Taxi Aggregators

Important Stakeholders
According to Merriam Webster, a stakeholder is defined as one who is involved
in or affected by a
course of action. According to this definition, the most important stakeholder as
far as Uber, Ola or any other app based aggregator is concerned is the customer
base. The customer base is responsible for the revenue that these businesses
generate, and it is imperative to take their best interests seriously if Uber and
Ola are to maintain a sustainable business model for decades to come. The
second stakeholder would be the government, since the government acts as a
steward for the land on which these aggregators will conduct their business
dealings. The third stakeholder would be the society in general, since the
externalities of these startups - whether positive or negative - will have an
indelible impact on the societal conditions for years to come. The fourth
stakeholder would be the existing taxi services that do not rely on apps to reach
out to customers. It is not possible to mention stakeholders without talking about
the people who have invested in Uber and Ola, since shareholder wealth
maximization is the principal objective of any business. Finally, the employees of
these companies are also important stakeholders in this situation.

Perceptions of Stakeholders
Customers of Uber and Ola view them as superior replacements to the
conventional taxi services due to their quality of service, speed and convenience.
As a result, there is a customer exodus looming large on the horizon which is a
major cause of concern for the non-app based taxi services. Since Uber and Ola
are more likely to provide better services at comparable prices, customers view
them as a boon, while non-app based taxi services view them as a threat. The
government seems to share the view of non-app based taxi services, as
evidenced by its introductions of regulations to control the operations of Uber
and Ola. As far as society is concerned, Ola and Uber represent the technological
advancement that is not only necessary for progress, but inevitable. Finally, the
employees of Uber and Ola probably view them as a boon, considering that they
are responsible for the creation of jobs which would otherwise not have existed.

Ethical Responsibilities of Taxi Aggregators to

Stakeholders
As far as the customer base is concerned, Taxi Aggregators are obligated to
provide them with safe
service at the very least. The rape incident mentioned in the question is a tragic
consequence of a lapse in the aforementioned obligation, and it represents the
failure of the corporate organization to ensure the safety of the customer even
though this should have been top priority for the company. According to The
Independent, Uber drivers are accused of raping customers almost three times a
month. This is a staggeringly large figure, and it is Ubers responsibility to make
sure that incidents like this do not happen. Uber has an ethical obligation to
follow Indian government regulations if it plans to establish a formidable
presence in India. Moreover, Didis investment in Ola could lead to the formation
of a cartel, leading to a monopoly, which will be bad for the customers in the
long run.

Ethical Responsibilities of Stakeholders to Taxi Aggregators

The government has an obligation to take actions that benefit the nation that it is
governing. In light of
this fact, regulating app-based services in general is a slippery slope that might
not be in the best interests of the Indian economy. The growth of the smartphone
market has presented the young, enterprising entrepreneur to compete with
international corporate conglomerates and even supplant their businesses if the
venture catches on. Imposing regulations on this ecosystem will tilt the game
unfairly in favour of companies who have the resources and the capital to meet
the monetary obligations that the government has put in place, as opposed to
the aspiring entrepreneurs who are reaching for opportunities for which, almost
by definition, they do not have the resources. This is bad news for any app-based
startup and app-based taxi aggregators in particular. Moreover, the Geospatial
Information Regulation Bill, 2016 seeks to impose a fine of 100 crore and/or a
prison term of 7 years for a person (or institution) that inaccurately depicts the
map of India. Clearly, the penalty for the crime in question is way out of
proportion if one considers the fact that the penalty for fraud (a much worse
crime) is also seven years in prison. This will prove to be disastrous for the Indian
startup ecosystem, and it goes against Prime Minister Narendra Modis vision for
a technologically advanced India.

Meeting Ethical Responsibilities

Unfortunately, taxi based aggregators (especially Uber) have not been upto the
mark in meeting ethical responsibilities to its stakeholders. The rape allegations
on Uber drivers are a consequence of its lax hiring policies. Anyone can become
an Uber driver - the only obligation they have to fulfill is to watch a 13 minute
long YouTube video on driving. Uber conducts minimal background checks, which
means that Uber taxis are vulnerable to becoming hunting grounds for sexual
predators.

Benefits to Taxi Aggregators by being Ethical

As has been mentioned before, the customer base is an extremely important
stakeholder as far as any
business is concerned, and this is especially true of app-based startups like Uber
and Ola. By assuring
customers of their safety and taking steps to ensure that the customers do not
get sexually assaulted by
their respective drivers, app-based taxi aggregators are sending the message
that they care about their
customers safety. This will positively impact the reputation of these startups,
which might even result in attracting customers who were previously averse to
app-based taxi aggregators due to safety
considerations. As per the data given in the question, Uber is not doing following
the government
regulations that have been laid down for it. Uber could have justified its stance
by citing its opposition to bulky bureaucratic processes that come in the way of
progress if it hadnt been for Olas adherence to the same norms that Uber is so
vehemently defying. Given that Ola has a larger presence in the Indian market as
compared to Uber, the latter should consider following the footsteps of its rival in
this regard.

Social Well-Being and Ethics of Taxi Aggregators

Higher levels of ethical responsibility shown by taxi aggregators will ensure the
safety of customers,
which will lead to reduced incidents of heinous crimes such as rape and murder.
As Christopher Nolan once said Vigilance is the price of safety, and taxi
aggregators will have to exercise vigilance in order to ensure that they do not
hire criminals as drivers. This will lead to an enhanced brand image, and it might
(as mentioned earlier) help in attracting customers who are apprehensive about
the safety of app-based taxi aggregators.