Vinni Project
Vinni Project
Vinni Project
CHAPTER ONE
INTRODUCTION
INTRODUCTION
In a little over a century, we have come to witness various technological changes that
have transformed the transportation industry. From horse-drawn carriages to high
speed rail to the present day testing of autonomous vehicles, these advances have
revolutionized the way people and goods get from Point A to Point B.
Travelling within the world‟s busiest cities is always a hassle to those of us who
do not own a vehicle of our own. Public transport is often unsuitable in terms of
comfort and privacy, and is quite cumbersome too. It also does not cater to
specific times or immediate needs of travel within a city.
While Taxis are widely prevalent in many cities, hailing a cab is often left to
chance. Customers have no control over the situation, and must merely wait until
a free taxi shows up. This does not suit many customers, especially the working
class who have to be at a particular location at a specific time and cannot be
delayed.
Uber introduced in our country recently and become topmost in taxi industry due to
the superior services offered to the customers. This study is conducted to know how
the consumers perceive Uber and ordinary taxi and also the satisfaction of customers
towards them.
The study covers the customer perception on ordinary or conventional taxis and Uber
taxi. And also attempts to study the satisfaction of the passengers.
To study the satisfaction level of passengers using Uber taxi and conventional
taxi services.
To examine whether the customers prefer Uber to ordinary taxi.
To ascertain the role of innovativeness of the consumers in the selection of cab
services.
RESEARCH METHODOLOGY
The study is both descriptive and analytical in nature.
Data Required
Data required for the study aregender, age, occupation, frequently used cab services mode
of booking ordinary cabs, attitude of the respondents if the Uber and ordinary taxi offers the
same rate, reason for using cab services to other modes of transport, frequency of usage of
cab services, time taken by the Uber and ordinary taxi for their arrival, distance covered by
the respondents using Uber and ordinary taxi, modes used by the respondents for making
payment to Uber and Ordinary taxi, customer satisfaction of Uber and ordinary taxi, overall
performance of Uber and Ordinary Taxi and response of respondents towards co-existence of
Uber and ordinary taxi.
Sample Size
For the purpose of the study a sample of 60 respondents are selected on judgement
sampling method.
Source of Data
Both primary and secondary data are used for conducting the study.The study was
mainly carried out with the help of primary data. It is collected directly by way of
using questionnaire. Secondary data are collected from journals, websites etc. and also
from previous project in related area.
Test Statistic,
where and √
When Z
CHAPTERIZATION
CHAPTER TWO
THEORETICAL FRAMEWORK
In taxi service industry, like any other industry, the consumer is always at the centre
of all managerial processes forming a focal point around which the business revolves.
A company creates products and services with the needs and wants of the consumer in
mind. Taxi service industry is one of the fastest growing transportation industries in
India and in order to provide excellent service, the industry needs to identify and
evaluate the existing products and services, as observed in the industry, finding out
what the significant needs and preferences of the consumer are and what leads to
customer satisfaction. Customer perception is checking if the organization has
met customer requirements, and one of the ways to do this is by measuring customer
satisfaction. Therefore Customer perception is a broader term and encompasses many
things. Perception is often dynamic and changes from time to time.
Customer perception plays a vital role in a company‟s ability to attract new customers
and to retain existing customers. The good news is that companies have the ability to
control many of the factors that build an individual‟s perception of the
company/brand.
This perception directly impacts the attraction of new customers and the capacity to
maintain good relationships with current customers.
Customer perception is judgements about the actual service performance or delivery
by a company. The perceived value is the overall assessment of the organisation by
the customer and these are subject to. It is because the determinants of perception of
service quality will be affected or felt differently to each customer. The determinants
or factors of customer perception are,
1. Price
Price has a complex effect on consumer perception. On the one hand, consumers
appreciate a bargain and are often likely to favor an economically-priced item. On the
other, consumers often perceive very inexpensive items as cheap and discardable,
ultimately damaging a consumer's view of a product even if the product remains the
same and the consumer is benefited from a price reduction. Especially sophisticated
or skeptical consumers are even prone to distrust a product that is considerably
cheaper than the alternatives. As a result, price should be part of a comprehensive
marketing plan, where even inexpensive products are depicted as favourable
alternatives with similar levels of quality to the competition, with a price that is
somewhat lower but still comparable with other possibilities.
2. Quality
Of course, the actual quality of a product is a vital part of a consumer's perception of a
good or service. Quality can describe any attribute in a set of characteristics that
satisfy or disappoint a consumer, including usability, reliability and durability.
Marketing can influence a consumer's perception of quality, but, in the end, and
particularly with non-durable goods, a consumer's actual experience with a product
will determine his perception of quality. Outside the realm of mass communication,
word of mouth regarding quality also travels very quickly.
3. Service Quality
Even in the case of goods that exhibit numerous flaws, excellent service quality can
often overshadow a negative experience with the product itself. If a consumer feels
that he receives exceptional attention when encountering a problem with a product,
that consumer is somewhat more likely to trust the brand or product knowing that the
manufacturer or retailer provides a prompt and effective response to problems.
Humans are social animals and their consumer behaviour is often determined by the
social relationships that surround a product, including interactions with customer
service representatives.
5. Reputation
A product's reputation is built up over time and is usually a combination of actual
experience with the product, word-of-mouth recommendations and marketing
campaigns that attempt to establish a status or shared view of the product or brand. A
consumer's perception of a product's reputation, moreover, is not only determined by
the product's brand identity and manufacturer but by the whole chain of distribution.
Even if a consumer trusts a product's manufacturer, for example, that consumer may
change his mind about the product upon seeing it available in a retailer he associates
with cheap, defective products.
1. Sensation
mechanism that helps a human, usinghis sensory receptors (eyes, ears, nose, mouth
and skin) to react to external stimuli (image, sound, scent, taste and texture).
Sensation, activated byexternal stimuli, can be of three types: passive, active and
selective. Theintensity of sensory input depends on the sensitivity of receptors and
theintensity of signals that are limited by the absolute threshold that refers tothe
minimum amount of stimulation that can be detected on a sensorchannel and the
ability of an individual to adapt the margin, depending oncircumstances. In addition to
this, every sensation is conditioned by thevariation of environmental energy, defined
by the differential threshold. Itrefers to the ability of a sensory system to detect
changes of differencesbetween two stimuli.
2. Attention
3. Interpretation
4. Retention
TAXI
In the past decade the transportation facilities in urban areas have undergone
tremendous changes. Among various modes of transportation the cabs have become
important mode of transportation in metropolitan and urban cities in India. The
growth of organized car rental industry is continuously growing with support of
technology.
Taxis are solving a niche in public transport. They provide a door- to- door service,
flexible and available to the general public. But in contrast to most public transport
they are not subsidized. Even though the service that they provide is very similar all
over the world, taxis are regulated in very different ways.
They provide a point- to- point service available to the public and as such a part of
public transport. This is so even if the lack of regular schedules, routes set stations
and subsidies characterizing the main part of the public transport, gives it a semi-
private character. As fixed service systems cannot support all travel demand, they are
dependent upon taxis to be able to give full area coverage. Taxis are a necessary
component for making the supply of public transport function in accordance with the
public demand. In some areas and contexts the taxi industry is the only public
transport available. Taxis also constitute an accessibility component, in that they
provide mobility for persons who, for geographical or disability reasons cannot use
the conventional public transport system.
Taxicabs were invented to provide easy travel solutions to everyday working class
people who either had limited transportation options, or a need to ride in style without
having to drive them. The industry has been around since the 1600‟s when the horse
and buggy were used to transport individuals in Paris. It wasn‟t until the 1800‟s when
the trend carried over to the US and other countries, becoming most popular in the city
of New York. The trend started after mass development of the automobile came into
play. People saw an opportunity to loan automobiles out to create competition for the
horse and buggy industry, in which they ultimately succeeded.
The first taxis cabs that came on the market were battery operated vehicles, in which
the batteries weigh upwards of 800 pounds. By 1899 the taxicab became so popular
that there was an introduction of 100 taxicabs onto the streets of New York City
alone. By the 1900‟s more than 600 additional taxicabs, as well as a host of privately
owned taxi companies came into play in the same city.
Today we still use taxicabs in a variety of major metropolitan areas across the country,
and other similar countries. Taxis have been integrated into our culture, being a major
symbol many associate with the city of New York. It also has become a faucet in the
entertainment industry and news media. While the yellow taxi cab has been integrated
into many societies, there now exist an extension of the traditional taxi that seeks to
revolutionize the industry. This new extension is called ridesharing, which is
application in which it becomes easier and more convenient to get rides in an
untraditional manner.
The concept is fairly easy. Such applications allow you to hail a ride from a stranger,
and save cash at the same time. To most individuals who use such service they see
ridesharing as economic freedom, in that they no longer have to pay outrageous prices
to hail a ride. Such apps came into existence around 2010, and now Uber has
integrated ridesharing within its business model. Businesses like Uber are also green.
They are green in that they fill more seats in people‟s cars. This leads to fewer cars on
the road. In turn, there is less pollution and a decrease in the amount of traffic on the
streets. All of which are positive impacts on society as a whole.
UBER
The name “Uber” is a reference to the common word “uber”, meaning “topmost” or
“super”, and having its origins in the German word uber, meaning “above”. Uber has
been prominent in the sharing economy, so much so that the changes in industries as a
result of it have been referred to as Uberisation.
expanded internationally in the past 6 years, it faces legal and social issues more
specifically an up roar among taxi drivers, operators, and groups due to the fact that it
became the industry‟s disruptor. The main purpose of the study is to systematically
differentiate Uber with the conventional taxi in terms of categories mainly classified
under user perception. Uber is analyzed in comparison to existing ridesharing models.
EVOLUTION
The proactive entrepreneurs Travis Kalanick and Garrett Camp continuously sought
sources of investment for their app prior to and during its launch in 2010- raising
$44.5 million for international development. Their quick expansion worldwide
allowed them to quickly gain an audience before any competition could develop.
Launching in San Francisco was not by chance either. The taxicab market in the area
was performing poorly, with the lowest taxi usage rates in all of the US. However,
due to San Francisco‟s highly interactive tech community who are eager to discover
the next new trends, Uber quickly gain notable recognition.
Uber have also capitalised on global marketing strategies in order to widen their
customer base. The app functions differently in different countries, such as in Africa
whereby Uber allows customers to make cash payment due to it being culturally
unusual to use card. This also allows many African customers to try Uber before
opting in for the card payment option.
A key element behind the success of Uber‟s marketing plan is their B2B and B2C
marketing strategy. The opportunity to become a self-employed cab driver, earning
above minimum wage as a career option or even as a form of part time employment in
order to make some extra cash, is an appealing prospect for many people. This job
opportunity is particularly popular in areas heavily populated by immigrants looking
for work, such as in London. Uber loses no profit from gain in drivers as a greater
number of drivers mean more people using the app, thereby increasing Uber‟s B2C
revenue. This innovative type of marketing has never been seen before in the mobile
app industry.
In 2009, the first Uber cab ride took place in San Francisco. Four years later, in
August 2013 the first Uber ride took place in India. Since that first ride in Bangalore,
Uber‟s added 27 more cities in the country, and found 4, 00,000 driving partners.
Uber‟s entry into India was much like its entry in countries around the world. Small
team of “international launchers” moved swiftly from city to city living out of
suitcases and hotel rooms, and setting up Uber‟s operation. Customers were initially
roped in through the promise of high-end cars for jaw-dropping fares. Uber‟s financial
muscle, propped by VC dollars, came in handy. People raved about getting rides in
Audis at the price of an auto.
Uber wasn‟t the first company in India to offer cab rides through an app. In early
2013, Ola had already pivoted from being an intra-city cab supplier to an on-demand
model, and TaxiForSure would implement the model soon after. But being in
Bangalore it felt like the cab revolution arrived with Uber.
Riders are quoted the fare that they will pay before requesting the ride. Uber uses
a dynamic pricing model; prices vary based on projected time and distance as well as
the time of day and the supply and demand for rides at the time the ride is
requested. At the end of the ride, payment is made based on the rider's pre-selected
preferences, which could be a credit card on file, Google Pay, Apple Pay, cash, or, in
India, Airtel mobile wallet, or Unified Payments Interface. After the ride is over, in the
United States, the rider is given the option to provide a gratuity to the driver, which is
also billed to the rider's payment method.
In some markets where leasing arrangements for vehicles are available, the only
requirement for driving for Uber, other than appropriate age, health, car age and type,
and ability to drive, is passing a background check. Both a smart phone or tablet, and a
vehicle may be leased. In many cities, vehicles used by Uber drivers must pass annual
safety inspections and must have an Uber emblem posted in the passenger window.
Drivers must have a smart phone. Uber drivers use their own cars although drivers can
rent a car to drive with Uber. Legislation in some cities, such as San Francisco,
requires individuals who drive for Uber to also have a business license in the city in
which they drive. Uber drivers are considered independent contractors and not
employees, though this has been disputed in some legal jurisdictions.
Rating scores
After each journey, the users and drivers may both rate each other on a scale of 1 to 5
stars. Uber can deactivate or otherwise punish drivers who do not receive high average
ratings from riders; in turn, low-scoring users might find they have lower levels of
availability from the service. If a driver rates a rider at three stars or below, the rider
will never be paired with that driver again. Passenger can see their ratings in their
profiles. Drivers can see a passenger's rating once a ride is requested; once the driver
accepts, the passenger will see the driver's rating.
Uber X
The cars provided by Uber that come under Uber X are the cheapest among all the
other services that are available by Uber for their customers. These cars have seats for
4 passengers excluding the Uber driver. These are general cars and not luxury ones.
The Uber drivers for these cars do not need commercial licenses though some of them
can also have it if they wish. A general driving license and an age of 21 or higher will
be required. The background of the driver and the driving records are checked before
hiring them. Uber X is even cheaper than the normal cabs that are available to the
public.
Uber XL
The cars provided by Uber that come under Uber XL are mostly entry-luxury cars.
These cars have seats for 5 passengers excluding the Uber driver and 6 including
him/her. The fare is more expensive than Uber X but you can still minimize the cost
of Uber XL cars when you travel in a group as the cost is then split between the
people who are travelling. For travelling alone, this service of Uber becomes a bit
expensive for an individual. The requirement for hiring a driver for Uber XL is same
as the requirements for Uber X. The driver just needs to have a driving license and
should be 21 or more. It is the perfect service provided by Uber for people travelling
in large groups and who desire a luxury ride at a low price. This service of Uber has
cars like Toyota Highlander, Suv, Ford Flex, Honda Pilot and much more. Uber XL is
not suitable for people who want to travel at a low price but is a very good option for
a group of friends and colleagues.
This service provided by Uber only has highly luxurious cars and the latest models
that have been launched on the market. This is a professional, high–end service
available for passengers. This service is not provided in all the cities but in very few
places. The driver of the Uber Black car must have a commercial license, insurance,
and registration. The models of the cars will be high end and luxurious eg. Leather
interior etc. There are two levels of the Black Uber cars- A Sedan that has seats for 5
or more passengers or an SUV that has seats for 5 or more passengers excluding the
driver. Both the driver standards and the model standards for the Uber Black car are
of a high calibre. It is generally for business class and professional people who are
willing to spend a little more for their driving experiences.
Uber Pool
Uber Pool is a new transportation option that allows you to pick up and drop off
multiple riders going in the same direction. Uber Pool is an option of sharing ride.
This way two or 3 passengers going for similar route are mapped and the fare is
splitted in between. With UberPool, riders travelling to similar destinations are
grouped together in the same vehicle. Riders receive a discount for using UberPool.
Uber claims the service can help drivers make more money because they spend less
time waiting between rides. (Ride requests are generally sent to the driver who is
nearest to the person requesting a ride.
Ola
This is an Indian Transport Company operating under the name „Ola‟.Ola is an app-
based transportation company and is one of the fastest growing businesses in India. It
was founded in the year 2010 in Mumbai but currently has its headquarters in
Bangalore. Ola is one the top Uber competitors in India, because it understands the
Indian market much better than Uber.Ola supports both cash and digital payment
options with Ola money. It also recently rolled out two news services: outstation and
rental. Outstation allows customers to book a cab two hours in advance for intercity
travel, while rental lets customers rent a car on an hourly basis.
Lyft
Grab
DidiChuxing
The Uber taxi is different from ordinary taxi s in the following sense.
1. Payment Method: Ride share services are a cashless system. While Uber
accept cash as a payment method. Whereas cash is the mostly used payment method in
conventional taxi. To keep it safe for the driver and also convenient for the customer
to be cashless. Since you request a ride through an app on your phone, payment is
taken from the debit or credit card you choose to program.
2. Rating: At the end of each trip, drivers are required to rate the riders, but
those riders can choose if they want to rate their driver at all. Uber uses a 1 to 5 stars
system. Before the customer meets his driver, he can see right on the app what the
other person‟s rating is. Taxi services have nothing like this.
3. App: Uber has an awesome app that is constantly updated with cool features.
Taxi fleets usually have their own apps, but some apps like Ride Yellow and Curb
partner with fleets to increase their coverage area.
4. Regulations: Uber doesn‟t have any regulations besides the laws that we will
have to abide by. Taxis are regulated by the city, which means they have to meet
insurance, maintenance, background checks and price requirements.
5. Options to Order: Uber only allows you to order through an app. Taxis allow
you to order via call, online, text, app etc.
6. Insurance: Uber has full insurance coverage for both the driver and the
passenger; however, it is only active during a trip. Taxis have full commercial
insurance coverage 24/7.
7. Ownership: Uber is made up of drivers that use their own personal vehicles.
Taxi drivers use a taxi that is not owned by them.
8 Pricing: Uber cars offer a better price than taxis in many cities, but they don‟t
always charge the same rate in each location. In times of high demand Uber initiates
surge pricing- you are charging normal fare times a surge multiplier. We figured out
the break-even point for each city. This is the level of surge pricing at which the Uber
car becomes more expensive than a taxi.
8. GPS Tracking: Once your Uber driver accepts your request, your request
tracked via GPS on your phone and the driver‟s. You are also able to share your ETA
with friends or family so they can keep track of your ride. Taxis have hardwired GPS
locators.
9. Anonymity: Uber passengers are given the drivers name, photo, vehicle
information and contact number and the trip is kept on record. There is no such facility
in ordinary taxis.
10. Convenience: Uber app lets you request an Uber in seconds with a tap on the
screen. Unlike the taxi companies which make you search for their number, wait for
someone to answer and their wait some more for the driver to arrive without knowing
their estimated time of arrival or current location.
CHAPTER THREE
DATA ANALYSIS AND INTERPRETATION
This chapter deals with the analysis part of the study. The data collected through structured
questionnaire. It includes various tables and charts formed from the data and its
interpretations. Data are analyzed on the basis of gender, age, occupation, frequently used cab
services mode of booking ordinary cabs, attitude of the respondents if the Uber and ordinary
taxi offers the same rate, reason for using cab services to other modes of transport, frequency
of usage of cab services, time taken by the Uber and ordinary taxi for their arrival, distance
covered by the respondents using Uber and ordinary taxi, modes used by the respondents for
making payment to Uber and Ordinary taxi, customer satisfaction of Uber and ordinary taxi
through comfort, reasonable fare, safety and security, modes of payment, discounts,
professional services and customer relationship, overall performance of Uber and Ordinary
Taxi, co-existence of Uber and ordinary taxi and also the hypothesis (H0: There is no
significant difference between customer satisfaction towards Uber taxis and ordinary
taxis.) is tested using Wilcoxon Signed Rank test.
GENDER
Table 3.1 shows the gender wise classification of the respondents. Gender is grouped
as male and female.
Table 3.1
Male 31 52%
Female 29 48%
Total 60 100%
From the table 3.1 it is understood that 52% of the respondents are male.
Female Male
Male(52%)
(48%)
Female
Figure:3.1
AGE
Following table (3.2) shows the age wise distribution of respondents. For this study
the age of the respondents are grouped under 15-30, 30-45, 45-60 and above 60.
Table 3.2
Table 3.2 shows the age of respondents in percentage. As it shows that from age 18-
30 the number of respondents are 52%, from age 30-45 the number of respondents are
27%,from age 45-620 number of respondents are 18% and 60 above it is 3%.
60%
50%
40%
30%
20%
10%
0%
18-30 30-45 45-60 Above 60
Fig. 3.2
OCCUPATION
For the study, the respondents were categorised into five groups. They are student,
employee, business, professional and other category.
Table 3.3
Table 3.3 reveals that the classification of respondents on the basis of occupation. Out
of 60 respondents 42% of respondents are employees. 20% of the respondents are
doing business, 17% of the respondents are students, 13% of the respondents are in
other category and 8% of the respondents are professionals.
45%
40%
35%
30%
25%
42%
20%
15%
10% 20%
17% 13%
5% 8%
0%
Student Employee Business Profession Others
Fig. 3.3
Table 3.4
Table 3.4 reveals that the majority of the respondents (62%) most frequently used cab
service is Uber and only 38% respondents were use ordinary taxi most frequently.
Ordinary
Taxi
Uber
Fig.3.4
MODE OF BOOKING
Table 3.5 shows the various modes of booking ordinary cabs and the response of the
respondents. For this the modes of booking ordinary cabs are classified as hail the taxi
on the street, book the taxi using taxi company website, phone the driver directly,
through taxi app and call the taxi from taxi stand.
Table: 3.5
Table 3.5 shows that the 37% of the respondents are hail 33% are phone the driver
directly the taxi on the street, 18% are call the taxi from taxi stand, and 12% book the
taxi using taxi company websites.
40% 37%
35% 33%
30%
25%
20% 18%
15% 12%
10%
5%
0%
0%
Hail the Taxi on Book the taxi Phone the Taxi App Taxi stand
the street using taxi driver directly
company
website
ATTITUDE OF RESPONDENTS
Table 3.6 shows the attitude of respondents when Uber and ordinary taxi offers same
rate.
Table 3.6
Table 3.6 shows that the majority of the respondents (57%) prefer Uber to Ordinary
taxi when they offer the same rate. 23% of the respondents prefer ordinary taxi over
Uber if they offer same rate and 20% are indifferent about it.
Indifferent
(20%)
Uber(57%)
Ordinary
taxi (23%)
Attitude of Respondents when Uber and ordinary taxi offers same fare
Fig. 3.6
25% of the respondents prefer demand cab services because they are safer method of
transport than other method of transport.23% are of the opinion that cab service
provide ease of travel, 15% of respondents are of opinion that they prefer cab services
due to the reasonable fare offered by cabs and another 15% are of the opinion that
they provide door to door access.
30%
25%
20%
15%
10%
5%
0%
Ease Of Non Reasonable Lack Of Safer Do not Need Door Others
Travel Availability Fare Public Method of Have a car to door
of Parking Transport Transport Access
Fig. 3.7
FREQUENCY OF USAGE
Table 3.8 shows the respondents frequency of usage of cab services. For this
frequency of usage are classified as daily, once in a week, twice or thrice in a week,
once in a month, more than once in a month and rarely.
Table 3.8
Frequency Of Usage
No Of Respondents Percentage
Daily 2 3%
Once in a week 10 17%
Twice or Thrice in a Week 11 18%
Once in a month 8 13%
More than once in a month 22 37%
Rarely 7 12%
Total 60 100%
(Source: Primary Data)
This graph shows how frequently the respondents use cab services..From the above
diagram we can interpret that the most of the respondents (37%) use cab services
more than once in a month.
Rarely
Once in a month
Once in a week
Daily
Fig.3.8
TIME TAKEN(UBER)
Table3.9 shows the time taken for the arrival of Uber. For the purpose of the study the
time is divided as less than 5 minutes, 5-15 minutes, a5 minutes to half hour and more
than half hour.
Table 3.9
Majority of the respondents (50%) are of the opinion that they have to wait for 5-15
minutes for the arrival of Uber. 40% of respondents wait 15 minutes to ½ hour, 7% of
respondents have to wait for less than 5 minutes and 3% of the respondents have to
wait more than half hour for the arrival of Uber.
5-15 Minutes
Fig. 3.9
Table: 3.10
Table 3.10 states that the 40% of respondents are in the opinion that they have to wait
5-15 minutes for the arrival of ordinary taxi, 33% are in opinion that they have to wait
for 15 minutes to half hour, 18% are in opinion that they have to wait less than5
minutes and 8% are in opinion that they have to wait for more than half hour for the
arrival of ordinary taxi.
5-15 Minutes
Fig.3.10
DISTANCE COVERED(UBER)
Table 3.11 shows that the distance covered by the respondents using Uber. For this
distance are classified as 0-5km, 5-10km, 10-15km, 15-20km and 20 above.
Table 3.11
Majority of the respondents (45%) uses Uber to cover the distance of 10-15km, 28%
of respondents use Uber to cover 15-20km, and 13% of respondents cover 20 above,
8% of respondents cover 5-10km and 5% of respondents‟ use 0-5 km using Uber cab
services.
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
0-5 km 5-10 km 10-15 km 15-20km 20Above
Fig.3.11
Table 3.12
Table 3.12 shows that the majority of the respondents (33%) use ordinary taxi to
cover the distance of 10-15km, 20% of respondents use this to cover 15-20 km, 18%
of respondents used to cover the distance of 20 and above and the remaining (17%)
respondents used the ordinary taxi to cover 5-10 km.
35%
30%
25%
20%
15%
10%
5%
0%
0-5 km 5-10 km 10-15 km 15-20km 20Above
Fig 3.12
Table 3.13 shows that how payments are made by the respondents on Uber. For this,
major modes of payment like cash. Debit/Credit card, net banking and others are
taken.
Table 3.13
Table 3.13 shows that the majority of the respondents (52%) are making their
payments through Debit/Credit card, 32% of respondents are using cash, 19% of
respondents made their payments through net banking and 1% opt other modes of
payments.
60%
50%
40%
30%
20%
10%
0%
Cash Debit/Credit Card Net Banking Others
Table 3.14 shows that how payments are made by the respondents on ordinary taxi.
For this, major modes of payment like cash. Debit/Credit card, net banking and others
are taken.
Table 3.14
Table 3.14 shows that the majority of the respondents (83%) are using cash for
making payments to ordinary taxi and 13% of respondents use other modes of
payment.
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Cash Debit/Credit Card Net Banking Others
CO-EXISTENCE
Table 3.15 shows the response of the respondents towards the co-existence of Uber
and ordinary taxi.
Table 3.15
Table 3.15 shows that the majority of the respondents (58%) are in the opinion that
the Uber and Ordinary Taxi should co-exist, and only 42% of the respondents state
that they will not co-exist.
No(42%)
Yes
No
Yes(58%)
Fig: 3.15
Table 3.16
Table 3.16 reveals that the 48% of the respondents rate the service of Uber as good.
42% of respondents rate it as excellent and 10% of respondents rate it as average.
Excellent
Good
Average
Poor
Very Poor
Fig.3.16
Table 3.17
Table 3.17 reveals that the 48% of respondents rate the service of ordinary taxi as
good, 35% of respondents rate it as average, 10% of respondents rate it as excellent,
5% of the respondents rate it as poor and 2% of respondents rate it as very poor.
Excellent
Good
Average
Poor
Very Poor
Table 3.18 shows that the customers response towards the comfort level of ordinary
taxi. For this responses are rated in five point scales as highly dissatisfied, dissatisfied,
neutral, satisfied and highly satisfied.
Table 3.18
Comfort(Ordinary Taxi)
No. Of
Response Respondents Percentage
Highly Dissatisfied 2 3%
Dissatisfied 9 15%
Neutral 23 38%
Satisfied 22 37%
Highly Satisfied 4 7%
Total 60 100%
(Source: Primary Data)
This figure shows that 38%of respondents are neutral, 37%of the respondents are
satisfied, 15%of respondents are dissatisfied, 7%of respondents are highly satisfied
and 3% of respondents are highly dissatisfied about the comfort of ordinary taxi.
Highly Satisfied 7%
Satisfied 37%
Neutral 38%
Dissatisfied 15%
Highly Dissatisfied 3%
Table 3.19 states that 38% of respondents are neutral about the fare offered by
ordinary taxi. 32% of respondents are satisfied, 23% are dissatisfied, 5% are highly
satisfied and 2% of respondents are highly dissatisfied about the fare rate charged by
ordinary taxi.
45%
40%
35%
30%
25%
20% 38%
15% 32%
23%
10%
5%
5%
0% 2%
Highly Dissatisfied Neutral Satisfied Highly Satisfied
Dissatisfied
Table 3.20 shows that 50%of respondents are satisfied with the safety and security of
ordinary taxi. 35% of respondents are neutral, 10% are dissatisfied and 5% are highly
satisfied with the safety and security provided by the ordinary taxi.
Highly Satisfied 5%
Satisfied 50%
Neutral 35%
Dissatisfied 10%
Highly Dissatisfied 0%
Table 3.21 shows that 40% are neutral about the mode of payments offered by
ordinary taxi. 27% are satisfied, 23% are dissatisfied, 8% are highly satisfied and 2%
are highly dissatisfied about the modes of payment offered by ordinary taxi.
45%
40%
40%
35%
30% 27%
25% 23%
20%
15%
10% 8%
5% 2%
0%
Highly Dissatisfied Neutral Satisfied Highly Satisfied
Dissatisfied
Modes Of payment
Fig. 3.21
Discounts(Ordinary Taxi)
Response No. Of Respondents Percentage
Highly Dissatisfied 8 13%
Dissatisfied 24 40%
Neutral 24 40%
Satisfied 2 3%
Highly Satisfied 2 3%
Total 60 100%
(Source: Primary Data)
Table 3.22 shows that the 40% of respondents are dissatisfied and 40% of respondents
are neutral about the discounts offered by ordinary taxi. 13%of respondents are highly
dissatisfied, 3% are satisfied and 3% are highly satisfied about the discounts provided
by the ordinary taxi.
40%
35%
30%
25%
20% 40% 40%
15%
10%
13%
5%
3% 3%
0%
Highly Dissatisfied Neutral Satisfied Highly
Dissatisfied Satisfied
Table 3.23 shows that the 50% of the respondents are neutral about the professional
services provided by ordinary taxi. 23% of the respondents are dissatisfied, 15% are
satisfied, 8% are highly dissatisfied and 3% are highly satisfied about the professional
services offered by ordinary taxi.
60%
50%
40%
30%
50%
20%
10% 23%
15%
8%
0% 3%
Highly Dissatisfied Neutral Satisfied Highly
Dissatisfied Satisfied
Satisfied 30%
Neutral 35%
Dissatisfied 10%
Highly Dissatisfied 5%
COMFORT (UBER)
Table 3.25 shows that the customers response towards the comfort level of Uber. For
this responses are rated in five point scales as highly dissatisfied, dissatisfied, neutral,
satisfied and highly satisfied.
Table 3.25
Comfort(Uber)
Response No. Of Respondents Percentage
Highly Dissatisfied 0 0%
Dissatisfied 3 5%
Neutral 7 12%
Satisfied 34 57%
Highly Satisfied 16 27%
Total 60 100%
(Source: Primary Data)
Table 3.25 shows that 57% of the respondents are satisfied about the comfort of Uber.
27% are highly satisfied, 12% are neutral and 5% are dissatisfied about it.
Satisfied 57%
Neutral 12%
Dissatisfied 5%
Highly Dissatisfied 0%
Comfort (Uber)
Fig. 3.25
Table 3.26
Reasonable Fare(Uber)
Response No. Of Respondents Percentage
Highly Dissatisfied 0 0%
Dissatisfied 0 0%
Neutral 12 20%
Satisfied 36 60%
Highly Satisfied 12 20%
Total 60 100%
(Source: Primary Data)
Table 3.26 shows that the respondents response towards the fare charged by Uber.
60% are satisfied, 20%are highly satisfied and 20% are neutral about the amount
charged by Uber.
70%
60%
60%
50%
40%
30%
20% 20%
20%
10%
0% 0%
0%
Highly Dissatisfied Neutral Satisfied Highly
Dissatisfied Satisfied
Table 3.27
Table 3.27 shows that 55% of respondents are satisfied regarding the safety and
security offered by Uber. 28% of respondents are highly satisfied, 15% are neutral
and 2% are dissatisfied with the safety and security offered by Uber.
55%
60%
40% 28%
15%
20%
0% 2%
0%
Highly Dissatisfied Neutral Satisfied Highly
Dissatisfied Satisfied
Fig. 3.27
Table 3.28
Modes Of Payment(Uber)
Response No. Of Respondents Percentage
Highly Dissatisfied 0 0%
Dissatisfied 0 0%
Neutral 5 8%
Satisfied 35 58%
Highly Satisfied 20 33%
Total 60 100%
(Source: Primary Data)
Table 3.28 shows that 58% of respondents are satisfied, 33% are highly satisfied and
8% are neutral about the modes of payments offered by Uber.
58%
60%
50%
33%
40%
30%
20% 8%
10% 0% 0%
0%
Highly Dissatisfied Neutral Satisfied Highly
Dissatisfied Satisfied
DISCOUNTS (UBER)
Table 3.29 shows that the customers response towards the discounts offered by Uber.
For this responses are rated in five point scales as highly dissatisfied, dissatisfied,
neutral, satisfied and highly satisfied.
Table.3.29
Discounts(Uber)
Response No. Of Respondents Percentage
Highly Dissatisfied 0 0%
Dissatisfied 1 2%
Neutral 18 30%
Satisfied 33 55%
Highly Satisfied 8 13%
Total 60 100%
(Source: Primary Data)
Table 3.29 shows that 55% of the respondents are satisfied with the discounts offered
by Uber.30% of respondents are neutral, 13% are highly satisfied and 2% are
dissatisfied with the discounts offered by Uber.
60%
50%
40%
30% 55%
20%
30%
10% 13%
0% 2%
0%
Highly Dissatisfied Neutral Satisfied Highly
Dissatisfied Satisfied
Discounts (Uber)
Fig. 3.29
Table3.30
Professional Service(Uber)
No. Of
Response Respondents Percentage
Highly Dissatisfied 0 0%
Dissatisfied 1 2%
Neutral 23 38%
Satisfied 26 43%
Highly Satisfied 10 17%
Total 60 100%
(Source: Primary Data)
Table 3.30 shows that the 43% respondents are satisfied with the professional services
provided by Uber. 38% of respondents are neutral, 17% are highly satisfied and 2%
are dissatisfied about the professional services offered by Uber.
50%
43%
45%
38%
40%
35%
30%
25%
20% 17%
15%
10%
5% 0% 2%
0%
Highly Dissatisfied Neutral Satisfied Highly Satisfied
Dissatisfied
Fig. 3.30
Table 3.31
Customer Relationship(Uber)
Response No. Of Respondents Percentage
Highly Dissatisfied 3 5%
Dissatisfied 5 8%
Neutral 18 30%
Satisfied 22 37%
Highly Satisfied 12 20%
Total 60 100%
(Source: Primary Data)
Table 3.31 shows that the 37% of respondents are satisfied with the customer
relationship of Uber. 30% are neutral about it and 20% are highly satisfied. 8% are
dissatisfied and 5% of respondents highly dissatisfied about the customer relationship
of Uber.
Satisfied 37%
Neutral 30%
Dissatisfied 8%
Highly Dissatisfied 5%
Fig. 3.31
Testing of Hypothesis
Customer Satisfaction of Uber and Ordinary taxi
Table 3.32a
Descriptive Statistics
Table 3.32a explains level of satisfaction of customers about Uber and Ordinary taxi.
Satisfaction of ordinary taxi shows a mean score of 3.1214 and satisfaction of Uber
shows a mean of 3.9333. It shows that the level of satisfaction of Uber taxi is greater
than the level of satisfaction of ordinary taxi.
It is further required to know that, whether there is significant difference between the
level of satisfaction of Uber and ordinary taxi. For that purpose Wilcoxon Signed
Rank test is used.
Table 3.32c
Table 3.32c Shows value for Wilcoxon Signed Rank Test. Since p value0.001 is less
than 0.05, we reject the null hypothesis at 5% significance level and accept the
alternative hypothesis. I.e. there is a significant difference between the level of
customer satisfaction of Uber and ordinary taxis.
CHAPTER FOUR
FINDINGS, SUGGETIONS AND
CONCLUSION
15. 50% of the respondents are satisfied with the safety and security of ordinary
taxi.
16. 40% of respondents are neutral and dissatisfied on the discounts offered by
ordinary taxies.
17. Majority of the customers are satisfied regarding the comfort, reasonable
fare, safety and security, modes of payment, discounts and professional
services of Uber.
18. 30% of the respondents are neutral attitude about the customer relationship
of Uber.
19. Most of the respondents are in the opinion that the Uber and ordinary taxi
should co-exist.
20. Majority of the respondents rate the overall performance of Uber and
ordinary taxi as good.
21. There is significant difference between Uber and ordinary taxi regarding the
customer satisfaction. Customer satisfaction towards Uber is greater than the
satisfaction towards ordinary taxi.
CONCLUSION
The taxi industry is really an important part of cities‟ transportation. With the
development of economy and the increase of people‟s life quality, the taxi has been
more and more popular due to its convenience and comfort. There is a stringent
competition between Uber and ordinary taxi in this modern world. Uber has been able
to differentiate themselves in the market by developing a strategy that better aligns
with customers‟ preference. Some social and economic consequences of Uber are (1)
Reduction of search costs particularly on time, effort, and uncertainty of a passenger,
(2) Better overview of quality and prices, such as the rating system and the price
estimation and (3) Better utilization of assets that may result in consumer welfare and
efficiency in transport services. Even though Uber is of recent origin, it set a
benchmark in taxi industry.
Due to fierce competition traditional taxi industry loses large market share andonline
transport companies gain more market share. With enough supply of cars, people here
look for more than prices that transportation charges but also consumer services that
transportation offers. As far as we concerned, there are many factors having impacts
on people‟s demand for transportation. In order to survive, ordinary taxi should adopt
various competitive strategies.
Taxis are not losing out entirely, however. They came out on top of Uber in terms of
convenience, for the ability to hail one straight off the street without the need to book.
Uber and ordinary taxi have their own characteristics. Both of it have their own
existence and their combined benefits would provide a more efficient for-hire
transportation market.
BIBLIOGRAPHY
Gaskell, Adi. “Study Explores the impact of Uber on the taxi industry.”
(2017).
Paronda, Arden Glenn. “An Exploratory study on Uber, Grab Car and
conventional Taxies in Metro Manila.”
WEBLIOGRAPHY
www.google.com
www.wikipedia.org
https://www.uber.com
https://www.forbes.com
https://www.tornoto.ca
repository.uwyo.edu
www.yellowcabsacramento.com
https://www.choice.com.au
https://www.researchgate.net
APPENDIX
A COMPARITIVE STUDY ON THE PERCEPTION OF
CUSTOMERS TOWARDS UBER TAXIS AND ORDINARY TAXI
QUESTIONNAIRE
1. Gender
Male Female
2. Age
3. Occupation
Others (specify)
6. If Uber taxis and ordinary taxis have the same fares which would you prefer
7. What is your prime reason for using demand cab services generally?
Ease of Travel
Non availability of parking
Reasonable fare
Lack of public Transport
Safer Method of Transport
Do not have a car
Need door to door access
Others(specify)
10. What is the typical distance you use these on demand service for?
Yes No
Government College Tripunithura
61
A COMPARITIVE STUDY ON THE PERCEPTION OF CUSTOMERS TOWARDS UBER
TAXIS AND ORDINARY TAXIS