A

Research Project Report

On
“A COMPARATIVE STUDY ON SERVICE
QUALITY OFFERED BY AUTO RICKSHAW &
CABS TO CUSTOMERS IN SURAT CITY’’

Submitted by:
PILLAI VISHAL JAYACHANDRAN

Guided By
MS. NIDHI SANGANI

In Partial Fulfillment of
Bachelor of Business Administration Degree
Affiliated to Veer Narmad South Gujarat University
Vivekanand College for BBA
Academic Year 2024– 2025
 DECLARATION
I, undersigned, hereby declare that the project report is an original piece of work under
the guidance of MS. NIDHI SANGANI. All the facts and figures included in the report
is a result of my own research and investigation and the same has not been previously
submitted to this university or any other university, any other organization, or published
any time before. The information has been collected from genuine and authentic sources.
The work has been submitted in partial fulfillment of BBA degree to Vivekanand College
for BBA, affiliated to Veer Narmad South Gujarat University.

This declaration will hold good and in my wise belief with full consciousness.

Date: Name:

Place: Surat Signature:

 ACKNOWLEDGEMENT
Without acknowledging others, any of the project is incomplete. I would like to grab the
opportunity to thank all those who made this project possible. I, undersigned, express my
gratitude to Veer Narmad South Gujarat University for introducing Winter Internship
Project as a part of BBA Curriculum. It is my great pleasure to have the opportunity to
express my gratitude to Vivekanand College for BBA. Iam highly thankful to my guide
MS. NIDHI SANGANI. It is due to his encouragement and motivation; this project
would have been possible. I am also very much thankful to Dr. Falguni Pandit, Principal
In Charge, Vivekanand College for BBA, for her kind and constant support.

I would like to thank all individuals and institutions who have directly or indirectly
helped me in completing this project.

Date: Name:

Place: Surat March- 2025

 CHAPTER 1
INTRODUCTION TO INDUSTRY
1.1 INDUSTRY AT GLOBAL LEVEL

Meaning of Transportation at Global Level:

Meaning:

Transportation is the movement of people, animals, and goods from one location to
another. It is a fundamental aspect of modern society, enabling trade, communication,
and travel.

Definition:

Transportation is the movement of goods and people from one place to another. It is a
fundamental aspect of modern society, enabling trade, commerce, and social interaction.

Types Of Transportation At Global Level:

1. Public Transit:

 Buses:The most ubiquitous form of public transport globally, buses operate on

fixed routes and schedules, providing affordable and accessible transportation n
cities and towns of all sizes.
 Trains:Rail based systems offer capacity and speed, including: Subways/Metros:
Underground systems common in densely populated cities, offering rapid transit
and avoiding traffic congestion.
Light Rail/Trams: Surface-level rail systems often integrated with street traffic,
providing frequent stops and connecting urban centers.
Commuter Rail: Connecting suburban areas to city centers, facilitating daily
commutes over longer distances.
Ferries: Essential in coastal cities and island nations, ferries provide
transportation across waterways, connecting different parts of a city or region.
2. Private Vehicles:
 Cars: The most common form of private transportation globally, offering
flexibility and convenience, but contributing to traffic congestion and pollution in
many cities.
 Motorcycles/Scooters: Popular in many parts of the world, especially in Asia and
some European cities, offering a more agile and fuel-efficient alternative to cars.
 Bicycles: An increasingly popular mode of transport for short distances, promoted
for its health and environmental benefits, with bike-sharing programs available in
many cities.

3. Shared Mobility Services:

 Taxis: Providing on-demand, door-to-door service, taxis are a common sight in
most cities, often regulated and licensed by local authorities.
 Ride-sharing: Technology-driven services connecting passengers with private
drivers through apps, offering an alternative to taxis and private cars.
 Car-sharing: Allowing individuals to rent vehicles for short periods, providing
access to cars without the need for ownership.
 Bike-sharing: Publicly available bicycles for short-term rental, promoting
cycling as a mode of transport and recreation.

4. Other Modes:
 Rickshaws:Human-powered or motorized, rickshaws are common in some Asian
and African cities, providing short-distance transportation in congested areas.
 Tuk-tuks:Three-wheeled motorized vehicles, also known as auto-rickshaws,
popular in many developing countries, offering affordable and convenient
transportation.
 Cable cars:Used in mountainous areas or cities with steep inclines, providing
unique and scenic transportation.
 Personal Rapid Transit (PRT): Automated, on-demand transportation systems
with small vehicles operating on a network of guide ways, still under
development in some cities.
Characteristics Of Transportation At Global Level:

1. Essential for Daily Life:

 Universal Need: Regardless of location, people need to move within their

communities for work, education, shopping, healthcare, and leisure. Local
transportation fulfills this fundamental need.
 Accessibility Varies: The ease and affordability of local transport, however,
varies drastically. In some cities, it's efficient and accessible to all, while in
others, it's a daily struggle.
2. Mode Diversity:
 Global Modes: While the specific mix varies, certain modes are common
worldwide:
 Walking: The most basic and universal form.
 Cycling: Increasingly popular for short distances, especially in cities with
dedicated infrastructure.
 Buses: A mainstay in most urban areas, offering flexibility and wide coverage.
 Trains/Subways: Crucial for high-capacity, rapid transit in densely populated
cities.
 Cars: Dominant in many regions, offering personal freedom but contributing to
congestion and pollution.
 Taxis/Ride-sharing: Provide door-to-door service, often facilitated by
technology.
 Regional Variations: The prominence of each mode is influenced by factors like:
 Urban Density: Densely populated cities often rely heavily on public transit.
 Infrastructure: Well-developed road networks favor car use, while investment in
rail systems promotes their adoption.
 Culture: Cycling cultures, like in the Netherlands, are deeply ingrained.
 Economics: Affordability of cars and public transit plays a significant role.
3. Shaped by Urbanization:
 City Growth: Rapid urbanization puts immense pressure on local transportation
systems, leading to challenges like:
 Congestion: Traffic jams are a global problem, impacting productivity and
quality of life.
 Pollution: Air and noise pollution from vehicles are major health concerns.
 Accessibility: Ensuring equitable access for all residents, including those with
disabilities, is crucial.
 Planning & Investment: Cities worldwide are grappling with how to plan and
invest in sustainable local transportation to address these challenges.

4. Technology Integration:
 Smart Solutions: Technology is transforming local transportation:

 Real-time Information: Apps provide updates on schedules, delays, and routes.

 Ride-sharing: Platforms connect passengers with drivers, offering on-demand
transportation.
 Electric Vehicles: Growing adoption of EVs aims to reduce emissions.
 Autonomous Vehicles: The future of self-driving cars has the potential to
revolutionize urban mobility.

 Data & Optimization: Data analytics is used to optimize routes, improve

efficiency, and personalize the passenger experience.

5. Sustainability Imperative:
 Environmental Concerns: The environmental impact of local transportation is a
major focus:
  Greenhouse Gas Emissions: Reducing emissions from vehicles is critical to
combat climate change.
 Air Quality: Cities are implementing measures to improve air quality and reduce
pollution.

 Sustainable Modes: Promoting walking, cycling, and public transit is essential

for creating environmentally friendly cities.

6. Social Equity:
 Accessibility for All: Local transportation should be accessible to everyone,
regardless of income, ability, or location.
 Affordability: The cost of transportation can be a barrier for low-income
residents, limiting their access to opportunities.
 Social Inclusion: Well-designed local transportation systems can promote social
inclusion and connect communities.

7. Economic Impact:
 Productivity: Efficient local transportation systems enhance productivity by
reducing commute times and facilitating the movement of goods and services.
 Economic Growth: Investments in transportation infrastructure can stimulate
economic growth and create jobs.
 Tourism: Accessible and convenient local transportation is crucial for tourism,
allowing visitors to explore destinations.
Benefits Of Transportation At Global Level:

1. Economic Growth & Accessibility: Boosts local economies, connects residential and
commercial areas, and provides affordable mobility for all income groups.
2. Environmental Sustainability: Reduces carbon emissions, promotes eco-friendly
transport options, and supports sustainable urban development.
3. Reduced Traffic Congestion: Decreases dependence on private vehicles, integrates
multimodal transport, and improves urban traffic flow.
4. Social Inclusion & Equity: Ensures access for all, including low-income groups,
elderly, and disabled individuals, reducing social inequality.
5. Improved Public Health: Encourages walking and cycling, reduces pollution-related
illnesses, and enhances overall well-being.
6. Enhanced Tourism & Local Business Growth: Improves accessibility to tourist
spots and commercial hubs, boosting local businesses.
7. Cost-Effective & Energy Efficient: More affordable than private vehicles and
reduces reliance on fossil fuels, lowering energy consumption.
8. Supports Smart City Development: Enables better urban planning, digital ticketing,
and data-driven mobility solutions for efficient transport management.

Challenges Faced By Transportation At Global Level:

1. Funding Shortfalls: Many systems struggle with inadequate funding, leading to

deferred maintenance, outdated technology, and limited service expansion. This is
exacerbated by declining ridership in some areas and rising operational costs.
2. Aging Infrastructure: Aging infrastructure, such as tracks, tunnels, and stations,
requires significant investment for repairs and upgrades. Failure to address these issues
can lead to safety concerns and service disruptions.
3. Changing Demographics and Urban Sprawl: Shifting demographics and urban
sprawl patterns create difficulties in providing efficient and equitable service. Traditional
fixed-route systems may not adequately serve dispersed populations, necessitating
flexible and on-demand options.
4. Technological Disruption: New technologies, such as ride-sharing and autonomous
vehicles, present both opportunities and challenges. Integrating these technologies while
ensuring equitable access and addressing potential job displacement is crucial.
5. Accessibility and Equity: Ensuring accessibility for individuals with disabilities and
addressing disparities in service availability and affordability across different
communities are ongoing challenges.
6. Environmental Concerns: Reducing the environmental impact of local transportation
is paramount. Transitioning to cleaner fuels, electrifying fleets, and promoting
sustainable modes like walking and cycling are essential.
7. Safety and Security: Ensuring the safety and security of passengers and employees is
a constant concern. Addressing issues such as crime, harassment, and accidents requires
comprehensive strategies and investment.
8. Coordination and Integration: Effective coordination and integration between
different modes of transportation, such as buses, trains, and paratransit, are crucial for
seamless journeys.
9. Workforce Challenges: Attracting, training, and retaining a skilled workforce,
including operators, maintenance personnel, and planners, is essential for the long-term
sustainability of local transportation systems.
10. Pandemic Impacts: The COVID-19 pandemic has had a profound impact on local
transportation, with reduced ridership and revenue losses. Systems need to adapt to
changing travel patterns and prioritize public health and safety.

1.2 Industry At National Level

Types Of Transportation At National Level

1. Roadways:

Dominant Mode: Roads are the most widely used mode of transport in India, carrying
the majority of passenger and freight traffic.

Extensive Network: The country has a vast network of roads, including national
highways, state highways, and rural roads, connecting even remote areas.

Flexibility: Road transport offers door-to-door service and is suitable for short and
medium distances.

Challenges: Road congestion, especially in urban areas, and the need for better
infrastructure are ongoing concerns.

2. Railways:

Lifeline of the Nation: Indian Railways is one of the largest and busiest rail networks in
the world, crucial for long-distance travel and bulk freight transport.

Passenger and Freight: Railways cater to both passenger and freight needs, connecting
major cities and industrial centers.

Efficiency: Rail transport is generally more fuel-efficient and environmentally friendly

compared to road transport, especially for long distances.
Development: Initiatives like high-speed rail corridors and dedicated freight corridors
are aimed at modernizing the railway network.

3. Airways:

Fastest Mode: Air transport is the fastest way to travel long distances, connecting major
cities within the country and with international destinations.

Growing Sector: India's aviation sector is one of the fastest-growing in the world, with
increasing domestic and international air traffic.

Connectivity: Air transport is essential for connecting remote areas and promoting
tourism and business travel.

Infrastructure: The development of modern airports and air traffic management systems
is crucial for the growth of the aviation sector.

Characteristics Of transportation at National Level:

 Interconnectedness: A national transportation system involves a network of
various modes of transport like roads, railways, waterways, and airways, all
interconnected to facilitate seamless movement of people and goods across the
country.
 Scale and Coverage: National transportation systems typically cover vast
geographical areas, connecting major cities, towns, and remote regions. They
handle a massive volume of traffic, both passenger and freight.
 Infrastructure Intensive: Building and maintaining a national transportation
system requires significant investment in infrastructure such as roads, railways,
airports, seaports, and inland waterways.
 Regulation and Governance: National governments play a crucial role in
regulating and governing transportation systems. They set safety standards,
environmental regulations, and policies related to infrastructure development and
operations.
  Economic Significance: Transportation is a critical component of a nation's
economy. It enables trade, commerce, and movement of labor, contributing to
economic growth and development.
 Social Impact: Transportation systems have a significant social impact,
influencing accessibility to jobs, education, healthcare, and other essential
services. They also shape patterns of urbanization and regional development.
 Technological Advancements: National transportation systems are constantly
evolving with technological advancements such as automation, electrification, and
the use of data analytics to improve efficiency and sustainability.
 Sustainability Challenges: Transportation is a major contributor to greenhouse
gas emissions and environmental pollution. Therefore, sustainable development is
a key concern in national transportation planning.

Benefits Of transportation At Global Level:

1.Economic Benefits:

 Facilitates Trade and Commerce: Efficient transportation networks enable the

smooth flow of goods and services across the country, fostering domestic and
international trade. This stimulates economic growth and creates job
opportunities.
 Reduces Transportation Costs: Well-developed transportation infrastructure
lowers the cost of moving goods and people, making businesses more competitive
and benefiting consumers.
 Connects Markets and Resources: Transportation links producers with
consumers and facilitates access to raw materials and resources, promoting
industrial development and economic diversification.
 Boosts Tourism: Accessible and efficient transportation systems encourage
tourism, generating revenue and contributing to the hospitality sector.
2. Social Benefits:

 Improves Accessibility: Transportation provides access to essential services such

as education, healthcare, and employment opportunities, especially for people in
remote or underserved areas.
 Enhances Social Inclusion: Transportation enables social interaction and cultural
exchange, fostering a sense of community and national unity.
 Increases Quality of Life: Efficient transportation reduces travel time and stress,
allowing people to spend more time on leisure activities and improving their
overall quality of life.
 Facilitates Emergency Response: Reliable transportation systems are crucial for
disaster relief efforts, enabling the swift movement of emergency personnel and
supplies to affected areas.

3. Environmental Benefits:

 Reduces Congestion and Pollution: Efficient public transportation systems can

reduce traffic congestion and air pollution in urban areas, leading to improved
public health and environmental quality.

 Promotes Sustainable Development: Investing in sustainable transportation

options, such as electric vehicles and public transit, can help reduce greenhouse
gas emissions and mitigate climate change.

1.2 Challenges Faced By TransportationAt National Level

1. Infrastructure Gaps and Maintenance:

 Inadequate Infrastructure: Many countries face a shortage of well-maintained

roads, railways, airports, and seaports, hindering efficient movement of people
and goods.

 Aging Infrastructure: Existing infrastructure may be outdated or deteriorating,

requiring significant investment in repairs and upgrades.
  Capacity Constraints: Overcrowding and congestion in transportation networks,
especially in urban areas, lead to delays and reduced efficiency.

2. Environmental Concerns:

 Greenhouse Gas Emissions: Transportation is a major contributor to greenhouse

gas emissions, exacerbating climate change.

 Air and Noise Pollution: Vehicle emissions and noise pollution negatively
impact public health and environmental quality, particularly in urban areas.

 Habitat Fragmentation: Transportation infrastructure can fragment natural

habitats, affecting biodiversity and ecosystems.

3. Safety and Security:

 Road Accidents: Road accidents are a major cause of death and injury, posing a
significant challenge to national transportation systems.

 Security Risks: Transportation networks can be vulnerable to security threats,

such as terrorism or cyberattacks, requiring robust security measures.

4. Economic and Financial Constraints:

 High Investment Costs: Building and maintaining transportation infrastructure

requires substantial financial resources, which can be a challenge for some
countries.

 Funding Gaps: Insufficient funding can lead to delays in infrastructure projects

and hinder the development of sustainable transportation options.

5. Social and Equity Issues:

 Accessibility Disparities: Not all communities have equal access to

transportation services, leading to social and economic disparities.

 Affordability: The cost of transportation can be a burden for low-income

households, limiting their access to jobs, education, and other opportunities.
6. Governance and Policy Issues:

 Lack of Coordination: Poor coordination between different government agencies

and stakeholders can hinder effective transportation planning and implementation.

 Policy Gaps: Inadequate or outdated policies can create barriers to innovation

and sustainable transportation development.

1.3 Industry AtState Level

1. Roadways:

 Gujarat State Road Transport Corporation (GSRTC): This is the primary

public bus service provider, connecting cities, towns, and villages within Gujarat
and also offering services to neighboring states. They have a wide range of buses,
including Volvo, sleeper coaches, and mini buses.

 Private Buses: Many private operators offer bus services, often with more
luxurious options.

 Taxis and Auto-rickshaws: These are readily available in urban areas for shorter
commutes.

 Personal Vehicles: Cars and motorcycles are a popular mode of transport,

especially for individual and family travel.

2. Railways:

 Indian Railways: Gujarat has an extensive railway network connecting major

cities within the state and to the rest of India. Major stations include Ahmedabad,
Vadodara, Surat, Rajkot, and Jamnagar.

 Ahmedabad Metro: Ahmedabad has a metro system that is currently under

expansion, providing a convenient mode of transport within the city.
3. Airways:

 Airports: Gujarat has one international airport (Sardar Vallabhbhai Patel

International Airport in Ahmedabad) and several domestic airports (Surat,
Vadodara, Rajkot, Bhavnagar, etc.). These airports connect Gujarat to major cities
in India and abroad.

4. Waterways:

 Ports: Gujarat has a long coastline and several major ports, including Kandla
Port, Mundra Port, and Pipavav Port. These ports are crucial for international
trade and cargo transport.

 Ferries: Ferries are used to connect coastal areas and islands.

5. Other Modes:

 Cycle Rickshaws: These are still common in some smaller towns and cities for
short distances.

 Tongas (Horse-drawn carriages): These are mainly used for tourist rides in
certain areas.

Characteristics Of Transportation At State Level:

1. Robust Road Network:

 Extensive Coverage: Gujarat boasts one of the most extensive and well-
maintained road networks in India. This includes national highways, state
highways, and rural roads, ensuring connectivity to even remote areas.

 High Road Density: Compared to the national average, Gujarat has a higher road
density, meaning more roads per unit area. This facilitates easier access and
smoother traffic flow.

 Well-maintained Roads: The state government prioritizes road maintenance,

resulting in generally good quality roads that enhance travel comfort and safety.
2. Efficient Public Transportation:

 GSRTC's Wide Reach: The Gujarat State Road Transport Corporation (GSRTC)
plays a crucial role in providing affordable and accessible public transport. Their
extensive bus network connects cities, towns, and villages across the state.

 Variety of Bus Services: GSRTC offers diverse bus options, including express,
luxury, semi-luxury, and ordinary buses, catering to different needs and budgets.

 Growing Metro Network: The Ahmedabad Metro is expanding, providing a

modern and efficient mode of transport within the city and contributing to
reducing traffic congestion.

3. Strategic Railway Network:

 Key Railway Lines: Gujarat is well-connected to the rest of India through major
railway lines, facilitating both passenger and freight movement.

 Important Stations: Major railway stations like Ahmedabad, Vadodara, Surat,

and Rajkot serve as important hubs for travel and trade.

 Dedicated Freight Corridors: The development of dedicated freight corridors,

like the Western Dedicated Freight Corridor, is enhancing the efficiency of goods
transportation.

4. Growing Air Connectivity:

 International Airport: Ahmedabad's Sardar Vallabhbhai Patel International

Airport provides international connectivity, boosting trade and tourism.

 Domestic Airports: A network of domestic airports connects Gujarat to major

cities across India, facilitating faster travel.

 Focus on Development: The state government is investing in airport

infrastructure to enhance capacity and improve services.
5. Strategic Ports and Waterways:

 Major Ports: Gujarat's long coastline is home to major ports like Kandla,
Mundra, and Pipavav, which are crucial for international trade and cargo
movement.

 Coastal Shipping: Coastal shipping and ferry services play a vital role in
connecting coastal areas and islands, promoting trade and tourism.

6. Focus on Infrastructure Development:

 Continuous Investment: The Gujarat government consistently invests in

improving transportation infrastructure, including roads, railways, airports, and
ports.

 Modernization Initiatives: The state is actively pursuing modernization

initiatives in the transportation sector, such as upgrading railway infrastructure
and developing smart transportation systems.

7. Addressing Challenges:

 Traffic Congestion: Like many rapidly developing states, Gujarat faces

challenges with traffic congestion in urban areas. The government is working on
solutions like expanding public transport and improving traffic management.

 Last-Mile Connectivity: Ensuring seamless last-mile connectivity, especially in

rural areas, remains an area of focus for improving overall accessibility.

Benefits Of Transportation At State Level:

1. Economic Growth:

 Facilitates Trade and Commerce: Efficient transportation networks enable the

smooth movement of goods and services, fostering trade and commerce within the
state and with other regions. This boosts economic activity and generates revenue.
  Attracts Investment: Good connectivity and transportation infrastructure attract
businesses and industries to set up operations in Gujarat. This leads to increased
investment, job creation, and economic diversification.

 Supports Industrial Development: Reliable transportation is essential for

industries to access raw materials, transport finished goods, and connect with
markets. This promotes industrial growth and competitiveness.

 Boosts Tourism: Improved transportation infrastructure makes tourist

destinations more accessible, leading to increased tourism. This generates revenue
and employment in the tourism sector.

2. Social Development:

 Improved Accessibility: Better transportation connects remote areas and

communities, providing access to essential services like education, healthcare, and
employment opportunities.

 Enhanced Quality of Life: Efficient transportation reduces travel time and costs,
making it easier for people to commute to work, access amenities, and participate
in social activities, thus improving their quality of life.

 Promotes Social Integration: Good connectivity fosters interaction and

exchange between different communities, promoting social cohesion and
understanding.

3. Environmental Benefits:

 Reduced Congestion: Efficient public transportation systems, like the

Ahmedabad Metro, help reduce traffic congestion in urban areas, leading to lower
pollution levels and improved air quality.

 Fuel Efficiency: Well-maintained roads and efficient transportation systems

contribute to better fuel efficiency, reducing fuel consumption and greenhouse gas
emissions.
  Sustainable Transportation: The state government is promoting sustainable
transportation options like electric vehicles and public transport, further reducing
the environmental impact of transportation.

Challenges Faced By Transportation At State Level:

1. Traffic Congestion in Urban Areas:

 Increasing Vehicle Ownership: Rapid urbanization and rising incomes have led
to a surge in private vehicle ownership, contributing to traffic congestion in cities
like Ahmedabad, Surat, and Vadodara.

 Inadequate Urban Planning: Insufficient planning for urban growth and

transportation infrastructure has resulted in bottlenecks and traffic congestion in
many areas.

 Limited Public Transport: Despite improvements, public transportation systems

in some cities struggle to keep pace with the growing demand, leading to reliance
on private vehicles and exacerbating congestion.

2. Last-Mile Connectivity:

 Rural Accessibility: Connecting remote rural areas to the main transportation

network remains a challenge. Poor road conditions and limited public transport
options hinder accessibility for many rural communities.

 Seamless Integration: Ensuring seamless integration between different modes of

transport, especially for last-mile connectivity, is crucial for efficient movement
of people and goods.

3. Infrastructure Gaps:

 Road Maintenance: While Gujarat has a good road network, maintaining the
quality of roads, especially in rural areas, requires continuous efforts and
investment.
  Railway Capacity: Increasing capacity on existing railway lines and developing
new lines is essential to meet the growing demand for rail transport.

 Airport Infrastructure: Expanding airport infrastructure and improving

connectivity at some airports is needed to cater to the rising air traffic.

4. Environmental Concerns:

 Air Pollution: Increasing vehicle emissions contribute to air pollution in urban

areas, posing health risks and environmental challenges.

 Noise Pollution: Traffic noise in cities can be a significant nuisance and health
concern.

 Need for Sustainable Solutions: Promoting sustainable transportation options

like electric vehicles and public transport is crucial for reducing the
environmental impact of transportation.

5. Safety Issues:

 Road Accidents: Road accidents remain a major concern, highlighting the need
for improved road safety measures, driver training, and traffic management.

 Enforcement of Regulations: Strict enforcement of traffic rules and regulations

is essential to ensure road safety and reduce accidents.

6. Logistics and Supply Chain Challenges:

 Efficient Warehousing: Developing modern and efficient warehousing facilities

is crucial for smooth logistics and supply chain management.

 Coordination and Technology: Improving coordination among different

stakeholders in the logistics sector and adopting advanced technologies can
enhance efficiency and reduce costs.
7. Funding and Investment:

 Infrastructure Development: Continued investment in transportation

infrastructure is essential to address the growing needs and overcome existing
challenges.

 Public-Private
Private Partnerships: Encouraging public-private
private partnerships can help
mobilize resources and expertise for transportation projects.

1.4 Pestel Analysis Of Industry

A pestel Analysis is a framework or tool used by marketers tto

o analyze and monitor the
macro-environmental(External
(External Marketing Environment) factors that have impact on an
organization, company or industry. It examines the poli
political,
tical, economic, social,
technological, environmental and legal factors in the external environment. A Pestel
analysis is used in a SWOT analysis
analysis.

Here Is A Breakdown Of How It is applied to Transportation Industry:

1. Political Factors:
 Government policies and regulations: These include subsidies, taxes, safety
regulations, and environmental policies that can significantly impact the industry's
profitability and operations.
  Political stability: Changes in government or political instability can lead to
uncertainty and affect long-term investments in public transportation
infrastructure.

 Public-private partnerships: The extent of government involvement and the

nature of public-private partnerships can shape the industry's structure and
efficiency.

2. Economic Factors:
 Economic growth: A strong economy usually leads to increased demand for
public transportation as more people commute to work or travel for leisure.

 Fuel prices: Fluctuations in fuel prices can significantly impact operating costs,
especially for bus and rail systems.

 Inflation and interest rates: These can affect the cost of infrastructure
development and financing for public transportation projects.

 Unemployment rates: High unemployment can reduce demand for public

transportation as fewer people commute to work.

3. Social Factors:
 Urbanization: The growth of cities increases the need for efficient and reliable
public transportation systems to manage congestion and facilitate mobility.

 Changing demographics: Shifts in age distribution, income levels, and lifestyle

preferences can influence travel patterns and demand for different types of public
transportation.

 Environmental awareness: Growing public concern about environmental issues

is driving demand for sustainable transportation options, such as electric buses
and trains.
  Safety and security concerns: Public perception of safety and security can affect
ridership and the willingness to use public transportation.

4. Technological Factors:
 Technological advancements: Innovations like electric vehicles, autonomous
driving, smart ticketing systems, and real-time information platforms are
transforming the industry.

 Data analytics: The use of data analytics can help optimize routes, schedules, and
resource allocation, improving efficiency and customer satisfaction.

 Connectivity: The availability of Wi-Fi and other connectivity options on public

transportation can enhance the passenger experience.

4. Legal Factors:

 Environmental regulations: Laws related to emissions, noise pollution, and waste

management can impact the choice of technologies and fuels used in public
transportation.

 Safety regulations: Strict safety standards and regulations are essential to ensure
the well-being of passengers and the safe operation of public transportation
systems.

 Accessibility laws: Regulations mandating accessibility for people with

disabilities can influence the design and operation of public transportation
infrastructure.

 Labor laws: Regulations related to working hours, wages, and unionization can
affect the industry's labor costs and labor relations.
5. Environmental Factors:

 Climate change: The need to reduce greenhouse gas emissions is driving the
adoption of cleaner technologies and fuels in public transportation.

 Air quality: Concerns about air pollution in urban areas are pushing for the
transition to electric or other low-emission public transportation options.

 Resource scarcity: The availability and cost of resources like fossil fuels and
electricity can influence the choice of transportation technologies.

 Natural disasters: Extreme weather events can disrupt public transportation

services and require investments in resilient infrastructure.

1.5 Current Trends In The Industry:

The public transportation sector in India is undergoing a significant transformation,
driven by technological advancements, policy changes, and evolving consumer
preferences. Here are some of the key current trends:

1. Electrification of Bus Fleets:

 A strong push towards electric buses to reduce carbon emissions and combat air
pollution.

 State governments and private operators are increasingly investing in electric

buses, supported by policies and incentives from both central and state
governments.

 As of February 2025, there are about 10,000 electric buses operational in India,
with expectations of a fivefold increase in the next 2-3 years.
2. Improved Infrastructure:

 Focus on developing better infrastructure to support modern buses, including

dedicated bus lanes, bus rapid transit systems (BRTS), and upgraded bus stations.
  This aims to improve efficiency and reduce travel time.
3. Integration with Technology and Data-Driven Decisions:
 Rising adoption of technology, with features like GPS tracking, real-time
passenger information systems, and contactless payment methods becoming more
common.

 Mobile apps for route planning and ticket booking are also gaining popularity.

 Data analytics is increasingly used to optimize routes, manage fleets more

effectively, and enhance service delivery based on passenger demand and
behavior.
4. Increased Involvement of the Private Sector and Public-Private Partnerships
(PPPs):
 Trend towards forming public-private partnerships to improve bus services.

 These collaborations aim to combine public sector resources and oversight with
private sector efficiency and innovation.

5. Focus on Multimodal Transportation:

 Emphasis on integrating different modes of public transport, such as buses, trains,
and metro systems, to provide seamless and convenient travel experiences.

 Development of common ticketing systems and integrated transport hubs to

facilitate easy transfers between modes.

6. Enhanced Safety and Security:

 Increased focus on passenger safety and security, with measures like CCTV
cameras, panic buttons, and GPS tracking in buses.

 Deployment of trained security personnel in public transport vehicles and at

stations.
7. Accessibility and Inclusivity:
 Efforts to make public transport more accessible and inclusive for all, including
persons with disabilities, senior citizens, and women.

 Introduction of features like low-floor buses, ramps, and designated seating areas.

8. Sustainable and Eco-Friendly Practices:

 Growing emphasis on sustainable and eco-friendly practices in public transport,
such as the use of biofuels, CNG, and other alternative fuels.

 Promotion of energy-efficient technologies and waste management practices in

public transport operations.