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Executive Summary :

Most taxi owners get convinced to develop their taxi business plans in the wrong order and
usually end up with poor or, even worse, no results.

Most of the sample business plans you find out there focus on the stuff: meters, cars, insurance,
office, radio, etc. All these are necessary components for a taxi service, but having all these
components doesnt guarantee youll make any money.

You need to understand that having equipment does not equal getting results and making money
in this business.

What typically happens is that the taxi business owner recognizes the need for promoting his taxi
business. Due to the workload of most taxi business owners, this decision is frequently limited to
giving away business cards and is highly influenced by what an advertising salesperson comes
with that week. The company selling the advertising comes up with an ad to suit the taxi business
owners budget. What ad salesperson is selling is ad space and not results.
This is the equivalent of shooting a gun and then aiming afterwards. Not much chance of hitting
your target. How do you do it properly? You think about it from the very beginning, at the stage
when you are creating your business plan.

Here are the steps:

1. Define Your Target Market.

Your target market is who you think the potential customers of your taxi service are. The better
you can define the potential customers of your taxi service, the more accurately you will be able
to aim your marketing message at them. The best way to define your target market is by
conducting customer surveys of your best existing customers. Find out about where they live,

where they work, whether they are married, if they have children, what their level of income is,
what newspapers they read, what radio stations they listen to, etc.

2. Develop Your Marketing Message.

To craft an advertising message for your potential customers, you need to come up with your
unique selling proposition (USP).
You can determine your USP by answering the following question:
Why would potential customers choose your taxi company versus all other options available to
them?

Do you have the cleanest cars, do you drivers know their way around town better than anyone
else, do your cars always arrive on time for the pick ups, is your company the safest (i.e. no car
accidents) in town, etc. You get the idea. I dont know what it is for your taxi business, but you
have to know. That is the message you promote. Many taxi businesses have difficulty with this.
They dont think they offer anything different. If that is the case, then you need to create
something that makes you different.
To give you an example how important the USP is, let me tell you about an individual who with
his brother decided to go into the restaurant business. Early on the restaurant was unsuccessful
and one brother bailed out on the other. The brother left with the restaurant eventually came up
with a USP so powerful that it made him a multimillionaire and revolutionized his business. His
USP?

Fresh, hot pizza delivered in 30 minutes or less, guaranteed. I probably dont have to tell you
the name of the company. Ton Monaghans USP clearly positioned Dominos Pizza as the
solution when you want to eat in and want something quickly. Note that Toms USP didnt
mention anything about the best ingredients or the best recipe from the heart of Italy. Just Fresh,
hot pizza delivered in 30 minutes or less, guaranteed. Simple and to the point. Toms USP was
one of the main reasons in making him a millionaire. That is the power of a truly great USP.

It isnt necessarily easy. Some business owners take a lot of time before they finally hit on
something that really works for their customers. But each time this is done, patience had paid off
very handsomely.

3. Choose Your Media That Best Matches Your Target Market.


Once you have your target market and your marketing message defined, only then you choose
the media that closely matches those characteristics.
Why should I choose your taxi service versus every other competitive option available to me?
The answer to that question is the focus of your marketing message and should absolutely be
thought through at the stage of creating a business plan for your taxi service. Use it to exploit the
weaknesses of your competitors and Beat the Pants Off Your Competition!

AB Cab Service is based in Mumbai . AB cab service provides transportation service without
the typical high limousine price. The Market and Services Offered The market is a large one with
over 1.5 million potential customers The Competitive Edge ABCTSI recognizes that their key to
success will be providing unmatched customer service. AB has infused the importance of
customer service into the drivers' jobs by offering financial incentives to the drivers for superior
service. This will ensure that the best customer service will be offered at every level and
interaction with the company.

Mission:
The Mission of AB Taxi Service is to provide the customer the finest transportation service
available. We exist to attract and maintain customers. When we adhere to this maxim, everything
else will fall in to place. Our services will exceed the expectations of our customers. ABCTSI

mission is to establish a universal licensing plan to be held only by owner operators. To have all
or most of the taxi drivers under one main umbrella whereby they pay an annual membership fee
and monthly dispatch fee to one organization. The drivers will by a mutual agreement between
the management of AB cab service and all the members, share in the profits of the corporation.
Also a marketplace for all types of cabs and car rentals.

Vision:
We are a young and energetic company based in Mumbai. Nothing excites us more than using
technology to bring the same efficiency and customer experience to the car rental industry that
you expect from flights!

Goals:
Short-term goals include improving the rental cabs system in India.

Objectives :
The objectives for the first three years of operation include:
1. To create a service-based company whose primary goal is to exceed customer's expectations.
2. To increase customers by 20% per year through superior performance and word-of mouth
referrals.
3. To develop a sustainable Taxi company serving the GTA
4. To establish the only company in which it's members share in the profits
5. To establish with the help of the Toronto government a Universal License for owner operators

INTRODUCTION :

AB Cabs, is a mobile app for personal transportation in India. AB started as an online cab
aggregator in Mumbai, now based out of Bangalore and is among the fastest growing businesses
in India.
It was founded on 3 December 2010. Post the trial phase, AB Auto expanded to other cities like
Delhi, Pune and Chennai starting December 2014.
AB provides different types of cab service ranging from economic to luxury travel. The cabs are
reserved through a mobile app. AB provides three different tiers of car service to suit different
budgets: luxury sedan models, mid-range, and its AB Mini range which it claims is priced on the
same level as the humble auto rickshaw.
AB lets passengers pay in a variety of ways, including cash. It claims to clock an average of
more than 150,000 bookings per day and commands 60 percent of the market share in India.
AB aims to bring convenience, price transparency and standardization to consumers booking car
rentals and cab services. Initially they used to offer instant confirmation for car rental bookings,
either online or over the phone but now they have adopted an app-only strategy wherein the users
will be able to book the taxi only through the mobile app.
AB provided a lot of promo codes on their website to give huge discounts in various segments.
They also started the trends of providing fixed rate drops to the airport when they launch in a
city. AB provides cabs at INR 13 per kilometer whenever Auto Unions call a strike.
By 2014, the company has expanded to a network of more than 18000 cars across more than 65
cities. In November 2014, AB expanded to incorporate autos on-trial basis in Bangalore. Post the
trial phase, AB Auto expanded to other cities like Delhi, Pune and Chennai starting December
2014. In April 2015, over 40000 cabs are registered & successfully running across 22 cities of
India.
AB responded to the safety issue of women by undertaking innovative initiatives like womenonly cabs and panic buttons to highlight their focus on customer safety. It launched a pink cabs
service, driven by women drivers and which will only allow female passengers to board them.
The premium service will help AB compete in a niche segment of the taxi market, dominated by
regional players like SheTaxi etc. Complying with Government regulations, AB also launched an
emergency contact.
The 'driver' is a critical part of the game. As taxi aggregators compete for the same customer pie,
the aggregators are making good customer service the key differentiator. If the drivers are happy,
it leads to better customer service. AB is planning to rapidly increase its supply chain that
means more staff for nationwide expansions, and more drivers. Beyond simply signing drivers
up with lucrative offers, the AB CAB SERVICE says that the company is empowering drivers
to become entrepreneurs themselves.

The company works with leading financial institutions that provide loans to help prospective
drivers buy their cars outright, and it also offers training to ensure drivers are equipped to deliver
a quality and safe experience for passengers. AB trains drivers on health and hygiene, customer
service, good driving practices and vehicle maintenance, among other things. It provides free
education for up to a year for children of drivers who have been rated the best in a three-month
period.
When it comes to AB Auto, AB claims to have seen rapid adoption for their platform amongst
auto drivers with about 40,000 autos having signed up. The app helps drivers receive booking
requests from customers around them and also helps them with turn-by-turn navigation to reach
them.
When it comes to cab rental services, Cool Service is the most trusted and reliable name in the
travel business. The most advanced travel agents offering cab rental and car hire in India ,
making full use of information technology to improve the level of our efficiency. However, this
is only one aspect of services. And this project continually strive to offer the best of services both in terms of man and machine, to our clients
Moreover, this project has a fleet of cars ranging from luxury to budget cabs. While, it offers
online cab hire service for corporate houses. And this project claim to offer the best of rates,
which are tailor-made depending upon the facilities, availed and offer both intercity and intracity cab facilities. All cabs have proper permits and documentation so that the clients couldn't be
hassled for the lack of documents.
However, this project has strategic backup system for any eventuality. Cab drivers are educated,
polite, and reliable and are trained to handle acute breakdowns. The cab service includes all
categories of cars from luxury to budget.
Further, this project's utmost priority is quality. To achieve this, vehicles are well maintained and
tested for delivering optimum and uninterrupted performance. Team of professionals in the travel
business enables this system to design trips that suits to all budgets and preferences of the
travelers. In addition, workforce including drivers and administrative staff are well trained to
discharge their duties with a lot of efficiency.

MANAGEMENT SYSTEM :

A taxicab, also taxi or cab, is a type of vehicle for hire with a driver, used by a single passenger
or small group of passengers often for a non-shared ride. A taxicab conveys passengers between
locations of their choice. In modes of public transport, the pick-up and drop-off locations are
determined by the service provider, not by the passenger, although demand and share taxis
provide a hybrid bus/taxi mode. Taxicabs arrived in 1911 to complement horse wagons. There
are 52000 55000Number of taxicabs. According to Government of India regulations, all taxi
cabs are required to have a fare-meter installed. However, enforcement by authorities is lax and
many cabs operate either without fare-meter or with defunct ones. In such cases, fare is decided
by bargaining between the customer and the driver. Taxi cabs face stiff competition from auto
rickshaws but in some cities. In India, most taxi cabs, especially those in Delhi and Mumbai,
have distinctive black and yellow liveries with the bottom half painted black and upper half
painted yellow. In Kolkata, most taxis are painted yellow with a blue strip in the middle.
In cities and localities where taxis are expensive or do not ply as per the government or
municipal regulated fares, people use Share taxis. These are normal taxis which carry one or
more passengers travelling to destinations either en route to the final destination, or nearby the
final destination. The passengers are charged according to the number of people with different
destinations. A similar system exists for auto rickshaws, known as Share autos. As one example,
"Shared taxis" - and known just as that have been operating in Mumbai, India, since the early
1970s. These are more like a point to point service that operates only during the peak hours.
During off peak hours, they ply just like the regular taxis, can be hailed anywhere on the roads,
and passengers are charged by the meter. But in order to bridge the gap between demand and
supply, during peak hours, several of them operate as Shared Taxis, taking a full cab load of
passengers to a more or less common destination. The pick-up points for these taxis are fixed,
and are marked by a post that says, Shared Taxis and cabs line up at this point during peak
hours. They display the general destination they are headed for on their windscreens, and
passengers just get in and wait for the cab to fill up. As soon as this happens - which takes less
than a couple of minutes the cab moves off. Fares are a fixed amount fixed between the Taxi
Unions and the authorities for the point to point distance - and are far lower than the metered fare
to the same destination, but higher than the bus or train fare. Time taken is obviously much less
than that by bus. These taxis are very popular because of the lack of waiting time, faster journey
speeds, greater comfort, and absence of the crush loads of peak hour commuter traffic in buses
and trains.

Customers
The target audience of AB is every Tier 1 & 2 city resident, employee and visitor over 16, female
and male who is interested in professional, valued and safe transport services and wants to enjoy

their ride with ABCabs. Every person in Tier 1 & 2 cities is a potential customer and should be
satisfied by the taxi service of AB. The prior need of a customer is to get from point A to point B.
Every customer expects good service for a fair charge. It claims to clock an average of more than
150,000 bookings per day and commands 60 percent of the market share in India.
AB has been trying to woo customers by offering huge discounts and better service. Still, brand
loyalty presents itself as a big challenge. High customer acquisition costs along with high
customer migration are burning fast through the finances of AB. Customers, especially in small
cities prefer cheap autos to cabs. To counter such a phenomenon AB has started partnering with
autos for its AB Auto service.
AB also places special focus on the safety of female passengers. AB has started giving its drivers
with specific training on how to safely drive unaccompanied women passengers. It has
introduced novel features such as women-only cabs and panic buttons.

Competitors
Meru Cabs

Meru Cabs (V-link Travel Solutions) is one of the largest taxi operators in India and is third
largest taxi operators in the world in Assets Ownership space. The company was earlier
following Asset-ownership Model and now started focusing on Aggregation model aggressively.
The company has launched different brand Meru Flexi (Aggregator model), Meru Genie
(Economy) and Meru Eve (Women Only). The company is growing at annual growth of 30%,
reported a turnover of INR4.2 billion (US$70 million) for 2014 and we expect to touch INR10
billion (US$160 million) by 2016.
Uber
Uber officially launched in India in October 2013. Currently, the company is operating in 21
cities. The concept is gaining lots of popularity around the world. It is posing real challenge to
traditional taxi market. The company is signing up around 20,000 drivers every month around
the world. It is not only serving the existing market but expanding it. Uber does not own cars,
uses state-of-the-art technology to connect drivers with passengers within minutes through a
mobile app for a fee. Uber is ahead in marketing as they did campaigns during elections
(providing Uber at a discounted rate for voting), UberStud (to encourage referral) and free
credits while introducing a new customer. Recently they launched Uber Chopper, by which you
can ride a chopper and have a view of your citys skyline
Taxi For Sure (TFS)
Taxi For Sure was founded in 2011 by Aprameya Radhakrishna and Raghunandhan G to tap
Indian Taxi Market. However, it was acquired by M/s ANI Technologies Pvt. Ltd. (ABCabs) for
$200 million in March 2015 (Cash and stock deal). The company is one of leading Cab
Aggregators in India and majorly works with the operators to provide cab service. TaxiForSure
will continue to remain independent entity and will complement to the strength of parent
company. As an aggregator of car/cab rentals, its offerings include local point-to-point pick-up
and drop, airport transfer, local packages (for four or eight hours) and outstation packages.
Besides regular rentals, it provides economy cars to the commuters.

SWOT Analysis :

Strengths

Weakness

First mover advantage as


a taxi aggregator in India
Top of the mind service
High awareness due to
aggressive TV, online and
print media marketing
Huge customer base &
due to network effect it is
increasing
Rapid
expansion
and
online application

Drivers are the face of the


company and hence their
misbehavior
directly
affects the brand image
While the demand is
huge, amount of cash
burning is huge and
monetization
is
very
difficult

Opportunities

Threats

Unorganized market is
huge (~90%) and hence
potential is high
Increasing
internet
penetration
&
smart
phone users
Rising disposable income
Shifting of consumers
towards
convenience
creates huge demand
Acquisition of smaller
players

Rising competition
Uber has deep pocket and
hence can burn cash
heavily
Presence
of
many
national players
Absence
of
clear
government regulations
in developing countries
Future is unclear due to
lack of regulations and
Customer loyalty is less in
this industry

Market Analysis Summary :

AB cab service will be focusing on families as well as business travelers. Both groups will likely
demand our services. The families will utilize our service because it is convenient and less
expensive than if they drove themselves and paid for long-term parking of their car. Business
travelers will use our service because it offers a limousine-like service (other than the fact that
ABCTSI does not use limousines) where the traveler has a ride waiting for them when their
planes comes in, but the service is less expensive than normal limousine services. Since the
service is fairly comparable to a louisine service, companies will encourage their workers to
utilize AB cab service as a cost saving measure, particularly in this economic downturn.
Market Segmentation :
Our customers can be divided into two groups: families/individuals on pleasure trips, and
business travelers.
The first group is taking a trip for pleasure and will either be an individual or a family. Their
choices are to either drive and park in long term parking, take a taxi, or use a limousine service.
This group does not typically mind paying a bit more for a solution that takes care of their
transportation to and from the airport. Since they are on vacation, they appreciate having a
service that gets them to the airport in a seamless way so they do not have to worry about
anything. All they have to do is make the reservation and show up at the arranged pickup point.
The second group is the business traveler. In the past a company would typically hire a limousine
service to pick up their worker. The company would always pay for the service. With AB cab
service as an alternative, there is a transportation service that functions like a limousine (you can
pre schedule pickup dates and be taken directly home or to the airport) but without the overly
fancy car and the associated high price. As companies are always looking at ways to cut costs,
ABCTSI offers a very reasonable solution in terms of comfort and cost. The business traveler
will not notice anything different with ABCTSI versus a limo service other than the vehicle they
are traveling won't be a limo, but will still be a sufficiently large and comfortable car.

Market Segmentation

Families / Individual
Business traveller

STP Analysis

STP stands for Segmentation, Targeting, and Positioning. STP analysis will be carried out to
determine how AB can become a more influential player in the market.

Segmentation
Segmentation is the process of understanding why people by certain products and services,
which of those can best satisfy the customer, and what the company can do to make its products
and services simply irresistible.
Segmentation for AB involves segregating the market on factors such as
1. Demographic

IncomeCabs will be accessed mostly by people from the middle class and upper
middle class strata of society, who seek affordable point to point transport.

Family SizeAB provides 3 service options for its customers. The AB Mini, AB
Sedan, AB Auto (in select cities), & its luxury segment(in select cities) enable
customers to choose a ride of their choice depending upon the number of passengers.

Geographical LocationAB is currently operating in at least 50 cities, all tier1 or


tier 2. These cities have been targeted keeping in mind the high frequency at which
the masses commute from one place to another in urban and semi urban areas.

Social StatusAB targets population that is placed higher up the social ladder. It
confers a certain feel good factor on people for choosing to travel by car instead of
taking local transport such as rickshaw or buses.

OccupationAB are used by students and working professionals alike and anyone
else who had a need for rapid commuting from one place to another.

2. Psychographic

Price SensitivityAB is probably the cheapest option for those who want to hire a
cab. At Rs. 9/km, AB has the lowest fare rate among all its competitors. Cheap prices
also help to draw the student crowd which forms a substantial part of its revenue. It
has provided 4 choices (Mini, Sedan, Auto, and Luxury) for its users to pick from
depending upon their need and affordability.
AB also provides its registered users with coupons and discounts (promo codes) in
order to propagate usage of its app.

ServicesAB app lets users book a cab for immediate use or for another time in the
future. AB thus provides customers with spontaneous service.AB is also preferred
by those who own no transport of their own because it provides comfort and sound
conveyance.
Features such as AB Money allow people the convenience of cashless travel which is
otherwise not possible in local transport. There is also provision to pay by cash if the
customer prefers that.

3. Behavioural

Internet Usage one of the most important factors in determining usage of cab
services is the ability to procure one. AB cab booking is available through its app
only. It has discontinued the use of its website and does not book cabs via phone calls.
Smartphone users thus form the largest chunk of AB customers.

Targeting

AB targets people from the middle class, upper middle class and rich strata of society who want
to have access to affordable and good quality conveyance facilities. It also seeks to provide a
transport option for masses not possessing four wheelers. AB aims to provide an alternative for
people who are hesitant in using public transport due to various reasons.
5 criteria are critical to decide whether or not the company has selected a viable target
market.These are-:

Sizethere is huge demand for quality transport facilities in a developing country


like India.The Indian cab market has seen a lot of traction, with over INR 600 crores
being raised by the leading players in the sector. While this has been a very
competitive market, the organized sector forms a small percentage of the overall
market. It is estimated that the radio taxi market in India is $6-9 billion dollars
growing at 17-20%. It is also estimated that the number of taxis in the organized
sector will reach 30,000 by 2017.

Expected Growth as of 2014, AB had a fleet of roughly 9000 rented cars. It is said
to be adding about 1000 vehicles(both taxis and autos) to its fleet every month. AB
currently has 60% of the market share in the cabs sector. It is expected to grow
further.

Competitive PositionAB has relatively lower fares. It started off at Rs. 10/km.
Currently it operates at rates between Rs. 9/km to Rs. 13/km. AB has devised a
strategy wherein it provides special service at Rs.13/km in absence of local public
transport due to union strikes etc. AB is a market leader in every city that it operates.
It has a fleet of luxury vehicles, sedans, and hatchbacks for intra-city transport. None
of its competitors provide such variation. It also provides taxis for intercity travel.

Positioning
An important step before developing the marketing mix is deciding on how to create an identity
or image of the product in the mind of the customer. Every segment is different from the others,
so different customers with different ideas of what they expect from the product. It answers the
question How do you want to be perceived?
AB positions itself as a company that will Use technology to bring higher efficiency and
customer experience.
AB has 2 taglines that help to convey its positioning.

NEW CONCEPT :

On Wheels
Its the smartest way to travel
Through its On Wheels campaign, AB wanted customers to perceive its cabs as their own cars.
The customers could call a cab anytime, anywhere as if they had a personal chauffer. Earlier
customers used to find it very difficult to book a cab but through this campaign AB positioned
itself as a service that is always available, is cheap and affordable.
Later on, it came up with Its the smartest way to travel campaign where it focused on its
additional services. AB positioned itself to an Experience provider where it provides various
services like music, phone battery charging, snacks, water bottle to make the journey more
comfortable and an enjoyable. Moreover, it simplified the process of booking a cab by moving to
app only platform. Thus, it repositioned itself to an Experience provider rather than just a
transport or cab company.

Marketing

Mix

Product/Service
AB Cabs, also known as AB, is a mobile app. It was Indias first cab aggregator. It is Indias
largest cab and Auto aggregator, with a fleet of above 18,000 cars across 85 cities.

Kaali Peeli Taxi

AB Sedan

The service is a GPS enabled mobile app based personal transportation Service.
It is a 24*7 service
The service is divided into 3 types
AB Sedan: It is a service that provides the customers a transportation in a Sedan with
more space to accommodate more people (3-4)
AB Mini: It is a service that provides the customers transportation in a Mini car with
less space usually preferred for solo travel.
AB Prime: It is a service that provides customers a Business class experience with
high end cars such as Skoda Rapid, Honda Civic etc.
Kaali Peeli Taxi: This service is only for people from Mumbai and brings the famous
kaali peeli taxis under ABs ambit.

PRICE
AB Cabs has a dynamic pricing system. Services targeting different consumer needs are priced
accordingly. The AB Mini Cabs which targets consumers who merely want to get from place A to
B are priced at a lower rate than AB Sedan Cabs which offer more comfort in terms of legroom
and boot space. This is also the case because AB Mini Cabs give a better fuel mileage than their
Sedan counterparts. A premium service of ABCabs is AB Prime Cabs which is on an average
priced around twice of that of AB Sedan Cabs; they include the luxury segment of the cars. The
price of AB Cabs also differs across the country. This is due to various factors such as tax laws of
the state, demand from consumer, competition and ease of functionality in the respective city.
The service tax is calculated on the total price indicated on the meter and is added after
completion of journey.
General Pricing Strategy
1. Standardized rate
The standardized rate of AB Cabs is the minimum price that a customer has to pay per journey.
This varies from the type of cab you book to the city you book the cab in. The standardized rate
is applied for the first x number of kilometers of travel. AB has not kept the number of
kilometers a constant throughout the country due to variation in distance in the city to various
levels of congestion of the cities.
For example: In Mumbai the standardized rate of AB Mini Cabs is Rs100 for the first 4km
whereas in Mysore it is Rs 49 for the first 2km. It is priced so keeping in mind that Mumbai is a
Tier 1 city which is heavily congested. Keeping a standardized rate for 4km encourages the
consumer to choose AB for longer distances thereby increasing the chances of a higher wait time
charge.
2. Rate per km
The rate per km of AB Cabs is the rate at which the journey is calculated per km after the
standardized rate for the first x number of kilometers. This rate not only factors in the above
elements which affect the local price of standardized rate but it additionally includes the average
journey length. This means that the rate is strategically implemented according to ABCabs needs
in that specific geographical market.
For example: In Delhi, the AB Sedan is priced at Rs11 per km as opposed to Goas Rs15 per km
as ABCabs correctly perceives Goa as a tourist destination where demand of means of transport
is high.
3. Ride time Charges

In additional to standardized rate and rate per km, AB also charges an additional ride time charge
which includes both travel time as well as wait time. The charge ranges from Rs1 to Rs2 per min
depending on city. This price additionally factors in the average duration of travel of a customer.
Also the first few minutes of the ride (ranging from 5-10 minutes) are free.
For example: Ride time charges for Mathura is Rs1 per minute whereas ride time of Haridwar is
Rs2 a minute as the distances travelled in Haridwar are generally shorter than Mathura but take a
longer period of time due to infrastructure.
4. Peak time charges
Peak time charges are generally applied across all segments of AB. Under peak time charge a
multiplier is calculated depending on the demand of vehicles. This multiplier ranges from 1.2x to
4x. This charge is purely demand based and is calculated by their systems using an algorithm.
The customer is notified of the multiplier before he books the Cab.
For example: At peak hours such as 6pm to 8pm when there is a dearth of AB vehicles but an
excess of customers a factor of 2x may be applied to the AB rates. This ensures that AB is taking
advantage of the higher demand and also making up for the duration of day which has less
demand.

Method of payment
To offer the consumer a greater sense of comfort during payment, AB includes multiple avenues
through which they can pay. The consumer can choose to pay through cash, ABMoney, Coupon
Codes or even part payment
Cash
The customer can choose to pay through cash. This transaction is done on completion of the ride
and is made directly to the cab driver
ABMoney
AB Money is another product by AB which till recently was used exclusively to pay for ABCabs
(it can now be used as an e-wallet for other e-commerce websites as well). To pay through the inapp wallet, the customer has to inform the taxi driver that the payment will be made with AB
Money. On completion of the ride, the driver shall enter the fare displayed on the meter, followed
by the four-digit OTP that the customer will receive through an SMS. AB money is then
automatically deducted from the customers account. Drivers can withdraw their payments
anytime from the prepaid ATM card that is linked to their AB account. Cash-less rides are of
great benefit to the customer as there is no hassle for change.
Coupon codes
Another popular way of payment is using coupons. These coupons are obtained through various
AB promotion activities such as the referral system.
Part Payment
Consumers have the option of paying for AB rides through part payment as well. Where the ride
can partly be paid using a coupon or ABMoney and the rest can be paid in cash. This ensures that
the customer does not face the uncertainty of his money in the e-wallet going to waste and is also
convenient if he is low on cash.

PLACE:
Distribution
ABCabs are currently available only in India. ABs distribution throughout the country is wide
and varied. ABCabs are available in over 87 cities across India. In these 87 cities, you can book
an AB Cab as long as you have a working internet connection. The most popular cars which are
generally booked through AB are Toyota Innova Taxi Cab, Tata Indica Taxi Cab, Tata Indigo
Taxi Cab, Chevrolet Tavera Taxi Cab and Mercedes Benz Taxi Cab. The luxury cars such as
Mercedes and BMWs are few and limited to a few cities. This is because ABPrime is currently
functional only in 6 Tier 1 cities as of now.
App-Only
Till recently AB could be booked through the mobile app, the website as well as through phone
calls but as of August 2015, ABCabs has gone app only. The AB app is available on Android,
IOS and Windows operating systems which cover over 99% of global smartphone users. This is
because users preferred the seamless app experience to any other mode of booking. This strategic
move allows AB to deliver a consistent one-touch booking experience as well as improved ride
experience across all aspects like navigation, payments, safety and feedback. It also avoids all
the problems and confusion created due to various channels of booking. This had led to a number
of bad user experiences with AB.
They have also recently implemented 2G enhancements in the app will also allow users in
smaller towns and low network areas to access AB without compromising on speed and ease of
access. These enhancements allow swift loading of the app on 2G networks. This is an important
move as it provides a strong foundation to their app only strategy.
The phone booking number is now the support line for feedback and complaints.

Promotion:
AB cabs have been promoting there brand with the campaign called Roti, Kapda, Makaan and
Transport campaign. They are on an aggressive promotion spree through:
Offers:

1st Ride free Campaign- through this it gave free first ride to people who downloaded the
app. It was promoted through banners, hoardings and text messages.(1)

Weekly offers and Coupon codes(2)

Through Referral Codes people who already are AB users can refer AB to new customers
and avail exciting offers

Advertising

Multi-Channel Campaign called #Chalo Niklo which aimed to position AB as the goto
transport platform of choice for immediate and transport travel(3)

Through Cup Shup Campaign AB aimed to launch its new platform for booking KaaliPeeli Taxi in Mumbai. A total of 10 lacs AB branded cups were distributed at several
premium tea locations, offices and colleges across various locations of Mumbai. Also AB
branded trays and t-shirts were provided to a few premium tea vendors who were in a
business of delivering tea in nearby offices. Delivery boys were given t-shirts and carried
a tray to increase awareness(4)

Other Methods

Through affiliate marketing by tying up with other companies for e.g. Freecharge(5)

Through its mobile wallet AB Money it tied up with Oyo Rooms, Lenskart, Saavn,
Zopper,BusIndia and Zoomin
Celebrity endorsements: AB used celebrities like Soha Ali Khan and Yami Gautam
as brand ambassadors for their brand.

Public relations
AB uses social networking sites such as Facebook and Twitter to engage its customers. It uses
these sites to communicate the events they are sponsoring, wishing their customers on various
occasions and also any activity they are planning. For e.g. they provided 40 people free cab ride
for registering for their initiative Under the Stars. They also popularized their #Chalo Niklo
campaign through Twitter and Facebook.

People:
The People in AB include the employees and the Management. The Management includes the
founders. AB introduced and pioneered the concept of driver entrepreneurship. They help the
driver buying his own car. Hence the driver in case of AB is an entrepreneur. The behavior of the
driver is of utmost importance as it helps in customer retention and also in word of mouth
publicity. Since the driver in case of AB is the owner, generally he is polite, professional and
friendly.

Process:
Consumer side
The consumer books the AB Cab through AB app. Until recently AB bookings were also possible
through their website or a phone line but AB has decided to go app-only. To do this, the
consumer must have an AB account. When he logs in through the AB account, his location is
shown on the map and he is allowed to choose the kind of ride he wants. He can choose between
AB Mini and AB Sedan. AB Prime which is targeted at the premium segment is available only in
a few larger cities such as Delhi. According to the customers needs he can choose Ride Now or
Ride Later. The Ride Now options show how far the cab is in minutes. The Ride Later option is
used for advanced bookings.
The customer can also get a ride estimate if he enters his destination. The customer then applies
any coupons that he has and proceeds to confirm his booking. The driver of the cab is intimated
and is given the name and number of the customer. Once he arrives at the point of pick-up, the
customer receives a text message regarding the same.
Post ride the customer has to rate the ride and the driver out of five stars and provide suggestions
to improve ABs service.
Cab Owner side
The AB Cab owner has to register himself as well as his driver with AB. The driver must have a
valid license for commercial vehicles and the car must be registered as a commercial vehicle.
They both undergo 3 days of separate training of what AB represents. The owners training is
more inclusive of the pricing model and profit sharing basis of AB whereas the drivers training
is about basic etiquette. The driver is then given a clean shirt and trouser according to his size.
He is also provided with a tablet like device which is used as a meter as well as to find
customers. An Ambipur fragrance is also given to be kept in the car.
AB charges the cab owners for the first service - about 12 of the billing that come through the
app. The second service is free and then the profit sharing is more in the Cab owners favor as
the more cab seeking customers AB has, the more the number of cab owners would be willing to
register with them and currently AB is not looking for profits but for higher market share.
AB cabs are tracked in real time. When the customer books a cab. The driver is notified through
his device. He will only be notified if he is logged in. The driver has the right to reject the
customer but if he does so he has to pay a penalty of Rs200. Therefore according to protocol
whenever he is on break, no matter how short a break it is, or is not available to take customers,
he is supposed to log out.

AB maintains the Owners account by recording the fares collected by him. If the customer pays
the driver in cash then the account would show a negative balance as the Owner owes AB money
whereas if the customer pays through coupons or ABMoney then the balance would be in
positive as now it is AB who owes the cab owner money.

Physical Evidence
The service can be verified on the spot in the case of AB. If the driver turns up late the customer
gets to know immediately and can complain to the customer care representative. He can also rate
the driver with the help of the mandatory rating feedback mechanism. The ambience inside the
car which includes air conditioning, cleanliness, music etc. can also be verified on the spot.

Strategy and Implementation Summary :


ABs marketing/sales strategy will be two pronged, one to address each of our two segmented
targeted groups:
1.Families/individuals:
In addition to some advertising, we will be working with associations such as CAA and other
community groups to try to build up a network of users. AB believes that working with these
groups will provide us with steady flow of customers. Additionally, since a lot of these groups
have close knit among member referrals will be quite powerful when they are coming from a
member who already has established a trust bond with other organizational members.
2. Business travelers:
ABCTSI will be contacting the travel department of many of the different companies in Toronto
that have a lot of employees traveling and informing them about our service and offering them an
introductory discount. This will be an important segment to win over as companies routinely
have employees traveling throughout the year. Businesses are also valuable because once the
initial contact is made, the relationship can be turned into a steady stream of business.

Sales Strategy :
As stated earlier, we will be going after both families/individuals as well as business travelers.
AB will have a different strategy for each group. For the individuals, AB will use contacts
through membership associations and clubs to build customers. Customers that are a part of an
association tend to put more trust in a service provider when the service provider is aligned with
the association. ABCTSI will offer a discount for the association members to try to build up a
following. Our selling spiel will be total convenience at a cost that is competitive with the price
that they currently pay when they leave their car in the parking lot. Offering the ability to
schedule in advance pick up from home and then pick up from airport should be a big selling
point. People like convenience, and people are willing to pay for conveniences. One phone call
to arrange all of your transport needs to the airport is quite a convenience.
Our strategy of wooing the business travelers will be a campaign to introduce AB to the different
travel departments of the larger companies in the area. The initial contact will be a
letter/brochure describing our services along with a pricing guide. ABCTSI will then follow that
up with a phone call to try to receive a commitment from the company. By including the pricing
information within the brochure, AB believes that this will catch the eyes of the companies'
travel departments as they are acutely aware of the costs that they are paying now and ABCTSI

believes that they can convert the lead into a customer by offering essentially the same service of
a limo company at a reduced rate.

Sales Forecast :
The first month will be spent setting up the business. It is unlikely that everything will be ready
to go so that we could begin to take fares. By month two the business office will be in order,
brochures will have been sent out and AB will have been working with associations to create
visibility for the company. AB will have two drivers and will be paying a base monthly wage on
the assumption that AB wants to have the drivers ready when fares come up but there is not
likely to be enough fares to support the wages of the two drivers.

CONCLUSION :
From the above project we can conclude that after dedicating certain years in the market
definitely you can earn profit with less investment and also by encouraging drivers to run our
business as their own.

Also it is very important to satisfy the customer to stay in the market as there are number of
competitors which just wants one chance to grab your market share.
Especially, when some incidents takes place such as rape or girls harassment by any of the driver
than it not only spoils the name of the company and ruin their market but also bans the company
to further work on it so its a major disadvantage of the company. And also to take permission
from the government again is a major problem. Many such incidents have taken place in Mumbai
with number of cab companies which fixed them into many legal problem.

Bibliography :
www.google.co.in
www.qz.com
www.1.india.com
www.seminarsonly.com
www.slideshare.com