Tax aggregators

Technology alters the way in which the economy operates, however change in the Taxi service sector is seem to be a rapid one. App-based services had a 4 fold impact on the economy. These are dealt in brief below:

1. Customer centric model:

Customer can hire a cab at the rate of an auto and he can ride with comfort. This comfortability and affordability had brought these app based services more closer to the customer.

2. Novel opportunity for business class:

Relatively flexible terms and conditions in the business and also more autonomy with respect to radio cab services coupled with the higher margins for the taxi owners, which resulted in attracting more businessmen towards these ventures. The number of taxi owners who are being part of this are increasing and at the same time there is an increase in competition among app based services providers. This may lead to decrease in the profits of taxi owners, which takes away the economic advantage of the taxi owners and affect the whole business model.

3. Distorting the traditional market:

Rapid change in technology is not only a boon for many, but also a destruction factor in the economy. App based service providers have a comparative advantage in the form of low capital costs. Predatory pricing by them has been distorting the informal market as well as the radio cab service providers.

Ola and Uber are two major players in india in taxi business. The major stakeholders are customers, taxi drivers.

Driver’s perspective :

The taxi service in india has given life to many people. Traditionally it was either bus or autorikshaw. With the introduction of this business in india, the number of job opportunities created for below middle class people has increased. Compared to other means of transport, the amount that taxi drivers earn is very high. They have hikes based on the no.of trips per day along with a fixed component which makes life easier for them. On the other hand, this variable pay increases the eagerness to earn more. There are many taxi drivers who ride the taxies day and night to earn more. The policies provided by the company are such that they get pay based on the no.of trips. This might sometime lead to the disappointment of the drivers. Especially when their co-driver earns a lot or gets more no.of bookings and ratings.

Customers Perspective:

“A comfortable journey is just a click away” is how exactly customers perceive cabs now. There are days when people had to know the schedule of a particular no. of bus, which route it goes etc. They had to bear with all sorts of delays in journey because there was no proper alternative to choose over. Bargaining for prices was a major concern for most of them. Easy cheating was possible and people were very skeptical.  There is no place as such where people can express their regrets or complain for justice. There was never a proof of fair. The entire system lacked transparency. On the other hand Security is the main concern for almost all the customers now. The no. of rape cases being reported across india runs a shiver in the spine of customers. Also sometimes the uncertainty in cab booking and arrival, trips getting delayed or cancelled, makes people think in a skeptical fashion. Surge pricing is one more problem that customers face in this business. Sometimes the demand is so high that one has to pay 4 fold price. Lack of Taxi’s at times can lead to frustration and distrust too.

Ethical responsibilities of taxi aggregators:

Taxi aggregators should give decent incentives to the drivers for the work they do. It is quite common in this industry for predatory pricing which is charging low price for the service till the competitors exit from the business.This is against the anti-competitive law of India. It affects the healthy competition exist The taxi drivers should remain loyal to the customers and not try to cheat on them. The entire security of the passenger is there in their hands and they should be responsible for that. They should treat a customers’ emergency as their own emergency and try to help them reach their destination on time. Any inconvenience of the customer should be handled by the drivers accordingly. Surge pricing should be properly limited and customers should not be charged exorbitantly high prices.

Ethical responsibilities of Stake holders:

Understand the business and support the taxi aggregators until they are justifiable in their activities. Customers should not unnecessarily make bookings and then cancel leading to inconvenience of taxi drivers and indirectly the taxi aggregators. In case of any inconvenience they should take the proper approach such as logging into their website or app and then registering a complaint. The new feedback system should be put into best use.

Taxi Aggregators extent of meeting responsibilities:

The taxi aggregators have made sure to engage customers via proper discount channels, though they made huge losses. Also, drivers incentives have been more to keep them engaged and not run to competitors. Feedback mechanism is in place with although a very high response time. Towards environments, some aggregators have agreed to comply by the rules and regulations set by the local governing body.

 

Stakeholders extent of meeting responsibilities :

Customers have responded very well for the service provided by not bargaining and troubling . Payments to the service have been on time. Drivers themselves have stood against any crime they see in the industry. Everyone complied with the rules of the system and thus ensured smooth service. Traffic rules have been followed with utmost care and standard have been set in terms of the same.

Benefits of demonstrating ethical responsibility :

Demonstrating higher levels of ethics and setting up a standard in the same has now become a differentiating pattern in the industry. This increases the loyalty of the customers towards a particular aggregator. Also people have started building trust on these apps for smooth experience. Drivers, if comply by the rules and less rejections of requests, then they may be able to earn incentives as well as good feedback by the customers. If aggregators follow ethics, the safety, transparency and comfort ability of taxi travel in India will increase and which will benefit not only the aggregators but the full society.