Research Proposal

The impact of private taxi company on UK national economy: A case study of UBER, Manchester

1. Introduction 1

2. Justification 2

3. Theoretical background 3

3.1 Technology usage in taxi industry 3

3.2 Role of technology in delivering customer convenience and development of economy 4

3.3 Expectations of customers when they opt taxi service 5

3.4 Hypothesis 5

3.5 Objectives 5

4. Methodology 5

4.1 Research approach 5

4.2 Research design and sample 6

4.3 Data collection and analysis 6

4.4 Ethical consideration 7

4.5 Research limitations 7

References 8

Appendix 10

1. Introduction

In the modern era, the concept of private taxi is developing at a faster pace where private players are entering into the market so as to deliver taxi services to the people in the market. Further, it has been witnessed that taxi providers are operating with latest technology and they are complying with the market trends also so as to provide proper convenience to the target market. In short, the overall operations of the taxi firms are influencing the economy of the nation where they are working at present.

The present research will be based on Uber as one of the company that renders taxi services in the market. The study will highlight the actual influence of private taxi company on the economy of UK. Uber as one of the organization has played crucial role in the economic growth of UK. Further, it has been witnessed that riders or the customers are able to book taxi service easily through the mobile application and it is quite convenient also (Kim, Baek and Lee, 2018). In terms of economic growth taxi service providers have provided opportunity to the different individuals in the society by providing them job. Along with this, growth in the employment opportunity is providing positive outcomes where drivers can easily work and it is highly effective for them also. It is a fact that economic impact of any company is analyzed by considering its overall contribution that can be in the form of providing employment, generating high level of revenue etc.

The sharing economy platforms of Uber have direct influence on the economy of UK. Further, it has been witnessed that the mobile application platform of the firm is highly effective. Uber is directly carrying out its operations with the help of technological tools and in turn this helps in differentiating the operations of the firm from those of competitors in the market (Rowe, 2017). Furthermore, due to use of advanced technology Uber has been positively affected but at the same time other taxi providers are unable to survive in the market.

Within UK Uber is generating high level of revenue due to presence of low cost model and at the same time it is highly convenient for the passengers also as they can book taxi through one click and it is highly effective also. All the transactions associated with booking taxi, making payment for the taxi service etc are done with the help of online medium and this is contributing in the economic growth. In short, Uber is generating high level of income within UK and this is also a symbol or positive sign of economic growth.

Any private taxi firm that is able to operate with advanced technology and some sort of unique attributes can surely support in the economic growth of the nation. Overall development of taxi industry has taken place after the introduction of Uber services in the market that are highly innovative and unique too. No doubt, services of Uber are worldwide famous and company is contributing a lot in the development of every nation where it is mainly operating.

2. Justification

The main reason behind conducting the present study will be to understand the influence of private taxi company on the UK national company. The research will focus on business practices of Uber with respect to Manchester market.

With the advancement in the technology and high level of innovation taxi industry has been highly benefitted. Mainly sound operations of Uber that involves taxi booking with the help of mobile application has benefitted a lot and it has provided convenience to the target market. Along with this, taxi sharing system has also been introduced where people can share their ride as per their convenience etc.

Private taxi company is assisting a lot in the economic growth of UK. Main level of employment generation has increased at a faster pace where large number of drivers are getting job and this is highly effective in terms of economic growth (Borowiak, 2019). It can also be stated that Uber has net positive contribution to the national economy and at local levels. At the same time, the company is a part of dynamic ecosystem and the riders of the firm mainly depend on interconnected options.

Further, it is a well known fact that consumer preference is also shifting towards use of technology. This is the only reason due to which Uber has been benefitted through the introduction of technology for booking cab and it is contributing a lot in carrying out operations successfully in the market.

The innovation and business practices of Uber has directly changed or developed the entire taxi industry. People in the society are ready to spend more on taxi services as it is convenient for them and in turn it is also contributing a lot in the success of Uber in the market.

The kind of technology and other form of practices utilized by Uber is highly effective and it is supporting in providing competitive advantage to the firm in the market. From the point view of economic development Uber is earning high level of profits and customers mainly prefer to purchase or access its services on the continuous basis. Overall gross revenue and profitability level of Uber is quite high and this is assisting in the actual growth of enterprise in the market. Hence, in this way the kind of business practices carried out by the firm are effective and they are supporting Uber to carry out its operations easily in the market of UK.

3. Theoretical background

3.1 Technology usage in taxi industry

In the era of modernization taxi companies have started to adopt latest tools and technology with the motive to render service to the target market. As per view of Ravenelle (2019) one of the main technologies that is utilized in the taxi industry is associated with use of mobile application so that customers can book cab or taxi easily. With the introduction of technology it has become easy for taxi service providers to provide proper support to the target market. The best example is Uber where company believes in offering its service with the help of its own application. The selected firm has changed the scenario of entire taxi industry.

According to Dudley (2018) several benefits are associated with the use of technology in the taxi industry. One of the main advantages is rise in the level of transparency between customer and the taxi provider. It is a fact that technology has contributed a lot in enhancing the level of transparency and at the same time it is beneficial for the taxi providers also. With the assistance of application customers can easily book the cab as per their requirement and they can track taxi also. Hence, this acts as source of motivation where customers prefer to access or opt for taxi services continuously. Strong relationship mainly takes place in between passengers and the taxi providers and this can also be the main benefit. Proper use of technology directly contributes in improving the overall relationship (Dudley, 2018). So, this is the main reason due to which taxi service providers are able to succeed in the market due to use of best technology in their overall operations.

Transportation industry has been entirely changed and developed due to introduction of latest technology. Further, it is a fact that on demand cabs and taxis has become one of the basic needs of customer. With the assistance of application calling any particular taxi has become quite easy and mainly it has become matter of few clicks only. However Schneider (2017) argued that with the increase in demand for applications the development of tax industry is taking place at a faster pace. Moreover, customers are able to book cab easily and in turn it is convenient for them in the every possible manner also. In the past no such new technology was present for cab booking etc. Timely new forms of innovations are taking place and at the same time this is benefitting taxi firms where they can easily operate with the help of new technology. Hence, this is the kind of technology usage in the taxi industry that is convenient for the service providers along with the customers also.

3.2 Role of technology in delivering customer convenience and development of economy

As per view of Nguyen (2018) technology advancement and expertise is highly effective in terms of providing convenience to the target market. Moreover, introduction of mobile application system has assisted in providing proper convenience to the target market and they can book taxi in one single click. In short time period they can track the status of taxi and can book it easily. This is the kind of customer convenience that is present with the target market. Along with this, in the past when mobile applications were not introduced then at that time taxi service providers charged travelling fare on their own but after the introduction of application travelling fares are determined with the help of application and it is convenient for the customers. Mainly taxi drivers cannot charge fares on their own and this is a kind of advantage to the customers (Calo and Rosenblat, 2017). Hence, this is the crucial role of technology in providing convenience to the target market.

Considering the example of Uber where the selected enterprise has focused on offering taxi service with the help of mobile application and this is the reason due to which the operations of the firm are worldwide famous in the market. As per view of Mittendorf (2017) business practices of taxi firms have also contributed in the economic growth of the nations where they are mainly operating. The main contribution is in the form of rise in the revenue level and employment generation. Uber as one of the taxi service provider has contributed a lot in providing employment to the people living in UK and at the same time revenue level of the firm is also high in the market that is also effective.

Considering both the concepts of economic development and providing convenience to the customers technology is vital and it provides assistance to the enterprise in terms of conducting efficiently in the market. High level of upgraded technology mainly assists in managing the taxi operations and this directly contributes in carrying out operations of taxi firm in a proper manner. According to Lee, et al. (2018) technology is the main lifeline of the taxi industry. Overall operations linked with offering services to the target market and other are carried out easily with the help of technology that can be internet based application, GPS tracking or any other. In past when technological advancement was not developed then in such case booking taxi was quite hazardous. So, after the introduction of technology it has become quite easy to book taxi at an affordable price. Therefore, in this way technology is highly crucial in terms of providing convenience to the target market and it has assisted in the development of economy also.

3.3 Expectations of customers when they opt taxi service

As per view of Ashworth, (2018) expectation level of customers are quite high at the time where they purchase taxi service. One of the main expectations is linked with convenience. Every customer wants convenience and this is only possible when mobile application is utilized for carrying out operations of the business. For instance, in case of Uber the company take booking of its cabs with the help of application and with the help of sound internet technology it has become quite easy for Uber to develop strong relationship with its target market easily. According to Leighton (2016) when expectations of the target market are not met in a proper manner then in such case they cannot be influenced or attracted to purchase the services.

Another main expectation is linked with delivery of service on time. It has been witnessed that with the help of mobile application customers can track taxi easily and it is also a kind of convenience for them. For example, the business practices of Uber are sound where it has been witnessed that company believes in providing convenience to its target market and its low cost model contributes a lot in attracting customers easily in the market.

So, these are the main expectation of the target market at the time when they purchase taxi service from the companies present in the market.

3.4 Hypothesis

H₀: Private Taxi Company has no influence on UK national economy

H₁: Private Taxi Company has positive influence on UK national economy

3.5 Objectives

To gain knowledge about the operations of Uber
To understand the ways in which Uber is contributing in the UK national economy
To identify the customer satisfaction level of Uber customers within Manchester
To recommend ways through which Uber can develop its business practices

4. Methodology

4.1 Research approach

This area is considered as the plan and procedure that undertakes the steps of broad assumption to the detailed method of data analysis, collection and interpretation. Selection of right research approach contributes a lot in attaining the goals of the study in a proper manner and it brings favourable results also. Two main types of research approaches are inductive and deductive those are utilized in the research. In the inductive approach research is carried out from specific to general form. Further, information is collected in order to explore phenomenon. In the case of deductive approach the research moves from general to specific (Kumar, 2019).

In the current investigation inductive approach will be adopted where research will be specific to Uber and its influence on the economic condition of UK (Dodds and Hess, 2020). At the same time, the findings of the research will be applicable generally to the other firm that operates in taxi industry or in other sector also. Deductive approach will not be applicable in case of current investigation as study will not be conducted in generalized form.

4.2 Research design and sample

Selection of appropriate research design is also crucial in the research. Further, it is regarded as the blueprint of the study that helps in attaining the key goals of the study. Different type of research designs are descriptive, exploratory, explanatory etc that are utilized in conducting the study (Mohajan, 2018). Descriptive design helps in providing description of the topic selected for the investigation. In exploratory design different ideas are explored that are valuable for the study.

In the current study descriptive design will be adopted where through this design it will be possible to highlight actual contribution of Uber on the economy of UK. At the same time other type of design such as exploratory etc are not applicable for the study as in the research it is not easy to explore the key ideas that are crucial. With the assistance of descriptive design all the elements of the research will be properly described and through this it will be possible for the readers to understand about the topic in a proper manner. Hence, this will be the reason behind considering the descriptive design (Ross, et. al., 2020).

Further, sampling is most significant in the study. Two technique of sampling are probability and non probability. In probability one the key methods are simple random, stratified, cluster etc are considered and in non probability one quota, convenience etc are undertaken (Rodríguez, et.al., 2020).

In the current investigation sample size will be 50 individuals where 25 will be drivers of Uber and 25 riders. Non probability technique will be adopted where convenience sampling technique will be considered and respondents will be selected on the basis of their convenience.

4.3 Data collection and analysis

Collection of information plays important role in the research as it helps in attaining the main objectives of the study. Two main source of data collection are primary and secondary. Primary information is obtained with the help of survey, interview, questionnaire etc and they contribute a lot in collecting right information (Ørngreen and Levinsen, 2017). On the other hand, secondary information is obtained with the help of different books, journals and online articles (Zangirolami-Raimundo, et. al., 2018).

In the current study both sources of data collection will be undertaken. Primary information will be done with the help of questionnaire where different questions will be asked to the respondents. At the same time, secondary sources will also be considered where various journals, online articles and other web sources will be utilized so as to obtain appropriate data that will be fruitful for the research. Data will be collected from 50 people that will consist of 25 UBER driver and 25 UBER riders. Social media will be used to contact the participants of the research.

For data analysis mixed methodology will be considered. Both qualitative and quantitative techniques will be undertaken that will assist in analysing the information. Themes will be formed and at the same time charts will be formed along with tables for representing information.

4.4 Ethical consideration

Considering of proper ethics is regarded to be highly crucial in the research. Further, in the present investigation primary information will be obtained from the riders and drivers of Uber. It may be possible that drivers of Uber may not prefer to provide private information of the company. So, this will act as the main hurdle for the entire research. In order to deal with this issue researcher will focus on keeping information private and confidential that will be obtained from the respondents. Further, this will support in avoiding the situation of data loss and in turn it will be fruitful for the entire investigation also.

4.5 Research limitations

The present study has some limitations that will be required to be considered. One of the main limitations will be time where research will approach 50 individuals and it will consume large amount of time. Hence, managing time will be the toughest task. Another main limitation will be linked with topic. The research will only focus on analyzing the influence of private taxi firm on UK national economy but at the same time other areas are also present where operations of Uber have impact. So such areas will not be considered in the research. Lastly, only one company named Uber will be selected for the investigation and this will be another kind of limitation in the study.

References

Ashworth, S., 2018. The Gig Economy: How Uber impacted the London taxi industry. Journal of Undergraduate Research at NTU, 1(1), pp.89-120.
Rodríguez Domínguez, C., Pérez-Moreno, P.J. and Durán, M., 2020. Cyber dating violence: A Review of Its Research Methodology. Anales De Psicología/Annals of Psychology, 36(2), pp.200-209.
Dodds, S. and Hess, A.C., 2020. Adapting research methodology during COVID-19: lessons for transformative service research. Journal of Service Management.
Ross, K. and Call-Cummings Rodríguez Domínguez, C., Pérez-Moreno, P.J. and Durán, M., 2020. M., 2020. Reflections on failure: teaching research methodology. International Journal of Research & Method in Education, pp.1-14.
McCosker, A. and Gerrard, Y., 2020. Hashtagging depression on Instagram: Towards a more inclusive mental health research methodology. New Media & Society, p.1461444820921349.
Borowiak, C., 2019. Poverty in Transit: Uber, Taxi Coops, and the Struggle over Philadelphia’s Transportation Economy. Antipode, 51(4), pp.1079-1100.
Calo, R. and Rosenblat, A., 2017. The taking economy: Uber, information, and power. Colum. L. Rev., 117, p.1623.
Dudley, G., 2018. Creative destruction and the sharing economy. Uber as disruptive innovation.
Kim, K., Baek, C. and Lee, J.D., 2018. Creative destruction of the sharing economy in action: The case of Uber. Transportation Research Part A: Policy and Practice, 110, pp.118-127.
Kumar, R., 2019. Research methodology: A step-by-step guide for beginners. Sage Publications Limited.
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Leighton, P., 2016. Professional self-employment, new power and the sharing economy: Some cautionary tales from Uber. Journal of Management & Organization, 22(6), pp.859-874.
Mittendorf, C., 2017, January. The implications of trust in the sharing economy–an empirical analysis of Uber. In Proceedings of the 50th Hawaii International Conference on System Sciences.
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Nguyen, H., 2018. Trust in the Sharing Economy: the Case of Uber & Self-driving Cars.
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Ravenelle, A.J., 2019. “We’re not uber:” control, autonomy, and entrepreneurship in the gig economy. Journal of Managerial Psychology.
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Zangirolami-Raimundo, J., Echeimberg, J.D.O. and Leone, C., 2018. Research methodology topics: Cross-sectional studies. Journal of Human Growth and Development, 28(3), pp.356-360.

Appendix

Questionnaire for drivers

Name

Age

30-35 years

35-40 years

40 years and above

Years of experience in Uber?

2-4 years

4-6 years

6 years and above

Do you perceive that Uber is providing you favourable employment opportunities?

Yes

What are the benefits of working with Uber?

Handsome pay

Flexibility in working

Others

Business practices of Uber are effective in terms of earning high revenue within Manchester?

Strongly agree

Agree

Neutral

Disagree

Strongly disagree

Do you think that taxi services of Uber are highly famous in UK and they are preferred by customers?

Yes

Questionnaire for riders