DISSERTATION REPORT

on
Factors Affecting Consumer Behaviour in Taxi Rides

Submitted for the partial fulfilment of the requirement Dissertation

of Master of Business Administration (2014-16)

Submitted by:
Name: Chinmay Thippani
Roll No. 141215

Guided By:
Prof. Tripura Joshi

Institute Of Management, Nirma University

Date of Submission: 25th January, 2015

UNDERTAKING:
I, Chinmay Thippani hereby declare that the work carried out by me is an original piece
of work and not an extension of some project submitted by me as a part of some course work
during the MBA Programme. I also certify that no material has been copied without proper
acknowledgement of the source as a part of the reference

Chinmay Thippani
Roll No.: 141215
MBA-FT,
Batch of 2014-16,
Institute of Management, Nirma University

ACKNOWLEDGEMENT
I would like to take this opportunity to express my heartfelt gratitude to Prof Tripura Joshi,
Professor at Institute of Management Nirma University (IMNU), for his invaluable guidance and
the support that she has offered to me during the course of my research and report development.
I am equally thankful to the Programme Chairperson, Prof.Nityesh Bhatt for providing me with
the opportunity to present my dissertation report on Factors Affecting Consumer Behaviour in
Taxi Rides as a part of the course of MBA (Full Time).
There are my colleagues, batch-mates, guides and friends whose names I have not mentioned in
this acknowledgement but without their support, encouragement and guidance, my dissertation
could not have been complete. I want to express my sincere thanks to all of them.

EXECUTIVE SUMMARY:
The rapid growth of on-demand ride services, has prompted debate among policy makers and
stakeholders. Key questions include: how taxis compare with respect to trip types, customers,
and locations served; whether Taxis competes on the satisfaction and problems faced by the
customers. I addressed these questions using a survey .
Ola customers are satisfied with the price per kilometer and they are facing the problem with the
driver's attitude. Uber customers are satisfied with the expediency of pickup and they are facing
problem with the responsiveness to the problems raised.
.

Table of Contents
UNDERTAKING:............................................................................................................................2
ACKNOWLEDGEMENT...............................................................................................................3
EXECUTIVE SUMMARY:.............................................................................................................4
List of Tables...................................................................................................................................6
CHAPTER 1: INTRODUCTION....................................................................................................7
1.1 Introduction & Background:..................................................................................................7
1.2 Literature Review:.................................................................................................................8
1.3 Objectives of the Research....................................................................................................9
CHAPTER 2: RESEARCH METHODOLOGY...........................................................................10
2.1 Sampling Plan:.....................................................................................................................10
2.2 Instruments:.........................................................................................................................10
2.3 Data Collection Method.......................................................................................................10
2.4 Data Analysis Methods:.......................................................................................................10
CHAPTER 3: DATA ANALYSIS..............................................................................................11
3.1 Factors that are affecting satisfaction level of customers:...............................................11
3.2 Problems faced by Customers :......................................................................................22
CHAPTER 4: CONCLUSION AND RECOMMENDATIONS:.................................................30
4.1 Conclusion:..........................................................................................................................30
4.2 Recommendation:................................................................................................................30
REFERENCES:.............................................................................................................................31
APPENDICES:..............................................................................................................................32
Questionnaire.............................................................................................................................32

List of Tables
Table 3.1

Satisfaction Level of Ola customers who riding Weekly once

Table 3.2

Satisfaction Level of Ola customers who riding Weekly twice

Table 3.3

Satisfaction Level of Ola customers who riding Weekly thrice

Table 3.4

Overall Uber Satisfaction

Table 3.5

Overall Ola Satisfaction

Table 3.6

Taxi For Sure Customers according to their satisfaction

Table 3.7

Satisfaction Level of Uber customer who ride weekly once

Table 3.8

Satisfaction Level of Uber customer who ride weekly Twice

Table 3.9

Satisfaction Level of Uber customer who ride weekly Thrice

Table 3.10 Satisfaction Level of Uber customer who ride Monthly Once
Table 3.11

Satisfaction Level of Meru customer

Table 3.12

Drivers attitude as a problem

Table 3.13

Responsiveness to problems raised as Problem

Table 3.14

Maintenance of cabs as Problem

Table 3.15 Non availability as Problem

Table 3.16 Driver's skills as Problem
Table 3.17 Customers Who are satisfied with price and Problems faced

Table 3.18 Customers Who are satisfied and Problems faced with Ola
Table 3.19 Customers Who are satisfied and Problems faced with Uber

CHAPTER 1: INTRODUCTION
1.1 Introduction & Background:
In recent years, advances in information and communication technology have enabled new
services that provide a wide variety of real-time and demand-responsive trips. Passengers request
a ride from a private passenger vehicle driven by a (usually) non-commercially licensed driver
through the mobile application, which then communicates the passengers location to drivers via
GPS. These apps charge a distance-variable fare, approximately 80% of which goes to the driver,
with the remaining to the ride sourcing service.
Many of these applications maintain a rating system that allows for drivers and passengers to rate
each other after the trip is completed. A passengers credit card information can be saved within
the system to facilitate future trips. Complete characterization of ridesourcing is difficult though,
as the services are quickly evolving.
The recent emergence of app-based, on-demand ride services has sparked debate over their role
in urban transport. Companies like Ola, Uber and Taxi for Sure are experiencing a surge in
demand in recent years. Ola and Uber in particular have grown explosively over the past year by
offering car rides at prices lower than the fares charged by auto rickshaws. Consumers perception
towards taxi rides is changing. Earlier Taxi rides used be only for airport rides. In recent times as
the penetration of smart phones into the market increased, the companies which provides
bookings through smart phones benefited a lot. With this back ground customers are more
concerned about the safety issues raising in the Taxi rides and the service being offered to them
by the drivers and company is effecting their decision to book the cab. This research aims to
understand the factors which effect the customers to book online cabs.

1.2 Literature Review:

At present, I am not aware of any published literature on Taxi rides , so I rely on related news
papers and journals on taxis to provide insights into expected usage characteristics and
potential impacts.
A few students in Indian Institute of Managment, Kozhikode, along with a professors conducted
a research on consumers perception on app bookings of Taxi services and its impact on Ecommerce sector. They have surveyed 70 respondents who had used the taxi services earlier and
their findings which effect their perception are Perceived Ease of Use, Subjective Norms &
Perceived Risk plays an important role in behavioral intention of booking a Taxi ride through
app. Their research also revealed that The main target segments here in the case are Students
perceiving higher Education as well Corporate working professional who are the heavy users of
these Apps. They have recommended the management owning Taxi Services that, they should
design their App in such a manner that it is User Friendly, convenient to use, provides all
complete details of the concerned taxi driver (his registration no., phone no, licence no. Etc,
exact fares, total fares i.e. the App should propagate transparency of information.
The above are some of the factors which effect the perception of consumer whereas, according
to Pradeep Chopra, CEO of digital Vydya , Booking a cab with a renowned company, in order to
avoid last minute issues is common these days. In his article how Ola turned an unsatisfied
customer to its Brand advocate he explained how to satisfy and understand customers at
uncertain situations. (i) Immediate acknowledgement of the mistake gives relief to the frustrated
client. (ii) A genuine apology from the company increases an opportunity of getting a second
chance from the dissatisfied client. (iii) For winning the trust of a dissatisfied client,
understanding of the damage caused is important. (iv) Creativity hitting the direct cause help in
converting frustrated client into Brand Advocate.
According to Nishant Jain, Analytics Consultant at BRIDGEi2i, Cab services using the data
analytics could help to increase the customer satisfaction and the availability of on road optimum
fleet could increase. According to him, Maintaining maximum fleet on the road at the service of
the customers is also a challenging task. These days companies use real time data and they track
the vehicle location using Geo location and the nearest located vehicle is allotted. But sometimes
there is no vehicle there in that area and companies fail to serve the customer. To avoid this,
companies can forecast, based on:

Demand patterns at different locations

Demand pattern on different days of the week (Weekday or weekend)

Demand pattern on different time slot in a day (Peak and off peak)

Demand pattern(High, Medium, Low) of the type of vehicle ( Luxury, Comfort , Budget)

different areas on different days of the week and at different time slots can serve maximum
number of customers. Accordingly, they can plan and deploy the vehicles in those areas and
can also determine number of vehicles to be sent for maintenance. This will reduce the idle
time of vehicles and increase the paid miles. According to him The key drivers of customer
satisfaction are The availability of the vehicle, Price per mile, Expediency of pickup,
Adherence to the bookings, Drivers behavior and driving skills. By using the feedback data
they can improve the services rendered to the customers. If there is a cancellation of cab then
by leveraging the data, providers has to see whether it is from the operators side or customers
side. If it is from the operator's side they could increase the fleet size. He also explained that
Drivers may cause serious damage to the vehicle if they do not have a smooth style of
handling the mechanics of the vehicle. Maintenance reporting data and customer
complaints/feedback data with regard to the conduct of the drivers can provide insights with
regard to the drivers performance. Accordingly measures can be taken to reduce the wear
and tear of the vehicle and make customer experience better. A risk index can be created for
each driver who can then be weeded out thereby providing the safest driving experience for
the customer. This can also be leveraged to gauge training needs of drivers differently so that
the customers exposure to bad experiences can be minimized.
Indian car rental services are of $13 billion in which 10 % is organized. As the smart phone
penetration increased in Indian market, it benefited organized cab services. In 1 year i.e from
March 2014- June 2015, they Ola and Uber increased their footholds to 100 and 22 cities
respectively. In Delhi, a Jugnoo acquired Bookmycab, which is also a Taxi service. But at the
same time customer complaints after taking rides are also increasing and safety concerns
posing a threat to customers.

1.3 Objectives of the Research

To determine the factors affecting customer satisfaction in Taxi rides.

To determine the problems faced by the customers in Taxi rides.

CHAPTER 2: RESEARCH METHODOLOGY

A descriptive study is conducted to study on the factors effecting the consumer decision making
and consumer satisfaction level in Taxi rides. The data is collected from the respondents who
have already used the Taxi rides. The respondents is of all age groups who used the Taxi services.
The data would be collected in the form of Questionnaire. The research has been done in 2
months span, where designing of Questionnaire has 2 weeks and data collection from different
age groups took 1 month and data analysis took last 2 weeks after collecting the data.

2.1 Sampling Plan:

Those who have already used the cab services across all age groups and gender are my sample
size. I have taken responses of 81 respondents across all age groups in different cities.

2.2 Instruments:
A questionnaire containing various open-ended and closed questions designed in order to collect
information from the respondents. In order to obtain the best responses, the questions went from
being general to more specific.

2.3 Data Collection Method:

Data will be collected from primary sources in the form of responses to the questionnaires and
statistical analysis of the same will be done so as to obtain results and determine the research
objectives conclusion.

2.4 Data Analysis Methods:

I will use tables, bar graphs, pie charts and apply few statistical techniques and then based on
that formulate the result. To analyze the data I will be using Microsoft Excel and IBM SPSS
tools.

CHAPTER 3: DATA ANALYSIS

3.1 Factors that are affecting satisfaction level of customers:

Table 3.1 Satisfaction Level of Ola customers

who riding Weekly once
66.7%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%

52.4%
33.3%

33.3%

47.6%

66.7% of the customers who are taking rides weekly once Ola are satisfied with the Price per
kilometer Ola is charging. More than half of the members are satisfied with the expediency of
pick up after booking the cab. Nearly half of the members are satisfied with the promotional
offers available in Ola. Whereas only one third of the members are satisfied with Adherence to
booking and availability of vehicle. This is low in comparison with the other factors.

Table 3.2 Satisfaction Level of Ola

customers who riding Weekly twice
78.3%
80.0%
70.0%
60.0%

52.2%

50.0%

52.2%

40.0%
30.0%
20.0%
10.0%
0.0%

26.1%
21.7%

More than 3/4th of the customers who are taking rides weekly twice are satisfied with the Price
per kilometer charged by Ola. More than half of the customers are satisfied with the Expediency
of Pickup and available promotional offers. Only a few customers are satisfied with Adherence
to booking and availability of vehicle. This is low in comparison with the other factors. Hence
the concern is same for both the customers who are travelling weekly once as well as twice.

Table 3.3 Satisfaction Level of Ola

customers who riding Weekly thrice

50.0%
50.0%
45.0%
40.0%
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%

Weekly Thrice
50.0%
43.8%

18.8%

18.8%
Weekly Thrice

Exactly half of the customers who are taking rides weekly thrice in Ola are satisfied with the
Price per kilometer Ola is charging and availability of vehicle. Slightly less than half of the
members are satisfied with the promotional offers available in Ola. Nearly half of the members
are satisfied with the promotional offers available in Ola. Whereas a few people are satisfied
with Adherence to booking and expediency of pick up after booking the cab.. This is low in
comparison with the other factors.

Overall Uber Satisfaction

80.0%

75.0%

70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%

60.9%
47.6%
47.8%
47.8%
45.0% 47.6%
37.5%
43.8%
35.0%
23.8%
17.4%

30.0%

42.9%

45.0%
40.0% 42.9%43.8%

31.3%

30.4%

Table 3.4 Overall Uber Satisfaction

It is clear that Customers are satisfied the with expediency of pick up , Promotional offers and
availability of the cabs irrespective of the regularity of the bookings. Satisfaction is very low
when it comes to Price per kilometer charged by Uber. As per the literature review and this table
we can say, due to the Peak pricing in peak times customers are facing problems and switching to
other company's cabs.

Overall Ola Satisfaction

80.0%
70.0%

78.3%
66.7%

60.0%
50.0%
40.0%

50.0%

52.4%
52.2%

40.0%

50.0%
40.0%

30.0%
20.0%

40.0%

33.3%

18.8%

Weekly Once

33.3% 35.0%

26.1%
18.8%

52.2%
47.6%
43.8%

21.7%

30.0%

10.0%
0.0%

Satisfaction Level of Ola customers By

weekly

Weekly Twice
Weekly Thrice
Monthly Once

Table 3.5 Overall Ola Satisfaction

It is clear that Customers are satisfied the with Price and Promotional offers irrespective of the
regularity of the bookings. Whereas only few customers are satisfied with the Expediency of
Pick up , Adherence to booking. Satisfaction is very low when it comes to Availability of the
vehicles.

Table
3.6
18
16
14
12
10
8
6
4
2
0

Taxi For Sure Customers according to their

satisfaction

Taxi for Sure customers are satisfied with the Adherence to booking which is low in Ola. Some
of customers are satisfied with the availability of vehicle and availability o f promotional offers.
Only few customers are satisfied with the Price. Whereas for Ola customers are satisfied with the
Price. So If Taxi for sure can reduce the prices it can increase the number of customers.

Table 3.7 Satisfaction Level of Uber

customer who ride weekly once
50.0%
45.0%
40.0%
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%

47.6%
23.8%

47.6%

42.9%

42.9%
Weekly Once

Nearly half of the customers who are taking rides weekly once with Uber are satisfied with
expediency of pick up after booking the cab, promotional offers available in uber and Adherence
to booking and availability of vehicle. Only few of the customers are satisfied with the price per

kilometer charged by Uber. This is because of the Peak pricing charged by the Uber in Peak
hours as mentioned in Literature review.

Table 3.8 Satisfaction Level of Uber

customer who ride weekly Twice
70.0%
60.0%
50.0%
40.0%
30.0%
47.8%

20.0%
10.0%
0.0%

17.4%

47.8%

60.9%

30.4%

Weekly Twice

More than half of the customers who are taking rides weekly twice with Uber are satisfied with
the availability of the vehicle. Nearly half of the members are satisfied with the expediency of
pick up after booking the cab and Adherence to booking. Whereas only one third of the
members are satisfied with availability of promotional offers. Only few of the customers are
satisfied with the price per kilometer charged by Uber. This is because of the Peak pricing
charged by the Uber in Peak hours as mentioned in Literature review. This is low in comparison
with the other factors.

Table 3.9 Satisfaction Level of Uber

customer who ride weekly Thrice
80.0%
70.0%
60.0%
50.0%
40.0%

75.0%

30.0%
20.0%
10.0%
0.0%

37.5%

43.8%
31.3%

43.8%

Weekly Thrice

3/4th of the customers who are taking rides weekly thrice with Uber are satisfied with the
Expediency of pickup after booking the cab. Nearly half of the members are satisfied with the
adherence to booking and Adherence to booking. Whereas only one third of the members are
satisfied with availability of vehicles and price. This is in contrast with the Ola customers who
rides weekly thrice. In ola they are not facing any problem with the availability of vehicle where
as in Uber they are facing problem with the availability of vehicle.

Table 3.10 Satisfaction Level of Uber

customer who ride Monthly Once
45.0%
40.0%
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%

35.0%

45.0%
30.0%

40.0%

45.0%

Monthly Once

Nearly half of the customers who are taking rides monthly once with Uber are satisfied with the
availability of the vehicle, expediency of pick up after booking the cab and availability of
promotional offers. Adherence to booking. . Only few of the customers are satisfied with the
price per kilometer charged by Uber. This is because of the Peak pricing charged by the Uber in
Peak hours as mentioned in Literature review. This is low in comparison with the other factors.

Table 3.11 Satisfaction Level of Meru

customer
14.00%
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%

13.04%
9.52%
6.25%

0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%

10.00%

6.25%

0.00%
0.00%
0.00%
0.00%

It is clear that Only few customers are using Meru. The customers who are using Meru are
satisfied availability of vehicle. It is because of telephonic bookings. The satisfaction level is low
in expediency of pickup. Whereas none of the customers are satisfied with adherence to booking
and price per kilo meter charged by Meru.

3.2 Problems faced by Customers :

6% 6%
17%

Ola
72%

Uber
TFS
Meru

Table 3.12

Drivers

attitude as a problem

Out of the surveyed people 64% of the customers who took a ride with Ola are facing
driver's attitude as a problem. Whereas 14.81% of the who rode with Uber are facing Driver's
attitude as a problem. Whereas this is less in Taxi for Sure and Meru cabs.

Table 3.13

20%

1%
34%
Ola
Uber

45%

TFS
Meru

Responsiveness to problems raised as Problem

Out of the surveyed people 40% of the customers who took a ride with Uber are facing
responsiveness to the problems raised as a problem. Whereas 30 % of the customers who rode

with Ola are facing responsiveness to the problems raised as a problem. Responsive to the
problems raised is not a major concern for Meru customers.

Table 3.14
Maintenance of cabs as Problem

22%

23%
Ola
Uber
55%

TFS
Meru

Out of the surveyed people 47% of the customers who took a ride with Uber are facing
Maintenance of the cab as a problem. This is mainly because of the various reasons like not
providing Air-conditioner, Radio etc. Whereas 30 % of the customers who rode with Ola are

facing responsiveness to the problems raised as a problem. Responsive to the problems raised is
not a major concern for Meru customers.

Table 3.15Non availability as Problem

8%

6%
37%

Ola
Uber

49%

TFS
Meru

Out of the surveyed people 43.21% of the customers who took a ride with Uber are
facing Non availability as a problem. Whereas one third of the customers who rode with Ola
are facing non availability as a problem. Non availability of the cabs is not the concern for the
surveyed customers as most of them have not taken a ride with Taxi for Sure and Meru.

Table 3.16 Driver's skills as Problem

13%

3%
52%

33%

Ola
Uber
TFS
Meru

Out of the surveyed people 40% of the customers who took a ride with Ola are facing
Driver's skills as a problem. Driver's skills includes the short routes, traffic jam areas and

timings. A driver who knows the short route can save a lot time and money for customer.
Whereas one fourth of the customers who rode with Uber are facing driver's skills as a
problem.

Table 3.17 Customers Who are satisfied with price and Problems faced

28%

35%

Dr. Attitude
Resp. to problems
Maintatinance
Non availability of
cabs
Driving skills

16%
8%

13%

From the above analysis it is clear that Ola customers are satisfied with the Price per kilometer
charged by them. This pie chart depicts the customers who are satisfied with the price and their
problems. 3/4th of the customers who rode with Ola had faced the problem with the driver's

attitude. Whereas 60% of them had a problem with driving skills of the driver. It is revealing the
consumer behaviour before and after the ride. They are satisfied with the price but not with the
driver skills and attitude.

90.00%

80.00%
75.00%

77.14%
70.37%

70.00%

60.42%

58.33%

60.00%

50.00%
Price
40.00%

Expediency

Adherance

Availability

42.86%

48.57% 48.57%
45.83%
44.44%
Promotions

37.14%
33.33%

30.00%

27.08%
25.93%
25.00%

28.57%

33.33%

29.17%

18.52%
16.67%16.67%

20.00%

10.00%

0.00%
Dr. Attitude

Resp. to problems

Maintatinance

Non availability of cabs

Table 3.18 Customers Who are satisfied and Problems faced with Ola

Driving skills

The above figure depicts the customers satisfaction in various factors and how they are
facing the problems with Ola even though they are satisfied in some of the aspects.
1) The customers who are satisfied riding with Ola are majorly facing Driver's attitude as
the problem. 3/4th of the customers who are satisfied with Price and Available promotions are
facing the problem with driver's attitude.
2) On an average 30% of the customers are facing the problem with responsive the
problems raised by the customers after travelling in the cab.
3) More than half of the customers who are satisfied with the other factors are facing the
problem with driving skills of the driver. It includes short routes, traffic jam areas and timings. A
driver who knows the short route can save a lot time and money for customer.

Table 3.19 Customers Who are satisfied and

Problems faced with Uber

70.00%
61.76%
60.00%

50.00%
44.44%
41.18%
40.63%40.91%

46.88%
44.44%

47.06%
44.44%

45.45%

40.91%

40.00%

37.50%
31.82%

35.29%
33.33%

30.00%
Price
22.73%
20.00%

10.00%

0.00%

Expediency

19.44%
17.65%
15.63%

Adherance

Availability

Promotions
21.43% 21.88%

The above figure depicts the customers satisfaction in various factors and how they are
facing the problems with Ola even though they are satisfied in some of the aspects.
1) On an average 40% of the customers are facing the problem with responsiveness to
the problems raised by the customers after travelling in the cab, maintenance of the cab and non
availability of the cabs.
2) More than half of the customers who are satisfied with the other factors are facing the
problem with driving skills of the driver. It includes short routes, traffic jam areas and timings. A
driver who knows the short route can save a lot time and money for customer.
3) On an average 15% of the customers are facing problem with Driver's attitude which
is in contrast with Ola.

CHAPTER 4: CONCLUSION AND RECOMMENDATIONS:

4.1 Conclusion:
The main aim of this research is to study the factors affecting consumer satisfaction level in Taxi
rides and also to study the problems faced by them while travelling in the Taxi and after the ride
completes.
It has been found in the research that for different customers different satisfaction factors are
there in different cabs. It has been found that Price per kilometer is increasing the satisfaction
level of the customers who are taking rides in Ola. Where as in Uber Expediency of Pickup is
increasing the satisfaction level of customers. In Ola and Uber both Presence of promotional
offers is affecting the satisfaction of customers. Whereas in Taxi for Sure and Meru cabs are not
that prominent because of the lack of promotional offers and high price per kilometer.
On the one hand Ola customers are satisfied with its price and promotional offers but on the
other hand it had been noted that customers are facing problem with the bad attitude of drivers.
In Uber customers are satisfied with the expediency of pickup and promotional offers whereas
they are facing the problem with responsiveness to the problems raised.

4.2 Recommendation:
1.

Ola has to work on the availability of the vehicle i.e they have to ensure that
maximum fleet should be there on the road such that no customer gets
dissatisfied with non availability of vehicle. To increase the Adherence to
booking, management has to instruct the drivers that they should take the
booking once they accept the ride otherwise they will charge penalty to the
drivers.
2. Ola has to instruct the drivers how to create a overall positive experience for
customers while they are riding in Ola. By this they can decrease the
problems of the customers who are facing driver's attitude as the problem.
3. As Ola and Uber both are dominating the industry, other cab aggregators like
Meru, Taxi for sure has to work on decreasing the price per kilometer,
increasing the available vehicles and promotions.
4. As Uber's customers are not that satisfied with price even though it is low,
they have to work out a solution to reduce the peak demand prices.

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APPENDICES:
Questionnaire