MGNT 925 – Business Research

Project

NSW Taxi Industry Name – Sai Ganesh

Student ID - 5339819
Presentation Content

• NSW Taxi Industry- Background Information

• Point to Point Taskforce Findings
• Uber and Its Blue Ocean Space
• Current Market Trends and Drivers
• How can we implement Change- Lewin’s Model
• Technology and Transition
• Overview of Tokyo Taxi Association – Takkun App
• Recommendations for Taxi Industry
• Questions & Answers
NSW Taxi Industry- Background
We have a clear mission:
7300 taxis and 5200 taxi
1. Trusted and local champion
operators affiliated to 12 taxi
we will help you to reach
networks
places safely , reliable,
efficient and comfortable
services $1.15 Billion to the economy

2. We offer services for disabled 84% Licensed owners and

people when public 28000 trained drivers
transport is unavailable in
small towns and nights
6500 Taxi Licences
3. Round the clock availability,
High focus on Safety, Highly Drivers and Operators are
efficient and demand young
responsive
Government verified, Flexible
4. Households & Business- main
and High focus on Safety
contributors
 Point to Point Taskforce Findings
Direct Indirect

• Disruptive business
models and • Waiting Time
Technology • Expensive
• Not Customer
oriented
• Monopoly perceptions.
• Not enough quality
customer service
• Brand Minimum

Regulation Changes

• Stricter safety standards

• Digital displays prohibited
• Fare estimates and Taxi Fare Structures
• Removed Driver Restrictions
• Brand Minimum
 How Uber achieved the Blue ocean space
Eliminate-Reduce-Raise-Create Grid
Growth of Uber Taxi complaints

Higher Prices, Lack of supply to

demand

12-14% - Taxi’s not turning up

7-8% - Unable to Hail
5-7%- Unavailability at Taxi
Rank(Ipart)

67% (18-34 years) used Uber – 10.5%

(50 +years)
 Market Trends and Drivers
In Taxi Experience Safety Smartphone & Presence Additional Services
Radio with Spotify, Internal and External of Social Media Qantas Flyer Points –
Bulky Touch Screen Cameras, Panic Booking Taxi and Go catch, Discount for
with Tablets, Button Track a Taxi, Interacting with Disabled and
Advanced Mobile Emergency SOS customers for promotion Maternity, Offering
Payment, Mobile button and queries coupons and
Chargers, Just in discounts
Time, WIFI services

NSW Taxi Industry

Driver Heavily regulated, 2-3% Taxis booked Yet to implement

Interaction, Taxis are inspected using
Radio. every 4 months, Smartphones(Ipart)
Strict rules to qualify and very minimal
presence in Social
Media
 Lewin’s Model of Change
Organizations that handle change well appear to thrive, while those that
do not may struggle to survive
Unfreeze- Change- Refreeze the Taxi Industry
 How to improve Brand
Image and Perception Identity elements- Taxi Industry
Brand plays a vital role in collecting personalized
data from customers
*How can we improve our
customer service - Forums
Use analytics to monitor behaviour patterns of
customers and create insights with campaigning
and promotions to drive the growth

Ensure information is shared internally and

across value chain

e.g.: Double Branding- NightCab+Taxis G7-

targeted young clubbers
(Waiting time on Friday and Saturday – 64%)

Takkun
Tokyo Taxi Association – Takkun App
* Allows to call the nearest taxi vehicle to you in
special zone – (App provides instructions after
installation on how to use to it)
* Has one of the lowest dispatch times (70
seconds to 27 seconds)
*Cashless and Fast with each vehicle driven by 2.5
drivers in 6 shifts
1. Fixed Fare System- Offering fares with
10% to 30% lower than the indicated fares
on meters and increase of traffic
2. Technology – Drive recorders – Internal
and External Camera, Digital radios,
Acceptance of credit cards, IC cards,
electronic money, etc
3. Additional Services- Discount system for
disabled, Maternity and Long rides,
Hospitality Taxis, Use of Braille Stickers,
Discount for Long ride, Offering
Sightseeing taxi
4. Training- the Universal Drivers services –
without the need to give the driver
directions and improving customer service
by teaching foreign customs.
 Adapt to current circumstances
- Invest more in technological infrastructure and products- Wifi and
Mobile charging
- Partner with startups and taxi networks to work on future needs
and customer information
Recommendations – - Reduce waiting time and dispatch time – Improve Dispatch
Algorithm

How can we improve Bring the voice of the customer to life

- Listen to customer ideas using forums, portal and improve Social
Media
- Real time Information – for Drivers and customers to resolve
customer issues
- Maintain transparency – Inform customers about surge pricing and
reduce surcharges
-Companies such as G7 taxi, Yellow Cabs and Takkun should be used
as an example to provide high customer service consistently.
 References
Deloitte 2013, The economic and social contribution of the NSW taxi industry, Deloitte Access Economics, viewed 02 September 2017, <
https://www.nswtaxi.org.au/sites/default/files/Deloitte%20NSW%20Taxis%20Final%2012Dec2013%20%281%29.pdf>
Forbes 2015, https://www.forbes.com/sites/pauljankowski/2015/09/10/perception-is-not-reality-what-is-your-brands-reality/#4193d837318d , viewed 13 September 2017
Forbes 2012, https://www.forbes.com/sites/sundaysteinkirchner/2012/08/22/5-ways-to-improve-your-customer-service/#374bc9ee14bc, viewed 15 September 2017
IBIS 2017, Taxi and Limousine Industry report, IBIS World, viewed 04 September 2017.
Independent Pricing and Regulatory Tribunal 2014, ‘Guide to the taxi industry model’, pp. 1-28 <
https://www.ipart.nsw.gov.au/files/sharedassets/website/trimholdingbay/stakeholder_guide_to_the_taxi_industry_model_-_april_2014.pdf >
ipart. (2017). ipart. Retrieved from ipart:
https://www.ipart.nsw.gov.au/files/sharedassets/website/shared-files/investigation-administrative-taxi-passenger-survey/taverner-research-comparing-surveys-of-point-to-po
int-transport-use-november-2014-to-february-2017.pdf
London Cab tours 2012, http://www.londoncabtours.co.uk/london-trivia-blog/etiquette-and-every-day-use-of-a-london-taxi-do-s-and-don-ts-good-manners-and-bad/, 02
September
Lyft 2017, Annual Report.
Sydney Morning Herald 2014, ‘Cost of buying a taxi license in Sydney drops to lowest in six years’ 14 December,
<http://www.smh.com.au/nsw/cost-of-buying-a-taxi-licence-in-sydney-drops-to-lowest-in-six-years-20141213-126fzp.html>.
Study on passenger transport by taxi, hire car with driver and ridesharing in the EU Report, viewed 02 September 2017
 
South China Morning Post, http://www.scmp.com/news/hong-kong/education-community/article/1949428/image-overdrive-how-hong-kong-cabbies-are-taking, viewed 15
September 2017
Verge, https://www.theverge.com/2016/9/26/13035642/nyc-taxi-cab-android-touchscreen-tablet-verifone , viewed 14 September 2017
 
Transport for NSW, 2016, ‘Background’,
http://www.transport.nsw.gov.au/operators/taxis/taxi-licences/taxi-licence-release/previous-annual-taxi-licence-determinations-and-releases
Victorian Taxi Association 2016, ‘iHail – Driving the Taxi Industry Forward’, < http://www.victaxi.com.au/news-and-events/news/2016/05/01/ihail-%E2%80%93-driving-the-
taxi-industry-forward >
 
Cramer, J, & Krueger, AB 2016, 'Disruptive Change in the Taxi Business: The Case of Uber', American Economic Review, vol. 106, no. 5, pp. 177-182