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of time they lose the momentum due to competition or lesser consumer acceptance, wafer thin margins etc. However MERU cabs is a one great story from which one can learn a lot of things. As mentioned in management books one should offer a product/ service which fulfils consumer need or at least makes him feel that his need is fulfilled. So what is the problem that MERU has addressed?
Whenever one has to travel by private transport, one is at mercy of taxi/auto drivers. One has to make several attempts to get the taxi/auto to the desired destination. If you are travelling for a longer distance, god help you. What MERU has done is,they gave the consumer the sense of reliability that they will get a cab to any destination within the city. I feel it’s a BIG positive factor, i.e. of trust.
Whenever we talk about MERU cabs, we talk about their technology, GPS, call center for order booking etc. Yes technology has played a vital role in MERU’s success; however there are many important factors that have helped MERU to be successful. I feel technology can enable businesses however mere good technology won’t lead to a successful business. Let’s look at what are the other factors
The Economical Factor
I was traveling by MERU cab and was chatting to driver named Mishraji. Mishraji told me that MERU cab is 60% costlier than normal taxis. However the people still prefer MERU, due to its punctuality, readiness to go to any corner of the city and overall customer service. Though I feel 60% is too high. According to me MERU is 5 to 10% costlier than normal taxis So the consumer will pay you premium, provided you make him feel that he is getting value for money
Every company feels that they are paying the best to their employees and every employee feels that he is underpaid. However in case of MERU, the employee pays the company and both are happy. I will explain briefly the MERU model MERU hires the driver with certain driving experience and train him on soft skills.
A contract is signed between MERU and the driver. MERU buys the car and gives it to the driver The fuel cost has to be borne by the driver The maintenance of the car is taken care by MERU MERU helps the drivers by providing the booking to drivers through their call centers The driver is free to take fares if he doesn’t get the fare from the call center In return the driver provides Rs. 800 per day to MERU Whatever the driver earns above these 800 rupees is his own income.
amber and red coasters. he said. The toll charges have to be borne by the passenger while crossing a toll post. The service is backed by a 24x7 Customer Contact Center. What’s your opinion? REF: http://www. As per him Easy Cabs tried to replicate the MERU’s business model. Meru About Us The Leadership Team . if applicable and a night surcharge for travel between 12 . It released a radio ad campaign of a small boy going all alone in Meru to receive his grandmother from the airport. In Delhi..midnight and 5AM. he told me that the company CEO MR. When I asked him about the competition. i. Pricing Strategy: The Meru Taxi service is a licensed.. The tent cards carried the message – 'If you find this hard to read. it can lead to a successful business. air conditioned cars equipped with state-of-the-art GPS based communication technology. Easy Cabs drivers have to pay 900 rupees to Easy Cabs and also bear the cost of fuel as well as maintenance of the vehicles. metered taxi operation and is governed by the fares prescribed by the Department of Transport. the charges need not be paid if the cab crossed the toll post while pick up. it has rolled out the 'Don't drink and drive' promotion to encourage people to call for a Meru instead of drinking and driving. The subsequent drinks followed on green. Communication Mix: For building the brand. Gupta is a great person and he is happy to work for a person like him. For this promotion. colour coding was used on coasters.in/story-of-meru-cabs-case-study-for-entrepreneurs-297/ Meru Cabs Services offered by Meru Cabs: Meru cabs offers a reliable metered taxi service in Mumbai. There is no extra charge for booking on the phone/web. however they are not very successful. Whereas in MERU the driver have to pay 800 rupees and the company bears the cost of maintenance. waiting charge. it's time to book a Meru cab. A customer was given the first drink on a black coaster.' sends out a message of safety and hassle-free ride on board. However. So if one gets these things right for a business. where it has placed tent cards and utilised their LCD screens to spread the message. Well it’s easy to say but it’s difficult to implement and that’s why all the startups are not successful the way MERU is. Delhi and Bangalore through a fleet of modern. in Mumbai nobody comes close to MERU. Meru Cabs identified four TGIF (TGI Friday's) pubs and 160 restaurants. The red coaster signified that it's. walk the talk. The point which I am trying to drive here is that the employee should believe in the management & the company for it to succeed. The fare structure of Meru Cabs for different cities are as shown below. whereas MERU has close to 1700 cabs.e.Now MERU has enabled the employees to earn what they want to earn and they have not only given them employment but a business Provide employees the opportunity to earn to their potential. the company had started various ad campaigns and promotional activities. Hyderabad. (May be through Performance Linked Incentives or any other innovative way that fits your business) The Employee Trust While talking to Mishraji. The fare structure of Meru cabs is similar to that of any other radio taxi. The tag line of Meru – 'Rely on us. This shows how much Mishraji believed in his company. fare for the distance travelled. He told that Easy Cabs have 400 cabs.pluggd.' In another interesting innovation. Payments can be made through cash or card. It has three components viz.
Post his initial years at ONGC in oil exploration. operations and distribution. high quality service in every city that it operates in. Meru has become a synonym to radio taxi. set up Mumbai's largest fleet service business. In over a decade long stint. Over the last 22 years. Nilesh Sangoi brings with him 16 years of experience in setting up and managing various aspects of Information Technology for large Corporates. marketing. Gupta. Ltd. a single largest radio cab service in India with fleet size more than 3500 cabs. Nilesh Sangoi Chief Technology Officer Mr. Mr.Nasscom Mr. Udyog Rattan Award by the Institute of Economic Studies (IES). Mumbai. . he worked as Asst.IT at Star TV's India operations. We will always try to be the hallmark for reliable. Mr. Here are the bright minds behind our uninhibited growth story: Mr. now. Best Entrepreneur of the Year Award from All India Passengers Association Best IT User Award to Meru Cab Company Pvt. Mr. During his journey with Meru Cabs. Excellence Award to his company given by Institute of Economic Studies (IES) Award from All India Passengers Association . Vice President . After completion of his mechanical engineering. In his last assignment. he post graduated in management from S P Jain Institute of Management.Meru Cabs is now the largest radio cab service in India and aims to provide world class taxi services in every city that it enters. Neeraj Gupta was felicitated with. Electrolux & Airtel. Whirpool. Rajesh Puri is the CEO of Meru Cab Company. He is a Certified Information Systems Auditor (CISA) and . catering to the needs of some of the finest names in the media and outsourced services business. prior to this venture. Under his guidance. he has worked with some of India's finest blue chip companies across industries. Mr. Neeraj Gupta has teamed up with India Value Fund to create the finest radio taxi service in India under the Meru brand name. Rajesh was the President .Largest & Best Taxi Company in the Country. Rajesh Puri Chief Executive Officer Mr. he has led growth efforts at Godrej GE.Operations at Tata Teleservices Maharashtra Ltd. he helped build the technology platform from scratch and provide technology support in the rapid growth phase of the organization. Neeraj Gupta Managing Director A first generation entrepreneur. Entrepreneur of the Year Award by the Bombay Management Association (BMA) for his significant contribution in the Public Transportation and to provide high quality innovative transportation service. Prior to Meru Cabs. His entrepreneur skills have made Meru. In each of his endeavors he has led his brands from start-up to unassailable leadership. He has a wealth of experience across sales.
Operations. Gavin D'abreo started in advertising with FCB Ulka and then moved to marketing. he has also handled 'Apna Utsav'. Ronald Rosario is an Automobile Engineer and MBA in Marketing. of Maharashtra as well as the Jet Airway's Cabin and Cockpit Crew Transport. where he has also spearheaded startup of Project functions. Ronald Rosario Executive Vice President . A small stint in Rallis India a TATA company is where he started his career. Mr. Sales & Marketing Mr. His last assignment was heading Sales & Operations with Shell. Sterling Resorts. Mr. Festival of France on behalf of Govt. Supply. Ashutosh Vaidya has 27 Years of experience in the Car Rental business. & was last with Saregama India. His earlier assignments include stints with RIL Industries as Western Region Head during business setup phase. In BPCL he had contributed to various functions such as Operations.New Business Initiatives Mr. Nerolac Paints. Ashutosh Vaidya Associate Vice President .Certified Information Security Manager (CISM) from ISACA. the global Oil major. product management & sales. Gavin D'abreo Executive Vice President . Mr. Distribution and Sales for over 12 years. Besides this. Meru cabs . with a varied function experience. Mr. Engineering Projects. setting processes / systems and of course brand marketing & sales in the service industry. He post graduated in management in 1991. He has had stints with Tata Teleservices. He has more than 18 years of work experience with setting up Project teams and Operational teams to deliver results. He enjoys start up environments. He has worked for Konduskar and Suss Travels.Facilitation Graduate in Commerce and Marketing Management from Xaviers College. USA.
CTO. Technology increases profits. People are ready to pay for good quality service and it is available round the clock by a location tracking GPS-based dispatch technology and a 24X7 customer service centre in the form of Meru cabs. Nilesh Sangoi. rash driving. Mr. application servers and database servers which are in constant touch with each car through GPRS. Mobile Communication Terminal There is a Mobile Communication Terminal (MCT) in each car which has a built-in GPS receiver. Meru cab. improves safety and delivers better service for customers. Meru cab has opened the way and provided a new leash of life to customers with GPS-enabled taxis. Technology and customer services have come of age. There is a first aid kit also in all vehicles just in case! People who inadvertently leave behind items can get them back through the 'Lost and Found' tracking system in place. The average Indian traveller is fed up quarreling with taxi drivers on fares. The latitude and longitude information is plotted on GIS map for real time tracking. which was launched in April 2007. What's more the location information and fare details are continuously sent by each cab back to the control room for tracking purposes. date and time of travel which would be available on the printed fare receipt. helps the driver to communicate with the control room. has won the NASSCOM-CNBC IT User Award in the Travel segment in recognition of the proactive and holistic approach to IT adoption. improves safety and delivers better service for customers. Meru has . and how much money the driver made. Meru's datacenter hosts a set of communication servers. Better business sense and quality service The GPS will monitor where the cab was. Each cab is fitted with GPSbased tracking device that helps to identify the nearest cab from a customer's pick up location. Meru Cab. Technology is coming to the aid of customers who have long been at the mercy of the driver of the ubiquitous fiat. Meru cab has pioneered the concept of GPS/GPRS enabled Taxis in India. What makes Meru stand apart is the quicker pick up and faster response time to a call for a cab. says technology is making it easy to reach out to people and help provide better service. It is easy as the customer has to call and inform the car number. Great technological combination with many practical applications is a boon to one and all. No longer does one have to argue about fare or even be sceptical about safety as the feature 'panic button' that is installed in every car enables the driver to connect to the control centre in case of an emergency. LCD display screen and GPRS connectivity. at what time. The management is happy so are the customers. refusal to travel to certain parts and above all rickety vehicles that have outlived their age.Technology on wheels Technology increases profits. how many fares were picked up. The customer's address and other details are communicated back to the driver on the display screen avoiding use of age old walky-talky or mobile phones. The printed receipt for the fare is a boon to the customer as each cab is fitted with a tamper-proof digital fare meter. Customers have a hassle-free safe drop. when the cab went off duty.
via an in-vehicle mobile data terminal. Bangalore. Please help improve this section by adding citations to reliable sources. taxi drivers would use a callbox—a special telephone at a taxi stand—to contact the dispatch office. which providesdispatching. including display of Customer Service numbers inside each car. Benefits to the customer Modern airconditioned luxury cars Quicker pick up and faster response 24X7 customer service centre Usage of clean and green fuel Tamper-proof meters. and human resources services to one or more taxi companies.over 1.(December 2010) The activity of taxi fleets is usually monitored and controlled by a central office. a trip is dispatched by either radio or computer. Unsourced material may be challenged and removed. Taxi owners and drivers usually communicate with the dispatch office through either a 2-way radio or a computer terminal (called a mobile data terminal). there by ruling out any possibility of over charging by the driver Ability to track the location of the car in 'real time' through the GPS technology provides security in case of an emergency Emergency security features installed in the taxi for complete safety. Hyderabad and Delhi. to the most suitable cab. integrated with the GPS-system to ensure every fare is tracked. When a customer calls for a taxi. Dispatching This section does not cite any references or sources. accounting. The most suitable cab may either be the one closest to the pick-up address .600 cabs across Mumbai. Before the innovation of radio dispatch in the 1950s.
Unsourced material may be challenged and removed. late at night—a taxi driver may pick up the customer offering the highest bid (this practice may be against the law). In offices using radio dispatch. The conventional radios are most suited to companies that operate within the local area and have a high volume of radio traffic. Fares are usually calculated according to a combination of 4 elements: Tariff rate. operators are beginning to use PDAs and advanced mobile phones for dispatching and tracking functions in lieu of the traditional radio. Some cabs have a CB radio in addition to the company radio so they can speak to each other. The fare is not based on the number of people travelling together in a taxi unless it is a 'maxi-taxi' (which can carry up to 8 people). Initial flagfall or meter drop. (July 2011) For the distance travelled. Instead of a metered fare. taxi locations are often tracked using magnetic pegs on a "board"—a metal sheet with an engraved map of taxi zones. In the United States. . the status of taxis is tracked by the computer system. One frequency is used for the dispatcher to talk to the cabs. In some areas. metro. In computerized dispatch. and smaller companies who use less airtime and don't want to run their own radio systems.(often determined by GPS coordinates nowadays) or the one that was the first to book in to the "zone" surrounding the pickup address. Some companies don't operate their own radio system and instead subscribe to an Specialized Mobile Radio system. Cabs are sometimes dispatched from their taxi stands. Instead the customers' calls are forwarded to the cell phones of whichever drivers are on duty at the time. With the advent of public data networks in the 1990s. Fares This section does not cite any references or sources. when demand is high—for instance. and a second frequency is used to the cabs to talk back. A taximeter calculates this automatically ("meter" for short and the origin of the word "taxi"). This means that the drivers generally cannot talk to each other. distance and waiting time. train. Some small car services don't use a dispatcher at all. The SMR is more commonly used by black car services that cover a wider area. passengers sometimes pay a flat fare. a call to "Top of the 2" means that the first cab in line at stand #2 is supposed to pick someone up. Please help improve this section by adding citations to reliable sources. Another system is one where more than one customer shares the same taxi and fares are per person. Taxi frequencies are generally licensed in duplex pairs. the fare for a taxi is usually higher than for other forms of public transport (bus. minicab. though taxi companies usually use the pair for duplexcommunications. A taxi company can also be licensed in the Business Radio Service. tram. Business frequencies in the UHF range are also licensed in pairs to allow for repeaters. bike). there is a Taxicab Radio Service with pairs assigned for this purpose.
There is also an increasing use of GPS driven navigational systems in the more wealthy countries around the world.The inside of a Japanese taxicab in Kyotowith GPS navigation on board Navigation Most experienced taxi drivers who have been working in the same city or region for a while would be expected to know the most important streets and places where their customers request to go. major routes outside this area.  A hybrid taxi from EnviroCAB. Instead. However. despite the complex and haphazard road layout. The most risky method of .  The results. This typically takes around three years and equips them with a detailed command of 25. to aid the process of manual navigation and the taxi driver's memory (and the customer's as well at times) a cab driver is usually equipped with a detailed roadmap of the area in which they work. showed that the level of pollution that people are exposed to differs according to the mode of transport that they use. which is part of the environmentally friendly all-hybrid taxi fleet promoted through the Fresh AIRE program in Arlington. they are required to undergo a demanding process of learning and testing called The Knowledge. and all buildings and other destinations to which passengers may ask to be taken. Virginia. Environmental concerns Taxicabs have been both criticized for creating pollution and also hailed as an environmentally responsible alternative to private car use. published in the journal Atmospheric Environment in January 2006. such aids have only recently been employed by a small number of 'black cab' taxi (as opposed to minicab) drivers. In London.000 streets within central London.
and other repairs. Glenda Jones. Mr. This division will deal with the maintenance of vehicles. followed by travelling by bus. Call Center Supervisor. with a private car exposing people to the lowest amount of pollution. three supervisors. three dispatchers. the CEO. their backgrounds. Ms. Key members of City Taxi's management teams. the call center. Overall. and responsibilities are as follows. City Taxi will have approximately 20 employees in this division. a data entry clerk. wheel alignments. and administration. Management Summary Organization The company's management philosophy is based on responsibility and mutual respect. Senior Vice President . Johnson Taylor. walking.php#ixzz1U5yrYfoc . City Taxi has an environment and structure that encourages productivity and respect for customers and fellow employees.Operations. Read more: http://www.bplans. The taxi cabs division will consist of the fleet of taxis. 2. The management of all daily operations within City Taxi will be handled in this division.transport was the back seat of a taxicab. cycling. This division will be staffed with seven employees to begin with. There will be 10 to 20 employees in the call center. Mr.com/taxi_business_plan/management_summary_fc. New York City hybrid taxicab . Taylor. driver owned and company owned. President and CEO. and an employee responsible for accounts receivables/payables. Officers and Key Employees City Taxi's management is highly experienced and qualified. Peter Jackson. an office manager. Mr. Maintenance and Repair Services. Drivers will be charged at discounted rates for tune-ups. The City Taxi team is organized into two groups: Taxi Cabs. will be responsible for the purchase of vehicles and dealing with vendors and suppliers.Toyota Prius Alternative fuels and propulsion 1.  A Brazilian Fiat Siena Tetrafuel taxi in São Paulo. It runs as a flexible-fuel or as a bi-fuelwith CNG.
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