Professional Documents
Culture Documents
Contents
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Chapter I
Introduction
The transportation system has made several changes in recent years with the
introduction of application based taxi and car service systems to the new generation
commuters, as a result new industry competitors have made Innovation to constant
changes to an basic old industry that did not materialized much the way it did in past,
with customers in need of a cab having to either physically wave at a taxi at the street
corner or made an Appointment through smartphone application to reserve a car prior to
the pick-up time is more convenient, less hassle and safe.
Some of us will think that the inclusion of new technology to services will create
disadvantages, but it would be positive to think that some various business leaders
actually care about how our well transport systems work in the previous to convince us
that transport is the best option as public utility and that would result to advantages.
Resulting to new innovation like introducing using smartphone application based cab
system to really highlight how good enough our civic leaders actually care about efficient
transport, and how much more they seem to care to everyday commuters.
Technology is now growing and developing in a faster rate without even knowing
it. One of the branches of innovations is the invention of mobile applications thru mobile
devices or smartphones that provide mobile apps to help us be more productive and less
time consuming pertaining different services through applications.
and Garret Camp in 2009. Graves was appointed as CEO then later, Graves stepped down
from the pole to become the Vice President of Operations and was replaced by
Kalanick.Ubers service and mobile app for smart phones was launched in San Francisco
2010.
Uber is originally a foreign transportation company now already here in the
Philippines. Transportation nowadays in the Philippines is already one of daily problems
commuters encounter, heavy traffic and difficult accessibility of taxis and buses. One
solution is adopting, the existing of mobile app transportation service Uber. Mobile apps
is already a life saver making us more efficient and easy to work aUber Transport Service
is one of the innovations helping the ease of people in renting or finding a cab/vehicle
through mobile apps, as of May 28, 2015, Uber app is already available in 58 countries
including one of the newest, Philippines and 300 cities around the world, several other
companies now adopting the same industry that Uber has, but Uber is the leading pioneer
in the service transportation industry, whatever the company it is, they have the same goal
in giving quality of service, comfortability and easy access to the commuters.
The primary reason for conducting the study in Uber is to educate how they
perform their innovations efficiency when it comes to customer satisfaction, safety,
reliability, and accessibility in transportation service industry.
Null Hypothesis
The hypothesis to be tested at .05 level of significance is:
Company, because from the commuters, the company will learn and gain more
outputs from the customers thus, the result will help to improve and gaining more ideas to
ensure Uber offers the outmost better quality and efficient service to the commuters.
Drivers and Uber Partner Drivers, drivers that working at Uber have better
compensation and benefits from the company unlike other cab companies, ordinary
drivers have minimum or less than the salary from the company or the fare itself.
thereafter are deemed excluded. These developments may contain situations in the
transpiration alternatives and other future trends that may influence the findings,
observations and recommendations of the study.
Conceptual Framework
Data Gathering
Frameworks of
Reference
(Literature)
Analysis
Conclusions
The first step in doing this research was the formulation of the problem and the
creation of the research questions. Thereafter, the proponent think about the methodology
that will be best fit the problem under research. Next, he will gather secondary data in the
form of books and articles in order to improve our understanding of the research problem.
At this time, the proponent will have to start writing the research outline. The
questionnaire about Ubers innovations and efficiency, based on the knowledge of the
theoretical research.
Thereby, several decisions in data gathering such as the form of the questions, the
language used in the questionnaire, as well as the procedure in performing the survey
instrument has to be made. The questionnaire will be tested and several days later will be
delivered to selected respondents that patronize Uber taxi. After which the respondents
answer the questionnaires, it will be collected and a period of editing and analyzing the
data will begin. These results will be used to get a deeper understanding of the study.
During the entire time between determining the methodology and the end of writing
down the analysis the frameworks of reference was created. Finally, the research report
was completed by adding the conclusion and the closing comments.
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Chapter 2
REVIEW OF RELATED LITERATURE AND STUDIES
This chapter presents concepts, theories, opinions, viewpoints, and insights of
related literature and studies. It is organized in the following manner. First, it will give a
local literature where a discussion on the background of Uber in Philippines. Second, it
will provide related studies on the awareness of Ubers innovations and efficiency.
Finally, a synthesis explaining the salient differences of the present study from the others
is presented at the end of the chapter
Local Literature
In cities of developed nations, a good land transportation mix generally exist, that
is, the presence of motorcycles, private vehicles and a good range of public transport
system notably buses in different sizes, choices in trains and monorails as well as the
presence of pedestrian and non-motorized lanes. On the other hand, especially with that
of the public transportation, the opposite seems to be happening in most cities of
developing countries, particularly in Southeast Asia. The lack of common or traditional
forms of public transport network and infrastructure such as mass public transportation is
usually substituted with other innovative modes of public transportation (Guillen, 2004)
And so the birth of Uber has come to penetrate the public transportation to
provide a new venue for the riding costumers. Uber was officially lunch last February
2014 in Manila. Originated from San Francisco, Uber is an on-demand car service and
its now available in 45 countries and more than 200 cities.
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rush hours. Uber cars are generally cheaper especially with long rides. You can also
estimate your fare before you request your ride. And since you use your credit card, Uber
charge you with just the exact fare. Taxi drivers normally round up the fare and dont
give you change. Uber also allows you to split your payment with friends who are also
using Uber.
Feedback system Uber has a good feedback system that allows you to rate or
comment on your driver or ride. You also receive a fare breakdown showing the base
fare, distance and trip time immediately after your trip.
Safe safety is everyones concern when riding a cab. Uber improves on this by
providing you the drivers name and photo as well as the car model and plate number
right after you request your ride. You can also share your ride details and your ETA to
your
friends
and
relatives
via
and
social
media
(http://www.pinoytechblog.com/archives/seven-reasons-why-we-love-uber).
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youre in this business, you have to comply with requirements to obtain a franchise and
without these requirements; taxi operators will be considered as colorum or illegal.
The legal basis which the taxi operators felt that Uber is prohibited because Uber
car drivers may be considered as PUV drivers since it is defined as motor vehicles for
hire and used to carry or transport passengers.
On the contrary, the PUVs are limited to motor vehicles, meaning the Uber and
providers of similar apps do not seem to fall under such category. The Uber consider
itself as not transportation provider but an app that offers a platform where drivers and
commuters connect and interact. Furthermore, in the said article many of its customers
felt safer than in riding a taxi.
Another factor that Uber has risen the awareness of efficiency it is because of
customer satisfaction. Before, when you commute and use the regular taxi, we might
encounter bad experiences like a taxi driver refuse to carry us during peak hours,
extorting high rates, or worst, kidnapping or stealing our belongings. None of these
experiences have occurred with Uber Philippines.
Possibly because there is a self-policing mechanism that works well for Uber is its
rating system wherein Uber drivers and riders rate each other. This rating system
reflects any positive or negative feedback about a driver or customer, thereby allowing
more informed decisions when customers choose Uber drivers and vice-versa. For
customers who are conservative and want to ensure their safety, Uber cars with 100
percent positive reviews may be a prudent option. Philippine laws on PUVs, while
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stringent and well written, still have to hurdle the challenge of effective enforcement
(http://opinion.inquirer.net/81096/uproar-over-uber-taxi).
The new Philippine regulations, announced in Manila at the start of the week, creates
a modus vivendi that Uber hopes can be a template for other countries. Uber, whose service
revolves around a mobile app that matches passengers with registered vehicles, has blurred
the lines between the "private" and "public" classification of vehicles. It has been a hit with
consumers tired of inefficiencies in public transportation - manifest in everything from
difficulties in haling cabs to the decrepit state of all forms of public transportation - but has
been condemned as unfair competition by the traditional transport sectors that run a gauntlet
of government regulations and franchise rules.
In the said article, the Uber Company hailed the DOTC for issuance of
Transportation Network Vehicle Service (TNVC) classification that will bring
transportation network companies (TNC) as Uber will be in this category within the
scope of the countrys regulatory framework.
This development is considered as a historic day as the DOTC authorized a new
order on Promoting Mobilty that aims to modernize and enhance transport services to
commuting public by acknowledging new forms of transport solutions that can have a
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Foreign Literature
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What is Uber?
Imagine you are a MBA student at work in downtown Chicago who just got off an
endless two hour conference call at 5:30pm and realize that you are most likely going to
be late for a midterm which starts at 6:00pm unless you can get a cab.
However, you
know the chance of getting a cab will be next to impossible at rush hour, so you pull out
your iPhone and order an Uber, which promises to arrive in 10 minutes or less (Heath,
2012). It arrives; the driver welcomes you by name, and provides a peaceful ride to
Kellogg for the midterm.
This is an Uber experience and its all for about 1.5 times the cost of a cab
(Mangalindan, 2012). Uber is a software company and does not own any of the cars
which transport Uber customers. Instead, Uber has negotiated contracts with drivers and
takes 25 percent of the fare. The initial launch city was San Francisco in 2010 and
Kalanick has been busy raising capital ever since. Kalanick and co-founder Garrett
Camp invested $200,000 as seed money, followed by $1.25 million in angel capital by
First Round Capital, an $11 million Series A round led by Benchmark Capital, Founder
Collective and First Round Capital, and finally $32 million Series B with Menlo
Ventures, Jeff Bezos, Goldman Sachs and Benchmark in December 2011 (Sinanian,
2012)
As of March 2012, Uber service was available in Chicago, New York, Boston,
San Francisco, Paris, Seattle and Washington D.C.
services in Los Angeles and Toronto. Upon a launch, Uber benefits from various means
of social media such as Twitter and Facebook, as users share their experiences. As a
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result, the firm has experienced rapid user proliferation of 30-40% per month
(Mangalindan, 2012).
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The taxi market is consists of different market segments. Each market segment is
characterized by different needs of customers and by different economics. The first
one is we classified as the street hail/cruising segment that includes those customers
who flag a taxi at the street. Those customers need a taxi right now. In such cases, the
for the transport system to function, it is essential to ensure that a constant supply of
flaggable taxis is available at any time. And in real life situation, theres a perfect
balance of supply and demand. If there is an undersupply of taxis, a taxi can have a
bargaining power wherein he can demand an additional fare which is if you are the
customer, you might be tempted to pay and the driver can take advantage of the
situation. Another problem, customers cannot assess the reliability of drivers,
Ensuring safety therefore is critical. In order to solve these problems, to ensure a
sufficient supply of taxis at constant rates and to ensure the safety of passengers this
market is usually regulated. One must be licensed to operate a taxi.
Uber is not a taxi operator. It is a match-maker who helps operators increase
capacity utilization.
The second kind of market is the pre-book wherein the customers who do not
need a taxi right now. They are able to pre-book their ride using mobile apps. The prebooking provides the opportunity to increase the capacity of utilization by matching
supply and demand. Thus, matching of supply and demand is a major part of the
value, which Uber creates. Uber allows drivers to increase their utilization rates,
which in return enables them to operate more profitable. Hence, it is possible to
balance supply and demand in Ubers market, the-booked and mobile apps supported
market, and no regulation is needed to make it efficient.
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Legal requirements for taxis also try to ensure safety of passengers in the street
hail segment of the market. Again, no regulation is needed in Ubers market segment.
Uber is able to ensure safety and quality standards by providing ratings of drivers.
Why is this possible? Because Ubers business model is built on return-customers.
Uber can only operate profitably, if customers return frequently to Uber. Acquiring
customers is expensive for Uber. In order to recoup that cost of customer acquisition,
they need to ensure that the customer takes many rides with them. Uber therefore is
incentivized to generate happy customers. They do this by ensuring quality standards
for its drivers. If the driving style of an Uber driver is inspired by Nascar racers he
wont stick with Uber for long.
Synthesis
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After reading and compiling the relevant literatures above, one idea remains that
the Ubers transportation had greatly made an impact to our taxi industry everywhere in
any parts of the world. Most likely its because of its innovation, revolutionizing the
traditional commuting of riding a tax.
Uber is an App-Powered on-demand car service provider for smart phones.
Notwithstanding its very unique name, investors have begun to take note of Uber during
the past year as it has stolen market share from traditional transportation companies.
Why Ubers made a difference? Think about efficient customer acquisition,
volume and the ability to maximize capacity utilization, customer service and long-term
customer relationships, and the ability to source a large number of reliable drivers. All
these factors are present in Ubers more than what you can expect which makes other taxi
operators left behind.
The readings in this chapter will help the researcher to further describe and
analyze the Ubers innovations and efficiency. These literatures, both foreign and local
will enlighten the researcher with the what, why and how Uber becomes successful in
penetrating the market and chance of what we think about taxi.
Research Paradigm
Data Analysis on
PROCESS
Ubers Efficiency
and Innovation in
terms of:
Respondents from
INPUT
Selected Manila and
Quezon Areas
Independent Variables
Gender
Ager
Civil Status
Educational
Attainment
Occupation
Salary
Dependent
Variables
Affordability
Reliability
Safety
Comfortability
Accessibility
OUTPUT
Recommendations and
Awareness of Ubers
Efficiency and
Transportation as an
Alternative Means of
Transportation
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Definition of Terms
Transportation is the movement of people, animals and goods from one location
to another. (Wikipedia.com)
Commuters a person who commutes, especially between home and work.
(thefreedictionary.com)
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Bibliography
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