Radio Cab Case Study

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3.3 Radio cab business model The radio cab business functions of various distinct business models. Radio cab companies are 100 percent business ventures. There is not any central monitoring system for all the radio cab companies and even the GPS tracking is managed individually by all the companies. The Radio Cabs market works both on pure B2C (Business to Consumer) model, i.e., the services are provided directly from the cab company to the customer and B2B (Business to Business) model, i.e., the cab company provides its services to the corporations which further provides it to their employees. The companies are becoming more popular and profitable by incorporating “the franchise model”. All the cab companies work on the mixed models such …show more content…

The vehicle working under such procedure is called “attached vehicle”. The cab company promises some minimum fixed number of trips to the cab drivers for the paid duration. To own the attached vehicle, the driver has to sign a contract for a certain time period with some fixed amount of investment and he is allotted one of the 500 registered cabs by the company after a completion of the duration.  Rent-a-Cab Model The following are the characteristics of the relationship between driver and the company at Easy Cabs, as described by the driver in an interview. • The cab drivers have to pay a security deposit of around Rs.20,000/- to the company. • The driver should have a commercial driver’s license. • He is supposed to pay a daily rent to the company of approximately Rs.1100 per day for the cab and whatever he earns beyond that belongs to him. • He has to pay for the CNG out of his pocket and the maintenance of the vehicle is paid by the cab company itself. • The monthly income of the cab driver is approximately

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