RESEARCH PROPOSAL

On

“A STUDY ON CONSUMER BEHAVIOUR TOWARDS OLA AND UBER

CAB SERVICES IN AHMEDABAD”
Name: Pearl Mehta

Email Id:pearlmehta0707@gmail.com
Mobile No: 9408606869

GLS University

ABSTRACT:

The phenomenal growth of passenger vehicle market is vitally backed by the domestic cab
segment. The Indian passenger vehicle industry is expected to have a strong and potential growth
in future, whereas medium to long term will be supported by low car penetration level and
increasing income level of consumers. The research paper focuses on consumer satisfaction
towards cab service providers in Ahmedabad. The study deals with the consumers mind set
towards using services of OLA or UBER cab, the level of comfort, influence by quality, safety
and overall satisfaction of a consumer. The reason that support and influence their choice,
ascertain their views in enhancement of services and also get reason behind their dissatisfaction
will be analyzed by conducting the Descriptive research, using Convenience Sampling, the data
that will be gathered are with appropriate tools and provided with feasible suggestions.
INTRODUCTION

 The consumer market is filled with opportunities and possibilities to develop. In the case
of e-trailers, consumers were appetite for discounts. The customers are seeking for safety,
satisfaction and pride. The increasing population and limited infrastructure adds to
opportunity to grow, especially by attracting foreign investors to invest in competitive
market which leads to more attractive towards affordable price to consumers. There is
mushroom growth in cab providers like, Ola, Uber, Meru, Savaari, Woocabs, Carzonrent,
My Cab India, Gozo cabs, One side Cab, Bharat Cab etc.
 Ola Cabs (stylized as OLΛ), is an Indian transportation network company (TNC)
offering services that include peer-to-peer ridesharing, ride service hailing, cab and food
delivery. The company is based in Bangalore, India.
 Uber Technologies, Inc. is an American multinational transportation network
company (TNC) offering services that include peer-to-peer ridesharing, ride service
hailing, food delivery, and a bicycle-sharing system. The company is based in San
Francisco and has operations in 785 metropolitan areas worldwide

OBJECTIVES:

PRIMARY OBJECTIVES:

 To study the consumer satisfaction towards OLA and UBER.

 To study the preference of customers between OLA and UBER

SECONDARY OBJECTIVES

 To identify the difference between satisfactions levels for both cab services.
 To study the Motivational factors which drive people to use OLA/UBER cab services in
Ahmedabad.
The Research Question

Organized rental cab was introduced in the Indian market in 2004 with Meru cab service and
soon became popular among consumers in metropolitan cities but the actual revolution came in
2010 when app based services started, with Uber in 2013. This study is focused on identifying
the difference between Ola and Uber customers and for this data will be collected with the help
of structured questionnaire. Data will be collected from Ahmedabad and specifically from
working professionals. Result of this study may help the cab service industry to design their
future marketing strategies.. This study will help us to know the customers satisfaction with
respect to the comfort, convenience, tariff, service quality and staff courtesy, etc.

Literature Review

 Sumit Wagmare Et Al (2015) studied about the consumer’s preference on apps for
booking cab services. Research was done with the help of a questionnaire and about 70
respondents were surveyed. It was found that perceived ease of use, Subjective norms
and perceived risk played an important role in shaping the behavioral intention to use the
app. These app generates a sense of freedom, creates a feeling of independence and
royalty among the users

 Sarita Prava Das Et Al (2017) studied the various factors that affect the consumer for
selecting pre-booked cabs. Research was done by using descriptive research. It was found
that consumers preferred convenience, quality services, transparency and safety as
important parameters for selecting pre-booked cabs.
 Hanif and sagar (2016) studied that the cab services has a huge potential for growth in
Mumbai targeting middle and affluent class. Research was done by using descriptive
research and about 50 people were surveyed. It was found that consumers not only uses
cab services for commutation but also for visiting a shopping mall, attending late night
party or going out on special occasion. It also showed that consumer satisfaction is very
high, which shows positive sign for future growth and expansion of the business.
  Sindhu Kashyaap (2016) studied the consumer satisfaction towards Ola and Uber. Data
was collected with the help of a questionnaire. Research was done by using Sampling
research. It was found that in terms of pricing, about 44% of people prefer Uber, while
12% of people prefer Ola since the pricing level of Ola is bit expensive than Uber. He
also found that about 54% people said that the drivers cancel the ride if the drop location
doesn’t suit them or drivers not being able to use the GPS navigator.
 Rusksana Rasheed Et Al (2018) studied and evaluate customer’s satisfaction using app
based cab service in Lahore City. Research was done through Correlation and Regression
models. Both primary as well as secondary data was collected. It was found that Careem
was more reliable and preferred cab service followed by Uber. It was concluded that
among six service quality factors i.e. convenient us of mobile app, driver behavior, time
reliability, and Price affordability indicated significant impact on customer’s satisfaction.
 Paronda Et Al (2016) studied the key performances indicators for selection of Ola and
Uber. The research was done by using descriptive research and 30 people were surveyed.
It was found that Uber and Grabcar offers better quality services than conventional cabs.
It also identified the indicators such as reliability, travel speed, passenger expenses that
attracts consumers towards the selection of Ola and Uber.

Research methodology

A research design is a framework that has been created to find answers to research questions. In
this research both Primary and Secondary data are collected for research survey. The
questionnaire is framed to know the nature of product consumer does use, the reason they favor
to buy such product and their level to the product.

DESCRIPTIVE RESEARCH DESIGN

This is descriptive research design because scientific method which involves observing and
describing the behavior of a subject without influencing it in any way.

 To obtain the primary data from customers, will be using the research instruments like
questionnaire and personal interviews with the customers using OLA and UBER paid cab
service. At the time of interview the researcher will make clear about the nature and
 purpose of the study. The interviews help to elicit further detailed information. Good
representation of Gender, Education, Age groups, Occupation, Demographic factors are
to be considered during the study.
 Data Collected: Primary ( Structured Interview )
 Population: Total population is 200 respondents.
 Element: Single user
 Sampling Frame: Sampling frame comprises of all 150 respondents from Ahmedabad of
all the elements of respondents with proper identification that is available to us for
selection at any stage.
 Sample: Sample is comprises of 150 respondents.
 Sampling unit: Single user of sample.
 Sampling: Selecting a sample of 150 respondents from 200 respondents.
 Sampling design: Non-probability Sampling method

DATA ANAYLSIS AND INTERPRETATION

This chapter discusses the data analysis from 150 responses collected from various age group
people who are using OLA/UBER paid taxi services in Ahmedabad city. 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.
Cabs aggregator preferred by the respondents:

Interpretation

 From this graph, we can see that the people of Ahmedabad prefer Uber cabs more than
any other cab aggregators. About 66% of the respondent prefers Uber cabs.
 About 30.7% of the respondents prefer Ola cabs.
 About 0.7% of people prefer Savaari.com.
 About 2.7% of people opted for others.
The main reason people won’t prefer cabs

 From the above graph, we can see that people in the Ahmedabad region do not prefer
cabs due to its high price.
 About 46.7% of respondents say that price is the main reason that they do no use or
prefer cabs, instead they with auto-rickshaws, buses etc.
 About 35.3% of respondents may have some other reasons for not preferring cabs.
 About 6.7% of the respondents may have some bad experiences with drivers, due to
which they do not prefer cabs.
 About 11.3% of the respondents believe to have discomfort during the rides, and thus
don’t prefer cabs.
Satisfaction level for Cabs Apps:

Interpretation:

 From the above graph we can say that most of the respondents are satisfied with the app
convenience of Ola/Uber cabs.

 About 88.7% of respondents are satisfied with the app convenience of Ola/Uber.

 About 11.3% of the respondents are not satisfied with the app convenience of Ola/Uber.
Interpretation:

 From the above graph we can say that about 38.7% respondents are moderately satisfied
with cab services.
 From the above graph we can say that about 8% respondents are not satisfied with cab
services.
 From the above graph we can say that about 7.3% respondents are highly satisfied with
cab services.
Interpretation:
 From the above graph we can see that most of the respondents about 70% of respondents
believe that prices of Ola and Uber are moderately affordable.
 From the above graph we can see that most of the respondents about 20% of respondents
believe that prices of Ola and Uber are completely affordable.
 From the above graph we can see that most of the respondents about 8% of respondents
believe that prices of Ola and Uber are unaffordable.
Interpretation

 Following points can be derived from the above chart.

 The first statement says that about 42% of the respondents strongly agree, 72% of
respondents agree, 37% of the respondents are neutral, 3% of respondents disagree, 2%
of the respondents strongly disagree that convenience factor influence the preferences of
customers.

 The second statement says that about 52% of the respondents strongly agree, 71% of
respondents agree, 27% of the respondents are neutral, 3% of the respondents disagree,
3% of respondents strongly disagree that safety factor influence the preferences of
customers.

 The third statement says that 26% of respondents strongly agree, 68% of the respondents
agree, 52% of the respondents are neutral, 7% of the respondent disagree, 2% of the
respondents strongly disagree about the fact that time duration factor influences the
preferences of customers.

 The fourth statement says that, about 24% of the respondents strongly agree, 49% of the
respondents agree, 55% of the respondents are neutral, 15% of the respondents disagree,
13% strongly disagree that price factor influences the preferences of the customers.
  The fifth statement says that about 46% of the respondents strongly agree, 72% of the
respondents agree, 32% of the respondents are neutral, 6% of the respondents disagree,
4% of the respondents strongly disagree that comfort factor influences the preferences of
the customers.

FINDINGS

 A Qualitative research study conducted to understand the factors that affect the choice or
preferences or satisfaction of the customers towards Ola/ Uber cabs.

 About 66% of the respondent prefers Uber cabs, due to its best quality services and low
price.
 It was found that about 46.7% of respondents say that price is the main reason that they
do no use or prefer cabs, instead they with auto-rickshaws, buses etc.
 About 88.7% of respondents are satisfied with the app convenience of Ola/Uber.
 About 7.3% of respondents are highly satisfied with cab services.
 About 72% of the respondents prefer convenience and comfort as a factor which
influences their preference towards Ola/Uber cabs.
 About 70% of respondents believe that prices of Ola and Uber are moderately affordable.
Recommendation

For Ola:
 Ola needs to improve frequency of cab.
 The price hikes during rain are way too much; I would recommend to cut short those at
least for ‘not so long’ rides.
 Frequency of Ola cabs in rural areas should be increased.
 Ola should accept payment through Paytm also.
 Ola drivers should be more taught how to provide good service. Ola drivers are very
unprofessional.
For Uber:
 Uber should add pool car option and its frequency in the app.
 Increase availability of premium cabs
 The route for the destination should not be fixed. If there are alternative routes which are
faster and less traffic, should be allowed to be taken.
 In Ahmedabad the waiting time for cab is more during peak hours. I would recommend
that during peak hours drivers should not log out and more incentives should be given to
them.
 Uber should not have a minimum Paytm wallet amount. Uber should optimize and make
the app more efficient.
 Uber should improve customer relationship management and booking and cancellation
service.
Limitations of the study and Future Research

As any research is not complete and always have a scope of further research, these researches too
have further scope. As Data was collected only from Ahmedabad region and only for working
profession, result represents only small part of population. In future further research should be
done with more varied sample with more geographically spread. So, there is scope of further
research and further research will give more comprehensive conclusion about aggregator cab
services in India.

Conclusion

The cab service is a booming sector in Indian Market. People consider the cab service as a
luxurious necessity and feel justified for the tariff charged. These companies are providing better
facilities than auto-rickshaws and buses. This research study describe the various factors that
affects the customer’s behavior towards Ola and Uber cabs such as, speed, reliability, comfort,
Pricing, safety, app convenience etc. Thus every cab service needs to provide the best facilities to
their customers since they are the” Real King Pin”. Security and safety is a very sensitive area
which the cab companies need to look into and ensure that the customers are satisfied with the
facilities that is provided. Even the cab companies need to think about the pricing, since most of
the customers avoid this cab services due to higher pricing. So, cab providers have to run in the
race and adopt to offer many innovative features and facilities for customers to increase revenue
in this cab industry in order to increase market capitalization.
References

Rajesh, R., & Chincholkar, S. (2018). A Study on Consumer Preference of Ola and Uber Cab
Services. Indian Journal of Computer Science, 3(5), 25-31.

Kashyap, R., & Bhatia, A. (2018). Taxi drivers and taxidars: a case study of Uber and Ola in
Delhi. Journal of Developing Societies, 34(2), 169-194.

Paronda, A. G. A., Regidor, J. R. F., & Napalang, M. S. G. (2016, August). Comparative analysis
of transportation network companies (TNCs) and conventional taxi services in Metro Manila.
In 23rd Annual Conference of the Transportation Science Society of the Philippines Quezon City,
Philippines (Vol. 8).

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.

Sharma, K., & Das, S. (2017). Service quality and customer satisfaction-with special focus on
the online cab industry in India. International Journal of Business and Management, 12(7), 192-
200.