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The influence of app-based ride services on the survival strategies of formal metered taxi operators in the Cape Metropolitan area
Author(s)
Nonyusa, Siphokazi
Date Issued
2020
Type
Thesis
Publisher
Cape Peninsula University of Technology
Abstract
Public transportation plays an integral part in the country’s development. The South African
government placed a high priority on improving access to opportunities in the transportation
industry, particularly in the traditional metered taxi industry; this industry plays an essential role,
especially in the context of local and tourist passenger transportation. As most industries are
influenced by the evolution of new technologies, the metered taxi industry is certainly not exempt
from this phenomenon. The entry of mobile technology’s application (app)-based ride services,
such as Uber and Bolt, into passenger transport markets in the Cape metropolitan area has
negatively influenced the business sustainability of traditional metered taxis, particularly its market
share. This research investigated the influence of app-based ride services on survival strategies
of formal metered taxi operators in the Cape metropolitan area to examine the survival
mechanisms of traditional metered taxi operators toward the implementation of app-based ride
services (Uber and Bolt).
The mixed methods approach was selected because it allowed the researcher to measure
variables to illustrate essential strategies for traditional metered taxi operators for sustainable
operation in contemporary transportation. The data was collected from 80 respondents and 20
participants by way of a questionnaire and an interview guide respectively. The quantitative data
was the analysed using Microsoft Excel while the qualitative data was clustered around the themes
the emerged during analysis. Presented in the form of tables, figures and word verbatim
quotations, the results of both methods were integrated to answers to the research questions.
It was found that app-based services (Uber and Bolt) do negatively influence traditional metered
taxis’ business sustainability within the Cape metropolitan area through the implementation of high
standard services and the use of comfort vehicles. Regarding traditional metered taxi strategies
in the Cape metropolitan area, it was found that current app-based services’ business strategies,
such as app technology, private new vehicles, and cheaper rides, are negatively affecting
traditional metered taxis’ strategies’ sustainability. It was recommended that, for traditional
metered taxi operators to maintain business sustainability and market share against app-based
ride services, vigorous implementation of a similar app technology to match app-based service
flexibility must be implemented. The research concludes that passenger transportation is essential
mostly for bigger cities, such as Cape Town, particularly for local and tourist transportation, in
order to maintain social development. Nevertheless, some of these services, such as app-based services (Uber and Bolt), are enjoying a robust advantage that is upsetting the survival of
traditional metered taxis around the Cape metropolitan area.
government placed a high priority on improving access to opportunities in the transportation
industry, particularly in the traditional metered taxi industry; this industry plays an essential role,
especially in the context of local and tourist passenger transportation. As most industries are
influenced by the evolution of new technologies, the metered taxi industry is certainly not exempt
from this phenomenon. The entry of mobile technology’s application (app)-based ride services,
such as Uber and Bolt, into passenger transport markets in the Cape metropolitan area has
negatively influenced the business sustainability of traditional metered taxis, particularly its market
share. This research investigated the influence of app-based ride services on survival strategies
of formal metered taxi operators in the Cape metropolitan area to examine the survival
mechanisms of traditional metered taxi operators toward the implementation of app-based ride
services (Uber and Bolt).
The mixed methods approach was selected because it allowed the researcher to measure
variables to illustrate essential strategies for traditional metered taxi operators for sustainable
operation in contemporary transportation. The data was collected from 80 respondents and 20
participants by way of a questionnaire and an interview guide respectively. The quantitative data
was the analysed using Microsoft Excel while the qualitative data was clustered around the themes
the emerged during analysis. Presented in the form of tables, figures and word verbatim
quotations, the results of both methods were integrated to answers to the research questions.
It was found that app-based services (Uber and Bolt) do negatively influence traditional metered
taxis’ business sustainability within the Cape metropolitan area through the implementation of high
standard services and the use of comfort vehicles. Regarding traditional metered taxi strategies
in the Cape metropolitan area, it was found that current app-based services’ business strategies,
such as app technology, private new vehicles, and cheaper rides, are negatively affecting
traditional metered taxis’ strategies’ sustainability. It was recommended that, for traditional
metered taxi operators to maintain business sustainability and market share against app-based
ride services, vigorous implementation of a similar app technology to match app-based service
flexibility must be implemented. The research concludes that passenger transportation is essential
mostly for bigger cities, such as Cape Town, particularly for local and tourist transportation, in
order to maintain social development. Nevertheless, some of these services, such as app-based services (Uber and Bolt), are enjoying a robust advantage that is upsetting the survival of
traditional metered taxis around the Cape metropolitan area.
Additional information
Thesis (MTech (Business Administration))--Cape Peninsula University of Technology, 2020
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