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What are the challenges for the taxi industry?

By 16th November 2018 No Comments

By: Daniela Navas

The taxi industry plays a fundamental role in the economy and the mobility of our cities and countries. It is a huge employer and it can affect the development of communities socially, ecologically, and economically. If we want smart cities, characterized by healthy environments, connected mobility and smart transport we need to pay attention to the challenges we may encounter when trying to develop smart mobility.

One of the biggest challenges in the industry is definitely the use of public transport systems. According to a study made by the professors Grimsrud and El-Geneidy, people decrease their use of public transportation with age, diminishing when we reach 30 years of age. This is a result of the changes in our family structure and the relocation of homes from urban centres to suburban areas which are deemed to be more-friendly for family life. Also, millions of people around the world still prefer riding alone in their own car than sharing a ride with a stranger. This is insightful, without a doubt.

Mobility companies should design their strategies trying to retain current customers, but also, aiming at attracting new ones. It is evident that when inhabitants use public transport vehicles or ride sharing instead of private cars the environmental pollution is reduced, and our cities are more efficient. We need to create an environment that will contribute to the sustainable development of our cities and our planet.

But how can we attract new riders?

Fulfillment is key. Consumer satisfaction supports companies in establish long-term relationships with consumers. At EYESAFE we are constantly developing tools that have people’s needs at their core. We are always aiming to deliver a seamless and holistic service because we are aware that a satisfied customer will be willing to use the same platform repeatedly.

Frequency, reliability, sanitation in the vehicle, proximity, speed, price, accessibility, and safety influence passengers’ satisfaction and perception of value- depending also on the specific geographic and cultural contexts. As we have stated before, safety is also a huge factor that we need to account for; that is why we devote our resources to create a safe environment where specific tools, regulations, and procedures are implemented and actively enforced.

But maybe the question is not only how to attract new riders, also but how to keep them… In order to answer this, it is important to consider that satisfaction is actually, not the final goal. Satisfaction can be instant, but loyalty is developed over time, and this is what makes a client come back again and again.

A customer’s loyalty is not based on a singular positive trip experience, it is a result of a longer-term and trusting relationship between the user and the company. So, loyalty is the final goal, and the key to accomplishing it is perception: Customers who have a positive image of the company and consider public transport an integral component of a city dweller’s daily life are more likely to demonstrate loyalty, according to the study shared by Lierop, Badami, and El‐Geneidy.

 

The taxi industry is changing, and these changes represent challenges that need to be faced in order to innovate and expand the mobility landscape. Loyalty and customer value creation are definitely some of the goals they need to aim for in order to maintain relevance. Achieving it will not only benefit companies economically, but it will also benefit societies as loyal customers can positively affect our environment – with fewer private car usage and a healthier air quality. So, are you ready to help EYESAFE create the smart cities of the future?

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