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Case Study- Going for A Ride: Entrepreneurial Journeys in The On-Demand Transportation

Sector

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Introduction

In the business word, transportation is of great importance as it facilitates the distribution

of goods and services from one location to another. Over the years, the way transportation has

been operating under the business sector has changed. This has been made possible through the

advancement of technology, which has brough about the development of better ways of

transporting goods and services, to the consumers (Whittington et al., 2019). The emergence has

been instrumental in the formation of multi-sided platform businesses, which have become

common in the on-demand transportation industry as a result of technological development,

changes in user perception surrounding the purchase and payment of services, and changes in

social attitudes (Whittington et al., 2019 pg. 685). Therefore, this assignment aims to provide a

summary of the case study, the background, recommendations which lads to managerial insight

and justifications made.

Executive Summary and Background of the Case Study

The case study is quite informative on matter of the need for on-demand for the various

transport platforms. This phenomenon is made possible by the development and rise in the use of

the internet. The internet completely changed the way things were being done before, and

provide alternatives to organizations and business. The businesses have also changed the way

they operate and changed their operation to take place on the digital platforms (Whittington et

al., 2019). Digital platform businesses have acquired amazing scale over the past twenty years,

disrupted established players, and made enormous efficiency advantages, making them some of
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the most valuable corporations in the world. Traditionally, taxi firms or private chauffeur

services have provided personal on-demand transportation services throughout the world (Kakar,

2018). Globally, on-demand transportation is becoming more and more popular as a result of the

growth of mobile devices and applications. Services like station-based mobility, car sharing, and

e-hailing are providing a profitable environment for the transportation sector to flourish with

various companies such as Lyft, Blablacar, and Turo being in the frontline.

For the transport sector and the companies involved have been able to make use of

technology to better improve the way they operate. The three companies named above have

emerged as a result of entrepreneurs using modern technologies like cellphones, mobile

connectivity, and GPS systems to promote fundamentally new concepts and services. This has

taken place as a way of trying to address the difficulties that people experience when it comes to

getting transportation. A good example is how the founder of Blablacar came up with idea for

the company after lacking to get train ticket as they were sol out. They needed to travel but the

means to do so was not available, when most needed. Therefore, technology has taken the

initiative to make it possible that an opportunity present itself (Whittington et al., 2019). The

events of that night were serious that the, French Entrepreneur Frédéric Mazzella saw an

opportunity to start a business as all the drivers were in a hurry to get to their families.

Unexpectedly, he was unable to locate a service that would pair up riders asking for a trip with

drivers traveling in the same general direction (Kakar, 2018). The founding team contributed a

wide range of abilities and experiences to the start-up through technology and on-demand

transportation. Although Frédéric had a background in both computer technology and scientific

research, he also had a passion for branding and communications.

Managerial Insight in Regards to the Case Study

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The business world is drastically changing and this has called for the need to find better

ways of operating in order to improve on the already existing demand. This is not different for

the transport sector (Dang et al., 2021). Businesses have adopted on-demand service models as a

result of technological advancements and changing client expectations for promptness. a variety

of on-demand services' characteristics in order to comprehend the concept of "on-demand" and

its consequences for service management (van der Burg et al., 2019). The findings demonstrate

that highly available, responsive, and scalable on-demand services are defined by three

interconnected qualities. Further investigation demonstrates that on-demand services differ in

terms of availability, reactivity, and scalability within the conceptual confines of these features.

For managers, it is important that they are able to have insight on how the they can make

use of on-demand phenomenon in the transport sector. Service providers commonly use these

platforms to gather resources for on-demand supply. These platforms are currently frequently

researched, with an emphasis on issues like price and capacity management. Again, it is crucial

to emphasize that multi-sided platforms are not always available when needed. Some of the

things they can watch out for include; making use of resource and capabilities, distinctive and

dynamic resource and capabilities, and threshold resources and capabilities (Whittington et al.,

2019 pg. 96-99, 116). An organization must have minimum resources and competencies to

compete in a market, but in order to maintain a competitive advantage, it must also be different

and one-of-a-kind. Additionally, unique resources and competencies that offer a long-term

competitive advantage must meet the VRIO criteria of being valuable, rare, unique, and

supported by the organization (Whittington et al., 2019). The managers are able to improve and

analyze an organization's value chain and value system as a basis for understanding how value to
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a customer is created and can be developed by using the VRIO analysis of resources and

capabilities as a tool to evaluate whether they contribute to competitive advantage.

Through strategic capabilities, the managers of the transport sector and the business

present, they can compete favorably in the market. The three e-transport platforms have been

able to make use of technology to better improve the way they provide services to their clients.

The VRIO analysis has been instrumental in making the companies (Lyft, Blablacar, and Turo)

operations successful Whittington et al., 2019). Through locating the consumer correctly, which

acts as the first and most important step in starting an on-demand transaction is to find the

customer. The customer may have a mobile device with no known point of reference or be

available with a complete address of his position. It is critical that the precise location is entered

into the app in both scenarios (van der Burg et al., 2019). After locating the consumer, the

following step is to match their demand with the supply that is currently available (which in this

case would be any transport).

Additionally, through the optimization of the customers fulfillment, the on-demand

transport sector entrepreneurs, have utilized this to make the route direction of their customers

possible. Route direction is crucial when a vehicle is scheduled for several pickups and deliveries

(Dang et al., 2021). So that the driver can complete pickup and delivery on time, on-demand

transportation apps should include waypoints sequencing algorithms that take into consideration

the current and previous status of traffic circumstances. Performance and safety improvements is

also another factor that has been made possible through technology (Kakar, 2018). Customers

desire a smooth riding experience as well as updates and engagement from the app. The value of

the offering is increased by additional features like alerting passengers one minute before the

driver arrives at the destination.

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Recommendations and Conclusion

The transport sector is highly competitive, and with this it requires the recommendations

to be made in order to attain the much-needed results. It is because of the capacity to supply

transport as well as the transportation infrastructure in place which best helps in meeting the

needs of the consumers. The major recommendation that can be made is that the entrepreneurs

shou be well informed when it comes to the supporting the existing strategies in place as well as

implementing new ones. The new strategies such as enabling the use of the internet when dealing

with the different suppliers and consumers (Rodrigue & Notteboom, 2017). With this they can

make use of third-party companies to make transportation evident. The transport businesses

provide transportation services to customers who need them, frequently on open marketplaces.

According to the terms of the contract or the going (spot) rate, transport users pay for the

services received. Examples include independent trucking firms, shipping lines for containers,

railroad companies, and bus companies (van der Burg et al., 2019; Dang et al., 20210. Third-

party transportation benefits greatly from competition as service providers compete to give

customers with better and more affordable services. Additionally, there is a chance that prices

will change as a result of shifting market dynamics and that transport capacity won't be

accessible when a client needs it.

To conclude, the economy, which is made up of individuals, organizations, and

industries, creates the need for transportation by facilitating the movement of people and goods.

Transport requirements for consumption and production can be distinguished from one another.

A clear economic focus is necessary for productive transportation, which will ultimately reflect

on the competitive edge. by controlling the cost of using a transportation asset, such as the user
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fee, in light of ongoing variations in demand. When the supply of transportation is fixed, the

objective of this strategy is to maximize profit.

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References

Dang, L., von Arx, W., & Frölicher, J. (2021). The impact of on-demand collective transport

services on sustainability: A comparison of various service options in a rural and an

urban area of Switzerland. Sustainability, 13(6), 3091.

https://doi.org/10.3390/su13063091

Kakar, K. (2018, April 27). The rise of on-demand transportation services. Daffodilsw.com.

https://insights.daffodilsw.com/blog/the-rise-of-on-demand-transportation-services

Rodrigue, J.-P., & Notteboom, T. (2017, December 3). 3.4 – the provision and demand of

transportation services. The Geography of Transport Systems | The Spatial Organization

of Transportation and Mobility; Jean-Paul Rodrigue.

https://transportgeography.org/contents/chapter3/provision-and-demand-of-

transportation/

van der Burg, R.-J., Ahaus, K., Wortmann, H., & Huitema, G. B. (2019). Investigating the on-

demand service characteristics: an empirical study. Journal of Service

Management, 30(6).

Whittington, R., Regner, P., Angwin, D., Johnson, G., & Scholes, K. (2019). Exploring strategy,

text & cases (12th ed.). Pearson Education.