Competitive advantages of taxi companies

Theoretical foundations of starting a business startup. The required resources and stages of own creation startup. Analysis of macro and micro environment of taxi companies on the Russian and international market. Comparison analysis of aggregators.

Рубрика Маркетинг, реклама и торговля
Вид дипломная работа
Язык английский
Дата добавления 01.07.2017
Размер файла 855,0 K

Отправить свою хорошую работу в базу знаний просто. Используйте форму, расположенную ниже

Студенты, аспиранты, молодые ученые, использующие базу знаний в своей учебе и работе, будут вам очень благодарны.

Размещено на http://www.allbest.ru/

Table of Соntents

Introduction

1. Theoretical foundations of starting a business startup

1.1 The definition of the word “startup.”

1.2 The history of startup

1.3 The required resources and stages of own creation startup

1.3.1 Finance

1.3.2 Business Angels

1.3.3 Venture funds

1.3.4 Initial Publick Offering

1.4 Life-cycle of startup development

2. Research methodology

3. Analysis of macro and micro environment of taxi companies on the Russian and international market

3.1 The analysis of Russian taxi market

3.2 Demand of taxi service on the market

3.3 Price policy of trip's cost

3.4 The analysis of International taxi market

3.5 PESTEL analysis of taxi aggregators market

3.6 SWOT analyze of taxi aggregator

3.7 Main trends on the market

3.8 The history of creation startup “Uber.”

3.8.1 Expanding the activities and increasing rates

3.9 The history of creation startup “Gett Taxi.”

3.10 The history of creation startup “Yandex Taxi”

3.11 Comparison analysis of aggregators - Gett, Yandex, Uber

3.12 Analysis of the received data

Inferences of the work

Conclusion

List of references

Appendix

Introduction

business startup environment taxi

Nowadays, more and more people, especially in millionaire cities use taxi as one of the ways to move around the city. To date, a taxi is available to everyone who needs to reach any destination. Moreover, the consumer can choose a preferable service for himself, based on his desires and needs and be sure, that all his requests will be realized. Every year the market of taxi companies' increases, due not only to the expansion of large players, but also the emergence of new ones. Entering the market is becoming increasingly difficult, as leaders take a significant share not only locally, but also in the international market. Nevertheless, many young entrepreneurs open their start-ups based on taxi services, bearing in account the already existing success of big business now.

This research is focused on success and competitive advantages of 3 taxi companies-leaders such as Gett, Yandex, and Uber. It is well known that these services started for different reasons as startups. These three taxi aggregates function both on international and Russian markets, what allows to compare their service quality, price, taxi park and find out their strength and main reasons for their success.

For the last five years, the taxi service has changed and influenced on the economy in a various way - the growing unemployment might be solved by simplification of becoming a driver. Also, contemporary taxi service implies using technologies and improving online applications. The other change is due to the preferences of customers - for many, the speed of the feed is important, for others the affordable price, and for someone, the key factor is the availability of a free machine at the time of urgent need. All these criteria are directly related to the success of the company and are also the subject of research in this work.

The general purpose of this study is to find out the case in point of customer's choice in these taxi companies. All of them provide the same service. However the way - their application - is other. Despite the fact that taxis are all around the world and to run the business as a startup in that sphere not so complicated, there are some difficulties on the government level, especially in europe. It should never the less be stated, that in most countries it is forbidden to become a taxi driver, and people have to buy a license and get resolution for that business. The study contains various barriers to entering the international taxi market for Russian companies, as well as their opportunities. Also, as far as the experience of foreign entrepreneurs and the successful operation of their application can be in demand among Russian entrepreneurs and users of such a service. Moreover, this work will consider the strengths and weaknesses of each company, their capabilities, and range of services provided. Also comparative analysis of pricing policy and loyalty to clients will be conducted.

Speaking about a novelty of study, it is significant to mention that the service of online transportation network companies is a huge growing platform for young entrepreneurs. Around the world, millions of people daily use such applications as one of preferred modes of transport. This idea of the service might be a classy project for young entrepreneurs, who wants to start their business in this sphere and further become a leader on the market.

In this diploma work, I will look through the theme “The analysis of competitive advantages of online transportation network companies on the International markets.” First of all, we should distinctly understand the meaning of the startup, as Gett, Yandex and Uber are startups in previous. Secondly, the author will examine in detail the history of the appearance of each company, how they developed and thereby became leaders in the taxi market. Also, the researcher will analyze flaws, that aggregates might do during the last time their development.

In this paper there would be the following purpose - to learn what does the startup mean, analyze and compare three transportation aggregates and find out what factors are important for customers choosing the taxi company. The main goal of this diploma work is to carry out a comparative analysis of the competitive advantages of the three companies, operating mainly as mobile applications. Also on their example, consider the barriers that businesses face in the Russian and international markets. The object of this work is taxi companies - Gett, Yandex, Uber, the history of their occurrence and market success.

1. Theoretical foundations of starting a business startup

1.1 The definition of the word “startup.”

According to American entrepreneur Steve Blank, the founder of 8 successful startups and author of many books entrepreneurship, the startup is “a temporary organization used to search for a repeatable and scalable business model.” www.huffingtonpost.com/steve-blank/ In other words, a start-up is a business project aimed at extracting profits and further developing the project.

As usual startups, their ideas, are created by students, first of all as a project, and later as a business, in the USA especial. Despite this, many modern global companies - former start-ups - were invented by young entrepreneurs and people who did not have an initial attitude towards this sphere. For most, the motive for creating a startup arises either because of the lack of some service or, conversely, to improve the already existing one. For example, many people already use charge blocks, but if someone wants to earn money on this idea and create a new level, he may install such adapters into fitness centers - a place, where lots of people spend his or her time. This way is profitable because entrepreneur use needs as a charge in a public place as a fitness center, and moreover, he sells this and will get profit in nearest future. Kaluzhskaya Y. Why does startup fail / Course Paper. 2016, 32p.

Nowadays, there are many corporations, which occupy a leading position in the market, although they were once just an idea and a desire to do something new. For example, there are successful startups such as Microsoft (founders Bill Gates and Paul Allen), Apple Computer Inc.(founders Steve Wozniak and Steve Jobs), Google (founders Larry Page and Sergey Brin).

1.2 The history of startup

The first time the term “startup” was mentioned in 1976 by Forbes. He described it as a company, which has short operation story. John Simpson and Edmund Weiner. The Oxford English Dictionary. -- United Kingdom: Oxford University Press, 1989. -- 21730 с. However, the first practical mention of the word startup was in 1993 in America. In San Francisco, California, all entrepreneurial activities were related to the IT field. So, at Stanford University, two students William Hewlett and David Packard developed their small project, which they called a “startup” from the word “start.” Nowadays this startup is a well-known company - “Hewlett-Packard” (HP). This company produces and delivers decisions of the IT infrastructure, personal computing systems and devices of access, renders services in an integration system, support service, and outsourcing, and also produces devices for printing and images output. www8.hp.com/us/en/hp-information/about-hp/history/overview.html

Despite the fact, that startup is a company providing service, most young entrepreneurs in Russia mistakenly believe that startup is something developing or “not mature product.” Kaluzhskaya Y. Why does startup fail / Course Paper. 2016, 32p. However, startup implies the development of a product or service, its final result, ready for use and consumption by the target audience.

1.3 The required resources and stages of own creation startup

Undoubtedly, the emergence of new entrepreneurs and their business ideas are some threat to long-established big companies. In order not to lose customers, firms need to improve their products, which many do, especially in the IT field - the improvement of smartphone models, the addition of new technologies, through which the phone acquires a new popularity among customers. However, some entrepreneurs prefer not to compete with existing companies; they come up with applications that can simplify the existing service, bring something new that will be necessary and exciting for consumers.

As the author mentioned before, the startup is a business idea assigning to solve a problem or to improve already available. In this way, entrepreuner might make any problem to solve it and create a service. First of all, each startup must have a business plan, here are the following steps that should be:

· Begin with an idea (birth of innovation)

· Study the market (demand and competition)

· Develop a prototype and a model

· Select developers

· Establish initial marketing communications

· Invest in an advertising budget

· Arrange the first business deal

For an entrepreneur it is crucial to know, which first steps he need to do to put the idea into reality. Sometimes the idea itself may be enough for a successful start-up, which some can simply sell, with a share of profits. Another important factor in the company's success is the consumers' demand for ideas. If the service is not necessary for customers, then the startup will not be successful, because there will be no profit. As usual, the focus of young entrepreneurs, whose average age is 25 years, is stronger, because the final result is important for them - the implementation of their project.

Of course, to achieve success, any entrepreneur needs a team that will also be motivated by the result. On the one hand, the presence of the group allows to shorten the time for the execution of the stage; on the contrary, there may arise conflict situations, or difficulties within the team, which will negatively affect the work process. Despite the fact that for some people it seems easier to work alone because you can control everything, the availability of additional labor allows you to perform better those functions that do not profile for an entrepreneur, for example, finance or judgment.

As the author mentioned before, for startup customer's need is one of the most significant factors to get success. The product or service should be useful and easily applicable in real life, for this, it is better to follow a few simple rules described in the book Steven Blank “The Four Steps to the Epiphany.” In this book, the author shows the model based on understanding customer's requirements of the company. This model describes four stages during which startup turns into from idea to the stable company. Kaluzhskaya Y. Why does startup fail / Course Paper. 2016, 32p.

Figure 1 The customer development model Steve Blank. The four steps to epiphany - Lulu.com 2006.

The main difference between the customer development model is that each stage has a circular trajectory, which implies that each step of this model is iterative. Typically, this model is used better by young entrepreneurs who are just starting their career, and for them, their project is the first one. This model will allow them superiorly to understand the market, its consumers, and to achieve success rate.

· Customer discovery.

At the first stage, the entrepreneur ponders his idea, how much of his future product or service will be useful and necessary for the consumer, and how much he will be in demand along with the already existing services. To find out what the target audience is for a startup, it is necessary to conduct a survey at a practical level, a study that will make it possible to put forward various hypotheses. Also, there is an opportunity at the initial stage of the project, while it is at the planning stage, to determine whether its further development has to mean. Therefore, it is so necessary to identify the need for potential buyers, and whether they will use the service of this startup. The important thing in Customer Development is that the entrepreneur does not have to collect his potential consumer's feature list but to concentrate on his focus group. For the panel of people responsible for the results at this stage, the most important thing is to analyze the market and concentrate on a group of potential consumers.

· Customer validation.

The second stage of this model implies the presence of all the hypotheses that were put forward at the previous stage and the creation of a sales plan map. The sales plan map shows the repeatable sales process that has already been tested on previous clients. Kaluzhskaya Y. Why does startup fail / Course Paper. 2016, 32p. That plan shows customer's reaction and their opinion about this startup idea. Sometimes the results obtained in small groups of consumers can not only affect the further development of the project but also be used later to develop this or a new idea. At the completion of two stages, the customer of the disk drives, and the customer validation entrepreneur clearly understands who his potential customers are, the value of the product, the market in which his startup will compete with other companies. Also, what are the barriers to entering the market, and how the cycle process is progressing. Thus, to go to the next stage of the model, the entrepreneur needs to make sure that he has a consistent and repetitive group of buyers who buy his product and then be sure that such a project is profitable.

· Customer creation.

The third stage is the sale of its product, its introduction to the market and quality marketing to attract more audience. The main goal is to stabilize the initial sales and then create the sales channel. Having understood the type of the buyer, it is necessary not only to interest him, but also to keep, and later to involve others. During this period, the entrepreneur needs to thoroughly monitor the marketing aspect, because at the previous stage he investigated his first group of interested consumers. The process of forming a group of consumers can change, no matter what start-up is launched an absolutely new idea or an improvement of an already existing one. As it is known, the ideas of start-ups can be similar, but in no way can they be the same. In both cases of creating a new project, the product must be sold on its market. Some business ideas use existing markets, while others create new ones, focusing on a group of consumers, or they use a hybrid of the two previous ones. Each of these Market Type strategies requires a very unique set of Customer Creation activities.

· Company building.

The last fourth stage of the program is the final launch of the project, the creation of a project structure for the further development of the business - company building. On this last stage, the entrepreneur gets the official department with all need aspect of Marketing and VPs of sales. After all the necessary information about the consumer, his desires and needs have been obtained at the previous stages of the model; the entrepreneur can turn the idea into a real working business. It is necessary to consider all the data and indicators so that the company develops and grows from the very beginning. All these stages of the development model customer are the foundations of any business, regardless of the market in which it plans to develop its startup entrepreneur.

Steven Blank notices, that people, who are attended to build their business, play a vital role in the success while taking into account everything from professionalism to corporate culture. If the entrepreneur adheres that model of customer development, he will get profit in his company. Kaluzhskaya Y. Why does startup fail / Course Paper. 2016, 32p. Moreover, for a start-up, as for a new business idea it is vital the purpose, mission, not just following a specific model and management structure. Even though a professional candidate comes to the job interview and his skills and experience will be needed by the company, but he does not support the idea of the startup, CEO should not take such employee to his team. There is also one mistake that most entrepreneurs do not tell to their subordinates about the purpose, the main idea of the project, as S. Blank also mentioned. Steve Blank. The four steps to epiphany - Lulu.com 2006. For each worker, team member it is necessary to know, for what he is doing his work, what is the aim of his work and what his director is expected from him at the end. Otherwise, the company might not have a big success, because people do their job, not fully understanding what specific goal they need to achieve.

1.3.1 Finance

As mentioned earlier, for a full-fledged implementation of the start-up, it is necessary to fund the project, particularly in the initial stages. Since the average age of young entrepreneurs is 25 years, it is evident that most of them do not have enough financial resources to start a start-up. There are various ways to solve this problem, which the author will describe in this part of the chapter.

One of the most public way to earn money is to attract an investor. Here are some several aspects, which will help everyone's business to attract finance: Kaluzhskaya Y. Why does startup fail / Course Paper. 2016, 32p.

· The entrepreneur has a functioning product. If his business idea is developing a product which is well-functioned in life, then investors will more prefer to contribute money to his project.

· The entrepreneur has a project in a hot sector. Some investors might decide to contribute money too late, but without any limits at the same time, if they see his company in the public stock market.

· The entrepreneur has traction. In the way, when he has customers who will say to investors, that they are satisfied with his product - that would be the best indicator for an investor to invest money in the business.

· The entrepreneur has a good management team. For each investor, it is vital to have any guarantee that his money will give profit further, and his team can be the indicator for the investor. The colleagues thankfully their work can show that business will grow and execute.

Unfortunately, there are different reasons, because of which investors would not like to finance the project. Here are some features that entrepreneur should avoid if the wants to get financing:

· The startup should be in a sector where fewer competitors and with high differentiation between the entrepreneur and competitors.

· The company should be in the area with high shown performance.

· Managers should not show weak work and can't be able to miss customers.

· The business can run out of cash in a short period if it is like this, investors will not finance the startup. Kaluzhskaya Y. Why does startup fail / Course Paper. 2016, 32p.

It is well known, that investor, first of all wants to get money from the projects which he is financing. Whereas there is no guarantee that startup will not fail, the investor buys chips in some projects to receive dividends from the invested funds in the end. Due to statistics, just one from 30 invested projects will be profit. Kaluzhskaya Y. Why does startup fail / Course Paper. 2016, 32p.

In Russia, too, some specialists invest their money in the development of start-ups, which are called “business-angels” or venture funds. Venture entrepreneurs disburse the quota of open-end funds on the perspective and young undertaking. For entrepreneurs, there is also another way to get money to finance their startup - business angels. These are private investors, who themselves decide what will be the object of their investment. Of course, there is no possibility to exclude the financial assistance from friends and family, to which many entrepreneurs turn first. Sometimes even with the offer of constant cooperation. Despite the existing prejudices related to the financing of projects by family members, in Russia, this way of investing start-ups ranks second, and the third in the world. chudomir.com/archives/2005

As the author mentioned before, young entrepreneurs, at first, ask money from their milieu and if no one can help them, then they try to find the answer to the question of where it a possibility to get money for the initial investment. There are three most common solutions to solve this problem.

1.3.2 Business Angels

As usual, business angels are already successful entrepreneurs who invest part of their capital in the development of new companies at an early stage. www.businessdictionary.com/definition/angel-investor.html Angels have much experience in the development of their own business, and for young start-ups, they are often advisors rather than investors. Most often, business angels prefer to invest in high-tech start-ups and Internet projects, counting on guaranteed success. "Business Angels" use Venture Capital's investment mechanism, in which financing is provided for a long (3-7 years) period, without collateral and guarantees, for the stake (stake) in the company. Also, experienced entrepreneurs, as well as simple investors, invest in several projects, thereby reducing the risks of losing finance.

Since business angels are influential and experienced people in the corporate sphere, showing their interest in a start-up can help to attract other investors to this project. investorschool.ru/business-angels

1.3.3 Venture funds

The other way to earn money is venture fund. They invest in projects with an average level of risk, while of all the start-ups that they finance, only 20-30% are profitable. At the legislative level, such investors are allowed to buy the rights of the company, also buy advance bill. businessdictionary.com/definition/venture-capital.html

The fund offers the selected company, accords not only financial support, but also a development strategy, and help to select potential customers, offer sales channels. Since venture funds deal with stocks and expect to raise borrowed funds, they want not only to return the invested funds, but also to get a solid profit that covers unprofitable investments in failed start-ups.

1.3.4 Initial Publick Offering

Moreover, entrepreneurs might get money for their startups from IPO - initial public offering. This method of financing is used for two reasons. IPO is an easy way to raise funds, as millions of people can provide financial support from outside. At present, many entrepreneurs resort to outside investment, counting on the help of each interested person. The company, thanks to the public offering can from the very beginning of the basis sell a significant number of shares in the stock market, and anyone can buy them. If any investor or co-owner have such an opportunity, they will be able to sell shares later, thereby increasing his share or receiving money. IPO is an event of liquidity when shares in the company become easily converted into money.

On the graph there is a startup financing cycle, a timeline of the startup to earn money for the beginning and then get profit from the company.

Figure 2 The startup financing cycle

The graph shows that the cycle consists of three main stages - initial capital, early stage, and late stage. At each stage, as in the lifecycle of the startup itself, it is necessary to perform certain things to move on to the next step. The invasion of the capital of the initial capital comes such a moment - break-evenness is a point of balance that make a profit neither more nor less. At this stage, there is a production and sale of products, billets are compensated, as well as when selling products, the company will make a profit.

Then, at an early stage, a strategic alliance takes place, after which the entrepreneur is already seeking financial assistance from the IPO. As a result, the company enters the public market, where it functions as a full-fledged company.

1.4 Life-cycle of startup development

One of the stage when time limited period continuing from the birth till producing on the market called a Pre-startup. Kaluzhskaya Y. Why does startup fail / Course Paper. 2016, 32p. At this step entrepreneur is already finished the customer development model - knows the ideas of the project and customer's need - but still cannot exactly understand how this idea will be realized step by step, from technical till marketing aspects.

The next stage is Seed. On this period the entrepreneur researches the market, its features and specific. Simultaneously, he is developing the plan of startup and making the technical task. Moreover, the prototype of the project is testing. Also there is a search of a source of financing and preparation for a start in manufacture. The prototype is a development of technical task and projecting of interfaces. At that step, the entrepreneur can see the qualification of them. Ровинская Н. Ю. Development of innovation through the integration of startup-projects //Technology audit and production reserves. - 2016. - Т. 1. - №. 2 (27). - С. 8-14.

· The working prototype: creation of a product or project with the main functions;

· Alpha of a product or project: the product is already ready, but the test has not been yet. During approbation and tests, some small amendments which haven't been considered in developing and creation of the specification are introduced in the interface. It is carried out negotiations with the first clients;

· The closed beta of a product or the project: the product already has the appearance close to what startups conceived it, the project has a small amount of the users invited by founders of a startup to test service and to report about defects and possible improvements.

· Public beta of a product or project: moderately active involvement of the users who have realized for itself need for those services which are offered by the project or the most unique users who constantly are in search of something new. Often public beta occurs by the distribution of a limited number of invitations. Also, contracts with the first clients are signed.

After that, the projects starts the processing of producing and using. The entrepreneur can change some aspects, improve and turn it into life. Startup stage is crucial for each project; it's the first period of employment. Kaluzhskaya Y. Why does startup fail / Course Paper. 2016, 32p.

· Growth stage: the startup holds a steady position in the market and surely moves to a profit of a niche which has been planned for stages of writing of the business plan;

· Expansion stage: the startup has already executed or has approached implementation of the plan of activities in the primary target market, and begins to increase borders at the expense of a gain of other markets. The company can expand the business as individually, and due to the purchase of other enterprises.

The final stage named output stage. The entrepreneur seeks financial help from venture investors and business angels, who earlier have already invested in that project. The entrepreneur might place the shares of the company on the exchange and in private accommodation. However, venture funds prefer to invest perspective startups, which, as usual, show darting growth at the beginning. Towards the output stage, the gain of the company is becoming more stabilized by comparison. By the way, the expiry of business and bankruptcy can be one of the variations of "exit" startups and investors.

Undoubtedly, there are companies, which might have missed one of the stages, and still became successful. Such itemized plan can help young entrepreneurs to avoid any common mistakes and amend their startup before they face the consequences.

2. Research methodology

In this diploma work a method of the research, the author used a qualitative method of obtaining data, which is based on achieving information, the respondent's opinion about the company, and also to put forward research question. This approach also allows understanding the attitude of consumers to a product or service, whether their opinion has changed and what has affected on it. Esterberg K. G. Qualitative methods in social research. - 2002. As far as we know, the company is often undergoing changes, for example, in advertising, which is a way to attract new consumers. The qualitative research method can be used to understand the impact of these changes, the attitude of buyers. In this paper, a semi-structured interview was used that provides more detailed information about the consumer's opinion. Also, this kind of interview suggests that some questions directly depend on the previous responses of the respondent.

Moreover, the author also used the method case study, examining the various situations that occurred in each company. This approach allows to analyze specific powers, understand the causes of the conflict, how it could be avoided, and what should be done to eliminate the recurring situation. This method is useful for analyzing the activities of both entrepreneur's company and competitors, thereby finding their weaknesses. Also, the decision of such cases on the example of certain companies can help future start-ups and entrepreneurs avoid some mistakes, thereby succeeding in the development of their project.

The interview is aimed at revealing the key factors influencing the choice of the consumer, the degree of satisfaction with the quality of the services rendered, the ratio of price and quality, and what they would like to improve in the work of both the service and the company itself. Since the interview was not formalized, the interviewer could ask questions not only following the guide, but also those that would help the respondent to give a more detailed answer. It is worth noting that an informal interview more than disposes of a person taking part in it, to a conversation, discussion of the topic and reasoning. People shared their experience of using taxi services, which taxis companies prefer to use and why. In this interview, it was important to find out what the client pays attention to when ordering a taxi, what criteria the company should have so that the consumer turns to her and does not cancel the trip. Also, respondents also talked about their negative experiences of using the online taxi service, what they did not like during the journey, the work of the application, and whether these factors influenced their further preferences in choosing a taxi service.

In total, the researcher conducted 11 interviews, among which were respondents from different countries: Russia, Japan, Spain, the Netherlands, France, Turkey, who at least once or twice used a taxi in their lives. People who took part in the interviews were students and middle-aged people aged 37-45. Occupation is students, some of them combine work and study, exchange students from other countries, employees of companies specializing in real estate sales, professor of botany. Among the respondents were people who were born in one country, for example, in Russia, but for more than 15 years they have been living and working abroad. They also talked about their experience of using taxis in Russia, and how this service is developed abroad. All the respondents in Russia used at least once an online service for taxi order, so among the people interviewed it was necessary to find out not only how often they use this service, but also whether they resorted to using a taxi at home. During the interview, the researcher tried to find out the respondent's opinion on each aggregator that is considered in this paper - whether the consumer knows such services, whether they used them, and how satisfied they were with the service provided. Also, it was important for the author to find out whether the respondents use taxis and applications when they travel since this work considers both the Russian and the international taxi market.

Based on the interview results, transcripts were prepared for further analysis of the data. The author used the encoding method, which implies the process of organizing and sorting your data. They also allow to summarize and synthesize what is happening in the data. Center for evaluation and research/ Tips & Tools #18: Coding Qualitative Data. 2012 With the help of this method, it is possible to understand which taxi respondents prefer the company, what criteria are most important for them, which can influence their choice, and also will help to identify the company's weaknesses, which should be further improved.

3. Analysis of macro and micro environment of taxi companies on the Russian and international market

Nowadays, as the author mentioned before, the popularity of taxi service is growing each day. More and more people use this way of transport for different reasons, and, of course, they have preferences of choosing taxi company. In this part of diploma work, the researcher will analyze the results of interviews, which contain not only customer's experience in using transportation application but also negative feedback about driver's work and application in general. Also, there would be recommendations for entrepreneurs based on analysis results that will help to improve the services to increase customer loyalty and attract new ones.

3.1 The analysis of Russian taxi market

It is well known that a taxi as a service every year becomes an increasingly popular means of transportation, as well as more affordable. The most significant and large taxi markets all over the world are Moscow, London, and New York. In these cities, the taxi market is developing at a rapid pace, and for large companies it is vital to enter these markets and operate in these cities, developing their services and expanding the audience of regular customers. If the consumer is satisfied with the service rendered by the service in his town, then most likely he will use these applications on the journey, which plays a key role in the development of the aggregator.

In this diploma work, the author will also look through the Moscow taxi market and customer's preferences. According to data for 2016, 95% of Moscow residents regularly use taxis as a means of transportation. Moreover, if earlier the taxi was not available to everyone, now this mode of transport is not only affordable regarding price quality but also offers various models of cars for any social level. This service is one of the most popular all over the world. By the Moscow Department of Transportation, according to statistics, taxi services in the city's territory are used by the following number of residents:

· daily use of services of about 630 thousand people;

· the average check for a trip in 2016 is 650 rubles (in 2015 this indicator was slightly higher - 700 rubles);

· the average time of car delivery is 6-7 minutes, depending on the area and other factors;

· the average duration of the trip - 27 minutes;

· the average distance is 16.7 km;

· the average speed is 38.2 km.

Using these data, the author can calculate the average profitability of the taxi market for one day: 630 thousand calls Ч 650 rubles = 409,500,000 rubles. If you calculate this value in the company's annual return, the amount will be following: 365 days Ч 409,500,000 rubles of income per day = 149,467,500,000 rubles (150 billion rubles). Despite the fact that the average cost of a taxi ride is reduced by lowering tariffs and the initial cost, the market turnover is still increasing.

On the Russian market, in addition to officially registered companies and drivers who have licenses, there are also taxi drivers who work illegally - they drive by their car, "picking" people on the street. As of January 1, 2017, 74 thousand licenses operated in Moscow, while in 2016 about 14 thousand licenses were issued. For IP, the number of licenses issued also increased from 21.3 thousand to 23.5. www.rbc.ru/technology_and_media/23/03/2017/58d286ca9a7947f49fff2ba3

To date, there are large enterprises in the taxi market, which have large taxis parks, applications and a broad range of services, and also smaller companies. According to the Moscow Department, the share of the taxi market among small players is distributed as follows:

· ASAP - 2806 cars (mostly models Nexia and Grandee);

· SOLT (Msc.Taxi) - 2787 cars (mostly on model Solaris);

· “Commander” - 2044 cars;

There are also companies that have less than 1,000 cars in the taxi fleet, and among them, the following brands are represented:

· “New yellow taxi” - 1003 cars

· “Taxi Rhythm” - 890 cars

· “City Service” - known as brand “Cabby” 855 cars

· “Taxi Formula” - 660 cars

· “Taxi Moscow” - 696 cars. This company belongs to Moscow government

Certainly, in the taxi market, both in Russia and internationally, the biggest share is occupied by large aggregators, for examples, such as Yandex, Gett, and Uber. However, Yandex Taxi operates only in the Russian market so far. According to data provided by Bogdan Konoshenko, Director General of Eurotransservice LLC, the taxi market is distributed among the three companies as follows business-planner.ru/articles/analitika/obshhee-issledovanie-rynka-taksi-v-moskve-2016-g-2.html:

Diagram 1 Taxi market shares

3.2 Demand of taxi service on the market

Not so long ago, Yandex conducted a study on the volume of demand for taxi services depending on various factors - the day of the week, traffic congestion and others. Below is a graph of demand for the service depending on the day of the week:

Picture 4 Quantity of trips within 24 hours yandex.ru/company/researches/2013/ya_moscow_taxi_2013

Despite the fact that the number of users of taxi services is increasing every day, regular customers play no less important role. For those people who often use the service of one company, discounts, promotional codes, and favorable offers are provided, especially on weekdays. For example, every 20th user of the Yandex taxi service spends about 5000 on his trips for one month, that is, the client often resorts to taxi services, and for this, he gets a favorable trip cost, which becomes one of the motivations to order a taxi the next time.

In addition to various discounts and so-called favorable rates, during a period of heavy traffic, companies overstate prices, raising tariffs by 2 or 3 times. Still, those who often use mobile applications for taxi order prefer to call the car before calling the car, look at the fares and choose the cheapest one.

Picture 5 Yandex audience during the month yandex.ru/company/researches/2013/ya_moscow_taxi_2013

As can be seen on the table, the average cost of travel decreases with an increase in the number of trips. Despite this fact consumers still use the services of a taxi a month not so often. Also, the most frequent number of taxi calls falls on night orders, usually on Friday and Saturday. Also, although each aggregator, not only Yandex, can choose the class of the car, many choose "economy," because this tariff is the cheapest. According to the data, users mostly use taxis for trips around the city, sometimes to the nearest suburbs, which is 90% of the share of all trips. Another 5% of people call a taxi for trips around the city, to the airport and the railway station, the remaining 5% are just tripped to the airport and back. Of course, the demand for a taxi, as well as for any other services can vary depending on the season and the time of day, as already noted earlier. For example, in the warm season, city dwellers prefer walking, and in the season of holidays and vacations, demand can be reduced by 10-15%. On the other hand, despite the holidays, the number of those who booked on Friday evening and closer to Saturday morning is even growing.

3.3 Price policy of trip's cost

In each taxi company, as usual, there are three categories of service - economy, comfort and business. Of course, there are other types of services such as a minivan, courier delivery, economy +. However, not every company provides such a wide choice of autos. Nevertheless, these three categories are the most popular and differ not only the brand of the car that will be given to the client but also the original cost of the trip, as well as the expense of each kilometer. Based on statistical data, 55% of all orders from aggregator companies fall into the class of "economy." About 14% of customers prefer comfort, 25% can use both economy and comfort, depending on the circumstances, and the least number of people will choose the "business" tariff.

As the author mentioned before, the choice of a taxi as a mode of transportation often depends on the time of day and traffic congestion. Also, these factors also affect the selection of the service category - if the customer needs to get from one point to another in the shortest period, he will most likely choose the car that will arrive fastest regardless of what class it is. During the peak hour on the roads, the client, on the contrary, announcing an increase in the travel time, will prefer to wait for the car of the class "economy" in order not to pay at higher tariffs. Nevertheless, although each trip has its fixed cost, often the customer pays extra for the additional service - exceeding the client's waiting time or traveling outside the city, and then the cost of the trip exceeds the amount that was calculated by the application at the time of placing the order.

3.4 The analysis of International taxi market

The taxi service of mobile applications and aggregators began to develop on the international market, in London and New York, where the taxi initially, unlike Russia, had a different policy and attitude among residents to this service. Despite this, in many European countries to get a license to work as a taxi driver is not so easy, from this the prices for local taxis are very high, and the demand among residents is not so great. In the taxi market, there is not only a growth in demand but also the presence of small firms that can impede the development of larger companies and prevent them from entering the market. This phenomenon is called the scale effect, that is, with the increase in the scale of work - new companies - the cost per unit of production decreases. Институт экономики транспорта/ Йон-Терье Беккен «Регулирование рынка таксомоторных услуг в Европе», Осло, - декабрь,2003

The London taxi market is considered one of the most developed, due to the availability of not only mobile applications, but also English cabs, known throughout the world. The market's development also depends on customer demand, availability to use taxi more often. The volume of such a market is 9 billion pounds sterling, where the total number of cars is 71.6 thousand, of which only 22.3 thousand are cabs. Аналитический центр при правительстве РФ / «Анализ сегмента такси на рынке городского пассажирского транспорта», Москва, - март,2016 / 35стр.

The tariff for such taxis is fixed and uniform for all; payment is made by the meter. In London, as in other countries, regulation by the authorities is strong enough, in connection with this, there is an incomplete satisfaction of demand. Moreover, to solve this problem, since 1998, a law has been introduced in the country that allows a new type of taxi - the private high vehicles. For drivers to obtain the opportunity to work in PHV, they need not only to get a license but also pass an examination for knowledge of the city and tourist routes. Such a service is cheaper than usual cabs and can be ordered by phone, having specified in advance the operator the cost of the trip. Moreover, these machines can accommodate up to 5 people and are suitable for wheelchairs. To date, PHV taxi more than two times the traditional cab. In modern, the mobile applications Gett and Uber are also actively used in the market, which could enter not only the market, but also gain a foothold on it.

Picture 6 London taxi market Аналитический центр при правительстве РФ / «Анализ сегмента такси на рынке городского пассажирского транспорта», Москва, - март,2016 / 35стр.

Another example of the rapid development of the taxi market is the country of the third world India. Despite the fact that the country has strong economic problems, the majority of the population is starving, and unemployment is increasing, the taxi service has grown by 15% by 2014. Annually, the aggregator companies show an increase of 30%.29 The volume of the taxi market in India is $ 9 billion, where 8.5 billion is illegal taxis, and only $ 500 million is for licensed taxis, of which half are aggregators, the rest are companies with their fleet and dispatch services. In India, the taxi is developing very much due to tourists, for whom the taxi initially means not only price accessibility, but first of all security.

The price policy in comparison with the European and Russian countries is rather low. Therefore the demand for the service itself is.

Picture 6 Taxi call structure in India

International taxi market grows each year and government tries to eliminate most illegal firms to not only stabilize the market, which will be attended by strong players but also for the safety of citizens. Moreover, taxi is a way to earn money for those people, who are not able to find a job in their professional sphere. Thus taxi market contributes to reducing unemployment in the country.

3.5 PESTEL analysis of taxi aggregators market

One of the methods to analyze the taxi market and company is PESTEL analysis. This tool will identify key external problems that may affect the company's development.

Table 1

PESTEL analysis

Political

Economic

Social

· Government regulation of licensing for drivers

· Regulation of the minimum wage laws for taxi industry

· The opportunity to run a business

· Reducing customer purchasing power

· Growing of price sensitivity

· Development of regions
Increase of taxation

· Additional workplaces

· The demographic crisis

· A stereotyped view of poor service performance

· Growing popularity of mobile apps

Technological

Environmental

Legal

· Development of social networks

· Development of mobile technologies

· Use of new services

· Environmental pollution

· Using an electro car

· Bills prohibiting the operation of services for simple taxis

· Toughening measures for the work of unregistered drivers

The taxi industry is highly dependent on government regulations and the economic situation in the country since any financial crisis means higher prices, which means a lower demand for services. Moreover, since in the taxi companies the people who came from the CIS countries work more often, the management of the aggregator may face the problem of obtaining not only a license but also the necessary documents for the design of employees. There is a need to take into account these external factors, can adversely affect the development of the aggregator and its further life cycle.

3.6 SWOT analyze of taxi aggregator

In that case, that in this diploma work three taxi aggregates similar in technologies and idea are considered, in this part of work would the SWOT analyze of the taxi industry, based on key features.

Table 2

SWOT analysis

Strength

Weakness

· Customer focus

· Easy working application

· Convenient payment system

· Recognizable brand

· Unlimited taxi park

· Strong advertising and PR

· Customer confidence

· Using IT technologies

· Rate system among drivers

· Flexible schedule

· Private investment

· Lack of knowledge of local market

· Lack of possibility to contact with operator

· Low incomes of drivers (about the price for renting taxi)

· Incorrect account of trip's cost

· The route selects for drivers

· Communication difficulties with drivers

Opportunities

Threats

· New markets

· Decreasing waiting time

· Additional services in application

· Growing popularity of online taxi

· Customer dissatisfied with other aggregate's service

· Government regulations

· New competitors

· Financial crises

· Conflicts between driver and client

· Internet fraud

Based on SWOT analysis results, it is advisable to link the strengths and weaknesses and threats with opportunities that will help companies develop and increase the market share:

Strength + Opportunities: One of the strengths of the aggregator is marketing and a recognizable brand that will allow you to cover new cities and markets, thanks to the trust of consumers, as well as the successful promotion of the company. The use of high technologies can also be of interest to those countries in which the taxi service is much worse developed. Moreover, those people who are accustomed to using the mobile application at home will be happy to use it in other countries, which will also help develop the application on the international market.


Подобные документы

  • Executive summary. Progect objectives. Keys to success. Progect opportunity. The analysis. Market segmentation. Competitors and competitive advantages. Target market segment strategy. Market trends and growth. The proposition. The business model.

    бизнес-план [2,0 M], добавлен 20.09.2008

  • Crisis in Russia and international tobacco enterprises. International tobacco companies in the Russian market. Рroper suggestions with the purpose to adapt them to the Russian tobacco market in the new circumstances to maintain the level of profit.

    реферат [15,4 K], добавлен 15.05.2016

  • Business plans are an important test of clarity of thinking and clarity of the business. Reasons for writing a business plan. Market trends and the market niche for product. Business concept, market analysis. Company organization, financial plan.

    реферат [59,4 K], добавлен 15.09.2012

  • History of Nokia, its role in the telecommunications market and impact on the international business. Exit closed companies to market. Foreign direct investment and business strategy. Mergers, acquisitions and co complex. Foreign Exchange impact on Nokia.

    контрольная работа [29,8 K], добавлен 11.12.2010

  • Strategy and major stages of project’s fruition. Production of Korean cuisine dishes. Analysis of the industry sector, of produce’s market, of business rivals. Marketing plan, volume of sales, personnel and company management. Cost of the project.

    курсовая работа [724,1 K], добавлен 17.02.2013

  • The collection and analysis of information with a view of improving the business marketing activities. Qualitative & Quantitative Research. Interviews, Desk Research, Test Trial. Search Engines. Group interviews and focus groups, Secondary research.

    реферат [12,5 K], добавлен 17.02.2013

  • The current status of our business. Products and services. Benefits of location and challenges. Number of patients who received dental services in 2013. Impact from industry changes. Market description and characteristics. Market niche and share.

    бизнес-план [302,5 K], добавлен 02.10.2014

  • Getting to know the sources of competitive advantage. Consideration of the characteristics of the implementation of the marketing strategy. Characteristics of branding forms: corporate, emotional, digital. Analysis of the online advertising functions.

    курсовая работа [66,3 K], добавлен 09.02.2016

  • Marketing of scientific and technical products and services in the field of information technology. Differences sales activity in B2B and B2C. The role of the procurement center and features of the procurement decision-making in the industrial market.

    реферат [167,3 K], добавлен 27.05.2014

  • The internal and external communication systems of the Nestle company. Background of the company. SWOT analysis: strength, weaknesses, opportunities. Architecture of Intranet systems. Business use of intranet systems. Intranet tools and its benefits.

    контрольная работа [304,7 K], добавлен 28.10.2013

Работы в архивах красиво оформлены согласно требованиям ВУЗов и содержат рисунки, диаграммы, формулы и т.д.
PPT, PPTX и PDF-файлы представлены только в архивах.
Рекомендуем скачать работу.