RESEARCH PROPOSAL

On

“A STUDY ON CONSUMER BEHAVIOUR TOWARDS OLA AND

UBER CAB SERVICES IN AHMEDABAD”
Name: Pearl Mehta

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

ABSTRACT:

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

Keywords: Consumer satisfaction, Service quality.

1
INTRODUCTION:

The consumer market is filled with opportunities and possibilities to develop. Every market
place has a pivot point. In the case of e-tailers, consumers were appetite for discounts. The
passenger vehicle segment is one of the sought after and fast growing market in India. The
customers are seeking for safety, satisfaction and pride. The increasing population and
limited infrastructure adds to opportunity to grow, especially by attracting foreign investors
to invest in competitive market which leads to more attractive towards affordable price to
consumers. There is mushroom growth in cab providers like, Ola, Uber, Meru, Savaari,
Woocabs, Carzonrent, My Cab India, Gozo cabs, One side Cab, Bharat Cab etc. In case of on
demand cab aggregators such as Uber, Ola Cabs and Meru Cabs, It is the drivers. Cab
aggregators typically, don’t own any cab or employ drivers; they connect customers with
drivers through the tech platform, the front –end for the customer being an app. This statistic
displays the highest number of registered cabs/cabs across Indian states and union territories
in 2015-16. The state of Tamil Nadu, for instance, had approximately 373,520 registered
cabs, higher than Odisha's 102,800 registered cabs during the measured time period. The
Indian cab market size was estimated at 1.9 million.

A country known for lowest car ownership across all emerging countries found a new answer
to its mobility needs in 2013, when Cab for sure launched its app based on-demand cab
programme. The very same year when Uber entered in India and launched its services in

2
Bangalore. Till 2014, there were very few takers for on-demand cabs but a lot changed in
2015 when Ola rolled out a much improved and accurate app with broader coverage. Till
2014 and even early 2015, Ola`s ~20% bookings were made through laptops and desktops.
India`s weak internet infrastructure and comparatively lower smartphone penetration was
prime reason behind this. The smartphone penetration was 6% in India in 2013 and, reached
28% by May 2019. In metro cities, the penetration reached 60%-65% by 2015 and that is
when and where the revolution of on-demand cabs began in India.

Ola Cabs (stylised as OLΛ), is an Indian transportation network company (TNC) offering

services that include peer-to-peer ridesharing, ride service hailing, cab and food delivery. The
company is based in Bangalore, India and was developed by ANI Technologies Pvt. Ltd. As
of May 2019, Ola was valued at about $6.2 billion. Homegrown ride-hailing giant Ola wants
to foray into as many as 50 global cities by 2019, with prime focus on high-end European and
Gulf markets. The company's global expansion started with Australia earlier this year, which
followed its entry in the United Kingdom and New Zealand. The next destination of the
SoftBank-backed company is the Netherlands. Its capital, Amsterdam, is a central location
for catering to the markets in Central, Northern and Eastern Europe and even North Africa
Uber Technologies, Inc. is an American multinational transportation network
company (TNC) offering services that include peer-to-peer ridesharing, ride service
hailing, food delivery, and a bicycle-sharing system. The company is based in San
Francisco and has operations in 785 metropolitan areas worldwide. Its platforms can be
accessed via its websites and mobile apps.

OBJECTIVES:

PRIMARY OBJECTIVES:

 To study the consumer satisfaction towards OLA and UBER.

 To study the preference of customers between OLA and UBER

3
SECONDARY OBJECTIVES

 To identify the difference between satisfactions levels for both cab services.

 To study the Motivational factors which drive people to use OLA/UBER cab services
in Ahmedabad and city.

 To study the comfortness of customers at ride.

The Research Question

Organized rental cab was introduced in the Indian market in 2004 with Meru cab service and
soon became popular among consumers in metropolitan cities but the actual revolution came
in 2010 when app based services started, with Uber in 2013. Soon the market became
competitive and consumers became more demanding. Now companies are using various
strategies to increase customers as well as to retain their old customers. This study is focused
on identifying the difference between Ola and Uber customers and for this data will be
collected with the help of structured questionnaire. Data will be collected from Ahmedabad
and specifically from working professionals. Result of this study may help the cab service
industry to design their future marketing strategies. In every sphere of business, the service
and quality should be matched with the perceived, expected and delivered. The big market
players in call cab services are keen in enhancing the products and services to tap the
customer base. This study will help us to know the customers satisfaction with respect to the
comfort, convenience, tariff, service quality and staff courtesy, etc. Also, we can have the
input and ideas to improve the services to meet out the customer expectation in the near
future.

4
Literature Review

Consumer’s preferences towards Ola and Uber

 Sumit Wagmare Et Al (2015) studied about the consumer’s preference on apps for
booking cab services. Research was done with the help of a questionnaire and about
70 respondents were surveyed. It was found that perceived ease of use, Subjective
norms and perceived risk played an important role in shaping the behavioral intention
to use the app. These app generates a sense of freedom, creates a feeling of
independence and royalty among the users.
 Paronda Et Al (2016) studied the key performances indicators for selection of Ola and
Uber. The research was done by using descriptive research and 30 people were
surveyed. It was found that Uber and Grabcar offers better quality services than
conventional cabs. It also identified the indicators such as reliability, travel speed,
passenger expenses that attracts consumers towards the selection of Ola and Uber.
 Sarita Prava Das Et Al (2017) studied the various factors that affect the consumer for
selecting pre-booked cabs. Research was done by using descriptive research. It was
found that consumers preferred convenience, quality services, transparency and safety
as important parameters for selecting pre-booked cabs
 Rupali Rajesh, Snehal Chincholkar (2018) studied the difference between Ola and
Uber customers and data was collected with the help of a questionnaire. Research was
done by using statistical analyses. It was found that that females prefer Uber service
over Ola, but when safety is considered, they feel safer with Ola then Uber.
 Vanishree Shah (2018) studied the service quantity of Uber and Ola from the
customer’s perspective. It also aimed at identifying differences between expectations
and preferences of customers from service quality. Research was done by using
Servqual questionnaire and about 128 people were surveyed. It was found that there
was a gap between expectations and preferences of customers when service quality is
concerned.
 Ananya Bhattarcharya (2018) studied about the surge pricing and river cancellations
of Ola and Uber. Research was done with the help of a questionnaire and the survey
polled about 20,000 people from 200 districts

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  across India between November 12th to 19th. It was found that surge pricing is the
major point for Ola and Uber users, followed by drivers cancelling rides. These often
charge customers a fee for cancelling the ride. Some respondents believe that some
compensation either a fixed amount or an amount equivalent to 10% of the ride fare
should be credited to the customer’s account in such cases

Consumer Satisfaction towards Ola and Uber

 Hanif and sagar (2016) studied that the cab services has a huge potential for growth in
Mumbai targeting middle and affluent class. Research was done by using descriptive
research and about 50 people were surveyed. It was found that consumers not only
uses cab services for commutation but also for visiting a shopping mall, attending late
night party or going out on special occasion. It also showed that consumer satisfaction
is very high, which shows positive sign for future growth and expansion of the
business.
 Sindhu Kashyaap (2016) studied the consumer satisfaction towards Ola and Uber.
Data was collected with the help of a questionnaire. Research was done by using
Sampling research. It was found that in terms of pricing, about 44% of people prefer
Uber, while 12% of people prefer Ola since the pricing level of Ola is bit expensive
than Uber. He also found that about 54% people said that the drivers cancel the ride if
the drop location doesn’t suit them or drivers not being able to use the GPS navigator.
 Kailash Korde (2016) identified that the Mumbai Grahak Panchayat studies about
online preference survey about app-based cabs between August 27 th to 31st, during
which 76,196 commuters were surveyed, and it was found that 94% of 76,196 i.e.
71,726 commuters claim harassment by black and yellow cabs and auto- rickshaw.
Even as 80% of the commuters feel that Ola and Uber offers better service than
conventional cab and this survey also highlighted that 19% of commuters were
unsatisfied with the feedback system provided by Ola and Uber.
 Kumar Kishore and Kumar Ramesh (2016) studied that due to many competitors in
the cab industry it is important for the organization to motivate consumers through
coupons. Research was done with the help of a questionnaire for the drivers as well as
the customers. It was found that price conscious consumers redeem coupons. The
consumers in this time period are modern, innovative and price sensitive. Hence
coupon redemption helps for customer’s retention

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 Ashish Avinash and Dr.Vaibhav Patil (2018) studied the customer satisfaction level of
the people who are using Ola and Uber cabs in Pune city. Research was done with the
help of a questionnaire. It was found that around 100% respondents are using paid cab
services in Pune city i.e. Ola and Uber. It also studied the various factors like pricing,
market share, revenue model, app convenience etc.
 Saikalyan Kumar Sarvepalli and Dr N.R. Mohan Prakash (2018) studied about the cab
aggregation industry in India and there are recent developments happening in the
industry. Research was done through a Servqual Gap Model and it was found that
innovation in cab business using application is the result of technology progress
making the transportation easier, especially in metro cities. Ola and Uber are found to
be the most popular in India, as their primary aim is to connect with the driver and
customer.
 Abdul Wahid Khan Et Al (2018) studied the factors affecting customer satisfaction in
the cab service market in India. Research was carried out by SEM (Structured
Equation Modeling). It was found that the driver professionalism and convenience of
booking significantly impacts the overall satisfaction.
 Rusksana Rasheed Et Al (2018) studied and evaluate customer’s satisfaction using
app based cab service in Lahore City. Research was done through Correlation and
Regression models. Both primary as well as secondary data was collected. It was
found that Careem was more reliable and preferred cab service followed by Uber. It
was concluded that among six service quality factors i.e. convenient us of mobile app,
driver behavior, time reliability, and Price affordability indicated significant impact
on customer’s satisfaction.
 Dr. Ruchi Shukla Et Al (2018) published a paper titled “Ola Vs Uber.” The Battle of
Dominance in 2017. The study was done to analyze the pricing strategies, investments
and special offers of Ola and Uber. It was found that India’s market size and
purchasing power are attractive to the cab aggregation industry. Indian consumers are
found to be very smart, demanding, price-sensitive with no brand loyalty. This makes
it difficult for Ola & Uber in this environment.

7
Research methodology

Research design:

A research design is the set of methods and procedures used in collecting and analyzing
measures of the variables specified in the research problem. The design of a study defines the
study type (descriptive, correlation, semi-experimental, experimental, review, meta-analytic
and sub-type (e.g. Descriptive-longitudinal case study), research problem, Hypotheses is
independent and dependent variables, experimental design, and, if applicable, data collection
methods and a statistical analysis plan. A research design is a framework that has been
created to find answers to research questions. In this research both Primary and Secondary
data are collected for research survey. The questionnaire is framed to know the nature of
product consumer does use, the reason they favor to buy such product and their level to the
product.

1. Descriptive Hypothesis

 This is simply a statement about the magnitude, trend, or behavior of a population

under study.
 For example below is the Descriptive Hypothesis of cabs.
 H0: People are not satisfied by using cabs.
 H1: People are satisfied by using cabs.
 H0: People don’t feel safe when using a cab at night.
 H1: People feel safe when using a cab at night.
 H0: People don’t’ like to recommend Ola/Uber cabs to others.
 H1: People like to recommend Ola/Uber cabs to others.
 H0: People don’t like to engage with drivers.
 H1: People like to engage with drivers.

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 2. Relational Hypothesis:

 These are the typical kind of hypotheses which state the expected relationship
between two variables.
 For example below is the Relational Hypothesis of cabs
 H0: There is no significant relationship between price and booking of cabs.
 H1: There is significant relationship between price and booking of cabs.
 H0: There is no relationship between discount and booking of cabs.
 H1: There is relationship between discount and booking of cabs.
 H0: There is no significant relationship between waiting time duration and booking of
cabs.
 H1: There is significant relationship between waiting time duration of booking of
cabs.
 H0: There is no relationship between payment options available and cab market
 H1: There is relationship between payment options available and cab market.

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CONCLUSIVE RESEARCH DESIGN

Conclusive research design, as the name implies, is applied to generate findings that are
practically useful in reaching conclusions or decision-making. In this type of studies research
objectives and data requirements need to be clearly defined. Findings of conclusive studies
usually have specific uses.

DESCRIPTIVE RESEARCH DESIGN

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

 To obtain the primary data from customers, will be using the research instruments like
questionnaire and personal interviews with the customers using OLA and UBER paid
cab service. At the time of interview the researcher will make clear about the nature
and purpose of the study. The interviews help to elicit further detailed information.
Good representation of Gender, Education, Age groups, Occupation, Demographic
factors are to be considered during the study.
 Data Collected: Primary ( Structured Interview )
 Population: Total population is 100 respondents.
 Element: Single user
 Sampling Frame: Sampling frame comprises of all 100 respondents from Ahmedabad
of all the elements of respondents with proper identification that is available to us for
selection at any stage.
 Sample: Sample is comprises of 75 respondents.
 Sampling unit: Single user of sample.
 Sampling: Selecting a sample of 75 respondents from 100 respondents.
 Sampling design: Non-probability Sampling method
.

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 DATA ANAYLSIS AND INTERPRETATION

This chapter discusses the data analysis from 75 responses collected from various age group
people who are using OLA/UBER paid taxi services in Ahmedabad city. This chapter solely
focuses on presenting the gathered data in a meaningful way to facilitate the research that is
to find out the customer satisfaction level of OLA/UBER cabs. This provides the background
to the respondents by analyzing their demographic details. Tables and diagrams have been
used to facilitate a simplistic reader-friendly writing.

Cabs aggregator preferred by the respondents:

Cabs Preferred by responses

1.3 1.3

20

OLA Cabs
Uber
Meru cabs
Easy cabs
Savaari.com
others

77.3

Interpretation

 From this graph, we can see that the people of Ahmedabad prefer Uber cabs more
than any other cab aggregators. About 77% of the respondent prefers Uber cabs.

 About 20% of the respondents prefer Ola cabs

 About1% of people prefer Savaari.com

11
  About 1% of people opted for others.

The main reason people won’t prefer cabs

Reasons people wouldn't prefer cabs

34.7 Price
Discomfort
46.7 Bad experiences with drivers
Others

6.7

12

Interpretation

 From the above graph, we can see that people in the Ahmedabad region do not prefer
cabs due to its high price.

 About 47% of respondents say that price is the main reason that they do no use or
prefer cabs, instead they with auto-rickshaws, buses etc.

 About 35% of respondents may have some other reasons for not preferring cabs.

 About 7% of the respondents may have some bad experiences with drivers, due to
which they do not prefer cabs.

 About 12% of the respondents believe to have discomfort during the rides, and thus
don’t prefer cabs.

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Satisfaction level for Cabs Apps:

Satisfaction for the App Convenience

10.7

Yes
No

80.3

Interpretation:

 From the above graph we can say that most of the respondents are satisfied with the
app convenience of Ola/Uber cabs.
 About 88% of respondents are satisfied with the app convenience of Ola/Uber.
 About 12% of the respondents are not satisfied with the app convenience of Ola/Uber.

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Waiting duration for Ola/Uber:

Waiting Duration after Booking cab

2.7 2.7

0-10 Minutes
10-20 Minutes
20-30 Minutes
46.7
30-40 Minutes

48

Interpretation

 From the above graph, we can see that 48% of the respondents have to wait for about
10-20 minutes duration after booking cab.
 About 47% of the respondents have to wait for about 0-10 minutes duration after
booking a cab.
 About 3% of the respondents have to wait for about 20-30 minutes duration after
booking a cab.
 About 3% of the respondents have to wait for about 30-40 minutes duration after
booking a cab.

14
Discount provided by Ola/Uber cabs:

Discount provided by Ola/Uber

Yes
45.3 No

54.7

 From the above graph we can see that about 55% of the respondents say that Ola/Uber
provide them discount, like they provide discount on the first ride.
 About 45% of the respondents say that Ola/Uber do not provide them discounts.
 This can be a reason that might affect the preferences and satisfaction of the
customers.

15
Do you like your cab driver to engage in conversation with you?

Do you like your cab driver to engage in conversation?

Yes
NO
50.7 49.3

Interpretation

 From the above graph we can say that about 49% of the respondents like to engage in
in a conversation with the cab drivers.
 About 51% of the respondents do not like to engage in a conversation with the cab
drivers

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Age group:

Age groups
2.7 2.7

17.3 0-20
21-30
31-40
41-50
51-60
60+

77.3

Interpretation

 From this graph we can see that mostly the people of age between 0-20 years (77%)
of respondents uses cab services for travelling through their colleges and offices, to
and from entertainment events.
 About 17% of the respondents from the age group of 21-30 years prefer Ola/Uber
services for their travelling.
 We can see that only 3% of the respondents from the age group of 31-40 years prefer
Ola/Uber services.
 About 3% of the respondents from the age group of 41-50 years prefer Ola/Uber
services.

17
Interpretation:
 The above graph shows that most of the people prefer or use cabs once a month.
 About 42.7% of the respondents use cabs once a month.
 About 24% of the respondents use cabs several times per year.
 About 21.3% of the respondents use cabs weekly for day to day travelling,
 About 5.3% of the respondents never use cabs; they use their own personal cars for
travelling purposes.
 About 6.7% of the respondents use cabs daily for travelling purposes.

18
Interpretation:
 From the above graph we can see that most of the respondents about 42.7% use cab
services for Airport, Rail, or Port transfer.
 About 29.3% of the respondents use cab services for to and from entertainment
events.
 About 12% of the respondents uses cab services for to and from work
 About 16% of the respondents uses cab services for other purposes.

19
Interpretation:
 From the above graph we can see that most of the respondents about 32% respondents
prefer cabs during afternoon.
 From the above graph we can see that most of the respondents about 26.7%
respondents prefer cabs during night.
 From the above graph we can see that most of the respondents about 22.7%
respondents prefer cabs during evening.
 From the above graph we can see that most of the respondents about 18.7%
respondents prefer cabs during morning.

20
Interpretation:
 From the above graph we can see that most of the respondents about 68% of
respondents believe that prices of ola and uber are moderately affordable.
 From the above graph we can see that most of the respondents about 22.7% of
respondents believe that prices of ola and uber are completely affordable.
 From the above graph we can see that most of the respondents about 9.3% of
respondents believe that prices of ola and uber are unaffordable.

21
Interpretation:

 From the above graph we can say that about 78.8% respondents feel that cabs are safe
during night.
 From the above graph we can say that about 21.3% respondents don’t feel that cabs
are safe during night.


22
Interpretation:
 From the above graph we can see that most of the respondents about 53.3% of
respondents have cab journey time about 15-29 minutes.
 From the above graph we can see that most of the respondents about 29.3% of
respondents have cab journey time about 30-44 minutes.
 From the above graph we can see that most of the respondents about 10.7% of
respondents have cab journey time about less than 15 minutes.
 From the above graph we can see that most of the respondents about 5.3% of
respondents have cab journey time about 45-59 minutes.
 From the above graph we can see that most of the respondents about 1.3% of
respondents have cab journey time about 60 minutes or more.

23
Interpretation:

 From the above graph we can say that about 37.3% respondents are moderately
satisfied with cab services.
 From the above graph we can say that about 8% respondents are highly satisfied with
cab services.
 From the above graph we can say that about 6.7% respondents are not satisfied with
cab services.

24
Interpretation

 Following points can be derived from the above chart.

 The first statement says that about 15% of the respondents strongly agree, 40% of
respondents, 40% of respondents agree, 19% of the respondents are neutral,1% of
respondents strongly disagree that convenience factor influence the preferences of
customers.
 The second statement says that about 24% of the respondents strongly agree, 40% of
respondents agree, 10% of the respondents are neutral, 1% of the respondents strongly
disagree that safety factor influence the preferences of customers.
 The third statement says that 14% of respondents strongly agree, 31% of the
respondents agree, 26% of the respondents are neutral, 3% of the respondent disagree,
1% of the respondents strongly disagree about the fact that time duration factor
influences the preferences of customers.
 The fourth statement says that, about 13% of the respondents strongly agree, 29% of
the respondents agree, 26% of the respondents are neutral, 4% of the respondents
disagree, 5% strongly disagree that price factor influences the preferences of the
customers.
 The fifth statement says that about 23% of the respondents strongly agree, 40% of the
respondents agree, 13% of the respondents are neutral, 1% of the respondents

25
disagree, 1% of the respondents strongly disagree that comfort factor influences the
preferences of the customers.

FINDINGS

26
 A Qualitative research study conducted to understand the factors that affect the choice
or preferences or satisfaction of the customers towards Ola/ Uber cabs.

 It was found that about 47% of respondents say that price is the main reason that they
do no use or prefer cabs, instead they with auto-rickshaws, buses etc.

 About 77% of the respondent prefers Uber cabs, due to its best quality services and
low price.
 About 88% of respondents are satisfied with the app convenience of Ola/Uber.
 About 68% of respondents believe that prices of Ola and Uber are moderately
affordable.
 About 47% of the respondents have to wait for about 0-10 minute’s duration after
booking a cab.
 About 78.8% respondents feel that using cabs are safe during night.
 About 8% respondents are highly satisfied with cab services.
 About 26.7% respondents prefer cabs during night.
 About 40% of the respondents prefer safety as a factor which influences their
preference towards Ola/Uber cabs.
 About 42.7% use cab services for Airport, Rail, or Port transfer.
 People of age between 0-20 years (77%) of respondents use cab services for
travelling through their colleges and offices, to and from entertainment events.
 Thus, these are some of the findings that are collected through the survey.

27
 Recommendation

For Ola:
 Ola needs to improve frequency of cab.
 The price hikes during rain are way too much; I would recommend to cut short those
at least for ‘not so long’ rides.
 Frequency of Ola cabs in rural areas should be increased.
 Ola should accept payment through Paytm also.
 Ola drivers should be more taught how to provide good service. Ola drivers are very
unprofessional.

For Uber:
 Uber should add pool car option and its frequency in the app.
 Increase availability of premium cabs
 The route for the destination should not be fixed. If there are alternative routes which
are faster and less traffic, should be allowed to be taken.
 In Ahmedabad the waiting time for cab is more during peak hours. I would
recommend that during peak hours drivers should not log out and more incentives
should be given to them.
 Uber should not have a minimum Paytm wallet amount. Uber should optimize and
make the app more efficient.
 Uber should improve customer relationship management and booking and
cancellation service.

28
 Limitations of the study and Future Research

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

29
 Conclusion

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

30
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. Gupta,A., &Tomar, V.S. Consumer perception Towards App Based Taxi Sector

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