The Application of Smartphone Technology in the Taxi Market

            The advent of technology has veritably revolutionized the taxi industry. Nowadays, the proliferation of smartphones has led to the increased adoption of ride-share in the transportation industry. The major players include Uber, Grab Taxi, Didi Dache, and Lyft. In the past, commuters had to wait for taxis and wave to be picked, sometimes with catastrophic consequences. For example, women and the elderly people were the vulnerable cohorts facing attacks and rapes, and with ineffective regulators, the crimes went unpunished. This research proposal will present the importance of the application of smartphone technology in the taxi market on the aspects of safety, service quality, pricing and completion.

            According the researches did on literature review, we can clearly realize that the improvement in taxi market on the aspects of safety, service quality, pricing and completion by the application of smartphone technology. For instance, the technology has had a significant impact on the safety of market. Most taxi smartphone application requires an individual to register online. The profile details of the drivers and the customers are stored in the company’s database. Details include the drivers’ license number, the names, and address as well as credit card details for the customers. As such, details of the customers and the driver are recorded by the parent company offering the services including the trips made. The information recorded includes date, time, pick up/drop off location and prices. Therefore, in case violence or crimes the details of the customers and drivers provide spatial and temporal evidence. This highly increases risk detection thereby averting crime. Also, the smartphone application has greatly improved the service quality. For example, the customers and drivers are expected to provide feedback regarding their experience during the journey. The feedback constitutes quantitative and qualitative information regarding various aspects such as the condition of the vehicle, driver’s interaction as well as other significant services. Accountability for ‘one off’ dropped customer is obtained via feedback. The drivers’ feedback is aggregated from all the trips made through the app. As such, the drivers are compelled to increase good quality service to the customers while poor quality drivers are gradually screened out of the market because of diminishing reputation.

            My research purpose is to explore the importance of the application of smartphone technology in the taxi market on the aspects of safety, service quality, pricing and completion and also what the application of smartphone technology need to get improved in taxi area. For the sources on my research, I will take four steps to obtain the information I require. The first source will be the research essays related on my research topic from other researchers. For example, the information in the Internet about taxi history, the development of taxi smartphone application is good for me to understand the importance of applications in taxi market. I will find the papers from Internet or local libraries. My Second source of information will be the comments written on the application reviews from customers who experienced using smartphone applications to take taxi. The smartphone applications will be included Uber, Grab Taxi, Didi Dache, and Lyft. I think that the interview could also be a good way to get information. I will interview some customers and taxi drivers and ask their feedbacks. These steps will help me get involved in this research topic and know the advantage and disadvantage of the application of smartphone in taxi market. The boundaries of my project will be the limit time and people. I will do this project on my own from researching to interviewing. This project will consider the taxi applications over the world like Didi Dache in China, Grab Taxi in Singapore and Uber in America.

            In this project, I hope that I could prove that the smartphone technology has been successful in deregulating the taxi industry while promoting market liberalization. The technology has enhanced safety, improved product and service quality as well as a pricing strategy. Indeed, smartphone technology has enormous potential to streamline and improve market efficiencies. On the other hand, technological innovations should be encouraged to ensure quality services and manage competition in the taxi industry. Similarly, diversification of products and services should be promoted to safeguard companies from fluctuating customer base demand risks.









Works Cited

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Cornish, Derek B. and Ronald V. Clarke. "Opportunities, Precipitators, and Criminal Decisions: A Reply to Wortley’s Critique of Situational Crime Prevention." Crime Prevention Studies 16 (2003): 41-96. Web. 3 November 2015.

ECMT. "Transport Infrastructure Charges and Capacity Choice: Report of Round Table 135, Joint Transport Research Centre of the OECD /ECMT, European Conference of Ministers of Transport." Paris, 2007. Web. 3 November 2015.

Heyes, Anthony and Catherine Liston-Heyes. "Regulation of the Taxi Industry: Some Economic Background" the European Conference of Ministers of Transport (ECMT), Round Table 133." 2007. Web. 3 November 2015.

Metropolitan, Police. "Unlicensed Minicabs Operating in Wandsworth." London: Metropolitan

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Panzarino, Matthew. (2013). “Leaked Uber Numbers, Which We’ve Confirmed, Point to Over $1b gross, $213m Revenue,” TechCrunch. Web. 3 November 2015.

Seibert, Christian. "Taxi Deregulation and Transaction Costs" The Journal of Economic Affairs     2.26 (2006): 71-73. Web. 3 November 2015.