CHAPTER ONE

ABSTRACT

Ola Bike, UberMoto and Rapido have been making the most of traffic congestion, narrow lanes, poor
public transport systems and lack of last-mile connectivity in India. The bike taxi services offered by
these players have of late seen an uptick here. According to data from PGA Labs, bike taxi service is
now a $150 million market, growing at 20% month-over-month. The growth has been attributed to
the consumer’s need for affordable means of transportation.

Riding the wave

Rapido was the first to introduce bike taxis in India back in 2015, followed by Ola and Uber in 2016.
According to PGA Labs, Rapido is the largest player in this market today, with 50% share, while Ola
Bike commands approximately 25% share, and UberMoto and other players own the rest. The
business model of these players involves tapping the large pool of two-wheeler owners in the
country. According to data from the Society of Indian Automobile Manufacturers, 2.1 crore two-
wheelers were sold in India in FY 2018-19.

“Two-wheelers are the most widely used vehicles in India; using them, ride sharing can be scaled up
to every city in the country. We want to solve this fundamental need with the existing infrastructure of
two-wheeler owners, instead of adding new two-wheelers on the road,” says Aravind Sanka, co-
founder, Rapido.

Rapido operates in over 80 cities, and has plans to expand to 200 cities by the next year. Its
competitor Ola Bike, meanwhile, claims to be present in 200 cities, where it has partnered with over
three lakh bike partners.

Because bike taxis are more affordable than cabs, and can zip through congested roads, they are
popular among millennials. On an average, a bike taxi ride costs `60-70, whereas a cab ride costs
`200 for the same distance.

In tier I towns, the service is used frequently for last-mile connectivity. In Gurugram, for instance, one
out of every two UberMoto trips begin or end at a metro station; in Noida, the same is true for one
out of every four UberMoto trips.

“Bike taxis are a convenient, reliable, affordable and safe first/ last mile solution for riders,” says an
Uber spokesperson.
 INTRODUCTION

India is one of the fastest growing economies in the world. There has been
rapidcitie increase in urban population in last three decades and the rate of
urbanisation has further increased. Public transport was not able to keep
pace with the increase in demand, which led to an increase in private
transport in the last two decades. As per Vahan digital register, there are
around 195.6 million registered digitised vehicles in India as of 31 July 2016.
However, around 75% of the registered vehicles are motorcycle / two-
wheelers in India. This clearly shows that the demand of mobility is very
high. 

No. of two-wheeler in India (Per 1,000 Inhabitants)

Travel to Work – Indian Census 2011

According to Indian Census 2011, 25.5 million (13% of total trips)

people use two-wheelers to reach their workplace daily. If we
extrapolate the number for 2015 based on vehicle registration, then it
is estimated that 38 million trips are being performed by two-wheelers
to reach to workplace on daily basis. It is important to note that above
numbers does not include personalised trips. (Total numbers of Trips –
200.4 million per day). The numbers of two-wheelers is high in big
metropolitan cities, mainly due to insufficient public transport and
higher income level. 
Travel to Work – Indian Census 2011

Bike Taxi – An alternative to growth of two-wheelers

Till 2015, Goa was the only state in India which allowed bike as public
service vehicle. Haryana joined the league by introducing bike taxi
scheme for individuals and corporates. Under the scheme, individuals
can register two-wheelers as commercial vehicle and can work with
corporate to accept bookings. The service has become quite popular
and serving first and last mile connectivity. The regulation allowed the
startup to enter into this area and created a new category in India.

Mizoram was the third state in India to accept bike taxi as a mode of
transport. In June 2016, Government of Mizoram has issued the
guidelines of bike taxis. To begin with, 200-250 motorcycles will
operate on the roads from July. Passengers will be charged INR 10 for
the 5 kms and INR 5 for every subsequent km, as per the government
fare structure.
West Bengal has become the next state to legalise bike taxi. The
government has issued a draft notification legalising bike-taxis in the
satellite township, New Town, near Kolkata. It is expected that
transport authorities will come out with the final notification by
September 2016. Under the draft notification, the authority will issue
area-based Letter of Intent to operator owing a fleet of 15 bikes. The
operator shall maintain a daily log for each of these motorcycles used
for commercial purposes and submitted to the police.

Some of the operators are operating in other cities like Bangalore and
Mumbai, which still do not allow bike taxis in a legal form.  However,
it is expected that other states will issue similar regulations to
legalize bike taxis.

Impact of Bike Taxi

Most of the cities are afraid that bike taxis are not safe for commuters.
Furthermore, the authorities are apprehensive that it is not a safe
mode of transport for women. However, it is important to highlight that
bike taxis have emerged as an alternative transport option in South
East Asian countries like Indonesia, Thailand etc.

The average running cost of motorcycle is just INR 4-5 per km (US$
0.10) and has a life span of 15 years. If the company launches electric
scooters in future then the cost will further decrease. This will make
the service affordable to masses. In certain case, it will be cheaper or
equal to public transport system. Furthermore, the average trip length
is less than 10 km in India and makes it easier for the commuters to
ride motorcycle.

Bike Taxi Companies in India

Cities in Numbers
Company Name Funding
Operation of Bikes
 02

-- --
(Gurgaon /
Bangalore)

01
-- --
(Bangalore)

02
US$1.5
500
(Gurgaon / million
Noida)

01
100 Undisclosed
(Gurgaon)

02
US$ 0.5
150
(Gurgaon / million
Noida)
 01
25 --
(Gurgaon)

01
-- --
(Bangalore)

01
100 --
(Mumbai)

01
50 --
(Bangalore)
 01
-- --
(Bangalore)

01
-- --
(Bangalore)

01
-- --
(Delhi)

01
200 --
(Kolkata)

 
WHY BIKE-TAXI
The space for bike-taxis essentially emanates from the ubiquitousness
of the 2Ws on the Indian roads, as well as the principle of shared
mobility.
• With 2Ws constituting the single largest category of privately-owned
vehicles, these are the most readily available assets on the roads that
can be immediately utilised for shared mobility purposes;
• The ergonomics of a utility bike may not make it desirable for long-
distance travel but for shorter trip lengths. Bikes hold potential to
become an important first-mile-last-mile connectivity option, feeding
efficiently into existing public transport modes and bolstering their
riderships and utilisation;
• Bike-taxis address the gap of affordable transport for commuters;
• With 80% of the bike-taxi market residing in small towns and cities
with a population of less than 1 million each (Abrar, P., 2019), bike-taxis
can become a ubiquitous mobility service in India’s hinterlands and
thereby fuel the engine of economic growth;
• With costs as low as INR 5-6 per km4, bike-taxis present an affordable
choice to users for short distance travel;
• With an average speed of 30 kmph and their ability to occupy less
space on roads, bikes can better navigate through traffic. This also
presents a compelling use case for emergency services;
• Further, bikes when doubling up as bike-taxis act as an alternative for
private vehicle users, and thus reduce the demand for parking spots in
a city and help cities optimise the use of land;
• With ‘hyperlocal’ emerging as the new pattern and doorstep
deliveries becoming increasingly common, bike-taxis can augment
incomes of delivery persons by offering another source of income
through passenger travel. with these intuitive benefits and a large
market to serve, it is no wonder that startups keep emerging to tap into
this potential.
CHAPTER TWO
 REVIEW OF LITERATURE
INTRODUCTION

An extremely important area which is the backbone for any research

as it provides the entire information pertaining to the problem and objectives.
Reviews consisting to antecedents of the App pertaining to the trust of customer
and the digital mode of retention of flow in digital era service quality, customer
trust, satisfaction, and commitment in Digital mediating to customer retention
As Bike Taxi is a new concept so there no as such researches have been done in
past on the topic. So I am writing the review of literature on Cab and Radio Taxies.
These Researches focuses on market potential of taxies.

Abdul Wahid Khan et.al. (2016) the study determines the factors of consumer full
filling the desire needs with excellent services in existing products in Indian taxi
services. The target customers are categorized into three criteria the first one is
trendy and a tech savvy customer the second one is Urban travellers and the third
one is Luxury. Attributes of service quality were been identified tangibles,
reliability, responsiveness, assurance and empathy.
Adewole et.al (2016), states that transportation service can be chosen in advance
by using app through smart phone, the services have spread with an Android
based applications. It helps the person intermediate between passenger and
driver. The user has the option to choose the car which he/she wants the model
integrated with google maps. The study helps to improve the quality of app for
future guidance of travellers to travel easy.
Charoen (2015), the investigation is based on the business model of Grabtaxi to
know the competitive advantage with the application used to utilizes the global
position system that directs the customers location and track the route with
safety. The study is useful to the customer’s ease of use by using app through the
quality of service with safety and tapping the large network strategy.
Kishore and Ramesh (2015) point out the relationship between the comforts of
mobile app for booking the cab services and analyzed the influencing factors of
booking cab services with innovative behaviour that download app for taxi
booking. The study showed that with the service quality and trust of customer
made satisfaction
Kiran and Saptarshi (2017) the investigation of the reearch is based
on radio taxi travel to identify customer satisfaction of cab services in India. The
well-structured questionnaire is framed and analyzed with the SPSS software. The
model which was developed by Parasuraman, Zeithaml and Berry (SERVQUAL).
The consumer expectations with service quality research gap with consumer
perception are compared with the variables of tangiblity, reliability,
responsiveness, assurance and empathy. It’s considered a high potential for tier-
1, tire – 2 and tire -3 cities. It was founded that the result of service provider with
comfort and cheap and convenient mode of intercity and even intra city.
Khupse (2017) the investigation is based on the taxis that provide a large number
of benefits. The mobile based app is frequently used by the travellers with
comfort, economy, and safety and convince base. Only the app using respondents
have been chosen for the study with well-structured questionnaire. Here the data
collected from the 150 app used respondents.
Mai and Ngo (2016) today transportation services play a main role in urban areas,
changes in the taxi industry with innovation and downloading app has made it
easy to travel safely to any designation point. The research carried with cross
sectional study compared with model of SERVQUAL and IDCTP Model. A well-
structured questionnaire was framed with five point likert scale based on ten
dimensions. The study found variables as direct and indirect relation. The direct
method were identified by unstandardized regression coefficient (β). The indirect
method identified by multiple regressions. The study results customer satisfaction
affects 99% with
confidence level that’s found positive.
Shilvia et.al (2017): stated that the investigation is based on service
quality of online transportation focused in the technology aspect. The sample size
of the respondents 1670 are all Indonesians majority of the respondents belong
to the gender data collection were conducted in the year of March 2017 to April
2017. It was found that most of the users are in the age group of 20 – 30 the
factors which influence the people who know to use the app, who are capable of
adopting new technological development, the higher weight are perceived
quality, system availability, privacy, trust, perceived risk and content adequacy.

Venkatesh and George, (2015) research analysed the performance measure of

aggregator services. It helps to identify the taxi aggregators to improve their
customer satisfaction in their quality service. The taxi services is also known as
ride sourcing services. It was found that for Uber and Ola in India with the
development of technology the aggregator’s gives right information to the right
person in right time. The performance is based on criteria, responsiveness,
flexibility, reliability, tangibles, profitability, and cost resource utilization. The
study resulted that App creates service quality, satisfaction and retention
Literatures on App Usage in Cab And Bike Taxi Services
Emmanuel and Solomon (2015) the study based on customer
satisfaction towards the mini cab service in Ghana examined with six variables to
know the relationship based on the customer satisfaction. The variables are 1.
Continuous services, 2. Comfort, 3. Affordability, 4. Safety, 5. Reliability, 6. Driver
behaviour. The statistical tool of Pearson correlation was used and they found
positive significant relationship in consumer satisfaction. The questionnaire is
framed by using the RECSA model.
Gooi Sai Wenga,(2017), The study is based on the investigation with focus on
mobile application service, based on taxi booking by the consumers. The data was
collected from 387 users of respondents in Malaysia in central part of Kuala
Lumpur. A well-structured questionnaire was framed and divided into two parts,
the first part contains the demographic information, the second part contains
Technology Continuance Theory (TCT). The mobile app is perceived positively and
easy to use by the customer’s continuous usage MTB Apps (mobile taxi booking).
There are two models used one is PLS and SEM models which helps to know the
results of measurement model. PLS is used to know the possibility of relationship
among the constructs. The study supports the effects of subjective norms with
the attitude towards using the app of MTB.
Mona Bhalla, (2018) the investigation traces the taxi market with the
growth of taxi market in India. It analyses the growth of taxi aggregators along
with factors and the study helps for better understanding the future of taxi
market in India. Organized sector player starts in the year 2000 organized by
mega cabs and established in the year 2006 - 2007 followed with the model of cab
ownership. The study focused on the result that App is making a new stream of
life in the retention of customers
Utsav Pandya, Rishi Rungta, Geetha Iyer, (2017) stated that buying
vehicles is not possible for all for day to day work commitment. Hence taxi is used
for transportation by lakhs of Indians. Here the study focuses with private taxi and
public taxi market as it helps to understand the variables like technology, trends,
safety, comfort ease of availability, tariff and flexibility of available time. The
result of the study showed App is the convenient way that make the customer
immerse in the digital mode of taxi booking
Andrew (2015) on the role of digital marketing Appon consumer
behaviour identified 5 different kinds of themes such as Digital Culture, Mobile
Environments, Digital Adverts, e-wom and Digital environments has prominent
influence into the present situation of marketing the company and its goods to
the customers. The article also attained a clear cut identification that in present
digital App world, to make the customer more attract and bring them towards the
provider, service quality , trust and satisfaction have to be offered at expected
level

Adewumi et.al (2016) booking transportation service in advance by using app by

using of smart phone the services spread with an Android based application it
helps the person intermediate between passenger and driver the user have the
option to choose the car which he/she wants the model integrated with google
maps the study helps to improve the quality of app for future guidance of
travelers to travel easy.
Aghdaie et al. (2011b) made research on antecedents affecting Trust in Internet
purchasing via Appfrom the perspective of consumers, they made a study on the
variables were framed by adopting technology adaptation model developed by
Davis (1989). Their study analyzed the factors that were deeply affecting
customer trust. Using correlation technique they found that there was a positive
relationship between Information Quality, Perceived Usefulness and customer
trust.
El –Gohary (2010) researched in the article, relating to a past view
point of research point and strategies related to the study on Digital Marketing
App and the article winded up by saying different techniques and new
methodologies were implemented in E-commerce; Digital App has got high
prominence in the retention factor of customer.
Eid (2011) researched, the factors affecting customer trust on empirical research
in e-commerce App in Saudi Arabia. He came out with a new research stating that
information quality, user interface and security are the factors which directly
affect trust in a mediating in digital app
Ganguli and Sanjit (2011) researched on generic technology based
service quality dimensions (ServQual) in banking. It was been able to identify that
quality and satisfaction of customers have got a very high significant and a very
wide positive impact that is happening to the customers on their retention to the
field.
Ghane et al. (2011) empirically investigated the causal relationship between e-
satisfaction, e-trust and e-service quality on e-commitment, in ebanking as an
aspect of B2C on app context. Data was collected from 121 customers and to test
the model. The findings showed that e- service quality, esatisfaction, and e-trust
had strong effect on e-commitment.
Hamadi (2010) illustrated the cause and effect relationship between perceived
quality, satisfaction and commitment in online banking app. The antecedents of
perceived quality were the design of the site, ease of use, privacy, information
quality, financial security, gain of time and interactivity. The study also revealed
that customer satisfaction influenced commitment positively.
Heidt (2011) described a theoretical model of the four main antecedents of e-
trust, e-value, e-satisfaction and e-commitment in digital business streams. Data
was collected from 391 customers in Indonesia through web-based, self-
administered survey. The results explained that e-trust had positive influence on
e-commitment. E-satisfaction had a stronger impact on ecommitment which
affects retention of customer in e-business.
Hu et al. (2011) researched on the effect of service quality on customer
satisfaction and customer commitment in medical services via app in Taiwan. The
authors tested and verified the relationship between three qualities attributes
namely, customer satisfaction, customer complaints, and customer commitment,
tyhe study was been brought up into through the use of SEM and AMOS software.
Jones et al. (2010) made a research on the impact on the forms of customer
commitment through digital apps; the forms were namely, normative, affective,
and continuance on customer repurchases intention. The study results indicated
that affective commitment is the most important factor for customer responses
and repurchase intention.
Labareque et.al (2013) researched to get an input on the consumer behaviour of
digital marketing. The authors were able to identify the behavioural aspect of
consumer in the digital marketing field especially in channels. The article
researched the consumer behaviour and Digital Media app in the internet as
mediating ones out of the channels. A theoretical framework was framed namely
on usefulness, information, demand, quality and network were been able to get
ideas on the research
Maliheh et.al (2012) authors researched and created up an article on
electronic service quality on behavioural intentions’ of customers based on digital
marketing, to identify the service sector company. The article was able to identify
that the factors service quality has a direct impact on customer trust which is
making the new digital marketing prominently on app generation business more
in new electronic marketing era
Parvel Ciprian (2015) the conducted a research and the article aimed to identify
on how to do the Digital marketing in a much more efficient and effective manner
through digital channels mainly app. The findings says that 86% of the company
marketers were said that Digital Media is a prominent factor for business and 89%
suggested that increased exposure is the main benefit of Digital marketing
through apps
CHAPTER THREE
 Research Methodology

Research can be defined as the search for knowledge or any systematic

investigation to establish facts. The primary purpose of Descriptive research is to
provide an accurate description or picture of the status or characteristics of a
situation or phenomenon and hence the same is adopted in this study. The
Convenience sampling method is followed in-order to collect the data through the
structured questionnaire from the respondents. The sample size so arrived at is
75 respondents forming part of customers of call taxi service in Bareilly.
Sources Of Data-
The data for the study have been collected from primary sources Primary data
have been collected through questionnaires send to various people of different
age groups, gender and location.
Universe Of The Study-
The universe consists the customers which are in contact with the researcher
which are 75 in number are selected at convenience for the purpose of the study.
Sample Size And Sample Unit-
For the study a sample of 75 respondents has been selected on the basis of
convenient sampling for the purpose of the research.
Sampling Techniques-
For the study convenient sampling technique method has been applied on the
basis of filling the Questionnaire through my contact numbers. The questionnaire
was send as a Google form to all respondents which are in my contact.
Data Collection Techniques-
The data for the study has been collected through applying the following
techniques:
Direct Personal Interview and Investigation through questionnaire.
Data Representation Tools-
The data collected are classified, tabulated and represented through chart and
bar diagram.

OBJECTIVES OF STUDY

•To find out the customer preference towards the Bike-taxi services.
•To find the level of convenience and comfort with Bike-taxi services.
•To know their opinion about the tariff system and promptness of
service.
•To ascertain the customer view towards the driver behaviour and
courtesy.

RESEARCH DESIGN

A descriptive research design is adopted in order to conduct the study. This design
was found the most suitable for understanding the consumer’s buying decisions,
views, expectations and experiences with online shopping, particularly to know
the select product categories like mobiles, apparels, personal care, electronic
gadgets and footwear product categories. There is a general feeling that
descriptive studies are factual and very simple.

HYPOTHESES
H01: There is no significance difference in awareness of the customers towards
Bike taxi and other Cab services.
H02: There is no significance difference in perception of the customers towards
Bike taxi.
H03: There is no significance difference on demographic factor of the customers
towards Bike taxi.
H04: There is no significance difference on the promotional factors influencing to
the customers on usage of Bike taxi
H05: There is no significance difference in awareness of the customers in
preferences by the customers towards usage of Bike taxi.

LIMITATIONS OF STUDY

1. The study was carried out to understand the customer opinions, views and
experiences pertaining bike taxi in Bareilly and nearby area. Hence this is a
limitation of the study.
2. The sample selected may not represent the universe and hence, there could be
some differences between the study and actual practices.
3. The study has emphasized only individual customer’s for book riding bike taxi.
4. In spite of the above limitations, the study throws some light on understanding
customer opinions and experiences of riding bike taxi in particular and others in
general. Since the study was exploratory in nature, it is expected that this will
pave the way for further research in the area.