not own their own car or who do not wish to drive can always depend on taxi
booking services and experience seamless travel through mobility services. According to the
Bureau of transportation, the average cost to own a vehicle goes around $8858 if you travel
15K miles per year. But going for taxi booking decreases such costs for the users. It also
provides improved utilization of transport services. Therefore, the digitally enabled ride-hailing
and taxi booking seem to be the smartest way to manage travel needs. The process of taxi
booking includes everything from travel planning to payments which are sorted through just a
mobile app.

How Technology is Elevating Customer Experience in Cab Services

The quote clearly signifies the importance of adapting to the digital aura. Over the time,
organizations who have understood the value of digitalization have remained to be competitive
and relevant. Customer experience has been described as the heart of digital transformation.
However, with limited resources, it’s difficult for organizations to set a digital vision and
strategy to engage right people in right place for measuring digital success.

Mobile has been the biggest medium to engage digital customers in the customer experience
lifecycle. It has been the focal point for organizations who want to revolutionize their
traditional business model and become digital-first medium. The world has been witnessing
this trend, as organizations lead their path towards the unique “app-only” approach to cater to
their various market requirements. This goes for the booming cab business also, where app
services have gained traction and many of the organizations have either adopted or are thinking
of moving to the app-only model.

Cab services have grown steadily over the past two years by offering rides at comparatively
lower prices along with regular offers (often customized ones). The app-only trend is also
having an impact on the local cab providers, who are witnessing their users shifting to more
cost effective and trusted taxi services. This trend is more like a bonanza for the fleet industry,
but for now these companies have been spending massive amounts of money on marketing
campaigns, discount offers, and expanding into new markets. Millennials have multiple
options of communication and expect service providers to ease their life while travelling. These
increasing demands have aroused the need for a robust and efficient customer engagement
platform. This platform ensures that the flow

Millennials have multiple options of communication and expect service providers to ease their
life while travelling. These increasing demands have aroused the need for a robust and efficient
customer engagement platform. This platform ensures that the flow behind operations is
streamlined. When the customer books a cab through apps, a host of customer information is
recorded in the contact center. Accordingly, the nearest fleet driver receives the details from

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contact center via the apps and is able to immediately respond to the request. The entire process
from the incoming commuter request, to the call recording, and informing the nearest cab is
handled by the contact center processes. Thus, the shift in consumer habits towards
convenience and on-demand services have fuelled cab services to customize the experience of
customers by providing one-click service through apps.

The efficiency and the quality of cab apps have not only made the customer’s life easy but at
the same time have also given a huge boost to the usage of new breed of cabs. The apps have
enhanced authentication and has streamlined the customers booking journey. Customers can
book new cab requests, take doorstep service, track their booking status, send enquiries and
provide feedback through one single tap. Who would want to go to a prepaid taxi outlet, stand
in the long queue? Obviously, none of us would like to wait for cabs or other transport modes
after having a tiring day. The app-only trend adopted by cabs has changed the way cabs are
perceived by us. The big players offer numerous lucrative deals like first ride free, referrals,
cab wallets, etc., that consumers get habitual of using their services. This has created a plethora
of demand for smart services.

Moreover, the cab-aggregation market has also stepped up in introducing the number masking
feature to keep customer numbers undisclosed from driver partners. As a result, when any
customer clicks on the ‘Call Driver’ feature, two calls are initiated from random numbers
(processed by contact center) and the customer gets connected to the driver. In order to ensure
full privacy, a single number is assigned to the ride. This number is displayed on the driver’s
phone and thus, he can speak to the customer on the same number till the ride gets started. The
cab apps also have one such benefit for taxi drivers as the GPS integration with fleet allows the
cab driver to find the fares with ease. This also helps the travellers in emergency situations and
to better manage breakdown services.

Keeping in mind the corporate culture, some cab companies have also gone an extra mile by
initiating corporate rides. This feature has simplified the reimbursement process for daily
commuters to office. Commuters can now receive consolidated invoices for all their official
rides at one place. Times have changed and cabs no more provide just standalone cab services,
rather they have now started offering shuttle.

Times have changed and cabs no more provide just standalone cab services, rather they have
now started offering shuttle and car pool services, inside the apps. Some of these companies
have tied up with corporate offices to offer rides reserved through pre-booking on apps and
others are offering carpooling opportunities by inviting users to register on their apps before
finalizing the route and partners for the ride. Carpooling and shuttle service have also become
a viable transportation alternative which has allowed passengers to travel with comfort and
security while saving costs significantly.

Ultimately, cab and fleet industry is succeeding by following app-only approach to unveil
hassle free journeys, and the rest of the industry should follow suit. Internet users have
wholeheartedly embraced apps and the mobile web. To meet the demands and expectations of
the new age customers, these industries need a robust contact center technology which is
capable of supporting these apps to provide a galore of significant benefits for those who want
to make the best use of it.

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OLA – Company profile:
Ola initially started off as Olatrip.com a small website venture that offered weekend trip
packages. It was started as start-up business by two IIT Mumbai graduates Bhavish Aggarwal
and Ankit Bhati. Bhavish worked for Microsoft after college for almost two years and then
started a small website to sell online tour packages. Due to a bad experience during a car
rental situation they decided to mend the system of car rental
and this became the basis for the initiation of olacabs. Olacabs are now referred as Ola. Ola is
a Spanish term which means hello! This indicates that hiring a cab at Ola as well as the services
provided are easy and friendly as conveying hello. Ola cabs were founded on 3 December 2010
by Bhavish Aggarwal and Ankit Bhati. Initially Ola operated from Mumbai as a taxi
aggregator service. Now it has shifted its head office at Bengaluru and
works efficiently from there. Since Ola received its first investment there has been no looking
backward for this initiative venture. Until the year 2014, the company had expanded to a
widely distributed network which comprised of 200,000 cars across 85 cities. These 85
cities include all the metropolitan cities and various important cities in it. During November
2014, along with car rental scheme Ola also tried to incorporate autos
on trial basis in Bengaluru. After its success there it initiated the same idea in Delhi, Pune
and Chennai by December 2014. In the year 2015 Ola also started its auto services in
Chandigarh, Indore and Jaipur. In March 2016, Ola started its two wheeler services in
Bengaluru as a trial venture. Until September 2015 Ola was valued
at around $5 billion market. Taxi for sure as acquired by ola in march 2015 for $200 million.
The company averages a total of about 150,000 bookings per day and has the highest market
share in India of 60%.

Swot Analysis:
A brief idea about the position of the company in the market can be estimated from the SWOT
analysis which
indicates the respective strengths, weaknesses, opportunities and threats faced by the company.
Strengths:
1. Ola is first of its kind taxi aggregator service provider in the country.
2. It achieved the no.1 rank in the sector after acquiring Taxi for sure.
3. The services offered by ola are well appreciated by the public
4. TV, online and print media marketing has helped to create awareness about the company.
5. Increase in customer base due to strong network effect.
6. Financial condition of the company has improved after investments by various firms.
Weaknesses:
1. Brand image can be easily influenced by the misbehavior of the drivers as they are the
ne in direct contact with the customers.

2. Monetization becomes difficult due to the demand.

Opportunities:
1. There is a huge potential for the company to penetrate deep into the market as the
unorganized market hold
2. almost 85% of the segment.
3. As Ola coordinates through the smart phone app, increase in number of smart phone users
provides them
4. with a great platform to increase their customer base.
5. Disposable income can be increased.

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4. Convenient services create huge demand among customers.
5. Acquisition of smaller company of the market.

Threats:
1. Increasing competition
2. Heavy usage of cash to attract customer due to strong financial root of Uber.
3. Presence of competitors at the national level.
4. No specific regulatory body of the government.
5. Customer loyalty is rare in this segment

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 CHAPTER 02
Literature Review

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INTRODUCTION

An extremely important area which is the backbone for any research as it provides the entire
information pertaining to the problem and objectives. Reviews consisting to antecedents of the
App pertaining to the trust of customer and the digital mode of retention of flow in digital
era service quality, customer trust, satisfaction, and commitment in Digital mediating to
customer retention.

The recent development of pervasive, interconnected, and smart technologies allows us to

digitize our human behavior and interactions at large scale and granular level. Such new
sources of information help us to form a holistic view of individual decision making process
and to unravel the complexity of human behavior patterns. For example, in the past decade
our opinions have been traced as digital word-of- mouth and online user-generate content
(UGC). Previous studies have shown significant economic value of such digitized opinion
information (e.g., Chevalier and Mayzlin 2006, Ghose et al (2012)). Meanwhile, our online
activities such as search and click have been digitized as click-streams data, and our purchase
behavior has been traced as digital conversions on search engines like Google, Amazon or
Travelocity. Such digitized consumer search-click-purchase information is able to help
businesses today infer consumer preferences and choice decisions (e.g., Ghose and Yang
2009; Agarwal et al. 2011; Abhishek et al. 2011; Ghose et al. 2014). Moreover, our social
interactions with friends and peers can be traced as digital interactions on online social
networks. Previous studies have demonstrated the potential of analyzing digitized social
interactions to understand social influence and information diffusion (e.g., Aral and Walker
2011, 2012).

However, existing literature tends to focus mainly on the digitization of user online behavior.
Such studies have attracted large attention, one reason of which is that online behavior can be
easily traced through online cookies, searching logs and other digital sources. However, beyond
the online behavior, user offline behavior is in fact more informative to reveal individual
preferences because most people spend a significant larger amount of time in the offline
physical world than in the online virtual world. Moreover, offline behavior involves much
higher opportunity cost due to the more complicated social contexts that the users are exposed
to. While online users can simply click the mouse to search or choose products, offline users
may invest much more time, energy and even pecuniary cost to gain useful information. Thus,
offline behavioral traces can provide us with a richer picture about users’ preferences towards
various social characteristics and deeper insights about their behavior patterns. More
importantly, with the increasing pervasiveness of mobile and sensor technologies, as well as
the recent emergence of Internet-of-Things (IoT), digitalization of large-scale and fine-grained
individual offline behavior becomes feasible. However, it is challenging to track, analyze and
understand complete detailed information about individuals’ physical behavioral traces (e.g.,
the offline social and contextual environments users are exposed to; the details of their
movements together with temporal and spatial stamps). In this study, we are interested in
exploring this emerging domain of information to better understand human behavior and
decision making by learning from the digital offline traces.

We instantiate our analytics by looking into the real-time taxi trails in urban city environments.
Such digital trails allow us to see precisely where, how, and at what time different parts of our
cities become stitched together as hubs of mobility. Besides, we also observe the passenger
pick-ups and drop-offs, and the taxi income associated with each trail. Taxi drivers’ decision-
making behavior directly links to their economic outcome and real-time traffic conditions. We

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aim to extract such knowledge by leveraging information on their physical trace to understand
the “micro-level” behavior and the value of information that would otherwise be unavailable
to track in the conventional organizational setting. Our study shows the potential of analyzing
offline trace information to facilitate individual decision making, as well as to help policy
makers identify how to reduce the social and environmental costs in the context of urban and
transportation systems.

More specifically, we are interested in recovering the overall city taxi demand by analyzing
individual driver-level behavior trace. We aim to examine how taxi drivers learn from different
types of social and contextual information at different scales by answering the following three
research questions:

 How do taxi drivers infer city demand based on the different information that they are
exposed to at different locations at different time periods?
 How do different drivers digest such information differently and how is it associated with
their economic outcome?
 How can we leverage the knowledge we learn from the offline trace to improve decision
making for both individual users and policy makers?

To address these questions, we propose and estimate a structural model of heterogeneous

learning at individual driver level. We validate our study using a combination of three large,
unique data sets containing 10.6 million individual trip records from 11,196 taxi drivers in a
large Asian city in September 2009: (1) taxi’s GPS tracking data (e.g., real-time geographic
coordinates and time stamps at minute level); (2) taxi’s trip records data (e.g., trip distance,
geographic coordinates of pick-up and drop-off location, and paid amount for the trip); (3)
static spatial features data (e.g., density of points of interest). The data cover complete
information on taxi drivers’ GPS trajectory, from which we are able to extract their decision-
making behavior and analyze the insights of the behavior pattern.

Our empirical analyses demonstrate some interesting findings: First, the results indicate strong
heterogeneity in city demand across both spatial and temporal dimensions. Second, different
information signals from various social contexts have different values for the drivers in learning
the city demand. On average, the simple signal (i.e., pick-up signal) is more valuable to
individual drivers while the complex signals (i.e., drop-off and drive-by signal) are rather noisy.
Third, our findings indicate that there is significant heterogeneity across taxi drivers with
regard to their learning behavior. The degree of heterogeneity varies among the three signals.
Interestingly, we find that straightforward information like pick-up signal is not so valuable for
drivers to gain high income. Instead, drivers with higher income and from larger companies
benefit largely from the ability of learning from more complex information (i.e., drop-off
signal). Finally, our policy simulation results show that by aggregating the information
extracted from the offline behavioral trace at large scale, we can significantly improve
individual drivers’ decision making efficiency. Interestingly, we find that information that is
noisy at individual level can become most valuable after we aggregate it across various spatial
and temporal dimensions. We also find the marginal value of aggregating large scale
information varies among different types of information.

The key contributions in this paper can be summarized as follows: (1) Our study demonstrates
the value of extracting behavior patterns from large-scale, fine-grained offline trace data to
understand and improve human decision making. Especially, by collecting and analyzing the
new source of offline trace data, we are able to leverage information that is often
unavailable to individuals or organizations in the conventional setting. (2) We develop a

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Bayesian learning framework to examine drivers’ learning process for city demand based on
various information they are exposed to. In this model, we distinguish three different
information signals extracted from the GPS trace. One methodology innovation of
this framework is that we model those three information signals differently in accordance with
their contexts. In other words, the learning process is contingent on each driver’s own
experience and accumulated knowledge to interpret the signals in different ways. This
model allows us to jointly identify the heterogeneity in individual learning ability as well
as in the value of different types of information. (3) To the best of our knowledge, this is the
first research studying taxi drivers’ learning behavior based on utility theory from economics.
Such an approach allows us to build linkage between individual behavior and economic
outcome from a more explanatory perspective. We can provide insights on how and why drivers
behave in certain ways, and how they can be explained by observed and unobserved
individual characteristics. (4) On a broader note, this work demonstrates the potential of
combining large-scale temporal and spatial data mining together with econometric structural
models and Bayesian statistics to understand human behavior. With the growing ubiquity of
mobile and sensor technologies at individual level, more and more human behavioral
information is digitalized and associated with locations and time stamps. Our study can pave a
path for future studies to build on and our methodologies can be generalized to other offline
settings beyond the taxi industry.

The remainder of this paper is organized as follows. Section 2 briefly discusses previous studies
related to this paper. Section 3 describes our unique data sets and provides with preliminary
model-free evidence. Section 4 develops a heterogeneous Bayesian learning model to capture
the dynamics of drivers’ decision- making behavior. In Section 5 and 6, we present our
estimation methods and empirical results. Based on the estimates of our structural model, we
ran three policy simulation experiments and the results are shown in Section 7. Section 8
concludes this paper with discussions of the contributions of this research, as well as an outline
of directions for future studies.

APP LITERATURES IN SELECTION OF CAB SERVICES

Literatures on App’s on Research Frame of Cab services

Abdul Wahid Khan et.al. (2016) the study determines the factors of consumer full filling the
desire needs with excellent services in existing products in Indian taxi services. The target
customers are categorized into three criteria the first one is trendy and a tech savvy customer
the second one is Urban travellers and the third one is Luxury. Attributes of service quality
were been identified tangibles, reliability, responsiveness, assurance and empathy.

Adewole et.al (2016), states that transportation service can be chosen in advance by using
app through smart phone, the services have spread with an Android based applications. It helps
the person intermediate between passenger and driver. The user has the option to choose the
car which he/she wants the model integrated with google maps. The study helps to improve
the quality of app for future guidance of travellers to travel easy.

Charoen (2015), the investigation is based on the business model of Grabtaxi to know the
competitive advantage with the application used to utilizes the global position system that
directs the customers location and track the route with safety. The study is useful to the

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customer’s ease of use by using app through the quality of service with safety and tapping the
large network strategy.

Kishore and Ramesh (2015) point out the relationship between the comforts of mobile app for
booking the cab services and analyzed the influencing factors of booking cab services with
innovative behaviour that download app for taxi booking. The study showed that with the
service quality and trust of customer made satisfaction

Kiran and Saptarshi (2017) the investigation of the reearch is based on radio taxi travel to
identify customer satisfaction of cab services in India. The well-structured questionnaire is
framed and analyzed with the SPSS software. The model which was developed by
Parasuraman, Zeithaml and Berry (SERVQUAL). The consumer expectations with service
quality research gap with consumer perception are compared with the variables of tangiblity,
reliability, responsiveness, assurance and empathy. It’s considered a high potential for tier-1,
tire – 2 and tire -3 cities. It was founded that the result of service provider with comfort and
cheap and convenient mode of intercity and even intra city.

Khupse (2017) the investigation is based on the taxis that provide a large number of benefits.
The mobile based app is frequently used by the travellers with comfort, economy, and safety
and convince base. Only the app using respondents have been chosen for the study with well-
structured questionnaire. Here the data collected from the 150 app used respondents.

and Ngo (2016) today transportation services play a main role in urban areas, changes in the
taxi industry with innovation and downloading app has made it easy to travel safely to any
designation point. The research carried with cross sectional study compared with model of
SERVQUAL and IDCTP Model. A well-structured questionnaire was framed with five point
likert scale based on ten dimensions. The study found variables as direct and indirect relation.
The direct method were identified by unstandardized regression coefficient (β). The indirect
method identified by multiple regressions. The study results customer satisfaction affects
99% with confidence level that’s found positive.

Shilvia et.al (2017): stated that the investigation is based on service quality of online
transportation focused in the technology aspect. The sample size of the respondents 1670 are
all Indonesians majority of the respondents belong to the gender data collection were
conducted in the year of March 2017 to April 2017. It was found that most of the users are
in the age group of 20 – 30 the factors which influence the people who know to use the app,
who are capable of adopting new technological development, the higher weight are perceived
quality, system availability, privacy, trust, perceived risk and content adequacy.

Venkatesh and George, (2015) research analysed the performance measure of aggregator
services. It helps to identify the taxi aggregators to improve their customer satisfaction in their
quality service. The taxi services is also known as ride sourcing services. It was found that for
Uber and Ola in India with the development of technology the aggregator’s gives right
information to the right person in right time. The performance is based on criteria,

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responsiveness, flexibility, reliability, tangibles, profitability, and cost resource utilization. The
study resulted that App creates service quality, satisfaction and retention

Model-Free Evidence

Before modeling the detailed decisions, we would like to explore our data to develop
intuition about individuals’ behavior. Figure 1 shows that distributions of individual daily
number of trips (Figure 1a), average distance per trip (Figure 1b) and average daily empty-
car hours (Figure 1c). Each trip represent a taxi pick-up. Distance per trip is the driving
distance when the taxi is full. Empty-car hours mean the time when the taxi is empty and the
driver is seeking the next passengers. The three plots suggest that there exists significant
heterogeneity in taxi drivers’ behavior. Figure 2 shows individual’s daily number of trips over
time (For illustration, we present five randomly sampled drivers in the plot). On average,
drivers’s daily number of trips increases but the scale of increasing rate is different among
individuals. Generally, our data indicates two types of drivers: (i) experienced drivers (shown
as solid lines) who behave relatively stable over time with only a small increase in the number
of daily trips; (ii) new drivers (shown as dash line) who improve their performance largely
over time. This plot suggests that drivers become more knwoledgable about the taxi
demand through learning, but the rate of learning is heterogeneous among individual drivers.
To summarize, Figure 2 shows that for each driver on average there seems to exist
learning behavior over time. More importantly, there exists significant heterogeneity in
drivers’ learning behavior. In the next section, we propose a heterogeneous structural model
to explain what factors may drive these observations.

Adewumi et.al (2016) booking transportation service in advance by using app by using of smart
phone the services spread with an Android based application it helps the person intermediate
between passenger and driver the user have the option to choose the car which he/she wants
the model integrated with google maps the study helps to improve the quality of app for future
guidance of travelers to travel easy.

Aghdaie et al. (2011b) made research on antecedents affecting Trust in Internet purchasing via
Appfrom the perspective of consumers, they made a study on the variables were framed by
adopting technology adaptation model developed by Davis (1989). Their study analyzed the
factors that were deeply affecting customer trust. Using correlation technique they found that
there was a positive relationship between Information Quality, Perceived Usefulness and
customer trust.

El –Gohary (2010) researched in the article, relating to a past view point of research point and
strategies related to the study on Digital Marketing App and the article winded up by saying
different techniques and new methodologies were implemented in E-commerce; Digital App
has got high prominence in the retention factor of customer.

Eid (2011) researched, the factors affecting customer trust on empirical research in e-commerce
App in Saudi Arabia. He came out with a new research stating that information quality, user
interface and security are the factors which directly affect trust in a mediating in digital app

Ganguli and Sanjit (2011) researched on generic technology based service quality dimensions
(ServQual) in banking. It was been able to identify that quality and satisfaction of customers

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have got a very high significant and a very wide positive impact that is happening to the
customers on their retention to the field.

Ghane et al. (2011) empirically investigated the causal relationship between e-satisfaction, e-
trust and e-service quality on e-commitment, in e- banking as an aspect of B2C on app context.
Data was collected from 121 customers and to test the model. The findings showed that e-
service quality, e- satisfaction, and e-trust had strong effect on e-commitment.

Hamadi (2010) illustrated the cause and effect relationship between perceived quality,
satisfaction and commitment in online banking app. The antecedents of perceived quality were
the design of the site, ease of use, privacy, information quality, financial security, gain of
time and interactivity. The study also revealed that customer satisfaction influenced
commitment positively.

Heidt (2011) described a theoretical model of the four main antecedents of e-trust, e-value, e-
satisfaction and e-commitment in digital business streams. Data was collected from 391
customers in Indonesia through web-based, self-administered survey. The results explained
that e-trust had positive influence on e-commitment. E-satisfaction had a stronger impact on e-
commitment which affects retention of customer in e-business.

Hu et al. (2011) researched on the effect of service quality on customer satisfaction and
customer commitment in medical ser vices via app in Taiwan. The authors tested and verified
the relationship between three qualities attributes namely, customer satisfaction, customer
complaints, and customer commitment, tyhe study was been brought up into through the use
of SEM and AMOS software.

Jones et al. (2010) made a research on the impact on the forms of customer commitment
through digital apps; the forms were namely, normative, affective, and continuance on
customer repurchases intention. The study results indicated that affective commitment is the
most important factor for customer responses and repurchase intention.

Labareque et.al (2013) researched to get an input on the consumer behaviour of digital
marketing. The authors were able to identify the behavioural aspect of consumer in the digital
marketing field especially in channels. The article researched the consumer behaviour and
Digital Media app in the internet as mediating ones out of the channels. A theoretical
framework was framed namely on usefulness, information, demand, quality and network were
been able to get ideas on the research

Maliheh et.al (2012) authors researched and created up an article on electronic service quality
on behavioural intentions’ of customers based on digital marketing, to identify the service
sector company. The article was able to identify that the factors service quality has a direct
impact on customer t rust which is making the new digital marketing prominently on app
generation business more in new electronic marketing era

Parvel Ciprian (2015) the conducted a research and the article aimed to identify on how to do
the Digital marketing in a much more efficient and effective manner through digital channels

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mainly app. The findings says that 86% of the company marketers were said that Digital
Media is a prominent factor for business and 89% suggested that increased exposure is the
main benefit of Digital marketing through apps

2.3.2 Literatures of Digital Market on Research Frame of Other Industries

Ankit (2011) researched on the relationship between Satisfaction and Retention of customers
in online service sector via digital marketing app in India. Through his empirical research he
identified the factors influencing Satisfaction and Retention. Perceived Usefulness and
Security mediates to Trust. His study also explained the importance of these factors in
customer retention.

Balasubrmanian et al. (2003) a complete research was conducted to identify trust and
satisfaction of customers in online financial services. They investigated that the central role of
trust in satisfaction and performance of the online service provider. The findings suggested
that perceived trustworthiness of an online broker was a significant antecedent to customer
satisfaction, and that perceived environmental security had an impact in the formation of trust.

Barbie and Siv (2012) conducted a research and stated about the different forms of Digital
Marketing and its relationship towards sales of the company’s product or services. It was found
that E-mail marketing, Ad words, Digital Media Marketing, SEO, SEM etc are all the different
forms of Digital Marketing and in that study all these forms showed a positive relation as for
the sales increase.

Bhuvanender and Manish. (2011) researched on getting digital marketing values aimed to
evaluate company’s image. It was found that 90.94% have seen a commercial in Digital
Media. The article also said that results have showed that 82.49% of the people are attentive
to online discussions. 51.22% often are open to online discussions, 2.4% never, 26.83%
sometimes and 19. 51% are always open to online discussions. The article concluded by saying
that digital marketing techniques has got huge impact on the present world of marketing to
the customers which makes them satisfied

Chang and Chou (2011) researched about the antecedents and consequences of both dedication-
based (perceived switching cost and trust) and constraint-based factors (Perceived Usefulness
and satisfaction) on information systems post adoption using online shopping. The results
indicated users’ of dedication-based antecedent was positively associated. Perceived
Usefulness was directly associated with trust.

Chen (2006) generated a model on trust of customers in an online travel site. The study
proposed a customer trust model. Over all 300 respondents participated and recorded their
perception. The author analyzed the effect of customer trust on behavioural intention
(Repurchase).

Cronin et al. (2000) empirically analyzed effects of quality, satisfaction, and value on
consumers’ behavioural intentions. The authors proposed a research model based on the
theories delivered by various authors in services and it was proved using structural equation

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modeling. The findings explained that the dimensions service quality, service value, and
satisfaction directly related to behavioural intentions when all of these variables were
considered collectively. The results also confirmed the mediating effect of service quality and
value on behavioural intention to purchase

Deng et al. (2010) in their research on mobile instant messages in china Trust and Satisfaction
have a direct impact on Commitment. Further, they also found that certain demographic factors
such as Gender, Age and Education have moderating effects on retention of customers.

Dina et al. (2004) researched a detailed examination on the e-quality dimensions, ease of use,
website design, quality of information and Security were the predictors of customer trust.
Their study disclosed that Trust directly affected customer commitment but comparatively
much less than Satisfaction.

Flavián et al. (2006) in the research explained about the influence of perceived usability on the
customer trust, customer satisfaction and customer loyalty in online services. The perceived
usability of the system increased customer trust and also there was a consequent increase in
the degree of website loyalty.

Fue et al. (2009) researched an empirical mode in the key antecedents of customer satisfaction
in online services. They revealed the impact of customer satisfaction on behavioural
intentions. The results suggested that each antecedent of e-service satisfaction influenced
either directly or indirectly the four behavioural intentions through the mediation of overall
satisfaction.

Farez and Zohaib (2012) researched about the increase of the upcoming trend in marketing
sector digital networking and its vast rapid growth. The research also mentioned that was
also mentioned in the article that 51% recommends organization to use tagged based marketing.
Research from organization suggests 75% are in FaceBook and 20% working on it for
marketing.

Goittom Tesforn (2006) article review was to check whether digital networks influence
entrepreneurial drive. A sample of 46 First generation East African Entrepreneurs was taken
for the study, and the result as Ethnic digital networks that can exist simply for digitalization
purposes with little effect on entrepreneurial drive.

Gerpott et al. (2001) empirically analyzed the causal relationship between Customer Retention,
Commitment, and Satisfaction. The results explained that Satisfaction has a significant impact
on Commitment which generates Retention.

Gustafsson et al. (2005) examined the impact of customer satisfaction, affective commitment,
and calculative commitment on retention. The study also concentrated on the moderate effect
between satisfaction and retention relationship. The answer to the research revealed that the
effect of customer satisfaction, calculative commitment, and prior experience had impact on
retention.

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Hess and Story (2005) the article through their study on consumer- brand relationships,
proposed a multidimensional model of commitment-trust- satisfaction-. The study concluded
by clearly shown that trust is an antecedent to satisfaction which is an indicator of
commitment in Digital marketing.

Hill et al. (2002) the author studied the impact of computer mediated communication
technologies on customer’s perception which in turn could improve customer satisfaction and
gender. Technologies which allowed an increased personalization in the customer service were
found to have the greatest impact on customer satisfaction.

Jih et al. (2007) in the article service quality antecedents and on customer trust and commitment
and also the effect of it in Taiwan. A conceptual model was proposed based on these factors.
The results provided that service quality positively affect trust and commitment. Trust has
direct impact on commitment.

Jun and Cai (2001) analyzed the dimensions of online banking service quality. Customer
service quality, banking service product quality, and online systems quality were the
dimensions of service quality. The derived dimension consisted of 17 factors which included
out of which the three main prominent were usefulness, Information Quality and Security
which generated a Trust and Retention.

Kassim and Abdulla (2006) a marvellous research on the extended trust- commitment model
in an internet banking setting by adding attraction as a new factor. The respondents (n=276)
were chosen from the customer base in Doha, the result revealed that Trust had significant
impact towards Commitment.

Koufaris and Hampton (2004) researched and generated a strong model to explain how new
customers of a web-based company developed initial trust in the company after their first
visit. The study also examined the development of trust of new customers of web-based
companies. It was found that Perceived Usefulness, ease of use, and Security are also
significant antecedents of initial trust.

Kuo et al. (2009) developed a measure to identify Service Quality of mobile value added
services and also the relationships among service quality, customer satisfaction, and post-
purchase intention. The data was collected from 387 respondents from college and graduate
students of 15 major universities in Taiwan. The results explained that customer satisfaction
positively influences retention

Liu et al. (2008) conducted a research in online Satisfaction of the customers in China. The
study identified the factors affecting Chinese customers’ online customer satisfaction. The
study also proposed a model for customer satisfaction in online environment. It is stated that
information quality, web site design, perceived usefulness, security/privacy, payment,
delivery, and customer service are strong predictive factors for online customer trust, which
leads to customer’s satisfaction.

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Luarn and Lin (2003) research was made and created a proposed a theoretical model consisting
of trust, customer satisfaction, influences on commitment in online services relating to
retention. The results explained that Trust, Satisfaction, and Commitment are separate
constructs that leads to loyalty with commitment exerting a stronger influence than trust,
customer satisfaction, and perceived value.

Moliner (2009) explained the post-purchase perceived value and relationship quality of loyalty
behaviour intentions. The study also explained the effect of Satisfaction and Trust on
Commitment of customers. From the existing theories a causal model was developed. SEM
technique was used. The findings suggested that the main antecedents of commitment are trust
and satisfaction.

Mukherjee and Nath (2007) re-examined the commitment-trust theory of relationship

marketing in the online retailing context proposed by Morgan and Hunt (1994). The study
analyzed the antecedents and consequences of commitment and trust in the online context.
Survey data collected from 651 online customers in England. The study revealed that Security
and usefulness are the antecedents of customer trust which leads to customer commitment. The
study also found that trust and commitment have a significant influence on customers’
behavioural intentions.

Nusair and Kandampully (2008) examined the travel web sites quality dimensions that
ultimately influence customers’ satisfaction in online travel websites. The findings of the study
suggested that online travel companies are underperforming in terms of providing web
service quality attributes that enhance customer satisfaction.

Park and Kim (2003) researched and investigated on the direct, indirect relationship between
various characteristics like customer satisfaction, customer commitment and customer
purchase behaviour in online shopping in Korea. the results indicated that information quality,
user interface quality, and security have impact over satisfaction as well as being significantly
related to customer commitment and purchase behaviour.

Ranaweera and Prabu (2003a) illustrated the combined effects of customer satisfaction and
trust on customer retention. The study confirmed that customer trust and customer satisfaction
have strong association with customer retention. They also confirmed that customer
satisfaction a strong predictor of customer retention than customer trust.

Roca et al. (2009) investigated the influence of perceived Security, perceived privacy and
perceived trust on online investors’ behavioral intentions concerning online dealers’ and
stockbrokers’ services. Perceived trust, Perceived Usefulness and perceived Security are
critical to the success of an online trading system. The study proved the link between trust,
Security, privacy, usefulness, ease of use and behavioral intention in the online trading context.

Rushad Yazadaniford. et.al (2011) the author said in the article about the introduction of e-
sources in the internet marketing. This innovativeness is very much needed for the new

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business owners and should be able to reach the internet for an efficient and effective way to
retain the customers, if the company in the new era wants to be successful.

Sisira Neti. et.al) (2011) the article shows that in today’s world of Digital Media, it is in
providing a path for the best opportunities in connecting people with a brand, the medium to
digitalize improved the growth and benefits of Digital Media marketing

Sitalakshmi Kalagnot Prakasan. et.al (2011) researched and examined the Digital Media
history, and the article concluded that the result as conversation via Digital Media is one of
the key main success of any business in today’s scenario, as the audience and geographical
boundary coverage is in a wide spread span and also the most inexpensive, thus the
organization clearly gets a two way communication

Shashank et al. (2011) proposed the customer satisfaction is an important determinant of

customer retention in e-commerce. The results indicate that satisfaction with the physical
distribution quality and cost are positively related with customer’s purchase satisfaction and
customer retention. Their model also found that purchase satisfaction was a strong indicator of
customer retention.

Sidiqui (2010) in his study of retail banking customers in Bangladesh observed that service
quality and service satisfaction has an impact on service quality. The study also points out
that service quality attributes are positively related to customer satisfaction.

Sim et al. (2006) studied the antecedents of customer satisfaction and retention in the hotel
industry in USA. The study also explained the effect of added value and gender on customer
satisfaction, customer retention and

switching behavior. The findings indicated that customer satisfaction has direct impact on
customer retention and added value has positive influence on customer satisfaction and
customer retention.

Singh and Sirdeshmukh (2000) proposed a research framework of customer trust, customer
satisfaction and customer commitment on service providers. The results stated that trust beliefs
influenced satisfaction to a great extent in building customer relationships.

So and Scull (2002) conducted an empirical study among e-business customers and they found
out that trust in service setting has huge effect on sustained relationships and satisfaction, to a
large extent, fosters trust.

Thach (2009) article proved that with the great expansion that is happening in the marketing
field is in the WWW, a wide variety of efficient and effective opportunities were brought
to attention by internet, like marketing through the online sources such as of Digital mode and
Digital Media

Van Riel et al. (2001) research conducted with a relationship between service quality,
customer satisfaction and customer commitment in online services. The customers’ overall

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satisfaction was influenced by their satisfaction with the core service, supplementary services
and the user interface. The study revealed that customer satisfaction was a strong predictor
for intention to continue in using online services.

Wagner and Rydstrom (2001) proposed a conceptual framework to explore how consumers
perceive their relationships with online retailers. The results showed that customer trust and
customer satisfaction are the positive function of consumers’. Satisfaction and trust had
positive relationship with customer commitment.

Walter and Ritter (2003) conducted a research and the research was able to identify the factors
such as customer trust, customer satisfactions and customer commitment on customer
relationships. SEM was used with a sample of 247 to analyse. The research was done on the
impact of the factors on the construct. The study proved that customer trust positively affected
customer satisfaction which made a customer to be committed to that company.

Wen (2009) researched and create a concept model that was to explore the factors influencing
online purchase intentions. The findings corroborated the relationship that Information Quality,
system quality and service quality were the factors affecting customer trust and customer
satisfaction.

Xiling and Xiangchun (2005) explained the effect of Perceived Usefulness, Information
Quality design on customer trust in B2C e-commerce sites. The authors illustrated the
importance of B2C e-commerce. The study found that perceived usefulness, information
quality had a strong relationship between customer trusts.

Yuan (2009) presented a framework enacting e-commitment as the mediating variables of

customer satisfaction and customer trust in Indonesia.

The research model framework included website quality, corporate image and perceived social
presence as exogenous variables. The results indicate that satisfaction and trust were
determined by consumer perceptions of website quality, corporate image, and social presence.

RESEARCH GAP

After a close observation from the literature conducted the researcher was able to identify
the gaps that made the research work on Digital Marketing, App, Antecedents, Retention, Tier
III city all came into existence.

• Digital Marketing App and Retention of customers were merely mentioned as

well as the measurements to attain them.
• On the basis of Digital Antecedents role to Customer Trust towards a Service in
not studied in Indian Context.
• The Sampling technique - Stratified (Age) in a Tier III city like Coimbatore
City and Digital Marketing App on Transportation sector were not conducted
and a particular strata study were also a mere mode in conducting research.

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 • The impact of Service Quality, Customer Trust and Customer Satisfaction,
Customer Commitment, in the Customer Retention and the antecedents of Trust
on selected taxi providers in Coimbatore City has not studied so far.
• Service App study pertaining to Area and Sector not dealt previously.

Panigrahi, Shahi and Rathore (2018) From their research paper titled “Success Story of a Start-
up-A Case Study of OLA Cabs” we were able to observe how OLA Cabs, an Indian Start-up,
has very efficiently and successfully tapped into the Taxi market and with a unique marketing
and promotional model, has been able to capture the TargetMarket segment very effectively.
The paper briefs us about the various fragments of the Indian taxi market- unorganised,
affiliates, aggregators and owners. The Research talked precisely about the company’s
investment profile and the Return on Investment of the firm.

It also represented a competitor analysis of Ola cabs and mentioned how Ola is Superior and
better than other aggregator services. Some of the unique ways in which Ola contributed create
the Blue –Ocean was through the empowerment of its drivers, introduction of Ola Mini cabs,
the alliance of strategic importance with Make My Trip, good customer care, partnership for
advertisement with TVF and providing of assistance during Chennai floods. Apart from this,
the company also focuses on unique economic strategies to promote itself. It has also launched
various hashtag campaigns on social media to popularise itself among the users. Deshpande
(2017) From his study titled- “UBER –OLA –The Competition Killer or The Competition
Trigger?” we spotted out the common scenario which we all faced before the introduction of
these apps. How the popular yellow-black coloured ambassador taxis dominated the Indian taxi
market and how they used to trouble the consumers in terms of unreasonably high fares, far
from satisfactory services, bad or no maintenance of the vehicles etc. The author emphasised
on these reasons because these led to the fall of the unorganised taxi market and the rise of
these apps. The author gave the readers details about the scenario when Uber and Ola entered
the market and how quickly they were accepted by the consumers due to the market needs and
of course credits it to the unique marketing and promotional strategies followed by these firms.
It mentioned how these companies emphasised on “Predatory Pricing. The author also took the
opinion of the Competition Commission of India (CCI) whether these apps are killing or
triggering the competition. The Commission discharged Uber of Predatory pricing but built the
Prima Faci case of predatory pricing against Ola. The author also brought into light the rules
and regulations implemented by the Transport Regulator of India for the regulations placed on
these firms. Malik (2017) [1] Through her research paper “Managing Partner Performance,
Engagement and Retention – A case study on the cab aggregator giant- OLA”, the author
conveys her ideas on the foundation and spread of Ola services. The author briefs about how
the industry dynamics have propitiated the emergence of Ola’s services in the country and how
quickly the services of Ola were accepted across the country due to the needs arising in the
transportation sector for reasonable and ‘one touch away’ cab services. The author brings to
light the competition faced by the firm due to rivalry with other competitive services, threat
because of new entrants, danger because of alternatives like Uber and threat due to bargaining
power of buyers and suppliers. The author also highlights the growth prospects of the firm. The
study also talks about how Ola maintains its relations with the driver partners and how it pays

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them according to the “Pay per Performance model”. Digitisation to open uncharted market
territory.

The prime objective of this paper is to highlight the important role digitisation plays for creating
uncontested market territory in the Indian market. This paper does not claim that business
propositions mentioned have not been done before in foreign market and places more focus on
India’s Economy which is growing at around 6-7% per annum. According to W Chan Kim and
Renee Mauborgne (2015) in their book ‘Blue Ocean Strategy’ state that the corner stone to
creating a Blue Ocean is value innovation. Now, traditional Businesses compete within the
same Red Ocean trying to compete with each other and create a defensible position within the
existing order. They face what is called the valuecost trade off. This essentially means that to
gain a better position than their competitors they have to create an increase in value but this
will come at an increased cost which will consequently be transferred to the customers in the
form of price rises. How value innovation differs is because it aims to reduce cost and increase
customer value at the same time which therefore removes the concept of a value-cost trade off.
This has been graphically represented by the diagram below which shows that value innovation
is the crossover between reduced costs and increasing customer value. Value Innovation
implies equal importance to value (value without innovation will simply create incremental
value creation to slightly stand out in the market) and innovation (innovation without value
will be highly technology driven and will just increase cost which buyers may not be ready to
accept) together to actually open uncontested territory How Digitisation in India comes into
the picture with regard to blue oceans is because it fulfils the requirements of value innovation
as it drives down cost with increased customer value. Ola Cabs increased the service users’
value by allowing them to hail cabs promptly at the press of a button and assure them lower
costs per kilometre. They also incurred lesser cost by playing the role of the intermediary
between the cab driver and the customer (supply and demand respectively). Another example
is Big Basket where they make grocery shopping convenient and cheaper. They are able to
offer high discounts to their customers and also provide the additional benefit of getting
customers their products from their preferred stores home delivered within a very short interval.
Flipkart plays a similar role, but for the sale of technology products, books, clothing and other
consumer durables. Black Buck which was founded in 2015, remade the foundation of the
Indian trucking industry by simply making an Ola for trucking and the logistics industry. They
made it easier for millions of truckers to book a load and move at capacity and also enabled
shippers of all sizes to have access to the right truck at the right time for the right price. The
success of all these companies shows how digitisation plays an immense role in creating new
business opportunities wherein competition is minimal.

A case study of OLA cabs Ola is an online transportation network company developed by ANI
Technologies Pvt Limited in $5.7 Billion. It was founded on 3 December 2010 in Mumbai but
has now shifted its operations to Bangalore and is India’s biggest online cab aggregator with
more than 10 lakh vehicles registered across 169 cities with over 1 million drivers and most
importantly, a customer base of 125 million people with 5.9 million Monthly Active Users.
They also diversified into autorickshaws in November of 2014. In January of 2018, the
company extended its operations into the overseas market in Australia (which has more than

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40,000 drivers) and further more in New Zealand in the month of September. It also now has
presence in the United Kingdom where it will compete with its biggest global and Indian rival,
Uber. But the company, before Uber entered truly did form its own Blue Ocean. Now the
primary aspect of evaluating any company’s performance is the creation of a strategy canvas.
It involves selection of various criteria of importance to the business and then evaluating the
same in terms of the degree of importance given to them. As a part of this paper, we have
identified certain key factors or features of the cab hailing industry, or the intra-city
transportation industry in general; they are as follows:

a. Cost- The cost of the means of transportation for the customer

b. Ease of Access- The ease with which customers can book/access the vehicles for
transportation

c. Comfort- Extra amenities like Air Conditioning, entertainment, seat comfort etc.

d. Distance covered- The total area covered by the transport service

e. Travel Time- How fast the customer can reach from point A to point B (Inclusive of booking
time and time of arrival of cab to point A)

f. Personalisation- Adaptability of service to personal requirements.

g. Privacy- Ability to travel alone or with personal group.

h. Vehicle Ownership- Cabs are generally owned and leased by the company to drivers.

The features in particular that Ola focused on based on that of the Other Public Transportation
were: 1. Ease of Access

2. Travel Time

3. Value for Money

Essentially, a key part of how Ola created their massive user base was not by only trying to
think about their competitors but further comparing themselves to substitutes in the transport
department. The respective changes that Ola made can be discussed through the Reduce-
Eliminate-Raise-Create Grid (Four Action Framework). This grid talks about the company’s
decisions regarding which factors it should reduce in comparison to other players, which
factors it should completely eliminate from its Value Curve, which factors it should increase
in compared to its competitors and finally which new factors they should bring in to their
strategy curve.

Reduce: A prime difference between normal cab systems and Ola was the payment structure
because traditional cabs were either pre-determined prices according to detitanations or through
metered fare. Ola on the other hand is only through a metered fare but the price per KM is
much lesser and at its lowest it is Rs. 6 per KM. When we talk about travel time, we also include

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the time taken for the cab to arrive at the pick-up point. Ola has the advantage of spontaneity
where in people can book a cab at a short notice and still have it arrive within under 20 minutes
unlike traditional cab services which needed to be planned and booked in advance.

Eliminate: Ola made the smart decision of becoming an intermediary initially meaning that
they did not actually have ownership of the vehicles which kept their costs lower. They could
work with individual drivers rather than agencies. It got rid of the inconveniences that were
caused traditionally while booking a cab like multiple phone calls, forward scheduling etc. Ola
only recently started the car leasing program worth around Rs. 5000 Cr, but this is only as a
result of their immense success.

Raise: Ola has increased the ease at which people can access a cab by making it accessible on
one’s phone and laptop/PC where they can book their cab on short notice. What’s even more
unique is that even in situations where the user does not have access to internet, Ola cabs can
be booked through SMS service. Cabs, especially Ola Prime and above are to a large extent
personalised allowing user to get a better experience when it comes to their in-cab
entertainment. People can also access Wi-Fi in most cabs and use their own mean of
entertainment or get work done.

Create: Customers through the Ola App can continuously contact and track the drivers of their
cab and see its real-time location through GPS tracking which was not the case in the cab
industry prior to this. This makes the process more transparent. The company also increased
its cab variety which increase in cost and comfort as well as capacity when we go across the
spectrum. They range from Micro to Mini to Prime Sedan and Prime SUV. Ola also has the
Ola Auto feature as well as Ola Rentals and they propose to launch Ola Bikes soon. By
partnering with different payment platforms and creating their very own payment platform Ola
Money, they have created a variety of portals through which users can pay which makes it more
convenient for the users of the app.

Conclusion

Through our study of Ola, it is clear that several companies can easily open up market space
by simply following the principle of going digital in the same way Ola did. The focus of
companies should be to firstly act as an intermediary between supply and demand, secondly
reduce costs of amenities or goods for the customer and third, allow for interaction through a
digital platform equipped with payment options, live tracking (if relevant), constant interaction
between user and app. Now we can talk about other companies who have followed the same
idea to go big and show how our paper holds good for the Indian market and how Ola’s steps
can be followed by any company. Oyo rooms markets themselves as a branded network of
budget hotels and their initial business revenue model was in the form of commission that they
were receiving for leasing out rooms of already existing hotels but through an online platform.
Similarly Nest Away follows the same principle of being the online intermediary which ears
them around 12.5% of commission on rent of every house that’s rented through the company.
The Indian market is ever-growing and there still lies potential to enter the digital market in

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several departments. The first step to going ahead with this is looking out there, for an existing
business that you think needs to get on the web.

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 CHAPTER 3
RESEARCH
METHODOLOGY

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Research design is the framework of research methods and techniques chosen by a researcher.
The design allows researchers to hone in on research methods that are suitable for the subject
matter and set up their studies up for success.

The type of research problem an organization is facing will determine the research design and
not vice-versa. The design phase of a study determines which tools to use and how they are
used.

Sampling Unit

The respondents include students and employed persons for the survey.

• Gender Range: Male and Female

• Age Group: 15-30 years

• Education: High school to Post Graduation

Sample Size

The sample size used under the study is 54. Sample size is a count of the individual samples or
observations in any statistical setting, such as a scientific experiment or a public opinion survey

Sampling Technique

In this Study, Convenience sampling technique is used. Convenience sampling is a

nonprobability sampling technique where subjects are selected because of their convenient
accessibility and proximity to the researcher. For example, standing at a mall or a grocery store
and asking people to answer questions would be an example of a convenience sample. In other
words, this sampling method involves getting participants wherever you can find them and
typically wherever is convenient. Facebook polls or questions can also be mentioned as a
popular example for convenience sampling.

Data Collection Tools:

There are two types of data – primary and secondary. Primary data is a type of data which
never existed before; hence it was not previously published.

For our study we have also collected primary data through questionnaires circulated to family,
teachers, relatives & peers.

Primary data collection methods can be divided into two categories: Qualitative and
Quantitative.

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RESEARCH OBJECTIVE

 To understand the growth of cab industry.

 To understand the concept of digitisation.

 To understand the concept of digitisation of cab industry.

 To know the future of digitised cab industry.

 To know any challenges or shortcomings faced by cab industry.

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 CHAPTER 04
DATA ANALYSIS
AND
INTERPRETATION

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Analysis of the Study

1. Do you understand the concept of digitized cabs?

S.no Particulars No. of Respondents

Yes 51
1

No 4
2

Data Interpretation- From the above chart, it can be interpreted that more than 90% of the
respondents are aware of the concept of digitalized cabs.

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2. How often do you use cab services?

S.no Particulars No. of Respondents

Very often 25
1

Rarely 28
2

Never 2
3

Data Interpretation- From the above chart, it can be interpreted that out of the 55 respondents
around 96% prefer the digitized concept of booking cabs to the traditional booking system.

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3. Do you prefer this new system over the traditional cab booking system?

S.no Particulars No. of Respondents

Yes 53
1

No 2
2

Data Interpretation- From the above chart, it can be interpreted that out of the 55 respondents
around 96% prefer the digitized concept of booking cabs to the traditional booking system.

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4. Do you mind paying a little extra than the normal price for these cabs?

S.no Particulars No. of Respondents

Yes 21
1

No 34
2

Data Interpretation- From the above chart, it can be interpreted that around 62% of the
respondents have no problem in paying a bit extra for the cab services, whereas, the rest of the
respondents have a problem.

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 5. Do you think there should be more market players in this sector?

S.no Particulars No. of Respondents

Yes 46
1

No 9
2

Data Interpretation- From the above chart, it can be interpreted that more than 44 respondents
out of the 55 think that there shouldn’t be any more firms entering this industry while the rest
have a different point of view to this question.

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6. Do you think that the cab industry has reached to the peak of its success?

S.no Particulars No. of Respondents

Yes 18
1

No 37
2

Data Interpretation- From the above chart, it can be interpreted that 67% respondents think that
the digitalized cab industry is yet to reach the peak of its success. The other 33% think that the
industry is at its top.

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 7. Is this new system good for our society?

S.no Particulars No. of Respondents

Yes 51
1

No 4
2

Data Interpretation- From the above chart, it can be interpreted that more than 90% of the 55
respondents think that this new system of booking cabs is good for our society, whereas, the
rest of the respondents aren’t so sure of this new system.

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 CHAPTER 05
CONCLUSION
AND
FINDINGS

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CONCLUSION AND FINDINGS

FINDINGS

 The study reveals that more than 90% of the respondents are aware of the concept of
digitalized cabs.
 The study reveals that around 51% of the respondents use cab services ‘Very Often’,
around 45% of the respondents use it rarely, and the rest, i.e. around 4%, of the respondents
never use cab services.
 From the above study, it can be interpreted that out of the 55 respondents around 96%
prefer the digitized concept of booking cabs to the traditional booking system.
 The study interprets that around 62% of the respondents have no problem in paying a bit
extra for the cab services, whereas, the rest of the respondents have a problem.
 The study interprets that more than 44 respondents out of the 55 think that there shouldn’t
be any more firms entering this industry while the rest have a different point of view to
this question.
 The study reveals that 67% respondents think that the digitalized cab industry is yet to
reach the peak of its success. The other 33% think that the industry is at its top.
 The study reveals that more than 90% of the 55 respondents think that this new system of
booking cabs is good for our society, whereas, the rest of the respondents aren’t much sure.

CONCLUSION

Conclusion Through our study, it is clear that several companies can easily open up market
space by simply following the principle of going digital in the same way Ola did. The focus of
companies should be to firstly act as an intermediary between supply and demand, secondly
reduce costs of amenities or goods for the customer and third, allow for interaction through a
digital platform equipped with payment options, live tracking (if relevant), constant interaction
between user and app. Now we can talk about other companies who have followed the same
idea to go big and show how our paper holds good for the Indian market and how Ola’s steps
can be followed by any company.

The Indian market is ever-growing and there still lies potential to enter the digital market in
several departments. The first step to going ahead with this is looking out there, for an existing
business that you think needs to get on the web.

LIMITATIONS

• Study was confined only to youngsters. So, the study may not be justified for all.
• There may be a chance of marking wrong answers or marking incorrect choices in
• the questionnaire as some of the respondents may have misread the questions.
• Time boundation was also one of the limitations.
• Interpretation took a lot of time as there were varieties of answers.

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 FURTHER SCOPE OF STUDY

As any research is not complete and always has scope for further research, this research
too has further scope. As data was collected only from Delhi region and only from
teenagers, result represents only small part of population. In future further research
should be done with more varied sample with more geographically spread. So, there is
scope of further research and further research will give more comprehensive conclusion
about aggregator taxi services in India.

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 BIBLIOGRAPHY
1. Malik MR. Managing Partner Performance, Engagement & Retention. International Journal
of Engineering Development and Research, 5(1).

2. Shukla DR. (n.d.). Ola vs Uber: The battle of dominance. Journal of Business and
Management, 78. 3. Panchayat MG. (n.d.). Uber - Ola the Competition Killer

. 4. Kim W, Chan RM. Blue Ocean Strategy. New York City, New York, United States:
Harvard Business Review, 2004.

5. ANI. Retrieved from Business Standard, 2018, https:// ech/ola-to-digitise-public-

transportation-with-theacquisition-of-ridlr-1706669.html

6. Bloomberg J. Retrieved from Forbes, 2018, https://

www.forbes.com/sites/jasonbloomberg/2018/04/29/digitization-digitalization-and-digital-
transformationconfuse-them-at-your-peril/#52e285cc2f2c

7. New. Retrieved from, 2018, https://www.news18.com/ news/ tech/ola-to-digitise- public-

transportation-withthe-acquisition-of-ridlr-1706669.ht

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 ANNEXURE

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