Dissertation Project Report submitted towards partial fulfillment

Of

BACHELOR OF BUSINESS ADMINISTRATION

Dissertation project report on

Customer preference towards cab apps: Comparative study of OLA and UBER

Submitted by: - ANUSHKA SHARMA Internal guide:

Batch no.:- 2016-2019 Name: - MS Shelly Agarwal

Enrollment No: - 41451101716 Designation: - Assistant Professor

Delhi Metropolitan Education, Sector-62 Noida

Affiliated to Guru Gobind Indraprastha University, New Delhi

1
 CERTIFICATE

This is to certify that the project work " Consumer preference towards cab apps : A comparative
analysis of OLA and UBER” made by Deepanshu Singh Khati, MBA 2nd Semester,
2001160700044 is an authentic work carried out by her under guidance and supervision of
internal guide Dr. Maani Dutt.

The project submitted has been found satisfactory for the partial fulfillment of the degree of
Master of Business Administration (BBA).

Name : Dr. Maani Dutt

Signature :

2
 Table of Contents
Sr. No. Particulars Page No.

1. Acknowledgement

2. Declaration

3. Chapter -1(Introduction)

4. Chapter –2 (Literature Review).

5. Chapter-3 ( Research Objective)

 Need of the study
 Objective of study
 Research Methodology
 Data collection

6. Chapter-4 ( Data Interpretation)

7. Chapter-5(Findings and Conclusion)

8. Chapter-6 (Limitation and Suggestions of the study)

9. Chapter-7 (Bibliography)

Acknowledgement

3
It is not possible to prepare a project report without the assistance and encouragement of other
people. This one is certainly no exception. On the very beginning of this report, I would like to
expand my earnest and sincere obligation towards every one of the personages who have helped
me in this endeavor. Without their dynamic direction, help, participation and support, I would
not have made head path in this task.

I am extremely thankful and pay my gratitude to the faculty guide Dr. Maani Dutt for the
valuable guidance and support on the completion of this term paper in its present state. I extend
my gratitude to JAIPURIA INSTITUTE OF MANANGEMENT, GHAZIBAD for giving this
opportunity to research upon the “COUSTOMER PREFRANCE TOWARDS CAB APPS: A
COMPARATIVE STUDY OF OLA AND UBER”.

I also acknowledge with a deep sense of reverence, my gratitude toward my parents and
members of my family who have supported me morally as well as economically.

At last but not least gratitude goes to all my friends who directly or indirectly helped me to
complete this project.

Any omission in this acknowledgement does not mean lack of gratitude.

Thank you,

Deepanshu Singh Khati

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 Declaration

I hereby declare that the following documented project report titled “COSTUMER
PREFRANCE TOWARDS CAB APPS: A COMPARATIVE STUDY OF OLA AND UBER” is
an original authentic work done by me for the partial fulfillment of MBA degree programmer.

I hereby certify that all the endeavor put in the fulfillment of the task are genuine and original to
the best of my knowledge and I have not submitted it earlier elsewhere.

Name of Student : DEEPANSHU SINGH KHATI

Course Class & Shift : MBA, 2ND SEM

Enrollment No. : 2001160700044

CHAPTER- 1
5
 INTRODUCTION OF THE TOPIC

INTRODUCTION
Concept of organized rental cab was introduced to Indian consumer in 2004 when Meru cab
service was
Launched in major metro cities of India and then almost after six years App based rental cab
service was
Introduced in Indian market. Among various transportation mode cab service gained popularity
because of its
Advantage of door to door service and now because of technological advancement customers
were able to
Book cabs at competitive price in just one click using their smart phones. These App based cab
services were
Having tremendous potential for growth in densely populated countries like India where
parking is major
Problem because of space crunch as well as public transports are over cowered during peak
hours. Slowly
This convenient mode of travel started gaining popularity and competition became dense after
Uber’s launch
In 2013
INTRODUCTION
Concept of organized rental cab was introduced to Indian consumer in 2004 when Meru cab
service was
Launched in major metro cities of India and then almost after six years App based rental cab
service was
Introduced in Indian market. Among various transportation mode cab service gained popularity
because of its
Advantage of door to door service and now because of technological advancement customers
were able to
Book cabs at competitive price in just one click using their smart phones. These App based cab
services were
Having tremendous potential for growth in densely populated countries like India where
parking is major
Problem because of space crunch as well as public transports are over cowered during peak
hours. Slowly
This convenient mode of travel started gaining popularity and competition became dense after
Uber’s launch
In 20
INTRODUCTION
Concept of organized rental cab was introduced to Indian consumer in 2004 when Meru cab
service was
Launched in major metro cities of India and then almost after six years App based rental cab
service was

6
Introduced in Indian market. Among various transportation mode cab service gained popularity
because of its
Advantage of door to door service and now because of technological advancement customers
were able to
Book cabs at competitive price in just one click using their smart phones. These App based cab
services were
Having tremendous potential for growth in densely populated countries like India where
parking is major
Problem because of space crunch as well as public transports are over cowered during peak
hours. Slowly
This convenient mode of travel started gaining popularity and competition became dense after
Uber’s launch
In 2013.
As customers have become more demanding it’s a challenging job for rental cab
industry to meet the
Customer’s expectations. Now a days not just the price but quality service also plays an
important role in
Customer satisfaction. Now using a smart phone consumer can access, compare, evaluate and
purchase. In
This situations App based services such as Ola or Uber Cabs offered solution by offering
various services
Ranging from the economic to ultimate luxury. As per a current report in the financial express
introduction of
App based pre-paid taxi services like Uber and Ola taxi not only grabbed customers’
attention but also
Contributed in increasing employability by providing opportunity to drivers
INTRODUCTION
Concept of organized rental cab was introduced to Indian consumer in 2004 when Meru cab
service was
Launched in major metro cities of India and then almost after six years App based rental cab
service was
Introduced in Indian market. Among various transportation mode cab service gained popularity
because of its
Advantage of door to door service and now because of technological advancement customers
were able to
Book cabs at competitive price in just one click using their smart phones. These App based cab
services were
Having tremendous potential for growth in densely populated countries like India where
parking is major
Problem because of space crunch as well as public transports are over cowered during peak
hours. Slowly
This convenient mode of travel started gaining popularity and competition became dense after
Uber’s launch
In 2013.
As customers have become more demanding it’s a challenging job for rental cab
industry to meet the

7
Customer’s expectations. Now a days not just the price but quality service also plays an
important role in
Customer satisfaction. Now using a smart phone consumer can access, compare, evaluate and
purchase. In
This situations App based services such as Ola or Uber Cabs offered solution by offering
various services
Ranging from the economic to ultimate luxury. As per a current report in the financial express
introduction of
App based pre-paid taxi services like Uber and Ola taxi not only grabbed customers’
attention but also
Contributed in increasing employability by providing opportunity to drivers
INTRODUCTION
Concept of organized rental cab was introduced to Indian consumer in 2004 when
Meru cab service was launched in major metro cities of India and then almost after
six years App based rental cab service was introduced in Indian market. Among
various transportation mode cab service gained popularity because of its advantage
of door to door service and now because of technological advancement customers
were able to book cabs at competitive price in just one click using their smart
phones.
These App based cab services were having tremendous potential for growth in
densely populated countries like India where parking is major problem because
of space crunch as well as public transports are over cowered during peak hours.
Slowly this convenient mode of travel started gaining popularity and competition
became dense after Uber’s launch in 2013.
As customers have become more demanding it’s a challenging job for
rental cab industry to meet the customer’s expectations. Now a days not just
the price but quality service also plays an important role in customer satisfaction.
Now using a smart phone consumer can access, compare, evaluate and purchase.
In this situations App based services such as Ola or Uber Cabs offered solution
by offering various services ranging from the economic to ultimate luxury. As per
a current report in the financial express introduction of App based pre-paid taxi
services like Uber and Ola taxi not only grabbed customers’ attention but
also contributed in increasing employability by providing opportunity to drivers.

8
 OLA

Founded in 2011 by Banish Aggarwal and Ankit Bhati, Ola is one of the
world’s largest ride-sharing companies. Ola integrates city transportation for
customers and driver-partners onto a mobile technology platform ensuring
convenient, transparent, and quick service fulfilment. Ola is focused on
leveraging the best of technology and building innovative solutions ground-up
that are relevant at global scale. 

Notably, in 2016, Ola Play the world’s first connected car platform for ride-
sharing was launched, transforming commuting experiences and setting the
tone for global innovation in this space. Beyond offering a highly personal
experience for users during their rides, Ola Play also allows its partners like
Microsoft, Apple Music, Sony Liv amongst others, to build a high quality
interactive and productive experience for its users. Using the Ola mobile app,
users across 110+ cities, can connect with over 1,000,000 driver-partners across
cabs, auto-rickshaws, and taxis. Driven by a hyper local approach, Ola is
committed to its mission of building mobility for a billion people.

 9, 00,000 Vehicles serving millions of customers every day.

 110+ Cities serviced by the Ola fleet to get you to your destination on time,
every time.
 10, 00,000 a million empowered entrepreneurs as driver-partners on the
platform.
 6000+ Employees work tirelessly to provide you with the best in technology
and service.

The duo behind Ola

Bhavish Aggarwal (Co-Founder and CEO)

9
Bhavish is the Co-Founder & CEO of Ola, one of the world’s largest ride-
sharing platforms and India’s most popular mobile app for transportation. With
the mission of building mobility for a billion people, he started Ola (formerly
OlaCabs) in 2010 with Ankit Bhati, a fellow alumnus from the Indian Institute
of Technology in Mumbai, the country’s premier institution for technology and
science. 

Before Ola, Bhavish worked with Microsoft Research for two years, filing two
patents alongside having three papers published in international academic
journals. True to his belief of the need to have on-demand consumer
transportation as a service, Bhavish doesn't own a car himself and vows that he
never will!

Ankit Bhati (Co-Founder and CTO)

Ankit is the Co-Founder & CTO of Ola, one of the world’s largest ride-sharing
platforms and India’s most popular mobile app for transportation. With the
mission of building mobility for a billion people, he started Ola (formerly
OlaCabs) in 2010 with Bhavish, a fellow alumnus from the Indian Institute of
Technology in Mumbai, the country’s premier institution for technology and
science. 

At Ola, Ankit leads product, engineering, and data sciences, ensuring a strong
back-end
System that powers the experience of riders and driver partners alike. Scaling
Ola in a short span of time, he has played a lead role in pioneering technologies
such as mapping innovations, the world’s first connected car platform - Ola
Play, and offline bookings that made Ola accessible for a large segment of the
population.

SWOT ANALYSIS

Strengths
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 Grabbed the First mover advantage as a taxi aggregator in India
 Acquired Taxi For Sure which made it No. 1 in India
 High awareness among public due to aggressive TV, online and print media
marketing techniques.
 Huge customer base & due to network effect it is increasing
 Rapidly expanding and online application
 Multiple rounds of venture capital investments have made the brand financially
strong.

Weaknesses

 Drivers are the face of the company and hence their misbehavior directly affects
its brand image
 Monetization is very difficult as the demand is huge, amount of cash burning is
huge.

Opportunities

 Potential is high as Unorganized market is huge (~90%)

 Increasing internet penetration &Smartphone users
 Rising disposable income of the people
 Huge demands as the customers look for more and more convenience in terms of
hassle free drive and no tension of finding parking.
 Acquisition of smaller players in the market.

Threats

 New competitors entering the market.

 Uber has deep pocket and hence can burn cash heavily
 Presence of many national players in the market
 Future is unclear due to lack of government regulations in developing countries.

11
 UBER

Uber was founded in 2009 as Uber Cab by Garrett Camp, a computer programmer
and the co-founder of StumbleUpon, and Travis Kalanick, who had sold his Red
Swoosh startup for $19 million in 2007.
On New Year's Eve, after Camp and his friends spent $800 hiring a private driver,
Camp wanted to find a way to reduce the cost of direct transportation. He realized
that sharing the cost with people could make it affordable, and his idea morphed
into Uber. Kalanick joined Camp and gives him "full credit for the idea" of Uber.
The first prototype was built by Camp and his friends, Oscar Salazar and Conrad
Whelan, with Kalanick being brought on as a "mega advisor" to the company.
Following a beta launch in May 2010, Uber's services and mobile app officially
launched in San Francisco in 2011. Originally, the application only allowed users
to hail a black luxury car and the price was 1.5 times that of a taxi.
In February 2010, Ryan Graves became the first Uber employee, getting the job by
responding to a tweet from Kalanick announcing the job opening, and receiving 5–
10% of the company. Graves started out as general manager and shortly after the
launch was named as CEO.] After ten months Kalanick succeeded Graves as CEO
in December 2010. Graves stepped down to become the company's COO.
In 2011, the company changed its name from UberCab to Uber after complaints
from San Francisco taxi operators.
The company's early hires included a nuclear physicist, a computational
neuroscientist, and a machinery expert who worked on predicting demand for
private hire car drivers and where demand is highest. In April 2012, in Chicago,
Uber launched a service where users were able to request a regular taxi or an Uber
driver via its mobile app.
Uber is often credited in creating a new category of a transportation network
company and defining on demand transportation.

SWOT ANALYSIS

Strengths

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 Well-recognized brand
 Unlimited fleet of vehicles available. Regular Taxi service regulations are not
applicable for Uber.
 Operational cost is quite low. As it relies on customer-to-driver interaction, a
dispatcher is not needed.
 Very little competition.
 Dual rating system boosts safety and trust.
 Convenient system for the drivers. They can work for flexible hours and can even
choose to be a part-time employee. Drivers can also reject unwanted clients.
 Lower prices as compared to traditional taxi operators.
 High valuation of Uber encourages many people to invest in it.

Weaknesses

 Easily imitable ides. Nothing will prevent competition from presenting the same
product/service.
 Ethically questionable between Uber and the drivers. It is expected that loyalty
between Uber and its drivers is quite low as it lacks real connection.
 Uber and its customers have no bonding. Incentive remaining with Uber is low.
 Cost of operating vehicles is very high. But, the drivers do not earn much.
 There are privacy concerns. Uber records where customer gets the taxi from and
where he goes with it.

Opportunities

 Customers are often dissatisfied with traditional cab companies because of their
high prices and long waiting time and hence can exploit new and big markets in
countries like India.
 Can tap growing markets in suburban areas where taxi services are not available.

13
 Estimated Time of Arrival can be reduced with rise in the number of Uber drivers
which in turn will make Uber more liked by the customers and hence, the startup
will get more revenue and drivers will also be profited.
 Cheaper electric cars can be used which will reduce the cost and increase the
driver’s profit margin.

Threats

 Low-profit margins causes dissatisfaction among the drivers. This might lead to
bad publicity, which can in turn discourage the new drivers from joining Uber.
 Increasing competition will ultimately decrease prices. This will discourage
drivers from joining the startup in new markets, resulting in loss of customers.
Ultimately, Uber‟s revenues will decline.
 As new markets and drivers are joining, fraud and scandals are also increasing.
It’s damaging for the brand.
 Self-driving cars, e.g. Tesla, can probably eliminate the need for Uber.

14
 Special Programs by Ola and Uber

Ola Pragati is an initiative lead on by Ola to get drivers on board. The initiative
helps drivers to avail a car loan from SBI and drive for Ola. Drivers that perform
the best are called as OlaStars and are further awarded with additional benefits
such as fuel subsidy, cash back and scholarships for their kids.
Whereas Uber also followed a similar initiative called Uber Dost and also runs
loan melas (fairs) to attract in new drivers. Their rewards include free insurance,
benefits on health, education subsidy for kids, etc.
Coming to the service offerings by both the companies - different sizes of cars that
offer different slabs of fares. For instance, the cheapest rides offered by both,
namely, OlaMini & UberGo (hatchbacks) cost Rs. 5 to OLA VS UBER: The Battle
of Dominance Building Research & Analytics IN Sciences, Technology, and
Operations Research & Management Rs. 8 per km. Except for the 20% that goes
out for commission to the company, the rest of the income ends up with the
drivers.
On April 4, 2016, Ola launched bus shuttles and further offered e-rickshaw
services as well. The fares for these taxis vary from Rs. 23 per km for a sedan to
Rs. 16 per km for a hatchback, but increase when ride demands are high.During the
time of odd-even car plan in January launched by the Delhi government, Uber
fares rose up to three times.
Both the companies catch up on each other's updates really quickly. On March 3,
2016 a new category was introduced by Uber under bike taxi services and Ola
launched the same within 24 hours. Other examples may include introducing auto
rickshaws and cab pooling.
Uber offers a lot more options in terms of mode of payment to the customers as
compared to Ola. Uber gives the option to pay via Paytm wallet, Airtel wallet,
cash, debit & credit cards. While Ola introduced its own wallet Ola Money and
also gives the option of paying via cards and cash.
According to some reports by industry watchers, in India, Ola remains as the
undefeated champion in most rides per day. Being launched in 2011, two years
before Uber entered India, Ola has had a head start over its rival. Having known
15
the domestic environment and market earlier than its rival, Ola ramped up fast.
Today, Uber serves in 26 cities in India, employing 250,000 drivers. Whereas, Ola
is present in 102 cities with 450,000 drivers using the platform.
Even though both companies have similar products/services and fares, they have
individually adopted different strategies for long-term growth. On one side, Ola
wishes to expand to more than its current 102 city radius, on the other hand Uber
wants to go deeper in its current radius.
India is a big name in terms of potential growth. Till now, 85% of the business of
both the companies comprises from top ten cities of the country. Even though
Indian market is much unorganized, 10% of the share of $15 billion is in the hands
of players like Easy Cabs, Meru, Uber, Ola and more.
In India, the battle in the taxi business will ultimately be between Ola and Uber.
All the other competitors are bleeding as a result of their no-holds-barred battle.
Siddhartha Pawha, CEO, Meru Cabs, says the objective of deep discounts (offered
by Uber and Ola) is to kill competition. "Their fight is sign of desperation as
billions of dollars are at stake.”
Meru, which has once been the leading player in the cab business in India, lost its
position to Ola in 2015. It also approached anti-trust regulator Competition
Commission of India in Bengaluru against deep discounting by Ola and Uber,
which was dismissed later. "It is irrational pricing and unsustainable," says Rajiv
Vij, CEO, Carzonrent, which runs EasyCabs.Carzonrent has put on hold part of its
expansion plans. As said by Rajiv Vij, "The taxi market has been impacted due to
pricing competition between Ola and Uber. We have not invested in growth for
some time now. We believe some sanity will emerge in another one or two years as
investors look for profits."

16
 CHAPTER-2
LITERATURE REVIEW

 Hanif and Sagar (2016) had stated that there was demand for Call-a-Cab
service offered by Meru Cab. The cab services are proving security through
global positioning system (GPS) and women taxi drivers for women
passengers especially during night times. According to Harding et al (2016)
the auto-rickshaws (three wheelers) are more popular in urban transport
before the advent of cars and cabs. Horsu and Yeboah (2015) had argued
that driver behavior have negative impact on customer satisfaction in Ghana.
The variables like continuous service, comfort, reliability and affordability
have an impact on customer satisfaction with regard to minicab taxi.

 According to Lu et al (2015) the self- service mobile technologies helps the

commuters to access lot of data about cab services and such technologies
had changed the role of both customers and companies. The adoption of call
taxi app (CTA) is impacted perceived usefulness, perceived ease of use,
subjective norms and perceived playfulness (Peng, Wang, He, Guo, & Lin,
2014). Chen (2014) had explained that mobile apps help both drivers and
passengers to find each other. At present the mobile apps are helps the
customers to find cabs. In the recent years the car rental industry is growing
constantly especially in metropolitan cities in India (Rahman, 2014)

 The Meru cabs had become more popular and the demand for its cabs had
exceeded that its supply which means technology had created huge demand
for organized cab industry. The factors like accessibility, reliability and
transparency are primary factors which have attracted customers towards
branded cab services like Meru cabs (Vaithianathan & Bolar, 2013). The
customer feedback in cab services industry is very important for attaining
success in the competitive car rental industry. Upadhyaya (2013) had
explained how Meri Cab Company had collected feedback from its
customers and enhanced its service quality for sustaining in the business.

17
 Geeta Kesavaraj (2013), reveals that “As global competition grows,
communication and technology channels open up new markets, and products
and services are translated into a wide array of choices for our audiences,
companies must work harder than ever to gain and keep customers at a
competitive cost. In this new age, companies must focus their strategy,
energy, processes and budgets to improve their knowledge and commitment
to customers. It is imperative that companies make it their priority to use
innovative Customer Relationship Management methodologies and to know
how to implement customer centric strategies, together with the use of
adequate technologies to aid in this process”

 . Tazyn Rahman (2014), According to the industry sources, unorganized

operators dominate about 85% of the market. The car rental industry grew
from ` 30bn in FY03 to ` 200bn in FY11 notching up an annual average
growth of 30%.The Radio cabs business has emerged as one of the fastest
growing businesses in the Indian transportation sector. The concept of 24-
hour radio cabs caught up in the country about a decade back with Delhi-
based Mega Corp setting the wheels rolling under the Mega Cabs brand in
cities such as Bangalore, Mumbai, Calcutta, Chandigarh, Ludhiana and
Amritsar. Guwahati also is not laying back in this regard. Private luxury taxi
operators in Guwahati are also planning to expand their fleets in the absence
of a stateowned service and the shift by most commuters to the economical
yet comfortable mode of transport. The Northeast is a prime destination for
tourist, so the demand for car rental services can only get bigger. In the
absence of a state owned radio cab service in Guwahati, the private players
are eyeing big business. My Taxi has the pioneered private taxi operators
(not radio taxi) to hit the road in 2010 followed by Prime Cabs. Prime Cabs
launched in 2012 has emerged as the first organized Radio taxi service
provider. Prime Cabs offers a cab service that emulates the best taxi service
norms across the world. Their endeavor is to ensure that customers need for
commuting is met every time they need to commute and in as hassle free a
manner as possible. The prime objective of this study is to understand the
customer perception and customer satisfaction level on Radio Taxi services
with special reference to the city of Guwahati and to offer suggestion to
improve the performance of the services.

 Dipesh Bhawnani, ET. al., (2015), focuses on analyzing the cab company’s
customer dataset which will help International Journal of Pure and Applied

18
 Mathematics Special Issue 14921 company to analyze its frequent
customers: so that the company can understand its customers and can
provide different offers to them. Demand of cabs of particular type and at
particular location and time, so that the company could make necessary
arrangement of particular cab like small cabs, luxury cars, buses etc. We
have analyzed the possible cancellations of cab booking by the customer
using data obtained from the company. The goal is to reduce the cost
incurred by the company as a result of cab cancellations made by the
customer. Cab companies will be able to manage its vendors and drivers by
providing them with up to date information about Customer cancellations.
We have also analyzed travel and package type used by the customer.
Tableau is used to connect Horton works hive data source and the data is
analyzed and shown in graphical format for better visualization and
understanding.

 Kumar, Kishore & Namavaram, Ramesh. (2016), the purpose of this paper
is to study the factors influencing the consumers while selecting cab
services. The dependent variable is 'coupon redemption behavior' and
independent variables are innovativeness and price consciousness. The
relationship between dependent and independent variables are empirically
verified through statistical methods. The statistical tools like correlation,
regression and descriptive statistics are used for data analysis. It is found
from the study that consumers are interested to redeem coupons while
selecting cab services. It is also revealed from the study that consumers are
comfortable to redeem coupons through mobile apps while booking cab
services.
 Rexi A. (2016) states that “Call taxi have a greater value in the community,
in the taxi industry is regulated in various ways by the state Governments
through their respective Departments of Transport. Through this regulation
the Government is able to exert some control over the activities of the
industry, with the ultimate objective of providing a higher level of service (a
complex construct in itself) to the public. In the current scenario the best and
convenient way to travel to and from bus stands, railway stations, airports
and to other places of interest in Coimbatore is by call taxi. There are as
many as 40 to 50 call taxi service providers available in the Coimbatore city
and its suburbs call taxi service is mostly available 4 hours within the day.
And people regard it as the most convenient way to travel. This study is
mainly used to identify the awareness towards call taxi services, factors

19
 influencing the choice of call taxi services, satisfaction towards the call taxi
services, and the problem faced by people while using call taxi services.

 Ruchi Shukla, Ashish Chandra & Himanshi Jain (2017) states that “Every
other day in India, there is a new start up offering efficient cab service to the
citizens operating in urban and rural lifestyles. This raises a question that is
India going through a possible 'Taxi Revolution' In this paper, an attempt has
been made to do comparative study of two of such taxi aggregators that have
radically changed the way "the great Indian middle class" commutes daily-
Ola and Uber. Currently, both Ola and Uber cabs are following International
Journal of Pure and Applied Mathematics Special Issue 14922 the strategy
of expanding their operations and building customer base in key
metropolitan cities across India. The motive is to increase market share and
achieve economies of scale and at the same time providing customer
satisfaction. This article seeks to understand the dynamics of India's taxi
market by studying various factors like the pricing, market share, revenue
models, etc. The paper is qualitative in nature and based on secondary data
collected from different sources.

 Ruchi et al (2017) studied various factors of dynamics of Indian taxi markets

such as pricing, their revenue models, market share etc. Utsav Pandya et al
(2017) identified technology trends, safety, and price, ease of availability,
comfort and payment options affecting public taxi market. Sarit Prava Das et
al (2017) identified convenience, quality services, transparency and safety as
most important parameters for selecting pre booked taxis. A study by Kumar
and Kumar (2016) showed that consumers were interested to redeem
coupons while selecting cab services and were comfortable to redeem
coupons through mobile apps while booking cab services.

 With customers, service providers are also important in any service industry,
in this regard a research by Ruchika Malik (2017) identified that retaining
drivers by initiatives like monetary awards of influence customer decision.
Ola is using reward systems to motivate their drivers thus motivating them
as well as involving them in resolving the customer grievances to build a
loyal base of drivers. On other side Uber offers rewards and discounts under
their Uber CLUB program. This program is not only design impact drivers
but is also designed to help their family by providing them various offers

20
 related to automobile insurance, vehicle maintenance, lifestyle, health and
wellness to their everyday life. There are three categories Silver, Gold and
Diamond, based on the quality and performance of each driver.

 One more comparatively study of Ola and Uber by Allamdas Rohit H.

(2017) suggested that as Indian consumers and highly price-sensitive and
very less brand loyal, companies need to design new packages to attract new
customers and to keep existing customers. Similar research by Shukla et al
(2017) on OLA and UBER suggested, to adopt highly innovative and
customer-centric strategies to increase market share. Therefore, it would not
be that easy for both the companies Ola and Uber to operate in an
environment which has to be more customer-centric & target oriented,
highly innovative, and have resistant to pressure from the regulatory
authorities and keep delighting their customers.

21
 CHAPTER-3

RESEARCH OBJECTIVE

NEED OF THE STUDY

 The organized cab service providers have increased in the recent years. There is
stringent competition among various operators like Ola, Radio cabs, Yellow
cabs, Meru and Uber etc. In this regard it necessary to understand the consumer
behavior towards is very important to formulate business strategies. This study
helps the marketing managers in car services industry and academicians to gain
insights about consumer behavior towards cab services.

 In every sphere of business, the service and quality should be matched with the
perceived, expected and delivered. The big market players in call taxi services
are keen in enhancing the products and services to tap the customer base. This
study will help us to know the customers satisfaction with respect to the
comfort, convenience, tariff, service quality and staff courtesy, etc. Also, we
can have the input and ideas to improve the services to meet out the customer
expectation in the near future.

22
 OBJECTIVE OF THE STUDY

 To study the influence of price consciousness on consumers while selecting a

cab service.
 To ascertain the role of innovativeness of the consumers in the selection of cab
services.
 To study the impact coupon redemption behavior of consumers in the selection
of cab services.
 To find out the customer satisfaction towards the call-taxi services.
 To find the level of convenience and comfort with call-taxi services.
 To know their opinion about the tariff system and promptness of service.
 To ascertain the customer view towards the driver behavior and courtesy.
 To provide inputs to enhance the services to delight the customers.
 To study the satisfaction level of respondents for Comfort level and Waiting
period after booking OLA/ UBER cab.
 To study the overall analysis of OLA/UBER services and what exactly people
think about OLA/UBER in Delhi NCR.
 To study the Motivational factors which drive people to use OLA/UBER cab
services in Delhi NCR.

23
 RESEARCH METHODOLOGY

What is research?

Research is logical and systematic search for new and useful information on a
particular topic. It is an investigation of finding solutions to scientific and social
problems through objective and systematic analysis. It is a search for knowledge
i.e. a discovery of hidden truth. The information might be collected from different
sources like experience, human being, books, journal, nature etc. A research can
lead to a new contribution to an existing knowledge. Only through research is it
possible to make progress in a field. Research is done with the help of study,
observation, experiment, comparison and reasoning. It seeks prediction of events
and explanation, relationship and theories for them.

Research Methodology

It is a way to systematically sole the research problem. It may be understood as a

science of studying how study is done scientifically. In it, we study the various
steps that are generally adopted by researcher in studying his research problem
along with the logic behind them. It is necessary for the researcher to know not
only research methods /technique but also the methodology. Researcher not only
need to note how to develop certain test, how to calculate the mean, the mode, the
median, the standard deviation, how to apply particular research technique but they
also need to know which of these method or technique are relevant and which are
not and what would they mean and indicate and why.

24
Researcher also need to understand the assumptions underline various techniques
and need to know the criteria by which they can decide they certain technique and
procedures will be applicable to certain problem and others will not. All this means
that, it is necessary for the researcher to design his methodology for his problem as
the same may differ from problem to problem.

Research Design

A research design is the set of methods and procedures used in collecting and
analyzing measures of the variables specified in the research problem research.
The design of a study defines the study type (descriptive, correlation, semi-
experimental, experimental, review, meta-analytic) and sub-type (e.g., descriptive-
longitudinal case study), research problem, hypotheses, independent and dependent
variables, experimental design, and, if applicable, data collection methods and a
statistical analysis plan. A research design is a framework that has been created to
find answers to research questions

The preparation of research design appropriate for a particular research problem,

involve the consideration of the following:-

Types of Research Design

 Exploratory Research: Just as the word implies, it explores, that is to find

out about something by answering the question in “what” or “How” manner.

25
 Descriptive Research: This is a more in-depth research that answered the
question what and how.

 Explanatory Research: This seeks to explain the subject matter being

researched and tries to answer the question what, how and why

 Evaluation Research: This is quite extensive as it measures the

effectiveness of a program.

Research Design used for the project

In this project I have used Survey Research Design (descriptive research design)

Survey or Descriptive research design.

Descriptive research design helps provide answer to the question of who what
when where and how associated with a particular problem; a descriptive study
cannot conclusively ascertain answer to why. Descriptive research is used to obtain
information concerning the current status of the phenomenon and to describe “what
exist” with respect to variable or condition in a situation.

Descriptive research can be either qualitative or quantitative. It can involve

collection of quantitative information that can be tabulated along a continuum in

26
numerical form. It involves gathering data that describe events and then organized
tabulate, depicts and describe the data collection. It often uses visual aids such as
graphs and charts to aid the leader in undertaking the date distribution.

Data Collection

Data collection is a standout amongst the most essential stages in carrying on a

research. You can have the best research plan in the world however, in the event
that you can’t gather the necessary data you will not have the capacity to complete
your venture. Data collection is an extremely challenging work which needs
exhaustive planning, diligent work, understanding, determination and more to have
the capacity to complete the assignment effectively. Data collection begins with
figuring out what sort of data is needed, followed by the collection of a sample
from a certain section of the population. Data collection is the process of gathering
and measuring information on targeted variables in an established systematic
fashion, which then enables one to answer relevant questions and evaluate
outcomes. Data collection is a component of research in all fields of study
including physical and social sciences, humanities, and business. While methods
vary by discipline, the emphasis on ensuring accurate and honest collection
remains the same. The goal for all data collection is to capture quality evidence
that allows analysis to lead to the formulation of convincing and credible answers
to the questions that have been posed.

27
Sources of Data Collection – Primary & Secondary

We can gather data from two sources namely primary and secondary. Data
gathered through perception or questionnaire review in a characteristic setting are
illustrations of data obtained in an uncontrolled situation. Secondary data is the
data acquired from optional sources like magazines, books, documents, journals,
reports, the web and more.

Data collection used for the project

In this project I have used primary data collection

Primary Data Collection

Primary data will be the data that you gather particularly with the end goal of your

research venture. Leverage of Primary data is that it is particularly customized to

your analysis needs. A drawback is that it is costly to get hold of. Primary data is

otherwise called raw information; the information gathered from the first source in

a controlled or an uncontrolled situation. Cases of a controlled domain are

experimental studies where certain variables are being controlled by the analyst.

28
 Sampling Methodology

Sampling Methodology has been used by me for making the project.

Sampling size: 50

Sampling Area: Delhi NCR

In a simple random sample of a given size, all such subsets of the frame are given
an equal probability. Each element of the frame thus has an equal probability of
selection: the frame is not subdivided or partitioned. Furthermore, any given pair
of element has the same chance of selection as any other such pair. This minimizes
bias and simplified analysis of result. In particular, the variance between individual
results within the sample is a good indicator of variance in overall population
which makes it relatively easy to estimate the accuracy of result.

However, SRS can be vulnerable to sampling errors because of randomness of the

selection may result in a sample that doesn’t reflect the makeup of the population.

29
 CHAPTER-4
DATA INTERPRETATION

DATA INTERPRETATION

This chapter discusses the data analysis from 50 responses collected from various
age group people who are using OLA/UBER paid taxi services in different regions
of Delhi NCR. This chapter solely focuses on presenting the gathered data in a
meaningful way to facilitate the research that is to find out the customer
satisfaction level of OLA/UBER cabs. This provides the background to the
respondents by analyzing their demographic details. Tables and diagrams have
been used to facilitate a simplistic reader-friendly writing.

1. What is your age?

 18-30
 30-40
 40-50
 50-60

30
 Age Gruop

18-30 30-40 40-50 50-60

INTERPRETATION: - From the above data we can interpret that maximum

number i.e. more than half of the respondents are between the age group 18-30.
Then the maximum number is from the age group 30-40 and age group of 50-60
has the minimum number of respondent.

2. Gender of the respondent?

 Female
 Male

31
 Gender

Female Male

INTERPRETATION: - We have equal number of respondents both female and

male.

3. How often do you travel by cab?

 Everyday
 Every week
 Every Month
 Never

32
 frequency of usage

Everyday Every week Every Month Never

INTERPRETATION: - From the above data we can interpret that respondent

prefer to go out in a cab occasionally or when in need.

4. How you book a taxi?

 Call a taxi company.

 Visit taxi website
 Cab app

33
 mode of booking taxi

call website app

INTERPRETATION: - From the above data we can interpret that half of the
respondent prefer to book a taxi from the apps. Other respondents prefer to book
taxi either from website or by calling the agency.

5. Satisfy with the usage of taxi apps?

 Yes
 No

34
 satisfy

Yes No

INTERPRETATION: - From the above data we can interpret that mostly people
are satisfied with the cab apps.

6. Will you recommend Ola or uber to others?

 Yes
 No

35
 Yes No

INTERPRETATION: - Maximum number of respondents will surely recommend

Ola or uber to others.

7. What is the purpose of using a taxi?

 Personal travel
 Professional travel.

36
 purpose

personal professional

INTERPRETATION: - More than half respondents use Ola or uber for personal
travelling rather than professional travelling.

8. Better pricing policy is provided by which taxi app?

 Ola
 Uber

37
 pricing

ola uber

INTERPRETATION: - From the above data we can interpret that the pricing
policy of UBER is far better than the pricing policy of OLA.

9. Do you feel safe when you book taxi for your own?

 Yes
 No

38
 safety

yes no

INTERPRETATION: - Most of the respondents feel safe while travelling in a

cab alone.

10. Do you like your taxi driver to engage in a conversation with you?

 Yes
 No

39
 conversaton with driver

Yes No

INTERPRETATION: - From the above data we can say that most of the people
does not want that their cab driver involve in a conversation with them..

11. Why you prefer Ola cab app?

 Covineance
 Safety
 Pricing
 Quality of service.

40
 OLA

Convineance Safety Pricing Quality

INTERPRETATION: - Most of the people prefer Ola for the convenience and
lest number of people prefer Ola for their pricing policy.

12. Why do you prefer UBER?

 Convenience
 Safety
 Pricing
 Quality of service.

41
 UBER

Convineance Safety Price Quality

INTERPRETATION: - Most of the respondents prefer Uber for their pricing

policy and least number of people prefer Uber for their quality of service.

Question 13:- Who provide more coupons and discounts?

 Ola
 Uber

42
 Coupons

OLA UBER

INTERPRETATION:- From the above data we can interpretate that most people
thinks that the uber provide more discounts and coupons than ola ,because of
which people thinks that uber is more economical.

QUESTION 14:- Was is easy to use the app for booking a taxi?

 Yes
 No

43
 Convineance

Yes No

INTERPRETATION:- Most of the respondants thinks that using the mobile taxi
app is more often convineant to use.

QUESTION 15:- Do you think a panic button should also be insalled in the cabs
for a better safety experience.

 Yes
 No

44
 Panic Butt on

Yes No

INTERPRETATION:- From the above data, we can analyse that the installation
of a panic button in cabs will prove to be a great initiative for the safety of
customers especially feamles.

QUESTION 16:- What problems do you face in online cab apps?

 Driver cancels the cab

 Waiting time
 Arrogant drivers
 No availiablility of cabs near streets.

45
 Problems

Driver cancels the cab Waiting Time

Arrogant driver No availiability of cabs near streets

INTERPRETATON:- Respondants give a mix answer to this question, some of

them find a problem with the misbehaviour of the drivers, some of them have to
wait for the cab for a long duration of time. Whereas, some find pften the driver
cancels the cab and the driver refuses to come in streets to pick up the costumer.

QUESTION 17:- Would you feel safer with a male or female driver?

 Male driver
 Female driver

46
 Driver

MALE FEMALE

INTERPRETATION:- From the above we can say that, respondants will feel
more safe when they ride with a female driver.

QUESTION 18:- Does the online food facility provided by the cab apps is an
innovative and beneficial idea?

 Yes
 No

47
 Food

Yes No

INTERPRETATION:- Most of the people thinks that the food ordering facility
provided by the cab apps is an innovative and beneficial idea.

48
 CHAPTER-5

FINDINGS AND CONCLUSIONS

 Students and working people are the main customers for the online taxi.
 Now a day’s people are preferring the mobile apps to book a cab rather than
calling to taxi stand.
 Innovation and discounts will attract more and more customers.
 Majorly women’s prefer cab apps because of the safety and quality of
service provided by the Ola and uber.
 More people prefer Uber for their economic pricing policy.
 But people thinks that Ola provide more quality in their service.

49
 CHAPTER-6

LIMITATIONS AND SUGGESTIONS OF THE STUDY

LIMITATIONS:-
 The sample respondents may not represent the entire population.
 The study is limited by time and financial resources.
 The respondents may be casual while answering the query.
 The consumer behavior is dynamic in nature and it tough to make robust
conclusions from the study.
 These limitations can be addressed through future studies in the field of
consumer behavior.

SUGGESTIONS:-

 The young crowd is the major source of market for the cab apps.
 They are attracted towards the offers and cash discounts.
 The drivers and the call center executives are to be trained in well in
communication and multi-linguistic proficiency to attract new markets.
 The service providers shall provide more facilities and for their privileged
customers.
 They drivers are to be properly trained on various routes and driving
efficiency, so that they maintain promptness in reaching the place and
guiding the customers.
 The tariff rates are bit higher as felt by the customers, especially during the
peak hours, they can follow competitive pricing strategy, and it should be
made clear to the passengers.
 The customers are also to be educated with advance booking facility and
privileges of booking in advance, instead of opting Ride now, as it leads to
dis-pleasure at times.
50
 The infrastructure facilities are to be increased to give the passengers to
pleasant travel.
 Some of the common suggestions provided by the customers from the
survey are like, to maintain cleanliness of the vehicle, the vehicle has to be
properly painted, proper grooming of the drivers, vehicle sticker (Brand),
Well versed in route, Card payments, Discounts, etc.

51
 CHAPTER-7
BIBLIOGRAPHY

1] Bearden, W. O., & Netemeyer, R. G. (1999). Handbook of Marketing Scales -

Multi-item Measures for Marketing and Consumer Behavior Research (2 ed.). New
Delhi: Sage Publications.
[2] Chen, W. (2014). Technical Improvements on Mobile App Based Taxi
Dispatching System. International Conference on Computer Science and Service
System (pp. 281-284). Atlantis Press.
[3] Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E., & Tatham, R. L.
(2011). Multivariate Data Analysis (6 ed.). Delhi: Pearson Education Inc.
[4] Hanif, K., & Sagar, N. (2016). An Empirical Research on the Penetration
Levels for a Call-a-Cab Service in Mumbai. Reflections Journal of Management, 5.
[5] Harding, S. E., Badami, M. G., Reynolds, C. C., & Kandlikar, M. (2016).
Auto-rick shaws in Indian cities: Public perceptions and operational realities.
Transport Policy, 52, 143-152.
[6] Horsu, E. N., & Yeboah, S. T. (2015). Influence of service quality on customer
satisfaction: A study of minicab taxi services in Cape Coast, Ghana. International
Journal of Economics, Commerce and Management, 3 (5), 1451-1464.
[7] Lu, C., Geng, W., & Wang, I. (2015). The Role of Self-Service Mobile
Technologies in the Creation of Customer Travel Experiences. Technology
Innovation Management Review, 24-32.
[8] Peng, L., Wang, H., He, X., Guo, D., & Lin, Y. (2014). Exploring Factors
Affecting the User Adoption of Call-taxi App. 25th Australasian Conference on
Information Systems. Auckland, New Zealand.
[9] Rahman, T. (2014). Organized sector radio taxi operator in Guwahati - A case
study on "Prime cab". International Journal of Advance and Innovative Research, 1
(1), 19-25.
52
[10] Upadhyaya, M. (2013). Radio Taxi Services in Jaipur: A Learning
Experience from Meri Car. International Journal of Marketing Principles and
Practices, 3 (2(4)), 37-41.
[11] Vaithianathan, S., & Bolar, K. P. (2013). Meru cabs: Past, present and future
tense. Emerald's Emerging Markets Case Studies, 3 (7), 1-12.
[12] www.google.com
[13] www.uber.in
[14] www.ola.in

CHAPTER-8
53
 ANNEXURE

1. What is your age?

 18-30
 30-40
 40-50
 50-60

2. Gender of the respondent?

 Female
 Male

3. How often do you travel by cab?

 Everyday
 Every week
 Every Month
 Never

4. How you book a taxi?

 Call a taxi company.

 Visit taxi website
 Cab app

5. Satisfy with the usage of taxi apps?

 Yes
 No

6. Will you recommend Ola or uber to others?

 Yes
 No

7. What is the purpose of using a taxi?

54
  Personal travel
 Professional travel

8. Better pricing policy is provided by which taxi app?

 Ola
 Uber

9. Do you feel safe when you book taxi for your own?
 Yes
 No

10. Do you like your taxi driver to engage in a conversation with you?
 Yes
 No

11. Why you prefer Ola cab app?

 Continence
 Safety
 Pricing
 Quality of service.

12. Why do you prefer UBER?

 Convenience
 Safety
 Pricing
 Quality of service.

Question 13:- Who provide more coupons and discounts?

 Ola
 Uber

QUESTION 14:- Was is easy to use the app for booking a taxi?

55
  Yes
 No

QUESTION 15:- Do you think a panic button should also be insalled in the cabs for a better
safety experience.

 Yes
 No

QUESTION 16:- What problems do you face in online cab apps?

 Driver cancels the cab

 Waiting time
 Arrogant drivers
 No availiablility of cabs near streets.

QUESTION 17:- Would you feel safer with a male or female driver?

 Male driver
 Female driver

QUESTION 18:- Does the online food facility provided by the cab apps is an innovative
and beneficial idea?

 Yes
 No

56