Strategies Taxicab Owners Use to Sustain Their Operations in a Competitive Environment
Location
DeSantis Room 1054
Format Type
Plenary
Format Type
Workshop
Start Date
17-1-2020 8:45 AM
End Date
17-1-2020 9:35 AM
Abstract
Taxicab owners are losing market share to technology companies including Sidecars, Lyft, and Uber. Whereas Uber is growing rapidly, operating in over 150 U.S. cities and 58 countries with an estimated market valuation of $62.5 billion, taxicab owners have experienced a significant decline in growth because of a deficiency of business strategies. The purpose of this qualitative multiple case study was to explore business strategies taxicab owners use to sustain their operations. A purposive sampling of 6 taxicab owners and managers from 6 taxicab companies in Denver County, Colorado participated in semistructured face-to-face interviews. Data from the interviews were transcribed, coded, and analyzed to ascertain themes relating to business strategies that sustain taxicab operations. Methodological triangulation was used to validate data during the analysis process. Drawing from Christensen's disruptive innovation theory, 5 main themes emerged. The 5 main themes included excellent customer service, competitive strategies, market research, adaptation to teschnological and cultural changes, and training. Findings showed that successful taxicab business strategies included (a) providing effective customers services, (b) formulating and using efficient competitive strategies; (c) establishing appropriate training for drivers and employees; (d) conducting market research to ascertain market trends; and (e) adapting to the dynamics of technological and cultural changes to satisfy customers’ requirements. The implication for positive social change includes taxicab business owners formulating effective business strategies, thereby improving the economic well-being of local communities.
Keywords
Taxicab, Business strategy, Ride-sharing, Competitive advantage, Sustainability Technology start-ups
Strategies Taxicab Owners Use to Sustain Their Operations in a Competitive Environment
DeSantis Room 1054
Taxicab owners are losing market share to technology companies including Sidecars, Lyft, and Uber. Whereas Uber is growing rapidly, operating in over 150 U.S. cities and 58 countries with an estimated market valuation of $62.5 billion, taxicab owners have experienced a significant decline in growth because of a deficiency of business strategies. The purpose of this qualitative multiple case study was to explore business strategies taxicab owners use to sustain their operations. A purposive sampling of 6 taxicab owners and managers from 6 taxicab companies in Denver County, Colorado participated in semistructured face-to-face interviews. Data from the interviews were transcribed, coded, and analyzed to ascertain themes relating to business strategies that sustain taxicab operations. Methodological triangulation was used to validate data during the analysis process. Drawing from Christensen's disruptive innovation theory, 5 main themes emerged. The 5 main themes included excellent customer service, competitive strategies, market research, adaptation to teschnological and cultural changes, and training. Findings showed that successful taxicab business strategies included (a) providing effective customers services, (b) formulating and using efficient competitive strategies; (c) establishing appropriate training for drivers and employees; (d) conducting market research to ascertain market trends; and (e) adapting to the dynamics of technological and cultural changes to satisfy customers’ requirements. The implication for positive social change includes taxicab business owners formulating effective business strategies, thereby improving the economic well-being of local communities.