TFS Report

8/12/2019 TFS Report

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7/31/2014

Second Part of Project Submitted to Prof. G. Shainesh

Submitted by

Anshuman Pandey, Vineetha Sankaranarayanan, Debesh Swain and

Abhishek Pandey

GROUP 6 MARKETING STRATEGY OF TAXI FOR SURE


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Evolution of Radio Cab Industry in India

Around 10 years back, if a person got down at the train station, the most preferred mode of

transport was the auto rickshaw. He/She would head to the nearest auto stand hauling the heavyluggage to hail an auto rickshaw to reach the destination, but as was most often the case, the driver

denied to go by meter and would demand a fare that would be exorbitantly high. The other drivers

also part of the same cartel system would demand similar fares and the traveller would be left with

no other option than to pay the higher fare to avail the service.

The scenario has been changing since 2006-07 when Meru and Easy cabs started their business, and

radio cab industry took off in India. These players capitalized on the gaps and weakness in the

existing auto rickshaw segment. The main complaints against auto drivers were the bad attitude

exhibited, meter tampering and rude behaviour to customers.

The new players opened up alternatives to customers by introducing radio cabs with a promise to

provide high quality service with customer security and accurate meter reading. The absence of

adequate public transport system, unavailability of required number of cabs, increase in incomelevel of middle class population and growing population in cities act as reactor for growth of Radio

Cab industry. Since then a lot of players have entered the industry making the Indian Taxi market

worth $6 billion - $9 billion. Out of this 4-6% is organized and 96-94% is unorganized. The organized

players have high technology, marketing skills and infrastructure to serve the customer in a better

way.

Radio taxi service in Indian market has been witnessing massive year-on-year growth since 2009. Theradio taxi services market revenues are forecast to grow at about 25% during 2014-19 on account of

rapid urbanization, increasing demand from corporate sector, growing per capita income coupled

with various benefits offered by Radio Taxis such as enhanced passenger comfort and security as

well as GPS/GPRS and internet connectivity.

However, the demand still exceeds the supply. The organized sector many a times fails to reach to

the customer on time .Sometimes they have to cancel the orders due to lack of resources. To

alleviate these problems a new set of players have entered the market, the Aggregators.

There is a marked shift from Asset-Owner-Operator model to the Aggregator model in recent years.

Aggregators follow asset light model. The aggregator model taps into this unorganized sector.

Aggregators do not own cabs but they have a network of partners either drivers who own and

drive a single car, or operators who have a number of cars and drivers on their pay-rolls and they


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provide technology and customer service to the players from unorganized sector. Typically, each

vehicle in the aggregators network is provided with a GPS device/phone that is used for

communication and metering and is integrated with the company s IT system. This device costs

approximately Rs.9000 and is paid for either by the partner or the aggregator, depending on their

business arrangement. The partner has the option to log on to the aggregators system only when he

or she wishes to. Any business obtained from the aggregator is in addition to his or her existingbusiness. With this model, drivers who have tied up with aggregator have considerably shorter

periods of waiting for a passenger.

The aggregators work on a commission model and get 10-20 % per trip. Good customer service is the

key differentiator in the aggregator model. Taxi market is being funded by various angel investors,

venture capitalist. Here are some of the VC/Angels backed players in this sector.

Taxi For Sure, the aggregator

The business idea was sparked when two friends Aprameya Radhakrishna and Raghunandan G(batch mates from IIM Ahmedabad and NITK Surathkal) met up for a drink. Both of them were


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frustrated with the fact that each time one needed a taxi, he had to call two or three operators,

hoping that he'd receive a taxi sometime in a two or three hour time frame. Initially they wanted to

develop a meta-search engine that would provide a list of different taxi operators. Further

brainstorming resulted in the idea to be an aggregator for the radio taxi industry in India.

Taxi For Sure started its operations in June 2011 in Bangalore. It attempted to make travel easier for

anyone who needs a taxi on time. The founders believe that the customers deserve a betteralternative to choose from vast pool of available taxis and not call 2 to 3 operators with the hope of

getting the right taxi when they need one.

As an aggregator, TaxiforSure works with various taxi operators and enables them with technology

to ensure customers get an easily accessible, safe & reliable taxi ride for sure with a focus on

offering customers the most comfortable and cost-friendly service possible, build the customers

confidence that his/her taxi will arrive on time and that they will not be over charged.

Taxi For Sure started its business with small fleet owners and single car owners. Although these car

owners register with Taxi For Sure and put the Taxi For Sure brand name/logo on the taxis, they are

still allowed to take up non company rides. For every Taxi For Sure initiated ride they need to pay

Taxi For Sure 20% as commission. Gradually many owners from organized sectors also getthemselves registered under Taxi For Sure. Taxi For Sure takes a commission of 7-10% from these

owners.

This way, the start-up has access to 900-1,000 cabs in the organised segment and another 500 in the

unorganised segment.

It is a win-win situation for all. Taxi For Sure generates revenue by commission, the registered

operator earns more as he gets more number of rides, and the passenger doesnt feel overcharged.

Taxi For Sure with the help of its 300 employees books more than 3000 bookings per day with its

1500 cars as inventory from more than 100 operators. It has already served around 300000

customers with around 1.5 million rides.

Radio Cab Market and Taxi For Sure

Segmentation, Targeting and Positioning

TaxiForSure has its presence in Tier I cities where MNC executives, IT sector and BPO employees,

affluent Indians want a faster and smoother means of transport and they are willing to pay extra

charges for that. With spread of software industry into tier II and tier III cities, TFS seeks a potential

market there. Mostly these software industries have clients visiting frequently and this is one

segment where radio cab market plays an important role. With changing lifestyle and customer

value system Taxi For Sure has a potential market in the tier II and tier III cities.

Also in few other cities where tourism is an important part of state revenue, TFS has its presence

there. Considering different customer needs there are different kinds of cars (economy, luxury, and

premium) with different per kilometre fare slabs.

TFS approached the non organized sector where the cab operators had neither hi-tech technology

nor formal customer service unit. Since then it has spread its business in the tier I cities like

Ahmedabad, Chennai, Hyderabad and Delhi where there was a need by corporate office goers,

frequent fliers, travellers, pub hoppers etc. for a smooth and assured riding.

TaxiForSure has identified various segments to target their offerings.

Point to Point

Auto-rickshaw operators are facing stiff competition from taxi services. Taxi services have emerged

as a force in cities where autos once dominated local commutes. Taxis in Bangalore have begun togive the unreliable auto-rickshaws a run for their money by launching economy services for short-


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distance commutes. Taxi for Sure has entered the short-commute market in Bangalore offering rides

that are competitively priced, reliable and comfortable against auto-rickshaws.

TaxiForSure has devices installed in cabs which accurately measures distance travelled and fares. It

reduces the complication on drivers part for calculating fare. In addition there is no negotiation for

price but greater transparency and ease for driver & customer.

AirportBus Station Pickup/Drop (35-40% revenue source)

Most users prefer taxis over other modes of transport especially for airport pickups/drops. In cities

like Bangalore, where the airport is out of city, taxi has monopoly due to non-availability of other

options. TaxiforSure has tied up with MakeMyTrip to tap into that sites customers. It is also in talks

with redBus for the same. The partnerships would allow a customer who books a bus ticket on

redBus or an airline ticket on MakeMyTrip to also book a taxi for the airport or a bus depot pickup

and drop. In this way, it offers the customer a complete door-to-door travel solution. For

TaxiForSure, it expands their pool of customers.

Outstation Travel

The Outstation travel bookings are handled mostly by local travel agents and are part of theunorganized sector. Taxi For Sure has ventured into this space as well and provides competitive rates

for outstation travel.

Taxi For Sure Target Market

TFS analyzes different needs and groups in the market place and targets those it can serve in a

superior way and positions its offering so that the target market recognises the companys

distinctive offerings and images.

Taxi For Sure mainly focuses on modern educated customers who use internet, social media and

smart phones. Although people book cabs through their infamous number 60601010, most of thebookings comes through smart phone app and website booking.

Taxi For SurePositioning

TaxiForSure is a technology-driven platform that enables all operators whether branded or local to

control their fleet of cars. Currently, there are no aggregators in the market who are engaged in

aggregating both branded as well as local taxi operators under an umbrella.

Taxi is a time and space complexity. When a cab request is made, all free cabs in a 5 kilometre radius

are alerted. Taxis can bid for a trip and a bid resolution algorithm assigns a taxi to a trip. Theresolution is based on parameters like how long has the taxi been waiting, how much it has earned,

customer feedback and the distance from the point of pick up.

There are different ways to book a taxi Call Centre/ Online booking and using the TFS app.

Currently about 30% are online and the rest are on the phone. Taxi For Sure app is available on both

Android and IOS based devices. When the user books through this app, the geo location sensor

captures the location of customer. Then Taxi for sure sends the request to the nearby registered free

cabs. Out of all those who bid to accept the ride request, the closest driver is provided the

instruction for the pickup and the driver is provided with the requester's location details. As Taxi for

sure has huge amount of moving inventory throughout its operating city, it is always easier for them

to reach to customer ASAP. With the help of python based application on the device that the driver


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has in his/her car, he/she can view the traffic condition throughout the city and take appropriate

route to reach the customer.

Before Taxi for sure came into the industry there were players like Meru Cabs, Mega cabs, Easy Cabs,

Ola Cabs in the radio cab sector. They had their own set of loyal customers. Although the main

purpose of Taxi for sure business is same as the existing players, it position it's service with instantfulfilment of a taxi ride with assurance of providing taxi to customer any time anywhere that suits

the customer's exact need .

Marketing Mix for Taxi For Sure

Product/Services

TFS provides service for below transport requirements

AffordableAirport Transfer services

Outstation Trips Service Local car hire services

Corporate Cab & Taxi Booking services

Economy car rental services

Standard cars for hire,

SUV rental service in India,

Luxury Car rental service in India,

Premium Car rental service in India

Be it any occasion (like anniversary, conference, pilgrimage, group trips, wedding) Taxi For

Sure provides its service through various kinds of vehicles offering in various ranges such as listed

below

Economy car

Tata Indica, Santro, Eeco, Wagon R, Hundai- Santro, Maruti-Swift,Maruti-Wagon R

Luxury car

Honda Accord, BMW 730, Toyota Altis, Skoda, Mercedes-viano, Toyota-corolla

Premium Car rental

BMW (series 3, 5,7), Mercedes(C, E), Audi (Q5, Q7), Jaguar (XJ),Rolls Royace(Phantom)

Standard car (which isn't economy but still not too many frills attached to it either)Hyundai(Accent), Maruti(SX4,Versa, Esteem, Dzire), Tata Indigo, Ford(Fiesta, Ikon)

SUV (for outstation trip)

Honda CRV, Toyota (Fortuner, Innova), TATA sumo, Chevrolet Tavera, Mahindra Xylo

Place

TFS has already launched its service in major some metros Bangalore, Delhi, Chennai, Hyderabad

and recently Ahemedabad.

While cab aggregators are entering metro and tier l cities, not many of the players are foraying into

smaller cities. sees significant growth potential in tier ll and lll cities like Raipur, Nagpur, and Ranchi.

The disposable income is increasing in these cities and many premium services and hotels are beingestablished, indicating that customers have an appetite. The growth of corporate entities and
http://www.taxiforsure.com/airport-transfer-service/http://www.taxiforsure.com/intracity/http://www.taxiforsure.com/corporate-booking/http://www.taxiforsure.com/economy-cars-rental-service/http://www.taxiforsure.com/standard-cars-for-hire/http://www.taxiforsure.com/suv-rental-service-in-india/http://www.taxiforsure.com/luxury-car-rental-service-in-india/http://www.taxiforsure.com/premium-car-rental-service-in-india/http://www.taxiforsure.com/premium-car-rental-service-in-india/http://www.taxiforsure.com/luxury-car-rental-service-in-india/http://www.taxiforsure.com/suv-rental-service-in-india/http://www.taxiforsure.com/standard-cars-for-hire/http://www.taxiforsure.com/economy-cars-rental-service/http://www.taxiforsure.com/corporate-booking/http://www.taxiforsure.com/intracity/http://www.taxiforsure.com/airport-transfer-service/


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construction of new airports will only fuel the demand. TaxiForSure targets to spread its services in

other cities of North, South and West India by the end of this year. Their expansion plans include

establishing their services in 15 cities by the end of next financial year.

Price

Taxi For Sure offers extremely competitive pricing rates for various vehicles. Fare chart is as below.

Bangalore

Taxis

Tata Indica

Non-AC

Tata Indica

ACSedan

Xylo/Toyota

Innova 6+1

Toyota

Innova

7+1

Point to

Point

6AM-9PM

13.0 / km

( 200.0 for

the first 10 km)

14.0 / km

( 200.0

for the first10 km )

16.0 /

km

( 200.0

for thefirst 10

km )

16.0 / km

( 300.0 for

the first 4 km)

9PM-6AM

14.0 / km

( 250.0 for

the first 10 km

)

15.0 / km

( 250.0

for the first

10 km )

17.0 /

km

( 250.0

for the

first 10

km )

16.0 / km

( 350.0 for

the first 4 km

)

Airport

To

750.0 Flat

OR

14.0 / km( 650.0 for

the first 30 km

)

800.0 OR

14.0 / km( 650.0

for the first

30 km )

850.0

OR 16.0

/ km( 700.0

for the

first 30

km )

From

650.0 OR

10.0 / km

( 450.0 for

the first 30 km

)

700.0 OR

14.0 / km

( 600.0

for the first

30 km )

850.0

OR 16.0

/ km

( 650.0

for the

first 30

km )

Hourly

Package4H 40KM

500.0

( 10.0 for

extra km

100.0 for

extra hour )

600.0

( 11.0 for

extra km

100.0 for

extra hour

)

750.0

( 12.0

for extra

km

125.0

for extra

hour )

1100.0

( 12.0 for

extra km

125.0 for

extra hour )


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8H 80KM

1000.0

( 10.0 for

extra km

100.0 for

extra hour )

1100.0

( 11.0 for

extra km

100.0 forextra hour

)

1300.0

( 12.0

for extra

km

125.0

for extra

hour )

1900.0

( 12.0 for

extra km

150.0 for

extra hour )

1900.0

( 12.0

for

extra

km 150.0

for

extra

hour )

OutstationMIN.

300KM/DAY 7.5 8.0 10.0 12.0 13.0

This is the rate chart for Bangalore City. Likewise they have different rate charts for different cities

like Hyderabad, Chennai, Delhi and Ahmadabad. They have premium rates for luxury cars which are

mentioned above.

Promotions

Taxi for Sure does extensive advertisement on various online platforms. Some of the examples are

given below:

1) Google search of word Taxi gives the first link of Taxiforsure.com website.

2) Advertising on websites which are frequently accessed by public


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3) Facebook

4)

Twitter

5) For our millionth customer, TFS sent Jaguar instead of the Indica.

Documents

TFS Report