A Case Study On The Views of AirLand Taxi Company On The Presence of Uber in Cebu City - Implications For Marketing Strategies

A Case Study on the Views of AirLand Taxi Company on the Presence of Uber in Cebu City:
Implications for Marketing Strategies
________________________________________________________________________
A Research in Partial Fulfillment of the Subject

Practical Research 1
Cebu City
________________________________________________________________________
By
So, Ralph Eduard G.
Go, Johannes Anne T.
Selma, Kyla Francine
Tabanao, Sophia Sue T.
Ybanez, Cybil Rose S.
APPROVAL SHEET
The research paper here to titled
A Case Study on the Views of AirLand Taxi Company on the Presence of Uber in Cebu
City: Implications for Marketing Strategies
Prepared and submitted by Ralph Eduard G. So, Johannes Anne T. Go, Kyla Francine Selma,
Sophia Sue T. Tabanao, and Cybil Rose S. Ybanez has been examined and its recommended for
acceptance and approval for ORAL DEFENSE.
PANEL OF EXAMINERS
Approved by the committee on the Oral Report
With a grade of PASSED on November 15, 2016
Ms. Ginabonivie Gatillosa Ms. Charmen Ramos
Proposal Panelist Defense Panelist
Accepted and approved in partial fulfillment of the requirements for the course
Practical Research 1 in the ABM strand of the Senior High School Department at Sacred Heart -
Hijas de Jesus.
Ms. Marie Noelle Alino
Practical Research 1 Teacher

ACKNOWLEDGEMENTS
First and foremost, the research team would like to express their never ending gratitude to the
Almighty God, our Father, for providing them the strength, enlightenment and blessings to
relentlessly move forward and face their obstacles finishing the research paper head on.
To their practical research adviser, Ms. Marie Noelle I. Alino, for encouraging the researchers to
pursue their chosen topic, for assisting the researchers to pursue their chosen topic, for assisting
the researchers in understanding and analyzing the data gathered which helped them get a full
grasp of the results, and for the guidance, time and effort given in times of any major or minor
setbacks and bumps encountered along the way.
To the participants of the research, most especially the management personnel, Mr. Obeso
Chiquito for being generous with his time in answering the researcher's questions, and for
sharing their knowledge on the chosen topic during the interview.
To their families, classmates, and friends for the prayers, support, and inspiration in moments of
downfall and hopelessness and for helping them stand back on their feet.
To the panelists, Ms. Ginabonivie E. Gatillosa and Ms. Charmen D. Ramos, for taking their time
in rendering their comments, suggestions, and recommendations which have greatly the study in
uncovering the full potential and also for challenging the researchers to do their utmost
capability.
To everyone who has lent their assistance and knowledge but were not mentioned, the
researchers also extend their sincere appreciation.
To all those cited above, THANK YOU for this research paper would have never come to be
without your wonderful contributions.
Ralph Eduard G. So, Johannes Anne T. Go, Kyla Francine Selma, Sophia Sue T. Tabanao, and
Cybil Rose S. Ybanez

TABLE OF CONTENTS
COVER PAGE
APPROVAL SHEET
ACKNOWLEDGEMENTS
TABLE OF CONTENTS
CHAPTER 1: THE PROBLEM AND ITS SCOPE
1.1 INTRODUCTION
1.2 REVIEW OF RELATED LITERATURE
1.3 STATEMENT OF THE PROBLEM
1.4 SIGNIFICANCE OF THE STUDY
1.5 SCOPE AND LIMITATIONS
CHAPTER 2: RESEARCH DESIGN AND RESEARCH METHODOLOGY
2.1 RESEARCH METHOD
2.2 RESEARCH ENVIRONMENT
2.3 RESEARCH PARTICIPANTS
2.4 RESEARCH INSTRUMENT
2.5 DATA ANALYSIS
CHAPTER 3: PRESENTATION, INTERPRETATION, AND ANALYSIS OF DATA
CHAPTER 4: FINDINGS, CONCLUSION, AND RECOMMENDATION
4.1 FINDINGS
4.2 CONCLUSION
4.3 RECOMMENDATIONS
IMPLICATIONS FOR BUSINESS STRATEGIES
BIBLIOGRAPHY
APPENDICS
CHAPTER 1
THE PROBLEM AND ITS SCOPE
“These new categories (Uber and GrabTaxi) aren't created to ruin the old taxi industry. We're
implementing these new categories to promote innovation and modernization."
- Joseph Emilio Abaya
Introduction
Transportation is the mobility of humans, animals and goods from one location to
another. According to S.M. Kumari et al. (2010) and K. Rehrl et al. ( 2007), having good
transportation network is one of every modernized city’s initial priorities, as today’s modern
society needs mobility in every aspect of life. When transport systems are efficient, they provide
economic and social opportunities and benefits that result in positive multipliers effects such as
better accessibility to markets, employment and additional investments (Rodrigue & Notteboom,
1998).
According to World Book Encyclopedia (2014), before the development of
engine-powered vehicles, nearly all transportation involved the shipment of goods; therefore,
passenger transportation was relatively uncommon. Today, passenger transportation is an
essential part of everyday life in industrialized countries. Workers in countries live much farther
from their places of employment than workers did in the past, having to require quick and
dependable transportation each workday. Many children need transportation to and from school,
families depend on transportation for grocery shopping or other errands, and many people travel
long distances on vacations where transportation is needed as well. In some industrialized
countries, more money is spent on passenger transportation than on the shipment of freight.
Passenger transportation includes both private and public transportation. People who use private
transportation operate their own business, and those who use public transportation pay to ride on
vehicles owned and operated by private companies or by the government.
Oxford University Press (2017) states that public transportation includes buses, trains,
and other forms of transport that are available to the public, charge set fares, and run on fixed
routes. It provides mobility and access to travel for those who do not have use of a private
vehicle thus acting as an alternative to travel by private motor vehicle. Public transport has the
capacity to transfer large numbers of people which then helps to reduce traffic congestion,
increase access to employment and business productivity, and lower the cost of living.
In 1994-1999, Cebu City’s share of the total vehicles registered in Cebu Province ranged
from 40-55%. From 1994 to 2000, motor vehicle registration in Cebu City tremendously
increased by 42.1% with an average annual growth rate of 7.0% while the increment in 2000 to
2006 was halved to 21.4% or an average annual growth rate of 3.6%. During the year 1995, there
was a total number of 124, 561 vehicles registered in Cebu Province (Barreveld, 1995). In
2000-2006, the share of diesel-fueled vehicles and the share of gasoline-fueled vehicles in Cebu
Province were almost constant at 20% and 80%, respectively. Cebu City’s public transport is
mainly road-based. There are three modes of public transportation excluding 2 or 3-wheelers
(CITOM, 2007) namely: (1) Public Utility Jeepneys, (2) Taxi, and (3) Buses and mini buses with
8,329 units, 5,788, and 952 units respectively.

However, these public transportation means, especially the taxi company, have faced
increased competition as the government announced the introduction of new transport categories
aimed at easing traffic congestion through "efficient use of road space." Vehicles of
application-based, ride-sharing service providers such as Uber has been launched in the country
(Paz, 2015). According to UberBlog, after the successful operation of Uber in Manila during
2014, Uber had then launched in Cebu on December 2015. In an article from The Freeman,
written by Carlo Lorenciana, the year had shown its rapid growth and its leverage on technology
has become a trend in the global public transport industry. With the help of good social media
marketing and aggressive recruitment of drivers, Uber has expanded with such a rapid rate.
Uber is a mobile app ride-hailing service developed to connect passengers with drivers of
vehicles for hire and to make ride-hailing more convenient. It was founded on 2008 by Travis
Kalanick and Garret Camp in San Francisco, California, United States of America. Since then,
according to Business Insider, Uber is one of the most lucrative companies now operating in
641+ cities in 77 countries which is currently valued at roughly $70 billion in just 9 years.
The concept of Uber is to connect the passengers and the drivers, who use their own
private vehicles, through the means of the internet and your smartphone. The passenger will be
able to see the location of the approaching vehicle, details of the Uber driver and vehicle, and the
estimated time of arrival to the passenger’s desired location. To start using Uber as a passenger,
you must first create an account and install the app from your smartphone. Once an individual is
through, he/she may set up their means of payment; either through cash, credit card, debit card or
PayPal. After this, the passenger is now able to pick their destination. There are different types of
Uber rides to choose from, namely: UberX which seats 4 passengers, UberXL seats 6 passengers
and UberPOOL where you share your Uber ride with another Uber user and split the cost.
However, the Philippine taxi industry is at odds with the government on the regulations
of the new transport category for ride-sharing service providers such as Uber, GrabTaxi and Easy
Taxi (Paz, 2015). In a news article published in GMA News Online written by Jon D. Cabuenas,
transport group Drivers Unite for Mass Progress and Equal Rights (DUMPER) stormed to the
Land Transportation Franchising and Regulatory Board (LTFRB) on March 27, 2017 to protest
the operations of Transport Network Vehicle Service (TNVS) in the country. According to
DUMPER Vice President Gerry Donesa, they are protesting the operations of both Grab and
Uber in the Philippines as they are causing the decline in the profit of regular taxi drivers in the
country.
In contrast to Uber, the regular taxicab is a conventional mode of transportation. A
passenger can access a taxicab by hailing, waiting in line at a taxi bay, or booking through phone
call or application. Taxicabs have installed analog meters that computes the fare. The only
method of payment in this mode is cash. These local taxicabs have graced the Philippine streets
since 1990s and have been a very essential public transportation for Filipinos when they need to
travel from one destination to another. Specifically in Cebu City, AirLand Taxi Company is one
of the many largest taxi companies in the city with a fleet of approximately 200 cabs. It carries a
name that has been around more than a decade and continues to maintains its vehicles to ensure
appropriate service to its passengers.
However, with the presence of Uber in Cebu City, traditional taxi companies face
increased competition. Additionally, the livelihood of taxi drivers is at risk as ride-hailing apps
offer low-cost services with no tax liabilities. Taking into consideration of the said situation, the
researchers aim to gain more perspective on the taxi company to the Uber industry to
comprehend how extensive the impact of Uber’s interference in terms of the progress of the
business and to the source of income and livelihood of taxi drivers. Hence, the study will aid in
contributing business strategies that will help in improving the company’s customer satisfaction.
For this purpose, this study was conducted.
Statement of the Problem
One of the main public transportation system used in the Philippines is the local taxicabs.
These local taxicabs have graced the Philippine streets and have been used for multiple
traveling purposes. However, with the emergence of Uber, it has caused interruption to these
taxi industries. The purpose of this research is to study and determine the impact of Uber’s
presence to the AirLand taxi industry with the purpose of providing implications for marketing
strategies. The following questions are guidelines for conducting this study:
1. What are the opinions of local taxicab drivers on the emergence of Uber?
2. What are the viewpoints of the local taxicab drivers on their profits since Uber
was launched?
3. What are the views of the local commuters of Cebu City to the Uber app?
4. In what specific ways can the AirLand taxi company improve their marketing
strategies to increase customer satisfaction?
Significance of the Study

This study is beneficial for the various sections of the business, Airland Taxi Company,
and the society as a whole.
The Management
The management of AirLand Taxi Company will be provided with the data to act as a
basis for decision-making for any improvements to their services needed in order to meet and
exceed the expectations and satisfaction of the customers for their entrepreneurial venture.
Aspiring Entrepreneurs
This study analyzes the different socioeconomic views of the AirLand Taxi Company on
the presence of Uber in Cebu. Since entrepreneurs are vital to the progress of a country’s
economy, they are the ones who serve as instruments for instilling a variety of change in the
society. This study will be very beneficial to startup entrepreneurs as it may help them gain more
knowledge regarding the economy, its social processes and its impact on their investments.
Commuters
As contributors to the profitability of taxi companies, commuters will benefit from this
study since the their perspectives and recommendations are of significance in determining the
implications for marketing strategies of the taxi industries. With these, they may be able to
experience the improvements that will be established by the business.
LTFRB
As an agency under the Department of Transportation, it is the duty of the LTFRB to
ensure the stability of the country’s economy and to enforce laws that will promote general
economic fairness. This study will aid in raising awareness of the current issues happening in the
society in terms of transportation. Consequently, they will be able to coordinate and cooperate
with other government agencies and entities concerned to solve any said problems and issues of
certain transportation means and its services.
Future Researchers
This study will serve future researchers as a reference data for conducting new studies of
the same nature or for testing the validity of other related findings.
Scope and Limitations
The study was conducted to gain the perspectives of AirLand Taxi Corporation to Uber’s
presence in Cebu City and its implications to business strategies as of 2017.
In the year 2017, interviews were conducted in Airland Taxi Company. With consent and
willingness, the (20) twenty respondents were (1) the owner of the taxi company, (9) nine
Airland taxi drivers, and (10) ten passengers who have ridden both Uber and regular taxi cabs.
This was to gather the different perspectives of people to Uber and taxis in Cebu City.
The results of this study cannot represent other TNC variants currently operating in Cebu
City like GrabCar and Grabtaxi since Uber is the pioneer and the most widely known TNC
variant worldwide.
Review of Related Literature
This study was anchored on Abraham Maslow’s Hierarchy of Needs (1943, 1954), and
the Gap Model (1985).
Abraham Maslow’s Hierarchy of Needs
Maslow’s (1943, 1954) Hierarchy of Needs is a motivational theory in psychology
compromising a five tier model of human needs. Depicted in a pyramid, the theory explains the
different levels of importance of human psychological and physical needs. Needs in the lower
categories have to be satisfied before needs in the higher ones can act as motivators.
The five levels of needs are physiological needs, safety needs, belongingness and love
needs, esteem needs and self actualization. (1) The physiological stage focuses on the basic
needs for survival such as clothes, food, water, shelter and etc. (2) Safety needs is where one
wants to feel safe and protected from harm, violence and the like. (3) Belongingness and love
needs is when one has taken care of oneself physically, and is ready to build relationships with
others, such as with family and friends. (4) Esteem needs is where one dreams and aspires to
reach perfection, independence, and etc. It is where one feels comfortable with what one has
accomplished. (5) Lastly, the self-actualization needs is where one realizes personal potential. It
is where one seeks personal growth to become one’s ideal self.
To emphasize safety needs in Maslow’s hierarchy, this is the need for security protection.
These include law and order, employment, health and stability. When these needs are not met,
humans tend to search for the protection they need based on cultural background, beliefs and
more for these are related to one’s natural desire of a peaceful and orderly world.
In relation to this study, Maslow’s theory is of great benefit for the business for a better
understanding of the behavior and reaction of individuals in common instances. Furthermore,
business owners will know how to teach their employees to make their customers feel safe to
attain customer loyalty. The theory is of use as well by managers to better understand employees'
needs and motivations, allowing them to best provide for employees' needs and generate high
productivity and job satisfaction.
Gap Model
The Service Quality Model, also known as the GAP Model, was developed by
Parasuraman, Zeithalm and Berry in 1985. It highlights the main requirements for delivering a
high level of service quality by identifying five ‘gaps' that can lead to unsuccessful delivery of
service. A gap rises when the experience does not match the expectation of the customer. Under
the gap model lies five gaps: Customer Gap, Knowledge Gap, Policy Gap, Delivery Gap, and
Communication Gap.
Gap 1 - The Customer Gap. The Customer Gap is between customer expectations and
customer perceptions. Customer expectation is an assumption in deciding the purchase whereas
customer perception is an interpretation of collective information after purchase. In a
customer-orientated strategy, delivering a quality service for a specific product should be based
on a clear understanding of the target market. Understanding customer needs and knowing
customer expectations could be the best way to close the gap.

Gap 2 - The Knowledge Gap. This gap is between consumer expectation and
management perception. This gap arises when the management or service provider does not
correctly perceive what the customer wants or needs. In a customer-orientated business, it is
important to have a clear understanding of the consumer’s need for service. To close the gap will
require comprehensive market research.
Gap 3 - The Policy Gap. This gap is between management perception and service quality
specification. This happens when the management or service provider might correctly perceive
what the customer wants, but may not set a performance standard. Furthermore, according to
Kasper et al, it is the management’s incorrect translation of the service policy into rules and
guidelines for employees. This includes poor service design, failing maintenance and updates of
the provision of good customer service or simply a lack of standardisation. Employees must have
the mindset to give the customers the desired service to avoid them in seeking a similar product
with better service.
Gap 4 - The Delivery Gap. This is the gap between service quality specification and
service delivery. Organisations with a Delivery Gap may specify the service required to support
consumers but have subsequently failed to train their employees, put good processes and
guidelines in action. As a result, employees are ill equipped to manage consumer’s needs. Some
of the problems experienced if there is a delivery gap are: (1) employees lack of product
knowledge and have difficulty managing customer questions and issues and (2) organisations
have poor human resource policies. This is to acknowledge their weaknesses so the company or
management may be able to give them the right amount of training in terms of product
knowledge, in dealing with customers and maintaining the high level of satisfaction to
customers.
Gap 5 - The Communication Gap. This is the gap between service delivery and external
communication. Consumer expectations are highly influenced by statements made by company
representatives and advertisements. The gap arises when these assumed expectations are not
fulfilled at the time of delivery of the service. In some cases, promises made by companies
through advertising media and communication raise customer expectations. When
over-promising in advertising does not match the actual service delivery, it creates a
communication gap. Consumers are disappointed because the promised service does not match
the expected service and consequently may seek alternative product sources. This leads to the
company losing customers and the customers tend to seek for alternative product sources.
The gap model has been well recognized for playing a crucial role in improving
organizational profits because it is directly related to customer satisfaction (Baker & Crompton
2000; Zeithaml & Bitner, 2000). Recognizing and closing gaps offers high quality customer
service to the consumer and helps them to achieve their goal whilst maximizing market position,
market share and financial results through customer satisfaction. This information is of relevance
to the AirLand Taxi Company to suggest certain strategies and methods on how to meet the
needs and expectations of the customers in order to maximize their satisfaction, loyalty and
retention. It also helps managers to identify areas of weakness and make improvements to a
company’s service delivery that would improve the services of the company which then would
give an edge to the transportation industry amidst the growing competition in this year of time.
Transportation Network Vehicle Services (TNVS)
According to LTFRB, one of the innovations in the transportation industry is the
internet-based application called “Online Enabled Transportation Service (OETS)” that connects
drivers with customers who request a ride. Once the request is granted, the driver picks up the
customer and brings them to their desired destination. Globally, this new type of service is
referred to by many jurisdictions as the Transportation Network Company (TNC). The
Transportation Network Company (TNC) is a form of organization that provides pre-arranged
transportation services that connects passengers with drivers using their personal vehicles
through the online-enabled application or platform technology. Upon recommendation by the
Land Transportation Franchising and Regulatory Board (LTFRB) and with the advent of OETS,
a new classification of public transport conveyances is created and designated as “Transportation
Network Vehicle Services.”
According to LTFRB, technological advancements have shown a very enormous growth
concerned with each and every field including the transportation industry thus directly affecting
the land transportation service. Because Uber is under the TNVS, this information is of relevance
in giving the advantages and disadvantages of such innovation to the transportation industry.
Competition
According to Dinio & Villasis (2017), competition is the rivalry among various sellers in
the market. According to Valentine Belonwu (2013), competition among businesses enables the
company to distinctively evaluate their customers which leads them to develop ways to properly
treat their customers the right way, making customer service better. It also leads to innovation,
for it pushes the company to develop and reinvent itself to be better and exceed the expectations
of their adversaries. Moreover, competition pushes businesses to provide exemplary and unique
products which makes the business stand out thus drawing more positive attention from the
consumers.
Information about competition is essential to the study for it permits the business to
evaluate its strengths and weaknesses in order to infer what needs to be improved and changed. It
also helps the business owners identify potential threats to their businesses due to the fact that
they can infer from their competitors what plans or strategies works perfectly or what does not
work well.
Instant Gratification
According to Neil Patel (2014), instant gratification is the desire to experience pleasure or
fulfillment without delay or deferment. In most psychological models, humans are believed to
act upon the “pleasure principle.” According to Sigmund Freud’s theory, the pleasure principle
is the impulse of a person to satisfy their desires.
According to Neil Patel, one of Forbes’ top ten marketers, instant gratification is not
necessarily bad but of a great advantage especially how most activities of the millennial era is
closely connected to gadgets and technology. Because of the constant usage of the internet, it
enables users to purchase and sell various products and services instantly and frequently which
gives off instant gratification.

In an article, The Psychology of Instant Gratification and How It Will Revolutionize
Your Marketing Approach by Neil Patel, it stated that those who are involved in a business,
anticipate overnight success for their businesses, and this is acquired by providing services which
the clientele needs in pronto. However, by doing so, the clients would always expect the same
type of service to be provided every time they engage with the business. Most customers want to
receive products and services immediately and this is how instant gratification comes into play.
Studying instant gratification proves the importance to this study by enabling a frame of
reference to what the consumers seek to find and expect from a business establishment in which
contributes to customer satisfaction.
Sharing Economy
Often known as a series of services and start-ups, sharing economy also refers to an
economic activity that involves online transactions wherein individuals or groups of people buy
or sell goods and services arranged by an online company or organization. These transactions are
often done via community-based online services.
Sharing economy may take a variety of forms. This includes using information
technology that provides individuals information where it allows the optimization of resources
through the mutualization of excess capacity in goods and services. The company may also
enable owners to rent out something they do not use through the peer-to-peer services. Examples
of these are cars, houses, and bicycles. According to Crowd Companies (2014), the highest
generating sectors within the sharing economy in 2013 were peer-to-peer finance (money lending
and crowd funding), exchange of space, transportation, services, and goods. A sharing economy
is comprised of the following building blocks:
People. It is a people’s economy, which means that people are active citizens and
participants of their communities and the wider society. The citizens involve a highly efficient
sharing system, to which all contribute and benefit from. They can act also as suppliers of goods
and services; they are creators, collaborators, producers, and distributors. In business, may it be
owner, employee, or customer, their opinions and ideas matter. These are being respected and
integrated into the business at all levels of the supply chain, organization, and development.
Production. In sharing economy, people are also active participants in production.
Production is open and accessible to those who wish to produce. The internet enables the
development of products and services in a collective manner.
Distribution. Resources are distributed and redistributed through a system that is both
efficient and equitable on local, regional, national, and global scale. This promotes a fair
distribution of assets that benefits the society as a whole.
Power. There is a redistribution of power to citizens which enables them to access to
power and decision-making.
Communications. Information and knowledge is shared, open, and accessible.
Culture. The sharing economy promotes a web-based culture where the wider community
and the greater good are considered. It enables people to connect and understand each other
more.
Lucy Henderson (2016) stated that the sharing economy creates value in at least five
ways. Firstly, it provides for the productive allocation of underutilised assets. Secondly, the
sharing economy enables a multitude of buyers and sellers to interact through its user friendly
platforms, which facilitate competitiveness on both the supply and demand side of its markets.
Third, it decreases transaction costs by reducing the cost of finding willing traders through
innovative apps, and fourth, peer review systems are able to mitigate the problem of asymmetric
information between producers and consumers, contributing to a highly efficient marketplace.
Finally it allows suppliers to create value for customers long underserved by those incumbents
who have become inefficient and unresponsive because of their regulatory protections.
Knowing that Uber is of part of the sharing economy, this research uses the said concept
to determine and connect the advantages of Uber and its greater efficiency as oppose to the taxi
industry.
Non-price Determinants of Demand
Demand refers to the willingness and ability of buyers to purchase different quantities of
goods and services given different prices during a certain period of time (Viloria, Martinez &
Camus-Rivera, 2016). According to an article by Kimberly Amadeo, demand drives economic
growth. When demand increases, supply increases, and as supply increases, profits increase as
well. Economists have broken down the determinants of an individual's demand into 5
categories: price, income, price or related goods, taste and expectations.
Price - I t is the amount of money that an individual is willing and able to pay for a good
or service. In many cases, price is most likely to be the most fundamental determinant of demand
since it is often the first thing that people think about when they want to buy something. (Viloria,
Martinez & Camus-Rivera, 2016)

Income - I nvestopedia (2017) describes income as money that an individual or business
receives in exchange for providing a good or service or through investing capital. When income
increases, quantity demanded increases as well as when income decreases, so will the demand. It
is stated that the higher the income the individual has, the higher the propensity to consume and
the lower the income, the lower the propensity of consumption.
Price of Related Goods - Prices of substitute goods and complementary goods also affect
the consumer’s demands. A substitute good refers to the goods that are used in place of one
another. In this case, if a product can be used to replace a certain good because they both satisfy
a need or desire, an increase in its price will result in an increase in demand for a substitute.
Complementary goods, on the other hand, are goods that people tend to use together. In
complementary goods, an increase in demand for one would lead to an increase for the other.
Taste - When people’s desires, emotions, or preferences change in favor of a product, so
does the quantity demanded. In this sense, if the consumer’s tastes for a good or service
increases, then the quantity demanded increases, and vice versa.
Expectations - Demand also depends on the consumer’s expectations of future prices,
incomes, prices of related goods, etc. When people expect that the value of something will rise,
then they demand more of it. This phenomena would show that their reaction would be to buy
more of it while the price is still low. In addition, people who expect their incomes to increase in
the future often have an increase in their ability to consume.
Non-price factors have the potential to greatly influence the success of a good or service
on the market at any given time. Because of this, understanding these determinants is of wisdom
for marketers in preparation of formulating a marketing and promotions plan. While non-price
factors can vary greatly, they are an important consideration in any marketing strategy.
Customer Loyalty
According to Dick and Basu (1994), customer loyalty is viewed as the strength of the
relationship between an individual's relative attitude and repeat patronage. It deals with customer
intentions to do more business with the vendor and to recommend that vendor to other customers
(Zeithaml et al. 1996). Customer loyalty is the outcome of exceptional service and product
quality for it increases the willingness of customers to come back and do more business with the
entrepreneur. Those customers who have experienced low service quality will not rekindle its
transactions with the entrepreneur for the entrepreneur did not meet the expectations of the
customers.
Achieving customer loyalty depends to a large extent on the vendor’s ability to build and
maintain customer trust through quality service (Reichheld and Schefter 2000). A motivation for
service quality is the degree of trust the customer has with the entrepreneur. Trust is defined as
the willingness to make oneself vulnerable to actions taken by the trusted party based on the
feeling of confidence or assurance (Mayer et al.1995). Trust determinants in businesses are
depicted through how the business performs in a socially-appropriate manner, how the business
fulfills its various commitments, and how it will act in a generally ethical manner. It is a crucial
aspect since it diminishes the risks and fears of being taken advantage of.
Businesses should consider building customer loyalty for loyal customers tend to make
more than a single transaction. Furthermore, these customers are more likely to explore and try
out different products or service for they already had earned the trust of the business. The
Gartner Group found that 20% of existing customers generate 80% of the profits and Marketing
Metrics state that the chances of selling to new customers is 5-20%, whereas with existing
customers it reaches 60-70%. Qualities that have to be possessed by entrepreneurs are trust and
customer commitment.
Comparative Study of Uber and Regular Taxi Service Characteristics
A research related to this study is the Comparative Study of Uber and Regular Taxi
Service Characteristics. According to the research conducted by an undergraduate student,
Patrick D. Instal, studying Institute of Civil Engineering of UP Diliman, a taxicab and Uber are
very similar transportation means; however, the main difference between the said two is the
overall preference of Uber over the regular taxicab. Uber markets people in the workforce who
have good purchasing power and the commonality of having multiple cars, thus giving the idea
of a personal driver in the safety of their own private vehicle. Furthermore, according to the data
gathered from the survey of Mr. Instal, it has concluded that Uber has better services compared
to a regular taxicab. It includes the proper and effective dissemination of information about the
driver and the vehicle, the convenience of hailing a ride through technological advancements, the
comfort of newer cars and lastly, drivers who are performance conscious. Uber may have been
the most preferred ride-hailing service compared to taxicabs but its pricing feature is one
disadvantage that makes people think twice when choosing between Uber or a taxicab;
regardless, people would still choose Uber than a taxicab due to its many advantages.
This study is related to Instal’s research in that his research discussed several factors that
lead to the preference and satisfaction of the commuters as a mean of ensuring consequently
increasing profits by improving business strategies and procedures. Instal’s study also served as a
reference for this research to serve as a guide on the research methodology, as well as drawing
conclusions from data gathered.
Comparative Analysis of Transportation Network Companies (TNCs) and Conventional
Taxi Services in Metro Manila
The research presents a comparative analysis of Key Performance Indicators (KPIs) of
TNCs vs Conventional Taxis. The key performance indicators include travel speed, reliability,
passenger expense, and quality of service. Travel diaries from regular riders of Uber, GrabCar
and Conventional Taxi’s ran for 30 days in order to gather data and compare its KPIs. Hence,
additional surveys such as: (1) availability of vehicle check and (2) performance indicator survey
were also conducted in order to validate.
Based from the results of the travel diary submitted, Uber is faster than GrabCar and
Conventional Taxi. In terms of reliability or the number of available vehicles at a specified pick
up point, GrabCar dominates Uber and Conventional Taxi. Uber is said to be cheaper than
conventional taxis. However, GrabCar was costlier among the three (3) transport modes. Lastly,
Uber and GrabCar has better quality of service compared to conventional taxis.
A Study on the Influence of Employee Safety to Customer Satisfaction

A recent study of employees at an electric utility company found that workplace safety
may influence customer satisfaction, “suggesting that there are likely spillover effects between
the safety environment and the service environment.”
The study, which was conducted by the National Safety Council (NSC) and published in
the Journal of Safety Research, studied 821 employees at a Midwestern electric utility
company’s power delivery and customer care groups to consider how a company’s safety climate
and workplace injury statistics might impact customer satisfaction.
The study examined work groups at the utility company that were responsible for
customer-related functions including installation and service of distribution lines, meter reading,
billing, safety, emergency services and more. Work units that had more employee injuries,
researchers revealed, also had customers who were less satisfied with the service they received.
Researchers considered that safe working environments may create other benefits related to
quality of the work, which may subsequently impact customer satisfaction.
This study was related to the said research in that both researches aim to see the
correlation of safety and customer satisfaction. It provides information to businesses that safety
is a key component to consider for boosting customer satisfaction which will then aid in the
increase of profits in the businesses.

CHAPTER TWO
RESEARCH DESIGN AND RESEARCH METHODOLOGY
Research Method
The study utilized a case study qualitative research method. Such qualitative method was
applicable since the aim of the study was to determine the views of a variety of people as to how
the presence of Uber created an impact towards the AirLand Taxi Company. The qualitative data
gathered was in the form of interview of twenty (20) respondents.
Twenty (20) respondents were interviewed using a research - made interview guide. The
researchers interviewed ten (10) customers, nine (9) taxi drivers, and one (1) from the
management of the AirLand Taxi Company. All the data gathered from the respondents were
recorded and transcribed for the reference of the researchers of this study. The transcriptions
were then thoroughly analyzed and summarized into three (3) common themes.
These common themes were referenced to the data collected and transcribed from the
interviews with the management, employees, and customers. The topics included in the interview
were: appearance of the taxis, attitude of customers, service of employees, improvement of
services, factors that attract customers to the taxis, strengths and weaknesses of the company,
and the profile of customers in terms of: gender, age, and occupation. Characteristic perspectives
that were compiled from the summarized data, which were composed of dialogues among
customers, employees, and the management, were referenced in the study.
Research Environment
The place of study is at Airland Taxi Company. Airland Taxi Company is found in 55
Rrlandon Street, Barangay Cogon Ramos in the first district of Cebu, considered as an urbanized
area of Cebu City in the Philippines. Barangay Cogon Ramos has a population of 3,337 as of
May 10, 2010 according to a census made by Philippine Standard Geographic Code (PSGC).
Since founded on 1996, Airland Taxi Company had the purpose to provide efficient and
safe transportation in Cebu City with the use of the radios in their taxi cabs. Airland Taxi was the
first Taxi Company to use radios in all their taxi cabs since the owner specializes in electrical
engineering and had once worked at a radio shop. Airland Taxi company is the third taxi
company owned by Chiquito Obeso with Spider Taxi as his first. Airland Taxi Company has
around 199 taxi cabs roaming around the streets of Cebu City. As Mr. Obeso would reach the
age of 60, he will handover Airland Taxi Company to his 5 children. As of now Airland is not
open to any franchise deals.
Research Respondents
The researchers interviewed the owner, employees and customers of AirLand Taxi
Company as the research respondents for the interview. They are composed of twenty (20)
people: the (1) owner of AirLand Taxi Company, nine (9) taxi drivers and ten (10) customers.
This was done accordingly to have a balanced and accurate information from each group of
respondents.
Owner of AirLand Taxi Company
The researchers needed one (1) respondent from AirLand Taxi Company holding a
position in the business who had experienced and witnessed the business’s growth which
includes their strengths and weaknesses. The researchers were given information on the services
practiced by the company in order to gain the satisfaction of the passengers, and the perspectives
of the company in terms of profit. With this, it would help evaluate the contributory factors of
customer satisfaction in AirLand Taxi Company.
Taxi drivers of AirLand of Taxi Company
The researchers needed nine (9) taxi drivers from AirLand Taxi Company who had
experienced working firsthand with the passengers. They were the most appropriate respondents
for the interview due to their in depth knowledge of what it was like to work with different kinds
of passengers and see the progress of the business, specifically with the satisfaction of the
customers or passengers. The researchers were given information about the perspectives about
the emergence of Uber and how it affects their income. With this, the researchers were able to
provide implications on business strategies, specifically marketing strategies, that would be able
to help the company use for future reference.
Customers of AirLand Taxi Company
The researchers needed ten (10) customers of both taxi and Uber who often use the the
transportation service provided by the business. The main role of the respondents is mainly to
determine the level of satisfaction customers receive from the service rendered by the business in
relation to their profile. This study aimed to interview disparate customers despite their
socio-economic status. These respondents gave the researchers information on their opinion of
their preference between Uber, GrabCar or GrabTaxi and a regular taxicab along with other
feedback such as the service from the taxi drivers, the vehicle used by the company, the
appearance of the taxi drivers and the attitude of the taxi drivers. For that reason, the researchers
will be able to help the business improve and further develop their services from the data
gathered.
Research Instrument
To facilitate the development of a comprehensive research, different data collection
techniques were used. The primary research instruments the researchers used were a
comprehensive structured interview catalog made by the researchers. These were used as an
expedient to gather vital primary source data. According to Kvale (1996), he regarded structured
interview as “... an interchange of views between two or more people on a topic of mutual
interest, sees the centrality of human interaction for knowledge production, and emphasizes the
social situatedness of research data.” The researchers used a comprehensive structured interview
catalog as a mean of gathering data for it is a fixed format interview wherein all questions were
arranged in advance. Thus, providing the researchers to understand the study better, to gather all
initial and professional data, and to have a more detailed and systematic study.
The comprehensive structured interview catalog is comprised of twenty questions in
total; the owner structured interview catalog constitutes to three (3) questions whereas the
employee structured interview catalog constitutes to five (5) questions, and the customer
structured interview catalog constitutes to six (6) questions. The nature of the questions provided
were all open-ended so that the respondents were given the opportunity to provide meaningful
and complex answers. The simulation provided were all taken from the documented interviews
made by the researchers.
Data Analysis
The researchers used a qualitative data in conducting the study. Qualitative data were
evaluated and explained through various theories, concepts, and ideas provided by the
researchers. According to Corbin (1990), “Qualitative research is a form of research wherein a
researcher(s) collects and interprets data, making the researcher as much part of the research
process as participants and data they provided.” Qualitative research seeks to understand what
are the underlying perceptions, opinions, beliefs, and attitudes of a person which drives them in
their decision making. Moreover, according to Michael Patton in his book, Encyclopedia of
Statistics in Behavioral Science, he stated that qualitative research analyzes data from direct
fieldwork observations, in-depth, open-ended interviews, and written documents.

CHAPTER THREE
RESULTS
This chapter introduces the data accumulated through the process of interviews executed
by the researchers. Moreover, the data of the participants and similar themes, for instance, the
assistance of taxicab drivers, and the administration’s outlook on the company are conferred in
this chapter. Furthermore, this chapter provides data on the distinction of Uber and Taxi based on
the services provided, distinct assets and their detrimental factors. The research instrument
applied in accumulating the information conferred was presented in interview guides used to
gather data from respondents.
INTERVIEW TRANSCRIPTIONS
Participant Group A: The Management
Interview: Manager A
Venue of Interview: Starbucks, Axis, Cebu City
Date and Time of Interview: October 13, 2017, 6:30 PM
Duration of Interview: Approximately 22 minutes
1. What do you feel about the emergence of Uber in the taxi industry?
Affect kaayo siya kay mas sayon ang ireach ang internet karon. Wala na kaayo magtaxi
kay most of our taxi drivers ay dili educated, di parehas sa mga uber na kabaw magcomputer.
Kahibaw sila jud unsay ang mga needs sa mga customers, mao na lisod sila (taxi drivers) ihandle
kay nagdepend sila sa karaan. Lisod siya kay sila (Uber) ang mga kontra. Pero nagsabot ang
tibuok taxi sa Philippnes na magbuhat ug app.
It was mentioned that your dad was part of the protest against the Uber. Would you want to
expound more on that?
Gifile jud sila sa case against Uber sa Congress kay walay tax ang Uber ug ang Grab.
Karon naa nay tax ang Grab pero wala pa ang Uber. Mao na gisuspend sila. Pero nibalik pa
gyapon ang Uber kay daghan baya muhatag sa mga politika. Example musupport ang mga car
companies sa Uber kay mahalinan sila, so dali ra sila makakwarta labi. 40,000 ang Grab ug ang
Taxi 10,000. Mao na nagfile akong papa kay unfair.
2. How do you think has Uber affected AirLand Taxi Company?
Gamay na ang mga customers kay nabalhin na man sila sa Uber nya gamay nlng ang
sales sa business. Kay nigamay sad ang take-home sa mga taxi drivers, naa pud mubalhin sa
Uber para makakwarta sila. Mas lisod na jud ang pagbusiness na taxi kay naa na ang Uber.
3. What measures do you think can be done to improve the services of the business?
Lisod kaayo siya pangutangon kay did you know 96% of taxi businesses fail. Ang safety
para sa customers, sa drivers ug ang business itself ay ang priority namo man jud. Naa mi around
400 ka taxi drivers kay naay shifting sa mga 200 na taxi. Di baya dako ang take-home sa mga
drivers and kay naa na man ang Uber, mas nigamay ang take-home kay daghan naman mga
customers muadto sa Uber.

Naay customers na di ganahan sila sa attitude sa mga drivers so dapat experienced gyud
driver, tanawon gyud namo. Kabaw mu ang tanan taxi driver mu abot gyud na sila sa akong papa
after na sila mu adto sa HR. Naa sad mi quarterly seminar sa mga drivers.
Sa mga drivers sad, naay uban grabe mukawat sa mga parts, for example kanang mga
ligid. Sauna ilison nila ilang ligid bisag nindot pa kay mahalin bya nila ang ligid, so ilisan bya
namo. Naa bya panagsa, na gida gani ang sakyanan sa layo kaayong lugar, murag sa Negros mn
toh gi carnap gyud niya ang sakyanan. Panagsa dili mu bayad ang driver, kanang usahay dili mao
ang abang, unya akong papa dali mn gud kaayo ma luoy unya luag kaayo siya. Sige ko og tan-aw
sa sales, gamay kaayo, maka labad gyud siya sa ulo. Unya naa pud sometimes maka bangga ang
driver, syempre ang companya bya gyud ang makabayad kay unsa mn ika bayad sa driver. So
muset mi ug mga guidelines para mu follow ang mga drivers para gamay na ang mga loss sa mga
taxis. Mu-follow up pud mi sa mga sales para makasolve mi sa mga problems kung naay mga
problema sa business.
It was mentioned that you have a quarterly seminar with the drivers in the company. Could you
talk more about that?
Quarterly magseminar mi sa mga taxi drivers na ing-ani dapat mubuhat. Magpatawag ug
meeting si Papa sa mga policy, ing-ana ba. Ang nakalabaw sa Uber compared sa taxi, nindot man
gud inig sakay nimo, private kay siya ba, murag imohag car ba. So muna ganahan ko na
ipatarung ang mga taxi na mangita ug tarung ug driver na maayo mu treat sa mga customers,
para mucompete sad if ever.

What are the aspects are you looking for in hiring taxi drivers?
Before mukuha mi og driver gyud dapat experience nagyud na sila, iinvestigate pagyud
na namo sila. So for example kani nga taxi driver gikan sa kani nga taxi company sa karaan.
Manawag mi sa daan niya nga taxi company unya mangutana mi kung unsa iyang performance,
mangutana mi ngano ni undang siya or kanang di siya kabaw mu bayad ug abang kay mag abang
ra bya sila namo, daily.
You mentioned about the taxi app? Would you say more about it?
Mura ra gihapon siya og Uber kanang mag booking, pero murag gi process paman tingali
na para sa whole Philippines nga mga taxi kay ang reklamo sa Manila daghan man gud kaayo og
kolorum, naay uban nga ang mga auto gi butungan ra og sticker na mura nagyud og taxi unya
wala diay toh gi register sa government. Daghan man pud reklamo sa Manila na rapeon sila sa
Uber or Grab nga driver. Miskan dri. Murag attempted rape, kanang hikapon ang mga paa nila,
mga ing ana. Kapila naka suway akong mga friends. Bisag kinsa ra bya makaregister sa Uber or
Grab, wala kaayo kay kailangan ana. Mangita gyud ko og tarong na driver.
Participant Group B: Local Taxicab drivers of AirLand taxi company
Interview: Driver A
Venue of Interview: Sixth Street, Happy Valley, Cebu City
Date and Time of Interview: October 14, 2017, 8:30 a.m.
1. How do you think has Uber affected the livelihood of taxi drivers?
Para nako, naka-apekto gyud gamay kay medyo nabahin naman ang pasahero. Mapunta
man sa Uber ang uban nga para sa amo unta. Sa ilaha man gud sa Uber, wa man gud silay
franchise nga silbi nagoperate, ang ilaha gud kay murag dili na gyud na sila mawala kay
computer man ilang gi gamit. Naay diperensya sa income, usahay nigamay gyud.
Mao ra sad sa akong gi ingon ganiha.
3. How do you treat your customers?
Aw siyempra kay, kung magkahinanglan ang pasahero ug tabang sa amoa halimbawa

kung mo karga mi ug magpa karga sila, tabangan gyud na namo. Labi nang mga disabled mga
ana ba.
4. What do you think the employees should embody in order to work effectively?
Akong ikasulti ani gud kay kanang ingon nga tabang.
5. What are the things you think that need to be improved in the business?
Ang amo lang gyud, mo serbisyo sa katawhan na maayo tapos public servant baya mi kay
taxi driver baya mi. Mo serve mig maayo sa among mga pasahero.
Interview: Driver B
Postibo, nga naapekto mi. Naibanan among sweldo mao na lisod na. Lisod lagi kaayo
karon. Labi na ng mga angkas motor naa naman sad silay lain na app dira. Naa naman cellphone
sila. Niya alkansi mi nila kay wala silay franchise niya sige pa silag pamasahero. Ni gamay gyud
among kita mao na siguro biyaan mi sa among asawa taod-taod. Kay akong asawa nangutana na
kung unsa daw akong gi drayban motorciclo or tricycle ba. Kay mo-tulon nalang ko ug 300.
How much was your every day take home before?
Kanang usa ka libo. Unya gamyan pami ana sa una. Kana among libo 24 hours na. 24
hours pud among pahuway. Karon, 24 hours namo 300 nalang matunol sa asawa. Ang uban wala
gani.
Ang Uber, maayo sila kay ga promo man para sa ilang mga pasahero. Kaming mga dili
uber, maningil sa pasahero. Pariha sad sa grab taxi kay kusog sad ang grab taxi.
Siyempre matinabangon kay naa man mi balaod na dili mi pwede magyagyag sa

pasahero. Amo gyud nang tarungon pag atiman.
Negatibo, kay wa man mi mahimo ana. Kung mo ingon ming paurongan na silang mga
grab niya ang uber kay wa man, wa nami mahimo ana. Naa naman sila. Nanginabuhi man sad na
sila.
Kanang traffic, usa gyud ni sa nakaepekto, wa man mi mahimo anang traffic. Mao na
kanang among kita permanente gyud ubos karong panahuna. Tungod sa traffic labi na nga
daghan ug kompetensya.
Interview: Driver C
Dako kaayo epekto para namo kay ni gamay among income.
Para namo, makatarung man gyud ang Uber pero sa among taxi driver, nius-us ang
among income, ang uban sumasakay sa Uber kay ang taxi kusog daw mungatrata. Pero
naapektuhan gyud kaming mga tarung na driver.
Respetuhon ang mga pasahero ug dili mu mangontrata kay naa man gud mi seminar sa
LTFRB na meter gyud gamiton. Matinabangon gyud mi.
Us-usan ang abang sa taxi para pirmi na mi diha ug dili na mi mubalhin sa uber kay
kasagaran ang mga uban namalhin sa uber. Kay nindot man pud ang Uber ug kay nimahal sad
ang among abang. Minus pud ang sumasakay sa among taxi, kontra sa uber.
Tinarung lang gyud sa pagserbisyo sa kompanya kay dako baya sila’g tabang. Naa sila,
naa pud mi. Basi sa usa’t usa, magtinabanagay kung kinsa’y naay problema sa kompanya. Dili
magisigdaot sa usa’g usa, magtinabangay lang.
Interview: Driver D
Date and Time of Interview: October 14, 2017, 8:30 a.m
Aw oo, dako jud ug epekto kay nabahin naman. Supposed to be dle baya sila legal so
dako jud ang epekto namo. Ni gamay ang take home, dako jud kaayo ang epekto namo. Sauna
gud tag tulo mi ug putahe karon usa nalng.
Kompetisyon ang uber kay ni gamay ang customers.
Aw kung respeto ang hisgutan, dle sad ko ka-ingon kami tanan kay kung mu hisgot man
gud ta’g driver gud generalize man gud kung naay masipyat usa diba? So para nako naa jud nay
respeto gyud. Kay wa pa, hagbay rami nangawa sad. Ang usa ma apektohan, mu epekto rasad
kay naa baya nay reklamo jud. Mao btaw gipa eskwela mi sa Drivers Academy sa ltfrb para
makahibaw mi kung unsa juy angay buhaton jud.
You mentioned about Driver’s Academy, what do you there?
Ah, sa ltfrb about sa mga rules bah, unsaon pagda nmo sa kuan mga pasahero nmo, ana
gud. Kanang mga manners lng ba, mga basic lang gud.
So did it help you?
Dakog katabang oy kay feel nmo sakto ka sa dan, unya dako diay kag sayop. Dapat
smile ka, hurot na gane akong smile usahay!
Para nako lang, di man ko katubag kay feel nako sa akong gi buhat sakto raman. Kung
naa pa gane kuwang ana, gamay lng cguro kuwang.
What do you currently do?
Smile lng, nya mu greet kas mga pasahero nmo, kung ok ra ba adlaw nila. Greet lng gud.
Kuan, pa undangon nato ang Uber para mu saka-saka mi.. Wa may labot anang angkas
kay kanang angkas man gud usa raman guy mu sakay. Wala man ingon nakaapekto namo, kay k
raman sad na naa na sila kay makatabang mn pud na sa mga sweldo na dli ingon mga dinagko, di
baya tana dagko ang sweldo nya magdali sad. Makatabang jud na sila pero mas maayo kung tang
tangon na ang Uber ug Grab. Pero igo ragyud mi mu sturya kay ma man gud mi mahimo kay
driver raman gud mi. Mu suggest lng jud mi ana.
Interview: Driver E
Oo, nakaapekto ang uber kay naa na mi kompetensya. Ni gamay na ang take home kay
naa nay kapilian ang mga pasahero. Gusto man nila musakay sa Uber kay nindot daw ang
ilahang sakyanan.
Lisod na ang pagkuha ug mga customers.
Sa pagpakita ug maayong pamatasan like sama sa good morning, good afternoon.
Itagaan ang mga kailangan sa mga pasahero especially nagdali siya ba.
Mura man gyapon. Respeto sa mga pasahero, dili mu tanaw kung pobre o datu ang
pasahero. Dili sad balibad sa mga pasahero ilabi na kung pick hours.
Interview: Driver F
Oo, especially gud sa kanang when it comes to trapik ba kay gi himo man ug business sa
uban gud. Then sa ato pa, ang usa na kaya namo mangutang, mu utang siyag lima then iyang gi
padala sa uban, murag gi business niya ba. Oo, mao na siya nga imbis ang trapik gamay ra, mu
samot ug kadaghan kay gamay raman ug expenses, ana ba. Oo, ni gamay gyud siya kay ang uban
kahibaw baya ka usually basta Pilipino, unsay bag.o adto gyud na sila kay maki-uso mana sila.
Oo, syempre “oy, bag.o tong Uber. Adto tah kay bag.o man” so kaming mga taxi pud, murag ni
gamay among kita kay katong mga sosyalize na mga tao, siyempre mu adto jud didto, maki-uso.
Mmm, wala man mi problema basta ma regulate lang gud. Importante nga dili sila mag
cause ug trapik nya dili pud maka apekto namo.
Oo, SOP man gud na namo before mu sakay sa sakyanan makuhag pasahero kinahanglan
mandatory na siya nga ang pasahero kinahanglan mu greet kag good morning kanang imo ihatag
ang tanan murag imong pamilya ba.
Siguro … Depende man gud kay kinahanglan makibagay lang sa pasahero kay naa may
pasahero nga usahay dili sa mood ba and then siyempre ilang mood isog kaayo ana, kinahanglan
pababa lang mi just for kanang maayo ang among pag-da, dili ma guba ang adlaw ana okay lang
ang kinabuhi ana.
Siguro ana lang, kailangan limpyo pirmi, limpyo among sakyanan, limpyo ka niya
kanang kamao gud ka sa mga pasahero mo tagad. Mao na.
Interview: Driver G
Mmm, naka apektyo gyud. Kay ang uban gud kay musakay nalang sa Uber, sa amo wala
nagyud. Ginagmay nalang katong kuan wala nalang ug cellphone. Ni gamay gyud tungod kay
naa sila.
Dili gyud siya maayo nga na ka apektohan gyud mi. Nakuanan jud among kita,
nakunhuran gyud. Lahi ragyud sauna, wala gyud sila kay murag nindot ba.
Ah, matinabangon kaayo oy. Tapos naa lagi pasahero sad nga di sad nimo masabot pero
sabton nalang kay namasahero man.
Mas kuan, kanang inig mangayo tag pangatahuran ah maayo jud unta pero murag lisod
man gud sa labi na sa batan.on karon Grab gud or Uber ang pasagad gyud magamit. Mayra tong
mga edad edad na dili na kaayo mag gamit ug cellphone or gadget.
Ambot lang unsa kaha. Sila na ana, pero sa amoa gyud kung kutob sa mahimo namo, amo
gyud buhaton. Pero kung kuan, wala najud. Padung nami mangundang kung wa nagyud.
Interview : Driver H
Venue of Interview: Sixth Street, Happy Valley Cebu City
Date and Time of Interview: October 14, 2017 - 8:30 AM
Duration of Interview : Approximately 4 minutes
Epekto gyud. Hinay hinay gyud. Gamay nalng kaayo og subra gyud. Mabitay gyud mi
dili mi maka abang. Usahay kami gali ang maka tapal. Para maka biyahe mi og balik mang utang
nalng gyud mi sa among igsuon. Para maka biyahe lng gyud mi kay kung di lisod kaayo
How much was your take-home before?
Dili kaayo dako pero mas dako gyud toh sauna katong wala pay uber or grab. Sauna 1000
taga adlaw, karon 500 or kanang usahay tabla ra sa pag abang og tubil. Utang pagyud mi og pliti
para sakay motor padung sa among balay.
How much was full tank for the taxi? Where will you go when there’s taxi?
Kana depende gyug na si biyahe or kilometro. Kung traffic kaayo maka gamit tingali ng
mga 4 to 6 ka litro. Mas maayo kanang waly traffic kanang sabado domingo. Kung ting clase
alkanse kaayo. Lisod na kaayo pang drive. Dili na gusto mu duty kay mingaw. Maypa mu sakay
og motor. Dili nalng mi mu drive og taxi, mangita nalng mi og lahing income kay lahi ragyud
kaayo sauna. Sauna maka dala mi og dako sad mga 800, 500, 400 karon pang tabla nalng gyud,
traffic pa kaayo, naa pagyud ning uber. Sauna katong mga sudlonon na lugar, makada gyud mi
og pasehero padung gawas pero karon maka sulod namn ang uber diha unya sayon ra kaayo para
nila.
Lisod na kay kompetisya sila.

Oo kaayo, kung naay bag ang pasehero tabang namo, unya kung mu naog tabangan sad
namo, kung naa ra silay mabutangan.
Kung naa mu sakay ingan good morning or pag naug mo thank you. Especially kanang
dugangan nila dako kaayo mi og pasalamat ana nila.
Unsa mn? Wala mn gyud mi mabuhat ana. Pero kami mu duty lng gyud mi. Mu supporta
sa negosyo og dili mo absent absent.
Participant Group C: Customers who experienced both Taxi and Uber
Interview: Customer A
Venue of Interview: Calyx Centre, I.T Park, W Geonzon St, Cebu City
Date and Time of Interview: October 6, 2017, 7:00 pm
1. What is your:
1.1 Gender: Female
1.2 Age: Seventeen (17) years old
1.3 Occupation: Student
2. What do you think about the innovation of the UBER app?
It’s so useful. You just get a car and you go. You don’t have to wait in line for like a cab.
You just need your phone and WIFI and you’re good to go.
3. What do you think about the services of the taxi business?
Okay, they’re really bad. First off, it’s like metered and it could always go higher. Can I
say the story? Not the other one, not the malicious one. It was like one time we (and a friend)
went to Ayala and then I just kept talking. And naturally my first language is English. The driver
took us to the longest most traffic way. From my school to Ayala it’s usually Php 120 and then it
became Php 180 because I was speaking in English. He then just realized when my friend started
fighting and swearing him off in bisaya. It was sketchy.
You mentioned something about a malicious activity, would you please walk me through that
story?
I went to Ayala because my friend and I wanted to see if I could get my other phone
fixed. I had to ride a cab going there because I had no Grab at that time because my phone was
dead and it didn’t turn on at all. I would’ve taken the jeep but then this cab showed up right in
front of me so I was like okay no problem. Like what do I have to say, I didn’t need to call a cab
because one just stopped right in front of me. When I got in the cab the driver goes like, (Asa ka
gwapa?) where are you going, beautiful? I thought he was just being nice. He took a right on the
flyover and then there’s a line. It was a bit traffic but not bad. He turns the cab around and takes
the longest way possible. It took me an hour to get to Ayala. The whole time there, he just kept
looking at the rearview mirror. I got my phone out even though it’s dead and stared at it because
this guy was starting to creep me out. He then goes like, (Naa kay uyab?) do you have a
boyfriend? I was like, yes. I don’t, but I said yes because you know guys. Then he went like, (tell
your uyab na na traffic ka) tell your boyfriend that you’re stuck in traffic. When we were like
near Ayala, instead of dropping me off in the New Wing which is the nearest area, he drove off
the other way. Like he turned me around Ayala, like the whole vicinity and then dropped me off
at the Active Zone part. And then, I didn’t say anything because I was honestly scared. And then
he asked me if I had ridden in his cab before and I was like nope. And then like he said, I’m sure
you rode before because I can’t forget a face like yours. And I was like, oh my gosh, weird!
When we were near the area of Ayala already, he locked all the doors. He child locked all the
doors and I had no way out. I was shocked and I was like okay I’m going to die. But then I just
kept calm because you cannot show your fears to the monsters. Then, when he stopped, I paid
him and I thought I was overthinking but he intentionally held my hand when I gave him the
money. And I really tried my best to not touch his hand because it’s so disgusting. And then after
giving him the money, I thought like I paid him already, like full price. Like I didn’t care I just
want to go out. And then like I thought after paying, he’d opened the door but he didn’t. He kept
it locked. He then like extends his arm at the back to where I was sitting and the he introduces
himself. I forgot his name. He then asks for my name. I freaked out and gave him like a fake
name. He may be like a couple years older. Then I stared at his hand. If I wanted to get out, I had
to shake it. So like when I shook his hand, he was rubbing the back of my hand with his thumb.
It’s so gross. He was like caressing it and stuff with his fingers. And he went like, if I wanted to
ride a cab, I’d ride with him. And I just nodded and finally he opens the door. Even when I’m
moving out, he was saying, bye and take care. He legit waited for me and I’d ran down the stairs
because I don’t even want to see him.
4. Would you prefer riding an Uber or Taxi?
An Uber.
5. What are the factors that lead you to such preference?
You get like an identification so it’s safer in case something happens. You’d just text the
number and you’d already know the name of the driver. It’s easy to report it.
5. What are the aspects that the taxi business can improve?
Yeah, I actually really the taxi business to have a better security system. I know not all
drivers aren’t the same but a lot of them, like it happened a lot so I guess something is wrong.
Interview: Customer B
Venue of Interview: Starbucks, Axis, Cebu City
1. What is your:
ale
1.1 Gender male: M
1.2 Age: Eighteen (18) years old
enior High School student

1.3 Occupation: S
2. What do you think about the innovation of the Uber app?
It’s a genius idea that caters especially to the millennials. It shows ways on how the
business leaders of today are feeding on the sense of independency of millennials which is us,
and I don’t have a real problem with that, so I’ll just say that it’s a wonderful innovation. So 9/10
thumbs up to you Uber founder.

Taxi business here in the Philippines is I would say quick, simple and concise but lacks
the standards of customer care and also holds the highest amount of reckless drivers in the
Philippines which is sad.
4. Would you prefer riding with an Uber or taxi?
Uber.
First off, Uber obviously if ever I want to be secure and comfortable with my travel as the
drivers in Uber are most if not all are around the same age range as I am, in the early 20s.
They’re almost always friendly which is a great thing.
6. What are the aspects in the taxi business that can be improved?
I think that the taxi business can be improved drastically first off with the big change of
how drivers are hired. Philippines is a third world country and their taxi brand specifically don’t
exactly look into the most minute of details when it comes to their hiring agenda. Sure most if
not all drivers can provide proper documents but the same cannot be said for their mental state to
some taxi drivers I’ve experienced gave me a look of disgust and an indifferent tone when
speaking which I will further expound with.
Interview: Customer C
Venue of Interview: Ongtiak Business Centre, General Maxilom Avenue, Cebu City
1.What is your:
1.1 Gender: Male
1.2 Age: Forty-two (42) years old
ccountant
1.3 Occupation: A
Well of course, with the innovation, I’m not really familiar with it since I rarely use
Uber. I prefer using the PUVs (Public Utility Vehicles), and PUJs (Public Utility Jeepneys). As
far as I know, they are really helpful with the commuters.
It depends on the taxi operators and the drivers. Personally, I think they’re fine.
4. Would you prefer riding an Uber or Taxi?
My work place is just a walking distance from where I’m staying, so I’m not really into
it. However, I would say I prefer a taxi.
5. What leads you to choosing taxi over Uber?
With taxi, you don’t need internet access. Unlike Uber, you really need to have the app
which is internet based.
The attitude of the drivers.
Have you had any experiences? May we go through the details of the said experience?
Yes, I suppose there are actually some drivers who would not allow to ride the taxi if they
think that the place you’re going to, for example, is flooded. They won’t allow you to ride the
cab.
Interview: Customer D
1.What is your:
1.1 Gender: Female
1.2 Age: Seventeen (17) years old
tudent
1.3 Occupation: S
To me, the Uber app has helped so much people in terms of safety and security,
especially those of the majority who go home by themselves late at night.
I think taxi businesses have been becoming less safe through the years, especially with
the conditions of the taxi drivers.
Uber.
Uber is safe, has reasonable price, good services
Driver personality and cleanliness
Interview: Customer E

1. What is your:
1.1 Gender: Male
1.2 Age: Nineteen (19) years old
tudent
1.3 Occupation: S
I think that Uber is such a convenient way to travel around. It has been most useful
especially in Manila where it is even more important (compared to Cebu) to always be keen of
your surroundings when in public. The app is designed so that users are able to book a ride in
under one minute. I know most people wouldn’t really notice that, but to me that’s really
important (alongside the safety aspect of it).
Frankly, right now the taxi industry has been quite disappointing. With corrupt tactics
such as meter tampering and rejection of passengers once their location is said (which if I’m not
mistaken is not allowed), I can only see the future of it slowly dwindling if not addressed.
Definitely in an Uber.
The safety aspect of Uber is much more reliable. I can breathe more while inside the car
because the driver’s information is right at my fingertips and I can send my location/driver
details to anyone close to me. Moreover, the drivers are much more approachable and through
the rating system, I am able to know more about their traits as well as comments from other
riders.
Number one for me would have to be the drivers. I believe that taxi companies should not
just hire anyone who can drive. I do understand the need of some people who desperately need
jobs, but safety should always go alongside profit when taxi businesses think about their goals.
There should be a more systematic way of hiring taxi drivers who have a decent personality. One
thing I noticed is that most taxi drivers are unaware of where most locations are because they’re
new to the job. I have nothing against that, but at least have them oriented with navigation apps
such as Waze or Google Maps. Lastly, in relation to the last point regarding the hiring of drivers,
I believe that technology should be utilized more. It’s 2017, not using Waze or any other
navigation application could cost you a lot.
Interview: Customer F
1.What is your:
1.1 Gender: Female
1.2 Age: Nineteen (19) years old
tudent
1.3 Occupation: S
I think that apps like these start a new era of technological revolution which shows how
far the world has come in the development and growth of the society through the aid of science
and technology. The Uber app has specifically helped cater to the many lives of people who have
problems commuting around.
I believe that the taxi business, especially in Manila is just simply unattractive and
horrifying due to its rude drivers and ill-maintained taxi cars.
Of course, I’d prefer Uber.
Convenience, availability, safety and comfort.
Maintenance of cars, attitude of drivers, and taxi meters.
Interview: Customer G
1. What is your:
1.1 Gender: Female
1.2 Age: Sixteen (16) years old
1.3 Occupation: Student
I think the Uber is constantly finding ways to constantly improve and refine their
technology to provide safe, reliable rides. The innovation of the Uber app is one that improves
efficiency in car rides. Uber connects drivers with riders in ways that were simply impossible six
or seven years ago. The company continues to develop their technology to make our lives easier.
The service of the taxi business is very attitude-based. To succeed in the Taxi business,
the most important thing taxi drivers ought to know is that they need to employ positive attitude
because taxi business is a service-based business. A business that is a part of the hospitality
industry and to succeed, you have to be hospitable, you have to make people feel comfortable, at
ease and satisfied. And most, if not the majority of taxi drivers in our country, are not very
hospitable and are instead arrogant.
4. Would you prefer riding with an Uber or Taxi?
I would prefer riding with an Uber because I spend a lesser time waiting for the ride to
arrive. The drivers are not choosy with the destination and the price is fixed before you even
enter the ride. It is also much safer and convenient!
Comfortability, reliability and safety are the main things I consider for this preference.
Customer service is number one. Recently, the drivers have been observably abusive of
certain traffic situations. Plus, some drivers don't show courtesy and respect to their passengers.
Interview: Customer H
Date and Time of Interview: October 9, 2017, 7:10 AM
1. What is your:
1.1 Gender: Female
1.2 Age: Twenty-three (23) years old
1.3 Occupation: Brand and Communications Officer
Convenient and accessible especially for commuters
I feel safer riding in an Uber rather than a taxi. Taxi drivers aren’t as friendly, and
competent as uber drivers, taxi cars are depreciating: bad engines, aircon isn’t working, interior
smell is bad.
I’d prefer riding an Uber
Service and convenience.
Its security is bad because I feel unsafe. Also their attitude.
Interview Cutomer : I
Date and Time of Interview : October 10, 2017 - 8 PM
1. What is your
1.1 Gender : Male
1.2 Age : 13
1.3 Occupation : Student

The Uber app for me is very useful since I always go out with friends. I just have to get
my phone and get an uber then wait for it to arrive my destination.
The taxi business in Cebu are good but it is not as accessible and as easy Uber.
I would prefer riding Uber because i don’t have to wait under the heat of the sun for like
15 minutes.
The factor that lead me to choose this preference is convenience is technology.
The aspects in the taxi business that can be improved is how they appear and the service.
Interview: Customer J
1. What is your:
1.1 Gender: Male
1.2 Age: seventeen (17) years old
1.3 Occupation: Senior High School student from USC Talampan Campus
It has helped me a lot especially when commuting because it is safe and efficient.

They are very useful and taxi's can be found almost everywhere.
I prefer riding Uber because they are monitored in the app. They do not trick you in their
prices. They are more secure and safe.
5.What are the factors that lead you to such preference?
Security of the service, attitudes of the drivers, cleanliness of the cars, and the effiency of
the service.
The personalities of the taxi drivers can be better and less rude. They can regularly clean
their cars and drive them properly.
CHAPTER FOUR
DISCUSSIONS
ANALYSIS OF DATA
PARTICIPANT GROUP A: THE MANAGEMENT OF AIRLAND TAXI COMPANY
The following presents the participants’ answers in tabulated form:
Table 3.1 Opinions on the Emergence of Uber in Taxi Industry
Participant Group A Became a threat to Decrease in Decrease in sales in

the taxi industry customers of the taxis the taxi industry
Manager A ✓ ✓ ✓
The participant has deemed that with the emergence of Uber, it has become a competition
to the taxi industry because of the majority’s use of cellphones and the internet. As such, it has
become a threat to the business because it has decreased the customers as well as the overall
sales in the business.
With the claim of the use of application-based platforms, the statement is in correlation of
TNVS and Sharing Economy. As a sharing economy and TNC, Uber enables a multitude of
passengers to interact through its user-friendly platform, thus facilitating competitiveness
between the taxi industry.
According to Cooley (1894), “Any form of competition, under proper conditions,
becomes a good. Any form of competition, under other conditions, becomes an evil. The social
problem involved in any case is that of providing proper rules for the exercise of the competitive
energies in the situation.” The theory of competition is in relation to the participant’s claim of
Uber’s non-taxing services. The protest against Uber was made by the different taxi companies,
including AirLand Taxi Company, because of Uber’s unfair services which had costed the
decrease of customers and sales of the taxi industry.
Table 3.2 Opinions on Uber affecting Airland Taxi Company
Participant Group A Decrease in Decrease in sales Drivers transferring

customers to Uber
Manager A ✓ ✓ ✓
The participant has stated there is an increase in customers and in sales of the business as
Uber comes to play in the competition.With it, drivers decides as well to transfer to Uber because
customers tend to choose Uber more than taxis.
With the emergence of Uber entails competition. According to Cooley (1894),
“Competition is a universal aspect of life, as we have seen; that it is neither good nor bad in itself
but may be either, dependent upon its relation to the larger social order and the goals of
competition; that it serves useful purposes in any social order; and that, though capable of
refinement, it is ineradicable.” With competition, affects customer loyalty.
Achieving customer loyalty depends to a large extent on the vendor’s ability to build and
maintain customer trust through quality service (Reichheld and Schefter 2000). Customer
Loyalty in the taxi business has shifted upon the emergence of Uber thus the decrease in
customers and in sales.
Table 3.3 Measures in Improving the Taxi Service
Participant Proper training Providing strict Having Taxi application

Group A and seminars guidelines to follow-up to see
about right avoid any loss in the sales of the
conduct the business business
Manager A ✓ ✓ ✓ ✓
The participant has stated that there are needed measures to be improved for the business
to develop in terms of meeting customer’s satisfaction and services rendered by the employees.
These include providing proper training and seminars about right conduct, strict rules to avoid
stealing of cars, follow-ups in sales of the business and the creation of a taxi app.
The said measures are in effect with the theory of the Gap Model specifically
Knowledge, Policy and Delivery Gap. Knowledge Gap states the importance in having a clear
understanding of the consumer’s need for service; Policy Gap states that service provider might
correctly perceive what the customer wants, but may not set a performance standard; and
Delivery Gap states that the business may specify the service required to support consumers but
have subsequently failed to train their employees, put good processes and guidelines in action.
In addition, Maslow’s Hierarchy of Needs is in play with the needed measures for the
business in order to secure the safety of the customers. The participant has claimed that safety of
both the customers and taxi drivers is of priority in the business in order that there is no harm
done to the customers and that the business will continue to support the livelihood of the
employees. Moreover, instant gratification of the customers is of used in creating measures in
improving the business to satisfy customer satisfaction and customer loyalty.
The participant has claimed that customers have filed complaints about the inappropriate
attitudes and personality of the taxi drivers thus the business hopes to improve the proper
training of the drivers by providing seminars about the importance of right conduct to provide
the safety of the customers. Furthermore, providing strict guidelines with the use of taxi cabs will
stop in the participant’s claim of the stealing of taxi cabs by the employees. Additionally, having
follow-up performances enables the managers to see the overall sales of the business and helps in
creating more strategies in improving the business when needed. Lastly, the creation of a taxi
app was made to satisfy the needs of the customer for instant gratification with the use of
cellphone-based applications.
PARTICIPANT GROUP B: TAXI DRIVERS OF AIRLAND TAXI COMPANY
Table 3.4 Opinions of Uber in terms of Livelihood
Causes the Causes the

Participant Has become a decrease of decrease of the Provokes in
Group B threat take-home of the ability to purchase having debts
taxi drivers necessities
Participant A ✓ ✓
Participant B ✓ ✓ ✓
Participant C ✓ ✓ ✓
Participant D ✓ ✓ ✓
Participant E ✓ ✓
Participant F ✓ ✓ ✓
Participant G ✓ ✓
Participant H ✓ ✓ ✓
In correspondence to the local taxicabs’ opinions on Uber on their livelihood, all checks
were on the fact that Uber has become a threat to their livelihood and that the emergence of Uber
has caused decrease of the take-home of the local taxicab drivers. Secondly, three (3) drivers
believed that the emergence of Uber has hindered them the capability to purchase necessities
needed. Lastly, one (1) driver believed that with the emergence of Uber, it provoked them to
have debts from friends or relatives. This is because due to the extensive competition between
taxis and Uber, local taxicab drivers no longer earn as much salary as they used to. Thus, they
are compelled to borrow money from relatives and friends in order to sustain their needs and
prerequisites.
The table discloses that all employees have analogous answers for most of the interview
questions provided by the researchers. These local taxicab drivers have disclosed that Uber is a
threat to their enterprise, and its emergence has caused a decrease on their take-home as taxicab
drivers. Moreover, it hindered them from acquiring the necessities they need and want thus, it
provoked them to borrow money from family and friends.
According to Driver E, a working driver of AirLand Taxi Company, specifically said
that, “Oo, nakaapekto ang Uber kay naa na mi kompetensya. Ni gamay na ang take-home kay
naa nay kapilian ang mga pasahero. Gusto man nila musakay sa Uber kay nindot daw ang
ilahang sakyanan. (Uber has affected us because now, we have a competition. Our take home has
lessened, for the passengers now have a choice whether it’s Uber or Taxi. They want to ride in
Uber, for their cars are apparently more presentable)”. These analogous answers of the local
taxicab drivers correlate to the study of Competition. Competition is about the contention among
varied sellers in the market.
According to Valentine Belonwu (2013), competition among businesses enables the
company to distinctively evaluate their customers which leads them to develop ways to properly
treat their customers the right way, making customer service better. Thus, local taxicabs must
recognize that Uber is a competition of theirs. Hence, it motivates the local taxicabs to provide
excellent services to their customers which encourages the customers to partake on the services
they are providing. With competition, local taxicab companies, operators, and drivers can assess
on things they can improve and maintain in order to satisfy customer needs and wants.
Table 3.5 Opinions of Uber in the Taxi Industry
Participant Decrease of Causes traffic Considers Uber a Causes more

Group B Customers for the Big Threat convenience and
Taxis accessibility than
taxis, better services
Participant A ✓ ✓ ✓
Participant C ✓
Participant D ✓ ✓
Participant F ✓ ✓ ✓
Participant H ✓
In correspondence to the local taxicabs’ opinions on Uber on the taxi industry, all checks
were on the fact that Uber is considered as a big threat to the local taxicab drivers. Secondly, four
(4) drivers believe that there is a decrease in the number of customers or passengers riding the
local taxicabs. Thirdly, three (3) drivers believe that Uber is more accessibility and convenience
compared to taxis thus, they cater better services. Lastly, two (2) drivers believe that the
emergence of Uber has caused more traffic in Cebu City.
According to Driver A, a working driver of AirLand Taxi Company, said that: “Para
nako, naka-apekto gyud gamay kay medyo nabahin naman ang pasahero. Mapunta man sa Uber
ang uban nga para sa amo unta. Sa ilaha man gud sa Uber, wa man gud silay franchise nga silbi
nagoperate, ang ilaha gud kay murag dili na gyud na sila mawala kay computer man ilang gi
gamit. Naay diperensya sa income, usahay nigamay gyud. (For me, we are quite affected by it
because our customers have been divided. The customers that are supposed to be ours, are now
in Uber. For Uber, they don’t have a franchise to operate and they will never cease now for they
use computers, thus there is a difference in our income. Sometimes, it really drastically
decrease.)”. These analogous answers of taxicab drivers correlate to the study of Gap Model of
Service Quality, most especially Gap 3 also known as the Policy Gap. Gap 3 is about what is in
between the management perception and the service quality specification.
The Policy Gap of the Gap Model of Service Quality specifically states that this occurs
only when the management or service provider accurately distinguishes what the clientele yearns
however the management failed to not reach the performance standard. This corresponds to the
views and opinions of the drivers for they also believe that not only must there be improvements
done on their behalf but also improvements done in the system. The Policy Gap of the Gap
Model of Service Quality states that this encompasses inadequate service design, failure in
perpetuation and improvements or the absence of standardization.Therefore, local taxicab
companies must have the mentality to provide the clientele’s desired service so as to not have the
clientele yearn for similar products with better services. This is so that local taxicabs may be able
to keep up with the ideals and modernizations of other businesses in order to sustain loyal
customers and entice new customers.
Table 3.6 Treatment to Customers
Participant Helpful and Respectful Believes that not Satisfies the

Group B Polite through and all drivers have needs of the
greetings and Obedient respect for their customers
small talks customers
Participant A ✓ ✓ ✓
Participant C ✓ ✓
Participant D ✓ ✓ ✓
Participant E ✓
Participant F ✓
Participant H ✓ ✓
Show in table 3.5, in terms of treatment for customers, 6 drivers of the Airland Taxi
Company believe that they are respectful, obedient, helpful, and polite which had the most
number of checks shown in the table. Secondly, four (4) of the taxi drivers believed that they
have satisfied the needs of their customers. Lastly, one (1) of the taxi drivers believed that not all
drivers have respect for their customers.
According to Driver D, one of the drivers of AirLand Taxi Company, said that: “Aw
kung respeto ang hisgutan, dle sad ko ka-ingon kami tanan kay kung mu hisgot man gud ta’g
driver gud generalize man gud kung naay masipyat usa diba? (If respect is what we are talking
about, I cannot say that all drivers are the same because nowadays when people talk about
drivers, they generalize them. If one is at fault, the others also get blamed on.)” This correlates
to the study of Gap Model of Service Quality, most especially Gap 3 of the model also known as
the Policy Gap.

The Policy Gap of the Gap Model of Service Quality is about the gap between the
management perception and service quality. This happens when the management or service
provider correctly recognizes what the customer wants, but is not able to deliver the set
performance standard because of its employees. The taxi drivers recognize the needs of the
customers to have proper conduct when driving thus believing that they are helpful, polite,
respectful and obedient to the customers and their needs.
Table 3.7 Opinions of embodiment of workers for efficiency
Participant To be more Suggests the Finds the Finds the To do the work
Group B helpful and need for Uber need to need to the best that they
polite to shut down respect understand can
customers what the
and their customer’s
needs mood is
Participant A ✓
Participant B ✓
Participant C ✓ ✓
Participant D ✓ ✓
Participant F ✓ ✓
Participant G ✓
Participant H ✓
Firstly, in regards to the taxi company’s opinion of embodiment of workers for
efficiency, the most number of checks of three (3) each were on the case where the the taxi
drivers have to be more polite and helpful, to understand the customer according to their mood,
and to simply do the best that they can. Secondly, two (2) of the taxi drivers find the need to
respect the customers and their needs. Lastly, one (1) of the taxi drivers suggested the need for
Uber to shut down. These findings correlate to the study of Gap Model of Service Quality, most
especially Gap 5 of the model also known as the Communication Gap, as well as Abraham
Maslow’s Hierarchy of Needs.
In relation to the Hierarchy of Needs, safety is needed for the customers when riding a
taxi in order for their satisfaction to be fulfilled and it is expected through what the drivers
should embody. When such expectation is not fulfilled, a gap rises in the Communication Gap of
the Gap Model. To further its explanation, the gap arises when assumed expectations are not met
at the time of delivery of the service. Drivers have recognized this gap thus suggesting on way of
what embodiment should they have in working in the taxi business.
Table 3.8 Aspects for Improvement in the Taxi Business
Participant Helping each other Improve the Find a Cleanliness

Group B grow, as well as support services by being solution for of the Taxis
the company and its polite, respectful, the traffic
decisions and helpful problem
Participant A ✓
Participant B ✓
Participant C ✓
Participant D ✓
Participant E ✓
Participant F ✓ ✓
Participant H ✓ ✓
Initially, in correspondence to the taxicabs’ opinions on the improvements needed to be
done by the taxi business, most checks were on the fact that the taxi business should improve
more on their services by being more polite, respectful, and helpful. Secondly, four (4) drivers
believed that improvements must be done in the case of drivers and its company, to help each
other grow and to support each other in its decisions. Lastly, one (1) driver believed that there
must be a solution to the traffic problem, as well as one (1) driver believed that improvements
must be done in accordance to the cleanliness of the taxis.
The table reveals that most employees have complementary answers as provided by the
interview guide of the researchers. These local taxicab drivers have acknowledged that there
must be improvements done in order to boost customer satisfaction such as, being more polite,
respectful, and helpful. They also disclosed that advancements must be done between the
company and its workers so as to help each other grow as well as to support the company and its
decisions. Moreover, they believe that there must also be improvements in regard to the heavy
traffic as well as the cleanliness of the taxis.
According to Driver E, a working driver of AirLand Taxi Company, said that: “Mura
man gyapon. Respeto sa mga pasahero, dili mu tanaw kung pobre o datu ang pasahero. Dili sad
balibad sa mga pasahero ilabi na kung peak hours. (Respecting the customers and to not
categorize whether or not the client is rich or poor. To not reject customers most especially on
the peak hours)”. These analogous answers of the local taxicab drivers, correlate to the study of
Gap Model of Service Quality, most especially Gap 4 of the model also known as the Delivery
Gap. Gap 4 is about the gap between service quality specification and service delivery.
The Delivery Gap of the Gap Model of Service Quality is all about the consequences
faced when the employees are incapable of providing the service required to satisfy customer
needs. The Delivery Gap includes the employee’s lack of commodity comprehension as well as
the struggle of the employee to administer customer affairs. Hence, local taxicabs must be able to
recognize advancements needed to be done in order for them to be able to appease customer
needs and wants, most especially the improvements needed to be done in the act of service done
by the drivers. This is essential so that companies or operators may hold trainings or seminars to
educate local taxicab drivers on the correct ways of handling the customers as well as to provide
the drivers proficient knowledge on the business at hand. This is so that there may be a boost in
customer satisfaction.
PARTICIPANT GROUP C: CUSTOMERS WHO EXPERIENCES TAXI AND UBER
Table 3.9 Age, Gender and Occupation of Customers
Participant Age Gender Occupation

Group B
13 - 19 21 - 39 40 - 65 Male Female Student Working
Customer A ✓ ✓ ✓
Customer B ✓ ✓ ✓
Customer C ✓ ✓ ✓
Customer D ✓ ✓ ✓
Customer E ✓ ✓ ✓
Customer F ✓ ✓ ✓
Customer G ✓ ✓ ✓
Customer H ✓ ✓ ✓
Customer I ✓ ✓ ✓
Customer J ✓ ✓ ✓
The participants of this study are comprised of ten (10) customers who have used Taxi
and Uber. This included eight (8) adolescents, where there were five (5) females and five (5)
males, with their age ranging between thirteen (13) to nineteen (19) years old. Secondly, there
was a total of one (1) participant, from the age group ranging between twenty-one (21) to
thirty-nine (39) years old, where there was only one (1) female. Lastly, there was a total of one
(1) participant from the age group ranging between forty (40) to sixty-five (65) years old, where
there was only one (1) male. All in all, there are a total of eight (8) participants who are students
and a total of two (2) participants who are working. In conclusion, the informants were equally
of the female and male gender and of ages thirteen (13) to nineteen (19) years old, commonly
categorized as adolescents or teenagers.
The results gathered can be related to the safety area on the pyramid of Abraham
Maslow’s Hierarchy of Needs which emphasizes that safety is the need for security protection. In
relation to Abraham Maslow’s Hierarchy of Needs, individuals will always have the need to feel
safe wherever they go especially if they ride a vehicle with a driver that they are not familiar
with and when their need to feel safe is not met, they tend to search for the protection they are
entitled to. All in all, companies, especially in the public transportation industry, should take into
consideration their actions and procedures in their day to day work that would satisfy the
customers by making them feel secure.
Table 3.10 Views of the innovation of Uber App
Participant
Group - Good No Comment
Customer A ✓
Customer B ✓
Customer C ✓
Customer D ✓
Customer E ✓
Customer F ✓
Customer G ✓
Customer H ✓
Customer I ✓
Customer J ✓
The table shows that customer’s believe that the innovation of the Uber app is good by
nine (9) out of (10) customer interviewed. Moreover, one (1) out of ten (10) customers had no
comment on the innovation of the Uber app. Good attained the most number of checks, which
was illustrated in customer E’s words, “I think that Uber is such a convenient way to travel
around. It has been most useful especially in Manila where it is even more important (compared
to Cebu) to always be keen of your surroundings when in public. The app is designed so that
users are able to book a ride in under one minute. I know most people wouldn’t really notice that,
but to me that’s really important (alongside the safety aspect of it).”
The results collected can be related to the theory of Instant Gratification, which according
to Neil Patel, one of Forbes’ top ten marketers, instant gratification is of great advantage
especially how most activities of the millennial era is closely connected to gadgets and
technology. Because of the constant usage of the internet, it enables users to purchase and sell
various products and services instantly and frequently. In relation to Instant Gratification, the
innovation of the Uber app is good most especially for the millennials who are constantly
connected to different kinds of technology and internet which enables them to hail an Uber
anytime and anywhere.
Table 3.11 Opinions of the service of the Taxi Business
Participant
Group - Good Bad Neutral
Customer A ✓
Customer B ✓
Customer C ✓
Customer D ✓
Customer E ✓
Customer F ✓
Customer G ✓
Customer H ✓
Customer I ✓
Customer J ✓
The table shows that six (6) customers believe that the taxi business has a bad service
which has the most number of votes. Furthermore, three (3) of the customers neither found the
service good or bad, and one (1) of the customers said that the service is good. In conclusion
most people find the taxi service bad, and the least found it good.
The results are in relation to the Gap Model. The Gap model talks about the gap between
the expectations of the customer to the company or to a service. With it, the researchers found
out that most of the customers expectation was not reached in terms of the service of the taxi
company thus deeming it as a bad service as the most number of checks.
Table 3.12 Factors affecting the Preference between Uber and Taxi
Participant Uber Taxi Security Comfortable / Convenience Reasonable No

Group C Good service price internet
Access
Customer A ✓ ✓
Customer B ✓ ✓ ✓
Customer C ✓ ✓
Customer D ✓ ✓ ✓
Customer E ✓ ✓ ✓
Customer F ✓ ✓ ✓ ✓
Customer G ✓ ✓ ✓
Customer H ✓ ✓ ✓
Customer I ✓ ✓
Customer J ✓ ✓ ✓
The table shows that the most number of checks on the preference between Uber and
Taxi is Uber by nine (9) out of ten (10) customers questioned. Furthermore, one (1) out of (10)
customers preferred Taxi than Uber. Uber acquired the most number of checks, which was
proven by Customer G’s answer, “I would prefer riding with an Uber because I spend a lesser
time waiting for the ride to arrive. The drivers are not choosy with the destination and the price is
fixed before you even enter the ride. It is also much safer and convenient!”
The most number of checks on the factors that affect the preference of Uber is security by
seven (7) out of ten (10) customers, and the least number checks is its reasonable price by two
(2) out of ten (10) customers.
The results are in relation with Sharing Economy, Gap Model and Abraham Maslow’s
Hierarchy of Needs. In relation to Sharing Economy, more people prefer Uber than Taxi since
Uber is an online company where their transactions are done through community-based online
services which makes it easier and more convenient for customers to hail a ride. In relation to the
Gap Model, the factors that provided the preference of Uber are factors that have met the
expectations of the customers which resulted to customer satisfaction. Additionally, safety is met
among the customers thus the customers’ preference of Uber because of its security.
Table 3.13 Aspects for Improvement in the Taxi Business
Participant Technology Driver’s Physical Maintenance of

Group C Attitude Security Appearance Cars
Customer A ✓
Customer B ✓
Customer C ✓
Customer D ✓ ✓
Customer E ✓ ✓
Customer F ✓ ✓ ✓
Customer G ✓
Customer H ✓ ✓
Customer I ✓ ✓
Customer J ✓ ✓
The table shows the different aspects for the improvement in the taxi business suggested
by the customers. The most number of checks is driver’s attitude with eight (8) checks while the
least number of checks is the physical appearance of the drivers with one (1) check.
These aspects is in relation to Abraham Maslow’s Hierarchy of Needs and the Gap
Model. The aspects are results from the gap that arose from the experiences from the customers
which caused the dissatisfaction of the customers. With driver’s attitude garnering the most
number of checks, it is believed by the customers that they do not feel safe with the attitude that
the drivers are portraying. Claims such as inappropriate touching and disrespect to the customers
contribute to such aspect for improvement. According to Maslow, safety is a need to be looked
on because it is in the second level of the basic needs of the customers. When safety is achieved
in the business, it is sure to increase its productivity and sales.
THEMES
Opinions of local taxi cab drivers on the emergence of Uber
Firstly, taxi drivers view Uber as competition, for they feel that it is difficult to keep up
with their advanced and convenient method of ride-hailing which would then attract more
customers. This can be further proven by Driver A’s opinion, “Para nako, naka-apekto gyud
gamay kay medyo nabahin naman ang pasahero. Mapunta man sa Uber ang uban nga para sa
amo unta. Sa ilaha man gud sa Uber, wa man gud silay franchise nga silbi nagoperate, ang ilaha
gud kay murag dili na gyud na sila mawala kay computer man ilang gi gamit. Naay diperensya sa
income, usahay nigamay gyud.”
Secondly, Uber has created more traffic in Cebu since it has become easy to loan for a
car. Since Uber provides an exceptional pay, allows drivers to be their own boss, receive tips,
takes on fares whenever they wish (Uber Estimate, 2017), it urges other drivers to loan for a car
so as to start working for Uber because of the good opportunities it offers. This can be justified
by Driver F’s words, “Oo, especially gud sa kanang when it comes to trapik ba kay gi himo man
ug business sa uban gud. Then sa ato pa, ang usa na kaya namo mangutang, mu utang siyag lima
then iyang gi padala sa uban, murag gi business niya ba. Oo, mao na siya nga imbis ang trapik
gamay ra, mu samot ug kadaghan kay gamay raman ug expenses, ana ba. Oo, ni gamay gyud
siya kay ang uban kahibaw baya ka usually basta Pilipino, unsay bag.o adto gyud na sila kay
maki-uso mana sila. Oo, syempre “oy, bag.o tong Uber. Adto tah kay bag.o man” so kaming mga
taxi pud, murag ni gamay among kita kay katong mga sosyalize na mga tao, siyempre mu adto
jud didto, maki-uso.”
Viewpoints of the local taxi cab drivers in terms of profits
In Table 3.4, taxi cab drivers had claimed that the presence of Uber has become a big
threat to them, and that it has caused the decrease of their take home. Consequently, it has
become difficult for them to purchase their necessities, resulting them to have debts with their
families and friends. According to Driver A said, “Naay diperensya sa income, usahay nigamay
gyud.”
From the data presented, it has shown that Uber is a very competitive rivalry against the
taxi company. One factor of affecting its profits is the passenger’s preference of Uber than the
taxi which then resulted to the decrease of passengers. With this, taxi drivers are having
difficulty in sustaining their livelihood and acquiring their needs for their, profits have been
gradually decreasing.
Views of local commuters of Cebu City to the Uber app
The commuters included are from ages 13-65, both male and female who are both
students and working professionals. Most have disclosed that they agree with the innovation of
the Uber app. According to Customer G: “Uber is constantly finding ways to constantly improve
and refine their technology to provide safe, reliable rides. The innovation of the Uber app is one
that improves efficiency in car rides. Uber connects drivers with riders in ways that were simply
impossible six or seven years ago. The company continues to develop their technology to make
our lives easier.”
Additionally, according to the nine (9) commuters who preferred Uber than taxi, the
factors affecting to such preference included security, good service, convenience and reasonable
price. According to Customer E, “The safety aspect of Uber is much more reliable. I can breathe
more while inside the car because the driver’s information is right at my fingertips and I can send
my location/driver details to anyone close to me. Moreover, the drivers are much more
approachable and through the rating system, I am able to know more about their traits as well as
comments from other riders.”
Aspects of Improvement for Airland Taxi Company
According to Table 3.8, firstly, AirLand Taxi drivers believe that they can improve their
services through being polite, respectful, and helpful to their customers. As stated previously, it
has been observed that taxi drivers have an inappropriate behavior to their customers. These may
include not following the right routes, asking for a bigger rate, kidnapping and doing any form of
sexual assault. This is proven by Driver D when he stated, “Aw kung respeto ang hisgutan, dle
sad ko ka-ingon kami tanan kay kung mu hisgot man gud ta’g driver gud generalize man gud
kung naay masipyat usa diba?” As a result, seminars for proper conduct are needed to educate
the drivers, such as the quarterly seminars made by AirLand Taxi company.
Secondly, as proven by Driver B, “Kanang traffic, usa gyud ni sa nakaepekto, wa man mi
mahimo anang traffic. Mao na kanang among kita permanente gyud ubos karong panahuna.
Tungod sa traffic labi na nga daghan ug kompetensya.”, they feel the need to find a solution for
the traffic problem to give convenience to the customers. As a result, according to the manager,
an ongoing proposal for a taxi app is being made to be at par in terms of technology.
And lastly, they believe that the cleanliness of the taxis must be observed. This can be
justified in the words of Driver F: “Siguro ana lang, kailangan limpyo pirmi, limpyo among
sakyanan, limpyo ka niya kanang kamao gud ka sa mga pasahero mo tagad. Mao na.”
Cleanliness in the environment including taxis and other vehicles matter for it does not only
prevent diseases, but also enlighten the customers to ride the said vehicles. Moreover, it is the
health of all humans, as their health completely depend on the atmosphere.
Limitations and Recommendations. Amidst these findings, there are limitations that have
to be noted. One limitation is that there were not enough adults being interviewed in the
study. This is an influencing factor considering the level of maturity of the individual.
Another limitation is the giving of questionnaires to the customers instead of having actual
interviews due to time restraint. It is recommended to set time to have an interview with
the participant to gain a more in-depth, accurate and reliable explanation of their opinions.
Implications of the Study. There are several ways as to how the findings of the present
study can help society, specifically the perspectives of the local taxi industry and the
customers.
With the perspectives from the customers, it highlights the value of safety - that it must
be of priority in businesses such as the public transportation industry to accommodate the needs
of the customers in order to gain customer loyalty. It is as well important to note the opinions
and suggestions of the customers because they are an important factor in the business field, for
they support the livelihood of the workers.
Meanwhile, revealing the viewpoints of the taxi industry has showed the consequences
the business and its drivers have to face. These include their low profits and the difficulty it
comes to sustaining their livelihood. Drivers have also claimed that customers perceive negative
generalities to the taxi industry of its qualities thus preferring to ride an Uber. With this, taxi
companies have been finding ways to improve its business so as to meet the needs and
expectations of the customers.
Thus the findings of the study may let the customers and the taxi industry understand the
perspectives of both parties and the consequences they are facing respectively. When both parties
would gain awareness of both sides, ways of compensating to attain each other’s needs would
ensue.
CHAPTER FIVE
CONCLUSIONS
Since its emergence in Cebu City, Uber has been deemed as a big threat to the AirLand
Taxi company. It has been observed by the business that passengers riding taxis are decreasing
which has resulted to low sales which then affects the livelihood of the taxi drivers.
Consequences are being faced by these taxi drivers such as low take-home, difficulty to purchase
necessities and debts. As for the customers, they would prefer riding an Uber because of its
accommodation to the need of safety from its services. In order to sustain the livelihood of these
taxi drivers, points of improvement from customers are taken account such as the attitude of the
drivers, cleanliness of the taxi cabs and innovations to make taxis more convenient.
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Service.pdf
APPENDICES
Interview Guide Questions
Hello and good morning/ afternoon! My name is ____________ and I will be your
interviewer for today. Before we start this interview, I would like to express my deep gratitude
for accepting our invitation to have an interview with you. The purpose of this interview, is for
us to be able to infer your viewpoints about uber and the local taxi cabs. With your input, we are
able to gather more information about the topic we are currently studying.
Management:
2. How do you think has Uber affected AirLand Taxi Company?
3. What measures do you think can be done to improve the services of the business?
Taxi Drivers:
Customers
1. What is your:
2. 1.1 Gender: Female
3. 1.2 Age: Seventeen (17) years old
4. 1.3 Occupation: Student
5. What do you think about the innovation of the UBER app?
7. Would you prefer riding an Uber or Taxi? What are the factors that lead you to such
preference?

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A Case Study on the Views of AirLand Taxi Company on the Presence of Uber in Cebu City:

Implications for Marketing Strategies

A Research in Partial Fulfillment of the Subject

The research paper here to titled

City: Implications for Marketing Strategies

acceptance and approval for ORAL DEFENSE.

Approved by the committee on the Oral Report

With a grade of PASSED on November 15, 2016

Ms. Ginabonivie Gatillosa Ms. Charmen Ramos

Proposal Panelist Defense Panelist

Ms. Marie Noelle Alino

Practical Research 1 Teacher

setbacks and bumps encountered along the way.

sharing their knowledge on the chosen topic during the interview.

researchers also extend their sincere appreciation.

without your wonderful contributions.

Cybil Rose S. Ybanez

CHAPTER 1: THE PROBLEM AND ITS SCOPE

1.2 REVIEW OF RELATED LITERATURE

1.3 STATEMENT OF THE PROBLEM

1.4 SIGNIFICANCE OF THE STUDY

1.5 SCOPE AND LIMITATIONS

CHAPTER 2: RESEARCH DESIGN AND RESEARCH METHODOLOGY

2.1 RESEARCH METHOD

2.2 RESEARCH ENVIRONMENT

2.3 RESEARCH PARTICIPANTS

2.4 RESEARCH INSTRUMENT

2.5 DATA ANALYSIS

CHAPTER 3: PRESENTATION, INTERPRETATION, AND ANALYSIS OF DATA

CHAPTER 4: FINDINGS, CONCLUSION, AND RECOMMENDATION

IMPLICATIONS FOR BUSINESS STRATEGIES

THE PROBLEM AND ITS SCOPE

implementing these new categories to promote innovation and modernization."

- Joseph Emilio Abaya

According to World Book Encyclopedia (2014), before the development of

passenger transportation was relatively uncommon. Today, passenger transportation is an

vehicles owned and operated by private companies or by the government.

8,329 units, 5,788, and 952 units respectively.

In contrast to Uber, the regular taxicab is a conventional mode of transportation. A

appropriate service to its passengers.

For this purpose, this study was conducted.

Statement of the Problem

strategies to increase customer satisfaction?

Significance of the Study

and the society as a whole.

experience the improvements that will be established by the business.

As an agency under the Department of Transportation, it is the duty of the LTFRB to

certain transportation means and its services.

Scope and Limitations

presence in Cebu City and its implications to business strategies as of 2017.

the Gap Model (1985).

Abraham Maslow’s Hierarchy of Needs

Maslow’s (1943, 1954) Hierarchy of Needs is a motivational theory in psychology

is where one seeks personal growth to become one’s ideal self.

understanding of the behavior and reaction of individuals in common instances. Furthermore,

productivity​ and job satisfaction.

customer perceptions. Customer expectation is an assumption in deciding the purchase whereas

customer perception is an interpretation of collective information after purchase. In a

customer expectations could be the best way to close the gap.

correctly perceive what the customer wants or needs. In a customer-orientated business, it is

require comprehensive market research.

with better service.

communication. Consumer expectations are highly influenced by statements made by company

productivity and job satisfaction.

Production. In sharing economy, people are also active participants in production.

Power. There is a redistribution of power to citizens which enables them to access to

Communications. Information and knowledge is shared, open, and accessible.

Taste - When people’s desires, emotions, or preferences change in favor of a product, so