A Taxi Company Facing a Competitive Challenge

A Taxi Company Facing a Competitive Challenge

Introduction and the Problem Statement

Recently, the world has seen a phenomenal rise in digital platforms that seeks to revolutionize the mobility industry. The seasoned venture capitalists run these platforms aiming at seizing the market from the traditional players in the mobility industry (Hughes, 2017). Among the top players disrupting the taxi market include Uber, Lyft, Didi Chuxing, Taxify, and Ola (Pernicka, 2017). Through apps and websites, these players offer competitive services that substitute Taxi services (Cramer & Krueger, 2016). Unlike taxi players, ridesharing companies offer customized mobility services allowing travelers to have better experiences (Eisenmeier, 2018). Apart from this, these companies are convenient, cheaper, and accessible to travelers. Therefore, the vast benefits offered by ride-hailing platforms over taxi services are factors contributing to a shift in consumer behavior in favor of rideshare companies.

The ridesharing platforms have disrupted not only the taxi businesses but also the entire mobility industry, with the entry of players such as Uber and Lyft in the market. In this research, the market analyst will examine the implications of the ride-hailing platforms in taxi businesses (Pernicka, 2017). According to trends, the decline in revenue and profitability, with the increased adoption of ridesharing platforms by many travelers, is a significant concern for taxi companies (Eisenmeier, 2018). Therefore, the taxi companies risk being driven out of the market by rideshare companies. In response, taxi players must redefine their strategies to overcome the disruptive effects of ridesharing companies.

Four Demographic Questions Related to Research Problem

In analyzing the appropriate demographic for the target company, the researcher will administer questions related to demographic characteristics. The questions in these sections are close-ended and standardized. Therefore, a researcher will give definite answers as opposed to their desired viewpoints. The following are the four questions regarding the gender posed by the researcher to participants:

1. Does this apply to you or not? Tick where applicable (yes or no)

The question utilizes an ordinal measurement scale as individuals are assigned age ordered series of categories.

2. What is your income range? Click where appropriate.

Income range falls in interval scales of measurement since the order ranks of different values remain critical. So, for income ranges, over $100,00 can be ranked better than under $20,000.

3. What is your urbanity? Click where appropriate.

Demographic questions for urbanity utilizes nominal scales as it labels the variable in question. As such, there exists no overlapping within the levels and, one can be either from affluent neighborhoods, slum dweller, rural or city suburbs and not from both.

4. What is your gender (Sex)? Click where appropriate.

The nominal measurement scale is utilized in the assessment of gender since it holds no quantitative value. Often, nominal levels are labels which need no numerical significance.

Four Questions Related to Taxi Services

In this session, the researcher will administer questions related to taxi services. The researcher will attempt to understand the experiences of people using taxi services. The four questions posed to the participants are as follows:

1.) How often do you hire a taxi? Click where necessary.

The ordinal scale of measurement is applied in the question as it gives individuals’ viewpoints and preferences.

2.) When do you use a taxi? Click where necessary.

Nominal scale names the categories of variables as it gratifies the measurement of identity. So, the nominal scale of measurement is used in the question of the use of a taxi.

3.) Which other modes of transport do you use apart from taxis? Click where applicable.

Ordinal level of measurement dominates the question as it inquires about preferences of individuals’ mode of transport.

4.) Is the taxi your favorite mode of transport? Click where necessary.

Yes, no scales implies nominal as it involves activities that places information into diverse categories without following any order.
Two Questions Related to Rideshare Companies

The session reflects the experiences of the people about ridesharing platforms. Understanding the experiences of people and ridesharing platforms will help to know whether they can replace taxis in the industry. The questions related to rideshare companies are as follows:

1.) What is your income range? Click where appropriate.

Income ranges fall under the interval scale of measurement as it provides precise and quantifiable differences amid individuals’ earning.
 

2.) What do you take about ridesharing platforms? Click where appropriate.

The question of taking rides with ridesharing platforms is an ordinal scale of measurement as measures individuals’ level of satisfaction and opinions.

Explanation of the Use of Social Media for Survey Distribution

The cost-effectiveness, ease, and rise of internet access prompt the researchers to use online data collection applications to reach audiences. According to Pew, at least 70% of adults in developed countries use the internet and social networking sites (Wolfe, Phillips, & Asperin, 2014). Studies also show the rise in popularity of social networking sites, with Facebook being the most important social networking tool. Asides from interacting and socializing, social networking sites offer chances for their use in research. Therefore, this explains the effectiveness and attractiveness of using social media in this research proposal.

Various reasons convinced the researcher to use social media for survey distribution. One primary reason is that social media tools are economical, unlike traditional methods such as one-on-one communications (Kayam & Hirsch, 2012). Therefore, this researcher will incur minimum costs involved in data collection and analyzing human behavior. The researcher will use active and attractive tools, including the PCs and mobile devices to interact with the respondents (Wolfe et al., 2014). For instance, the researcher will use mobile apps and Facebook to link with the target respondents. Using these tools, the researcher will collect a vast array of information with limited costs.

Saving time is another reason that influenced the researcher to prefer social media survey distribution over traditional data collection approaches. Through the internet and mobile tools, a researcher can collect data from various people at the touch of a button. Therefore, this allows the researcher to save time and frustrations involved in traveling and visiting participants’ locations. Time-saving is also a factor that enables a researcher to save costs and time included in the finding collections.

Another factor that encourages the researcher to deploy online survey distribution is that online tools do not have geographical limitations. Unlike the traditional means, the researcher can collect the findings from diverse people across the globe at low cost and time. Conventional tools are expensive and cannot allow a researcher to cover an extensive scope and population (Wolfe et al., 2014). Using online survey distribution, the researcher can cover a broader population base. The advantage of collecting vast information from a general target population is that it increases study validity because a researcher gets viewpoints from a diverse population (Kayam & Hirsch, 2012). As a result, this allows researchers to achieve study reliability goals. When administering the questionnaire, the researcher will collect views across the world to get full results. Getting many insights from the diverse population will allow the taxi company to make evidenced-based and informed recommendations.

The researcher can use websites, mobile apps, and social media to post the study questions and materials. Besides, the researcher will target the general communities to extract in-depth information (Kayam & Hirsch, 2012). Through online tools, the researcher can collect large and diverse samples that will meet the study objectives because they do not confine the tools to specific geographical areas. Therefore, the researcher will not need introductory psychology courses for research subjects’ recruitment.

Another aspect that inspires the use of online tools is voluntary participation. As a result, a researcher no longer needs to lure study subjects to participate in a study. Online participants do not feel pressured to participate in a study, unlike in traditional data collection setup (Wolfe et al., 2014). The disadvantage of pressurized people to participate in the study is that they can give biased and dishonest responses to please a researcher. Such an aspect is absent in online survey distribution because participants do not feel the pressure to please a researcher (Kayam & Hirsch, 2012). Therefore, this increases the likelihood of collecting honest and less biased viewpoints.

The limited human error is also a reason for using an online survey distribution. Often, detecting a human error is a daunting task. An advantage of using computer-aided data extraction is that digital devices deliver the information to the participant the way researchers it and vice versa. A researcher will also have time to analyze the findings effectively (Kayam & Hirsch, 2012). Today, a researcher can use many online packages provided freely that save data in a package and give statistical analyses on quantitative findings.

Conclusion

Investigating the impacts of the rideshare companies on the taxi and the entire mobile industry will provide critical insights that will help in market strategy development. In conclusion, the ideas collected in the researcher proposal will guide a taxi company to develop marketing antics that counteract the disruptive impact of rideshare companies. The company will rely on vast information gathered from diverse respondents. Therefore, this will help a taxi company create a sustainable advantage in the challenging market environment.

References
Based Research in Social Studies Case Study: Family Language Policy. Journal of

Corporations in Western Europe and the United States.

Cramer, J., & Krueger, A. B. (2016). Disruptive Change in the Taxi Business: The Case of

Eisenmeier, S. (2018). Ridesharing Platforms in Developing Countries: Effects and

https://www.moodysanalytics.com/risk-perspectives-magazine/managing-disruption/o

Hughes, T. (2017). The Effect of Ride-Sharing on the Auto Industry. Retrieved 3 February 2020, from

Implications in Mexico City. Pathways for Prosperity Commission Background Paper

Kayam, O., & Hirsch, T. (2012). UsingSocial Media Networks to Cnduct Questionnaire

p-ed/the-effect-of-ride-sharing-on-the-auto-industry

Pernicka, S. (2017). The Disruption of Taxi and Limousine Markets by Digital Platform

Quality Assurance in Hospitality & Tourism, 15(2), 134-148.

Series, (3), 2018-10.

Sociological Research, 3(2), 57-67.

Survey Distribution Channel for Hospitality and Tourism Research. Journal of

Uber. American Economic Review, 106(5), 177-82.

Wolfe, K. L., Phillips, W. J., & Asperin, A. (2014). Examining Social Networking Sites as a