Scheduling Apps Impact on Public Transportation - Coursework Example

Scheduling Apps Impact on Public Transportation of Affiliation: Scheduling Apps Impact on Public Transportation Introduction In the current wave of technological developments as an attribute to globalization, many industries have devised numerous mechanisms involving the use of technology, which work to make easy the different operations in such industries. In the taxi industry equally, has undergone significant and drastic changes in the recent years, which involved the introduction of application-based taxi and car services. The transport sector has for a long period been chaotic operations, making people have the will to ride the bus or train, unless the appropriate and effective management tools are put in place for the management of the commuter services. In order to bring about sanity in the transport industry, a number of applications were brought forward as a means of enhancing efficiency in the sector and improving service delivery to the customers. Some of the applications include Uber, Lyft, and Sidecar. The recent surge in scheduling apps has had a major impact on the taxi industry with benefits for the consumer; however, the applications seem to threaten the status quo of the for-hire transportation business. Based on such a perspective, this paper discusses the various attributes of the apps in the taxi industry, considering both the benefits and the threats to the different players in the industry. Since the emergence of new entrants into the industry such as Uber, Lyft, and Sidecar, there has been significant changes, especially on the structural aspects, which still operated on the mentality used decades ago (Yue, 2014). Previously, any person in need of the taxi or car services had to wait physically at one of the city streets or call on one of the taxi or car services, which would take long before making arrival. Such inconveniences significantly affected the operations of the industry, an aspect that would only be rectified by the use of new apps. As such, the different apps including Uber, Lyft, and Sidecar, made it easy for customers to use their smartphones in securing taxi and car services from any particular location. Such has significantly improved service delivery and efficiency of operation, especially for customers. However, on a different perspective, the technological changes in the transport industry have threatened some players in the industry, most especially those who benefited from the old infrastructural operations in the industry (Stephanidis, 2013). The scheduling apps in the transport industry with the entry of players such as Uber, Lyft, and Sidecar have had a substantive impact in the industry both to customers and to the drivers and the industry. For example, with the entry of Uber, smartphone users had the opportunity of downloading the app in the phones, which would then assist them in making requests for cars to take them to their destinations (Cronin, 2013). Once the request is made, the company would then send an alert to the nearest driver within the location of the customer. For one to make a determination of the impact of the apps such as Uber, Lyft, and Sidecar in the transport industry, in comparison to the previous operations of the already for-hire transportation cars, four major aspects are put into consideration. Such include the cost effectiveness of the two systems, the ideal nature of operations for the industry, the company, and customer service orientation (Gonzalez, 2014). In most instances, the apps companies usually surge prices whenever the demand of transport increases to cater for the increased demand for cars. As such, the apps companies seem to be expensive in comparison to the already for-hire transportation cars, which in most instances charge fixed prices for the transport services they offer their customers (Yue, 2014). In most instances in which the apps companies offer cheaper drives, the situation is not always as ideal in comparison to the expensive drives. Such an occurrence is because most of the cheaper rides have drivers without licenses, though have passed the road competency tests (Prabhakar, 2013). Such a perspective is in contrast to the expensive rides offered by professional Chauffeurs with vast experiences on road drives and enhanced customer services. During the rides, the professional Chauffeurs offer their passengers all the amenities and luxuries available during the rides. A number of companies and organizations are governed by certain rules and regulations in the industry. The apps companies, especially Uber, in an urge to maximize the profits in the business faults certain rules, which help the company evade paying of dues and taxes to the industry players as required (Cronin, 2013). As such, Uber has had to deal with frequent legal challenges facing the company because of its tax evasion. Considering such instances, it is a better option to deal with companies that have less legal complications rather than those with various legal implications. Proper treatment of customers remains an essential aspect for every company or organization. Most important aspect involves making customers feel as comfortable as possible in the provision of services (Stephanidis, 2013). Similarly, the transport industry requires appropriate customer service to increase profitability. Based on such a perspective, it is evident that apps companies offer enhanced customer service in comparison to the already established car service companies, as one is in a position to book or call for a cab at the comfort of the house as long as one has a smartphone. Additionally, apps car and taxi companies offer exemplary timely services, without an individual having to wait for longer hours after making a call for a car or taxi. Unlike the for-hire transportation cars, which operate on fixed prices, the apps companies offer a wide range of services for the customers to choose from, depending on an individual’s financial capabilities (Gonzalez, 2014). As such, a person gets that which he or she pays for and depending on the amount paid the service offered varies. Based on the above aspects and factors of consideration in determining the impact that the apps car companies has had in the industry, it is evidently clear that the effects of the recent surge in scheduling apps vary on all the players in the industry. On one side, the scheduling apps seem too convenient for customers more; however, on the other side, they seem to be exorbitant against the same customers. Determining the positives and negatives of the scheduling apps on the different players in the industry, therefore, establishes the impact that the same have had in the taxi industry. Pros of Scheduling Apps On the positives of the scheduling apps on the customers in the taxi industry, is that app users are in a position to hail a car from whatever location they are in with the car availed in minutes. Contrary to the situation with for-hire transportation cars, which involve waiting for long periods after making call for a car. Additionally, the stress associated with chasing down a taxi or expecting the miraculous approach of one in emergency times is eliminated (Stephanidis, 2013). Most of the apps cars remain well maintained in order to beat completion, as well as offering of additional services for the customer. Because of such occurrences, customers get the best of services from the app cars, which remain an ideal experience. In most instances, app cars use cashless payment systems, which involve the customers having the credit cards linked to the particular app company, an aspect that fastens service delivery as no time is wasted on negotiating prices between the drivers and the customers. The use of cashless payments is also important in enhancing security for customers, as one does not have to carry cash during travels; instead, the company deducts the charges from customer’s credit cards linked to a particular app car company. Considering the strict management practices put in app car companies, all members of the crew are required to act with the utmost professionalism especially when handling of customers or be sucked. As such, customers get VIP treatments during their travels, an occurrence never experienced in the for-hire transportation business (Cronin, 2013). Ideally, in the for-hire transportation business, most operators lack any professional training of the most appropriate ways of handling customers, therefore, most of the transport services lack the comfort deserved. Not only do positives aspects exist for customers alone, but also the drivers for the app car companies. Apps cabs have centralized management systems in which the different apps are used in monitoring the movement of the cars and their locations. Such strategies enhance the safety of drivers in instances in which passengers turn rogue as in the case of criminals. The management can track the location and dispatch a rescue team to offer assistance (Yue, 2014). For-hire transportation business involves individualized operation as every driver competes for his or her benefit increasing his or her insecurity. The centralized management system in apps cars also ensures that drivers have the option of working in shifts, which limits instances of drivers’ exhaustion while working. Considering that customers are also offered opportunities of rating the drivers, professionally working drivers have the opportunity of increasing their income from commissions the Apps company offers whenever a driver gets referrals from customers for their professional conduct during the travel (Gonzalez, 2014). The entire taxi transport industry has also had its fair share of the benefits associated with the availability of Apps cabs in the industry. With the entry of the Apps cabs in the industry with a new approach to business and transaction, service delivery in the industry has significantly improved. The improved service delivery has created a space for making improvements through increased competition from the different players in the industry as a means of enhancing profitability (Prabhakar, 2013). Improved service delivery has also attracted new companies into the industry, an aspect that has significantly contributed towards the strong establishment of the industry. Cons of Scheduling Apps On the other side, Apps car companies have their negative attributes from the different ways in which they affect the different players in the industry. Customers constantly experience surge pricing, where price is dependent on the availability of customers and demand. Whenever the demand for the cars goes up, prices follow a similar trend. Such an occurrence creates inconveniences for customers as they constantly have varied the amounts they pay depending on the demand such as during rush hours and in cases of emergency (Stephanidis, 2013). Instances of low demand are usually associated with laxity in operations especially from the drivers. Such laxities could result in disruption of customers’ such as missed flights among other occurrences. Such lower the trust and corporation between the key players in the industry. On the side of the drivers, low prices have a significant impact on their earnings, which also goes down with reduced demand for transport services. Additionally, last minute cancelations by customers could also have significant negative effects on the part of drivers who could lose on best opportunities because of customers’ last-minute cancelations of their trips (Cronin, 2013). Increased entry of drivers into the industry because of the increased efficiency in service delivery could as well create unnecessary competitors among the drivers, which also leads to low wages. In every industry, the greatest challenge faced usually involves price competition, with every player working hard to provide the lowest prices possible while maintaining the highest quality. The transport industry in a similar scenario faces price competition, which has had negative effects on the success of the industry. Different Apps companies are then left to make profits only from the already acquired customers, with limited chances of acquiring new customers as the entry of new players in the industry reduces chances of the acquisition significantly. Such contributes to lowered market shares for both the companies and their drivers (Stephanidis, 2013). Conclusion The introduction of scheduling apps into the transport industry has significantly improved service delivery as one has the opportunity of arranging for a cab from whatever place as long as they are in possession of smartphones. However, a number of setbacks also exist in the industry, especially from the flooding of service providers, which has contributed to reduced profitability and market share loss for the majority. Increased competition has been the greatest negative effect of the system. Despite such occurrences, the industry has in overall improved efficiency and quality of service. References Cronin, C. (2013). Building a sustainable workforce in the public transportation industry: A systems approach. Washington, D.C.: Transportation Research Board. Gonzalez, D. (2014). Online Security for the Business Traveler. Burlington: Elsevier Science. Prabhakar, B. (2013). Social Design: How products and services can help us act in ways that benefit society:. Stephanidis, C. (2013). HCI International 2013-- Posters extended abstracts International Conference, HCI International 2013, Las Vegas, NV, USA, July 21-26, 2013, Proceedings. Berlin: Springer. Yue, J., (2014). Nudging drivers sensing, smartphone apps and incentives. Read More