International Journal of Management, Public Policy and Research

International, Peer Reviewed journal

E-ISSN: 2583-3014

STUDY ON INDIVIDUAL'S PREFERENCE ABOUT ONLINE CAB

BOOKING SERVICES
Akash Gupta, Bhumit Patel, Dhaval Patel
BK School of Management & Professional Studies,
Gujarat University

ABSTRACT
India is a country in the process of evolving., and it has been discovered that as a result of this development, In
India, the need for taxi services is growing.. The introduction of an organised car rental system using modern
technologies has ushered in a transformation in the taxi sector during the last decade. The 'app cab booking' sector
grew as a result of this. The taxi industry is quite modern today, customers a variety of advantages in terms of
convenience, travel time, real-time information, economy, and consumer protection. Cab e-hailing is currently
common in large cities, and it offers customers a higher level of service than most traditional taxi services. With the
use of a standardised questionnaire, data was obtained from 275 respondents for this article. The purpose of this
article is to look at the various challenges that customers confront while using the services of any company that
offers app-based cab booking.

Keywords: Cab Services, Customer, Problems, App

INTRODUCTION
The transportation system is the foundation of the economy. The transportation system is regarded as civilization's
most vital symbol. Due to the expanding population and changing life styles of people and their advancement,
people choose opulent well-being, and their transportation demands have been supported by the convenience,
speed, and safety of the modes. Good transportation connections help people, businesses, the environment, and
the economy. Road transportation, among the various modes of transportation, occupies a prominent role in today's
world since it has a reach that no other modern means of transportation can match. It aids in the expansion of trade,
commerce, and industry. The transportation system reduces space and time constraints. Taxis must be leased
through a taxi operator and can be flagged down on the street in large cities. Passengers are responsible for extra
fees such as luggage, late-night journeys, and toll taxes.

Taxi services in India:

Due to increased urbanisation and migration of people from rural areas to cities, the geographical area covered by
Indian cities is expanding. People can use modern gadgets to stay up to date on the available taxi services on the
market. The number of India's middle class increased from 15 million in 1991 to more than 160 million in 2016. This
section began to demand and be willing to pay for better services in a variety of industries, including private and
public transportation, as their disposable income increased. Rapid economic expansion has boosted the automobile
rental sector in India, as has huge infrastructural development, a determined push by the Ministry of Tourism to
promote India as a tourism destination, and the advent of the Business Process Outsourcing (BPO) industry. The
point-to-point taxi sector in India's major cities was fully unorganised until 2010. Until 2010, India's largest cities'
point-to-point taxi markets were fully unorganised.

Taxi services in smart cities:

The state of Tamil Nadu has the second-highest number of smart cities on India's smart city list. In 2016–2017, the
first list included Chennai and Coimbatore, while the second list included Vellore, Madurai, Salem, and Thanjavur.
By using technologies and networked data sensors, smart cities may improve and become more powerful in terms
of infrastructure and city operations. This includes, among other things, public assets, public transportation systems,
people, power plants, water supplies, information systems, civic bodies, and other community services. Because of
the convenience of door-to-door service, cab service has grown in popularity among many forms of transportation,
and now, owing to technological improvements, clients can book cabs at low prices in just one click using their
mobile phones. In densely populated countries like India, where parking is a major issue owing to a lack of space
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International, Peer Reviewed journal
E-ISSN: 2583-3014

and public transportation is overloaded during peak hours, these app-based cab services had a lot of room for
growth. As a result, this study aims to capture consumers' perspectives on cab hailing services, as well as their level
of perseverance, in order to shed light on the elements that may influence a customer's decision to use one of the
application services accessible.

Introduction to industry:
When Meru cab service was launched in India's major metro cities in 2004, the concept of an organised rental cab
was presented to Indian clients, and nearly six years later, App-based apartment cab service was provided to the
Indian market. Cab service gained popularity among the many modes of transportation when door-to-door service
was added, and now, owing to technology improvements, consumers may eBook cabs at a competitive rate with
just one click on their smart phones. In densely populated nations like India, where parking is a major issue due to
space limits and public transportation is overloaded during peak hours, these app-based cab services have a lot of
room for expansion. Following the advent of Uber in 2013, this convenient means of transportation grew in
popularity, and criticism grew ferociously. Customers' concerns have grown, making it difficult for condominium
taxi businesses to meet their needs. In today's society, client happiness is influenced not just by pricing, but also by
good service. Customers may now use their smartphones to access, compare, assess, and purchase products. In this
circumstance, app-based services like Ola or Uber Cabs come to the rescue by giving a wide range of options, from
the most economical to the most opulent. According to a recent report in the Financial Express, the introduction
of app-based entirely pre-paid taxi services like Uber and Ola cab not only stimulated passengers' curiosity, but also
contributed to increase employability by providing possibilities to drivers.
Ola Cabs was launched in Ahmedabad in 2011 by ANI Technologies Pvt. Ltd. and is built on the notion of an online
cab aggregator. Ola provides a wide variety of low-cost transportation options, ranging from modern luxury sedans
to Ola automobiles. It is now offered in 102 cities and has a fleet of 450,000 vehicles. While Uber Technologies
Inc., formerly known as Uber Cab, is a global online transportation network firm based in the United States, founded
by Garrett Camp in 2009. With the debut of its Bangalore service in August 2013, Uber made its first foray into the
Indian market. Both Uber and OLA joined the Indian taxi market with numerous similarities, including taxi
aggregators, air-conditioned taxi services, affordable prices, and app-based entire cab solutions. all of which enticed
customers from India's major cities.

Major Cab Service companies in India:

Downloads Ratings
OLA 100M+ 4.2
Uber 500M+ 4.2
Meru 5M+ 4.3
Rapido 10M+ 4.1
Total Downloads and Rating of App:

REVIEW OF LITERATURE
Rungta et al. (2017) looked into how the Ola Cabs and Cab for Sure mobile apps influenced Yellow and Black Cabs,
as well as the factors that passengers consider when booking a cab. Key technology trends, shifts in technology,
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market drivers and restraints in the Indian taxi market, market size of public and private taxis in India, ease of
availability, price, comfort, safety, payment options, and other factors affecting competition and passengers'
perceptions of safety while riding in cabs, as well as their overall impact on the taxi market were all investigated.
Sarvepalli & Prakash (2016) proposed the RIDE model, in which the 'R' stands for'study,' meaning that the firm
should study constantly in order to meet the demands that the customer is anticipating. This helps to keep the client
base loyal and increasing. The letter 'I' stands for 'innovate.' This determines whether the research solution is
feasible. The mobile app is then modified following a comprehensive test of the functionality established after the
previous level, which is denoted by the letter 'D.' Finally, the letter 'E' stands for 'rolling,' implying that the company
must carry out this activity efficiently in order to compete with its competitors. By downloading and uninstalling
software, users are not inconvenienced or inconvenienced.

Utsav Pandya (2017) Many new entrepreneurs are operating private taxi services independent from the present
open taxi market in India, which is quickly developing. The public taxi market has taxicabs that are quite outdated
and provide no comfort or security, but the private taxi market has taxicabs that are up to date and include features
such as GPS, increased comfort, and security. As a result, we conducted this research by utilising explicit factors
that would clarify the impact of the private taxi market on the general public taxi market in order to consider the
impact of private taxi firms on the general public taxi market. These concerns were made in light of the normal
considerations that a client would have while hiring a cab. A hypothetical system encompassing the necessary and
autonomous factors, as well as the invalid and exchange hypotheses that must be rejected valid or based on the
information assortment, was created as a result of the factors studied. A poll was set up, and two sets of data on the
broad public and private taxi markets were acquired through an overview filled out by people picked at random
using the irregular probabilistic examining method. The data was broken down and decrypted using the SPSS and
Minitab programmes, which featured a variety of investigation processes and assisted in establishing the validity of
invalid or alternative hypotheses in accordance with the examination's requirements.
Rashi Goel, Rashi Goel, Rashi Goel, R (2018) Uber and Ola are two of the cab aggregator market's fastest-growing
companies. When it comes to drivers and rides, course improvement, the regional network, and accessibility,
however, everyone has radically different goals and working together is impossible. We intend to evaluate both
Uber and Ola's day-to-day operations and coordination streamlining using this study in order to obtain a better
knowledge of their overall actions and flaws. As a result, we've investigated activities using numerical and diagnostic
apparatuses.
In terms of the mobile app-based taxi dispatching architecture, Chen (2014) has proposed a number of adjustments
to address issues such as honesty, consistency, and equity. They discovered that cab-hailing smartphone apps make
it easier for both the driver and the passengers to communicate and locate one another. Consumers can now use
smartphone applications to identify cabs, follow the driver's location, and call or contact him to find out where he
is. They have focussed their efforts on path, taximeter, and carpooling development.
According to (Sagar, 2016), Meru Cab's Call-a-Cab service was in high demand. Cab services provide protection for
female clients through the use of a GPS system and female taxi drivers, especially at night.
According to (al, 2015), self-service Customers and businesses alike have adjusted their positions as a result of
mobile technology, which allows commuters to access a multitude of information on cab services. The Call Taxi
App's (CTA) adoption has an impact on perceived utility, convenience of use, and subjective standards (Peng, Wang,
and others) (He 2014).
"Call taxis have a greater social significance," (A, 2016) argues, "and state governments oversee the taxi business in
varied ways through their individual Departments of Transportation." This measure allows the government to exert
more control over company operations in order to provide better service to the public (a complicated building
itself).

RESEARCH METHODOLOGY
Scope of the study:
• A major focus of this study is to understand how clients use cab services in terms of their preferences and the
amount of comfort they experience when utilising the service.
• Identifying the important elements that may impact consumers' decision to use or not use services.
Objectives of Study:
• To gain a better understanding of how individuals use online cab booking services.
• To learn about the challenges people experience when applying for jobs.

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E-ISSN: 2583-3014

Limitations of the study:

• The respondents may not convey their honest opinion and views on their practises because the study is
limited to a specific place, namely Ahmedabad, India.
Research Design: Descriptive Research Design
Research Approach: Survey method is used for research
Research instruments:
• The structured questionnaire was the research instrument used in this study to collect data.
Research Procedure: Respondents received the questionnaire via an internet link and completed it using their
mobile or computer in the form of a "Google form."
Study area: The current research was carried out in Ahmedabad.
Study population: For the purposes of this study, individuals will be considered the population.
Data collection method: Primary & Secondary
Data collection Tool: Questionnaire
Sampling Method: Convenience Sampling
Sample size: 275
Hypothesis testing:
• H01: The gender of the consumer has a substantial impact on the use of Online Cab Services via app.
• H02: The age of the customer has a major impact on the use of Online Cab Services via app.
• H03: Customer education has a substantial impact on the use of Online Cab Services via app.
• H04: Respondents' income has an impact on any of the reasons for beginning to use Online Cab Services
via app.

DATA ANALYSIS & INTERPRETATION

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Hypothetical Testing
Gender
H01: there's significant impact of customer’s gender on usage of Online Cab Services through app.
H00: The gender of the customer has no bearing on the use of Online Cab Services via app.
Significant Level
P = 0.05
P > 0.05 than null hypothesis accepted for that
P < 0.05 than alternate hypothesis accepted for that
Factor P-Value
Inbuilt payment option in apps 0.543752
Mark or find location in map 0.534299
Track the Cab 0.018147
Giving feedback or ratings 0.052616
Cancelling the Cab 0.020095
Filing a complaint about the driver 0.100967
Getting a refund 0.067829
Overall, based on the table above, Except for the assertions of track the cab and cancelling the cab, when alternate
hypothesis is approved, null hypothesis is accepted and other hypothesis is rejected because the value is greater
than 0.05.
However, the study can state that the gender of the customer has no bearing on the use of Online Cab Services via
app.
Age
H02: The age of the customer has a considerable impact on the use of Online Cab Services via app.
H00: The age of the customer has no bearing on the use of Online Cab Services via app.
Factor P-Value
Inbuilt payment option in apps 0.974931
Mark or find location in map 0.83657
Track the Cab 0.794738
Giving feedback or ratings 0.619729
Cancelling the Cab 0.788752
Filing a complaint about the driver 0.913648
Getting a refund 0.625189

Overall, from the above table, altogether the statements null hypothesis is accepted and alternate hypothesis
is rejected because the worth is quite significant level i.e. 0.05
However, the researcher concludes that the age of the user has no bearing on the use of Online Cab Services via
app.
Education
H03: Customer education has a huge impact on the use of Online Cab Services via smartphone.
H00: there's no significant impact of customer’s education on usage of Online Cab Services through app.
Factor P-Value
Inbuilt payment option in apps 0.789985
Mark or find location in map 0.435451
Track the Cab 0.257366
Giving feedback or ratings 0.242975
Cancelling the Cab 0.639713
Filing a complaint about the driver 0.768955
Getting a refund 0.580235

Overall, from the above table, altogether the statements null hypothesis is accepted and alternate hypothesis
is rejected because the worth is quite significant level i.e. 0.05
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E-ISSN: 2583-3014

Income
H04: Respondents' income has an impact on any of the reasons for beginning to use Online Cab Services via app.
H00: Respondents' income has no bearing on any of the reasons for beginning to use Online Cab Services via
app.

Factor P-Value
Inbuilt payment option in apps 0.212254
Mark or find location in map 0.246144
Track the Cab 0.08306
Giving feedback or ratings 0.147902
Cancelling the Cab 0.663883
Filing a complaint about the driver 0.144233
Getting a refund 0.257659

Overall, from the above table, altogether the statements null hypothesis is accepted and alternate hypothesis
is rejected because the worth is quite significant level i.e. 0.05 But, researcher can say that there's no
significant impact of customer’s income on usage of Online Cab Services through app.

CONCLUSION
• The operation which most of the consumer find most difficult is getting refund from the company.
• Tracking the cab and find or mark location is also difficult for consumer.
• Many people find it difficult to cancel a cab.
• Most easiest and convenient operation is inbuilt payment option.
• Major thing upon which consumers look while looking for a cab is fare rates, followed by safety and then
service.
• People come to know about Cab services mostly by Friends and Family and then followed by Advertisements
on TV/SM.

REFERENCE
[1] Journal of Social Science and Humanities Research, Vol. 4, Issue 3, pp: (557-561), Month: July - September
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[2] Rungta R. et al., Impact of use of Mobile Apps of Ola Cabs and Taxi for Sure on Yellow and Black Cabs,
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[12] www.marketingstudyguide.com/servquals-22-questions/

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