A Case Study Of Uber: Examining Real-time Information Flow In The Australian Taxi Industry

Background to the study

It has been identified that due to the advancement and innovation of technology, the organizations in the transportation industry have found new ways to speed up their operation. The cab service providers in Australia use the technology to reach their customers and broaden their customer base. Many organizations in the sector have started using the real time information to create a strong influence in the market. The purpose of the study is to examine the use of real-time information in taxi sector of Australia; this means the study focuses on how the cab service providers in Australia uses this real time information by developing a Smart-Phone app and reaching the passengers on the street. It has also been observed that in the recent time, the real time information in the form of mobile application app have largely been accepted by the people in Australia. In other words, the cab service providers in Australia have obtained a large market. However, in order to gain an authentic outcome from the research, the present study considered the organization UBER. This chapter presents the research questions and objective and brief background to the study.

It has been observed that Australian taxi industry has observed a significant growth in the sector due to embracement of technology. The Australia taxi sector plays a significant and unique role in the overall public transport system. According to Nelson and Mulley (2013)  taxis operate on demand, 24 hours a day, 365 days a year, providing door to door services. Each year in Australia almost 20,000+ taxis move more than 350 million passengers and provide gainful work as well as the business opportunities for more than 750000 people directly within the sector. Almost 12% of the taxi fleet is wheelchair accessible. As put forward by Page (2013), taxis plays a significant role in servicing the needs of the community in general and such practice has now been effective as the organizations in the sector have using the digital mode of transportation where they can track the information. Especially, taxis play a mandatory role in the servicing the requirement of the community generally and key sections of the community in particular.

 The organizations in the transport sector have now been able to fulfill these needs more effectively due to the advancement in the technology. As the development of this sector, the ridesharing is a relatively a new class of point-to-point transport. Especially, businesses like Uber, and its competitors include tend to operate in dynamic environment through which the drivers offer their own vehicle as well as matched with the passengers who seek to reach a particular destination (Hughes and MacKenzie 2016). It remains as the distinct point from the traditional taxi service in that ridesharing services only the collect passengers who usually book through their platforms. Another potential impact of the entry of real-time information flow to the Australian market is the rethink by the governments around the regulatory reform of the taxi sector. As put forward by Firnkorn and Müller (2011), the regulatory reform to enhance the consequence in this sector has been urged by a number of significant reviews. Nonetheless, it has also observed that as the cab service providers who use the real time information flow to reach the customers, have been able to gain the control over the large market and as the consequence, such cab service providers set low price for the ride as their market and customer is high. Nonetheless, the investigation conducted in the present study reveals the actual scenario.

Problem Statement

It is observable that taxi industry in Australia experienced significant rush of transportation. It might not be possible for taxi drivers to cover the entire market with the existing practice of offer the cab services. The scenario indicates that the technology is rapidly developing and people have more advanced options to improve their lifestyle. Instead of waiting for long for the cab on the street, they rather prefer the option that saves time and effort. Nonetheless, even Uber provides a relevant transportation with the help of real time information but there are some cases where the passengers have to wait for the cab to arrive (Marshall 2015). This means once the cab is booked through the app, the passengers yet have to wait for the cab to arrive at the pick-up point. Hence, waiting time for the arrival of cab is long, which means cabs do not arrive within the expected time. This certainly affects purchase habit of the consumers. Even though the customers pay a low price for their ride but they do not have reach on time due to the delay in the arrival time.

The major purpose of the research is to examine how cab service providers in Australia are using the real-time information flow to reach the passenger in the transport sector. In addition to this, the research also focuses on the facts such as issues related to real-time information flow. The study also sheds light on how the organizations in such sector are overcoming these issues and leading the operation.

The major aim of the research is to investigate how transportation service provider in Australia to reach the passengers is using real-time information flow. The following are the key objectives that shape the research appropriately.

• To critically investigate the use of real-time information flow in the transportation service of Australia  
• To analyze the impact of app-based cab booking services on traditional taxi market
• To develop suitable strategies for deriving the real-time information about the people in remote areas of Australia

• How do the transportation service providers use the real-time information flow to provide uninterrupted transpiration services?
• How do transportation service providers strengthen their market position in Australian taxi industry with real-time information flow?

It is certain that Australia is certainly effective for the establishment and expansion of business. In addition, economy of the nation is stable and the nation has embraced the technology; thereby, any business is rapidly growing. Moreover, in the recent time, the information technology is also incorporated into the business. However, it is hardly known how transportation sector- taxi industry is being influenced by the information technology. Thus, the present study helps to learn the impact of such trend where the organization use the real time information flow and reach the customers.

Figure 1: Structure of the dissertation

(Source: Self-Made)

It is observed that drivers across the nation are getting used to large amount of digital technology in their cabs. Now, the cab drivers in Australia recently have got the access to real-time traffic information as well as personalized roadside assistance. The recent innovation enabled the automobile to monitor as well as adjust their position on highway and such technology alerts the drivers if they are drifting lout of their lane. However, the organizations recently have become more aware of the use of technology in business. With the help of information technology, the cab service providers are using the real-time information flow, tracking the location of the customers, and providing the required services. It has been observed that several cab service providers in Australia are using this real-time information flow- smartphone app to provide the customers with the services they need on time.

Research purpose

As put forward by Marshall (2015), there are some trends where the cab service providers like Go Catch, Trinetra and others and it is expected that ridesharing could continue to increase its market share over time. The scholars in the previous work have mentioned that if things go like this way, the benefits outlined in the studies could be larger in the coming days. A study conducted by Walton (2014) also indicate that the range of cab services through real-time information in the four large cities of Australia- Gold Coast, Greelog, Canberra and Adelaide have commenced operation. Therefore, it is expected that soon such cab service providers could create a strong position in the taxi sector of Australia. According to Ji et al. (2014), growth of ridesharing could also have other related advantages. For instance, Uber has demonstrated an intention to provide anonymised data to government bodies that could assist urban planner to identify priorities in development on the basis of the commute patterns. Moreover, the additional benefits could be experienced if the car-pooling features of such car service providers were to be introduced in Australia. Based on the previous work, it can be  mentioned that car pooling service of Uber could deliver advantages rising from the increased infrastructure utilization as well as decreased congestion. As put forward by Vishwanath et al. (2014), while ridesharing services are widely considered synonymous in Australia, the idea of ridesharing for predates the establishment of cab service providers. This has also been reviewed in the study conducted by Tedjasaputra and Sari (2016,), real-time information observed a resurgence in the past six years, with the help of the technology enabling a different service. Even though there is no academic consensus as to the definition of this concept, it is possible to discern some particular characteristics. According to Nelson and Mulley (2013), the real-time information use is usually understood as the service provided by the technology based cab service providers provide such as a dynamic platform on which the drivers and the passengers are matched to reach a destination.  

As put forward by Walton (2014), data efficiencies are relevant to decision-making process and it unveils as well as discourages unwanted participants. In the context of hire service, the information efficiency usually appears in the optimal vehicle. As put forward by Firnkorn and Müller (2011) the process indicates that the radio dispatcher signifies the drivers in a serial manner to indicate their availability and exact location signal the zone requested in which the vehicles are running. It is also observed that app-based platforms might contribute to the collection information and here it becomes easy to track the location and send the nearest driver to the location. The real-time information thereby provides the scope for significant enhancement, which increases both speed and accuracy with the technique identified. The real-time information or an app-based device in commercial transport certainly helps to gather as well as process information to assess the drivers and the passengers. Hence, the customers observe drivers courtesy and the condition of the vehicle, which they could send to the platform operator and dissuade opportunistic behavior of the drivers. Significantly, such techniques collect information, which remains difficult to analyze both the opportunistic behavior and the vehicle condition.

Research Aim and Objectives

So, this sort of platform also provides the opportunity for collecting feedback from the customers regarding their experience they had during the ride. Hence, the platform operator could develop the quality of their performance by eliminating those drivers who received negative feedback from the customers (Attard, Haklay and Capineri 2016). Platforms could use the similar system to evaluate customers. For instance, if a passenger appears to be unhygienic, the platform operator could issue warning alert to the future service provider and remove customer’s account. Thus, such practice of identifying the customers remains better than leaving to drivers’ denial to passengers. Furthermore, it is also observed that reputation based system could serve their intended purpose. There are several markets, where the customers could show their courtesy from commerce transport apps and drivers and this might not remain as surprising in the field of available incentive remedy. According to Firnkorn and Müller (2011), if a customer is not happy with a taxi driver in terms of the service, could report to the authority and could file a complaint to the fleet owner. Ji et al. (2014) also raised the fact that many customers do not complain because they believe such complaints do not have large effect or adequate effect and this always remains difficult to file.  Therefore, the submission of a negative evaluation to real-time information provider is easier as well as it certainly provide a noticeable record and answers. In this context,

As mentioned by Moon (2015), from the perspective of a customer and for equal level of quality, few differences may exist in the developed service delivered by taxi. However, the accountability functions of smartphone application could help to ensure the quality of service for the consumers utilizing the platforms because they could enhance the quality of service among the available options by developing a healthy competition.  As put forward by Chu (2015), while some customers could be different to top quality service offered by taxi, the mode of securing a ride remains as the matter to several customers.  Hence, Surie and Koduganti (2016) also mentioned that platform-based service provide larger transparency as well as certainty than conventional modes of access with the inclusion of radio taxis. It is observed that Commerce Transport App could deliver flexibility as well as a certain amount of value to the drivers. The entry of real-time information platform could continue to eradicate the line between the dispatched taxi and hire customer service, which usually begins with phone and radio dispatch signal. Although, CTA platforms fulfilled the market demands till now and some cab service providers as well as taxi owners continue to develop Smartphone enabling application like “Taxi Magic”, which is certainly an oldest mobile phone app for cabs. Conversely, “International Road Transport Union” amalgamates many of these activities through IRU ( A Global Taxi Network).

Research Questions

According to Mulley et al. (2012), the convergence of all such changes increases the question of when and why would current regulatory framework hold differences. As argued by Ter Chian et al. (2015), the conflation of separation for the hire market could provide other scopes to consider how these services need to be applied to reflect current scenarios. Tan et al. (2015,) mentioned that a particular risk exists there to operate the least general denominator and leave the scope for authentic reform in the regulatory system.  

As put forward by Finn (2012), a large proportion of the regulatory framework and social tension covering the establishment of commerce based transport services associated with the fact that they disobey the rules developed to operate cab and PHV service. According to Glöss, McGregor and Brown (2016), the major role of commerce transport app is constrained to turn into a technical intermediary, which could help to keep the customers and cab drivers connected on a regular basis. Thus, this certain view could be sustained by the fact that CTA owns no vehicle as well as employ no drivers. However, Haque, Chin and Debnath (2013) mentioned that some particular regulator could consider the contradictory view that Commerce Transport Associates are the major service providers who have the ability of getting into the competition with the regional taxi drivers but this might not be possible without the implementation of regulations applied to the commercial transport providers. Furthermore, it can be mentioned that CTAs are inappropriately and legally compete with the cab and taxis. It could become easy to turn into a large significant solutions to the questions at hand could pay attention to the particular instances. Hence, the regulations are being breached without providing any logics behind. As put forward by Cunha and Galvão (2014), this could remain as an unhelpful exercise since it does not allow for the emergence of a different regulatory framework identifying the innovation that commerce transport apps bring. Moreover, the participants working in the workshop were urged to first focus on certain principles that may apply for-hire sector in general.

The previous works have only presented the fact that how the organizations in the taxi industry have developed their operation by leveraging the real time information and accessing the large market. However, the studies did not have focus on how real time information is being used by the cab service providers. Instead of focusing on the base of real-time information, the studies have focused on the regulatory framework. The study conducted by Nelson and Mulley, (2013), have presented the fact that cab service providers with the help of real-time information accessing the market and but this study did miss out the possible challenges and issues in implementing the real time information and beating the traditional taxi services.  

Significance of the study

Conclusion 

This chapter has presented the outcome of the previous studies where the scholars have mentioned about the implementation of real time information in the taxi services. The literature also includes a discussion on the regulatory framework in terms of the implementation of commerce transport apps. The journals selected for review are found to be centralized on the commerce transport apps.

This chapter presents the type of research techniques used in the study. It is observed that appropriate implementation of the techniques certainly provides the desired outcome. This chapter describes the research methods, approaches and design intensively. As put forward by Easterby-Smith, Thorpe and Jackson (2012), the methodology is the philosophical framework within which the research is conducted or the establishment upon which the research is based. Snyder (2012) insisted on the fact that methodology needs to be the most appropriate to meet the objectives of the study. This chapter effectively describes how and why selected methodology has been used in the present study. In addition to this, the chapter provides appropriate justification of selecting the methods.

Research philosophy helps to examine the source, nature and the development of knowledge. Even though the idea of knowledge creation could appear to be intensive, the knowledge creation can be tackled. The research philosophy in research project could reflect author’s significant assumption as well as these assumptions serves as the foundation for the research strategy. In general, research philosophy has several branches; however, in business study, research philosophy is divided into four different categories such as positivism, pragmatism, realism and interpretivism. The positivism research philosophy holds the view that only factual knowledge derived through observation and it is reliable. As put forward by Scotland (2012), positivism relies on the quantifiable observation that lead themselves to the statistical analysis. Interpretivism research philosophy helps to interpret the elements of the research project, thereby, interepretivism collaborates the human interest into a research. Furthermore, it is also observed that enhancement of interpretivist philosophy is developed based on positivism in social science.

Figure 2: Research Philosophy 

(Source: Scotland 2012)

The positivism research philosophy has been selected in the present research, as this research philosophy helps to extract the real facts and findings related to the context of the research. For example, in the context of UBER’s initiatives of using real-time information and increasing the customer base, the positivism research philosophy helps to know how the organization is using the smart app. This research philosophy with its own characteristics finds out the issues or the challenges faced by the organization to implement such initiatives. In other words, it can be mentioned that positivism deals with the real world context instead of relying on the existing the theories.

Dissertation Structure

Research approach can be divided into two different types such as deductive and inductive research approach. When it comes to the distinction of these two approaches, the existence and the relevance of the hypotheses remain as the distinctive point (Maxwell 2012). This means that deductive research approach helps to examine the validity of assumption but inductive research approach helps to form new theories as well as generalizations. Furthermore, it has also been observed that in deductive research approach generalize the facts from general to the specific. On the other side, inductive research approach helps to generalize the facts related to the research context from a particular state to the general state (Maxwell 2012). In addition to this, another significant difference found between these two approaches is the formulation of hypotheses, which is usually done and tested by the deductive research approach. Conversely, the inductive research did not include research hypotheses and it starts with research questions and objectives.

Figure 3: Research Approach

(Source: Maxwell 2012)

In the present study, inductive research approach has been selected as the study starts with the research questions and objectives that are relevant to the present research context – Investigation on the use of real time information. Hence, the research question is- How do the transportation service providers use the real-time information flow to provide transpiration services?

Research design is usually divided into three categories exploratory, explanatory and descriptive research design. Exploratory research according to its aims to discover the elements of the research area and it does not provide final as well as conclusive response to the research questions. In addition to this, the exploratory design could change the direction of the research context but not significantly, in accordance to the new evidences obtained during the research techniques. On the other side, the descriptive research design can be described as the statement as simply the attempt to determine and describe what is, while analytical research attempts. As put forward by Kuada (2012), descriptive research aims at casting light on the present issues and problems during the research process. In the present study, descriptive research design has been selected.

Figure 4: Research Design

(Source:  Kuada 2012)

This research philosophy has been effective to non-quantified topic and issues and it provides the possibility to observe the phenomenon in a completely natural as well as unchanged natural environment. In addition to this, the descriptive research design also provides the broader scope for making a broad analysis with the practical data. This study is with associated with the observational study but it is not constrained with the observation and data collection methods.

Literature Review

The data collection techniques are usually divided into different categories namely primary data collection and secondary data collection.

Figure 5: Data Collection Techniques

(Source: Mackenzie 2012)

Secondary data collection remains as the type of the data that has already been disclosed or published in books, journals, article, blogs, magazines as well as online portals. As put forward by Mackenzie (2012), in secondary research, there is abundance of data available in the present sources regarding the research context.  Thus, the application of relevant set of criteria to choose secondary data to be utilized in the study plays a great role in respect with increasing the levels of research reliability and validity. More specifically, these criteria could include but it is usually constrained to the publication, credential of authors and the reliability of the sources. In the context of present study, the secondary analysis has been conducted. Particularly, the data has been collected from books, journals, articles, magazines that include the information regarding the present trends and other reliable sources.

Firstly, the data has been collected from the reliable secondary sources and then they presented with graphs and table. To make the analysis, thematic research method has been applied. During the analysis process, the thematic analysis has been supported with some scholarly journals, books, magazines and other real-world evidences.

The present study includes has certain limitations. The study is restricted to secondary analysis only, which means the study did not include primary data. The study would have been more effective and intensive, if primary data was included in the present study. In addition to this, the study also lacks a comparative analysis, which could have been done between two different organizations in the same sector.

Ethical considerations could be specified as one of the most significant factor of the research. While conducting the research, certain ethical grounds have been followed such as adequate extent of confidentiality of the study data should be gained from the participants prior to the research. In addition to this, anonymity of individual and organizations taking part in the study has been ensured. All sort of communication in respect to the research context has been done with the honesty and transparency. It has been ensured that the data collected for the study has only been used for academic research purpose. In order to protect the confidentiality of the data, the principles of Data Protection Act 1998 has been considered in the study.

Potential for growth

Main activities/ stages	Month Aug-2017	Month Aug-Sept-2017	Month Sept-2017	Month Sept-Oct-2017	Month Sept-Oct-2017	Month October-2017
Topic Selection	ü
Data collection from secondary sources	ü	ü
Framing layout of the research		ü
Literature review		ü	ü	ü
Formation of the research Plan			ü	ü
Selection of the Appropriate Research Techniques				ü	ü
Primary data collection					ü	ü
Analysis & Interpretation of Data Collection					ü	ü
Conclusion of the Study						ü
Formation of Rough Draft						ü
Submission of Final Work						ü

Conclusion 

This chapter presents the set of research techniques that have been used in the study. Among different research philosophy, positivism research philosophy helps to derive the hidden truth from the fact and it provides broader scope for observation. Likewise, the inductive research approach helps to carry forward the research on the basis of research questions and objectives.

This chapter presents the data that have been collected for the analysis. For conducting the analysis, thematic analysis method has been applied to the present study. The data has been linked to the findings of the previous studies. This means while conducting the analysis, the data has been supported with the scholarly journals, books, magazine, blogs and other secondary sources. It has been identified that hardly a research has contested the popularity of commercial transport apps, nonetheless the discussion underscored the fact that the much of the popularity and demand of such service are related to the transactional efficiencies provided by the app-based platforms. The previous works have provided the following ways that help to understand how app-based platforms help the cab service providers in Australia to acquire a large market.

Theme 1: “Use of floating car survey link data to real time data use in transportation”

As put forward by Kumar et al. (2016), floating car survey has long been used by the road agencies to gather information regarding the information about the average travel speeds as well as travel conditions across the network. Hence, the network coverage developed by UBER  is supposed to cover the budget constraining the number as well as operational scope of survey vehicles. A study conducted by Anable (2012), usually proved that methods did not provide real-time information. On the other side, the GPS data, by contrast, provide real time augmentation or the replacement with larger network coverage. Hence, the transport owner UBER use the estimated travel times on road networks that come into two varieties and one of them is being fixed sensors on the side of the road such as magnetometer detectors or the highway concerns. UBER developed a floating car data are position fixes of vehicles travelling the streets throughout the day. With such devices, UBER access the large Australian market.  It can be mentioned that as Australia market is technologically developed, the cab service providers like UBER has been able to gain a large market share.

Figure 6: Growth of Uber in the transportation sector

(Source: Kumar et al. 2016)

Theme 2: “Growing popularity of Uber in Australian taxi industry” 

As put forward by Visentin (2017), about one third of Australian residence are using the ride-sharing service; however, there has been no drop in the business for country’s taxis. A survey conducted by Visentin (2017), mentioned Uber seems to be appearing to be capitalizing on growing amounts of trips considered in Sydney through a point to point transport. In a survey of more than 2000 Sydneysider in December 2016, conducted by ABC News (2017), on Regulatory Tribunal implies that almost 33% of the customers have mentioned that they use a ride-sharing service such as Uber, GoCar, GoBuggy in the last six months. The outcome demonstrated that almost 19% of the customers said the same in 2015 and 11% in 2014 (ABC News 2017). Therefore, it can be mentioned that ride-sharing service certainly strengthened their position in the market. Likewise, the popularity of these services has also been observed in the regional centers such as Newcastle, Wollongong as well as Gosford. In all these regions, the use of such service increased to 18%, which doubled the level observed in 2015.

Years	Use of ride sharing transport service in percentage (%)
2014	11%
2015	14%
2016	33%

Table 1: Percentage of ride sharing service in Australia

(Source: Visentin 2017)

Graph 1: Growing percentage of ride sharing transport service in Australia

However, Visentin (2017) mentioned that if the outcome of the survey is analyzed, it can be observed that none of the customers is exclusively using the ride sharing service. People maintain a balanced approach to how they access point-to-point transport service. On the other side, the survey indicates that only 28% of normal taxi users considered that they were getting adequate values in comparison with 75% of ride sharing users.  

Theme 3- “New Traffic data source embedded with the real time information use”

Use of new traffic data sources from the roadside wireless traffic sensors technologies like the microwave radar technologies that measure the traffic fixed on the road network, to GPS, GSM as well as the Bluetooth data sources. This could provide the real time measures of traffic as well as the road operating conditions across the whole network. In addition to this, Zuluaga (2016) mentioned that GPS-based HTS could provide more intensive and potentially more intensive data. Hughes and MacKenzie (2016) mentioned that road-side traffic sensors could help to operate through wireless detection of vehicle at the highway site. This experimental study has proved that these sensors provide a less-intrusive alternative to road pavements or the surface based sensors. Hence, the common road-side sensor traffic sensor technology may include microwave rader, acoustic sensor, video image detection as well as lidar and active infrared sensors. Here, the radio frequency identification RFID tags also work effectively to form the transport communication.

Figure 7: Uber revenue gap

(Source: Hughes and MacKenzie 2016)

Theme 4- “Commercial transport Apps”

According to Marshall (2015), the commercial transport apps developed by UBER take the advantages of technological advancements to better match passengers with available vehicles. The major significant element of such vehicle is the global navigation system services such as the GPS, mobile based sensor platforms, commercial navigation service and  open digital maps. All these applications and devices developed by UBER helps facilitate the actions for the customers and drivers who use such apps and the user are usually connected and registered with centralized app-based platforms to remain connected. For example, client requests for a trip and the nearby driver accepts the request. . Hence, the prospective customers could specify their destinations as well as could evaluate the appropriate and anticipated fare. Similarly, when the request for a ride is matched through the platforms, the prospective customer might observe the arrival of the cab to the request location, which means the pick-up point.  During this process, the passenger could see the name off the driver, license plate number and contact number. . According to Ji et al. (2014) the information about the expected arrival time and the route is shown using a network map to the customers. When the trip is finally completed, the app automatically calculates the fare and processes the transactions. Once the payment is done, both the client and the driver could rate each other, which will be used for evaluation. For example, hence, if the behavior and attitude of the driver is not professional or inappropriate, the client could give poor rating; thereby, app-based platform operator could enhance the performance by responding to customer’s dissatisfaction such as eliminating the driver from the service.

Figure 8: Traffic data to traffic information

(Source: Surie and Koduganti 2016),

Furthermore, it is also studied the research conducted by Moon (2015), apart from the data regarding registered clients, the drivers and the clients, such platforms could store the data of the trip including a pick-up and the drop location. As put forward by Surie and Koduganti (2016), the commercial transport apps are not usually registered as well as are elements involving both distance and time despite the fact that Uber provides flat rate for some specific service. According to Mulley et al. (2012) some particular CTA could apply peak period multipliers to the fundamental fare modulating the demand as well as attracting few more drivers to take up services to fulfill the peak demand. In the real context, it is usually seen that the applicable rate multiplier is finalized to the passengers before they complete the booking. Furthermore, it is also observed that dynamic pricing is usually caped in cases of local emergency. Hence, Vishwanath (2014) mentioned that Uber builds a national partnership collaborating with the “American Cross” to restrict the multiplier when the need is identified and share the rides to the community events

Theme 5: “App-based platforms changing the mobility market”

Minimizing transaction cost

As put forward by Tedjasaputra and Sari (2016), UBER developed a app-based software platforms which reduces the cost of finding a perfect match to process and complete the transaction. Particularly, platforms remove the cost of dispatchers and omit the specialized equipment such as the purpose built radios, credit card and credit card processors and taximeters as the service provided by these could be provided through via-mass produced smartphone as well as centralized services. In addition to this, by minimizing the cost of communication, platforms permit more relevant information to be communicated to the customers and to derivers. In this context, Surie and Koduganti (2016) mentioned that app-based platforms could show a driver’s face, license, vehicle plate to passengers as well as customers’ to the drivers. Such process certainly helps both parties- driver and the passengers to identify each other. According to Finn (2012) where a passenger is concerned by a delayed may have called a phone dispatcher to inquire and receive potentially inaccurate data about the location of the vehicle. As app-based platforms is embedded of the real time information, it could continuously provide continuous real-time localization updates minimizing the uncertainty as well as anxiety related with waiting for a taxi on the street.

Theme 6-“Enhanced allocation of resource”

Software platforms could enhance the efficiency and in fact, they could increase relevancy of work by the cars over the course of the day matching with supply and demand. Therefore, they could promote the efficient use of resource by ensuring that expensive asset remains active. The enhanced efficiency is not just the domain of commercial transport app. As put forward by Haque, Chin and Debnath (2013), taxi that employ app-based platforms could also achieve enhanced efficiency. Hence, a significant thing that needs to be considered is thee algorithmic skills in matching real-time request for rides with available drivers with the scale effects. A study conducted by Page (2013) discovered that commerce transport app drivers under UBER spent a large share of their time with the passengers on board than the taxi drivers do in the same sector and this thing could hold true for distance driven. Developed algorithms, large-scale effect as well as inefficient regulations damaging taxis as well as more flexible labor supply were mentioned as factors explaining commerce transport apps’ larger occupancy performance.

Hence, Cunha and Galvão (2014) mentioned that a different source of allocated efficiency usually appears by placing the same vehicles to many customers. Furthermore, it has also been studied that a driver could use a cab for personal use in some particular time of the day and he could use it particularly for business at other times of the day. As mentioned by Walton (2014) commerce based apps motivates the part-time drivers to drive vehicles when the demand is peak to increase the allocated efficiency. It has also been identified that drivers may avoid the commute, by personal vehicle or public transit to select the dedicated vehicle from a particular depot. Instead of this, a driver could begin services from home as well as any other location. This could minimize the commuting time as well as the cost for the drivers and enhance the service availability to the passengers. It could minimize the impact of congestion. Going forward, the replacement of advance booking with the real-time adjustment also provides the potential efficiencies. In the earlier stage, a driver would decline a booking close to a future commitment; however, the on-demand platforms could allow for continuous adjustments. It has also been found out that scale effect minimizes the latency in dealing with these requests. Such progresses facilitate larger utilization of cabs, with the including less time without a passenger and less time waiting, and both of these could minimize the price to customers while dealing with the payment. In addition to this, Marshall (2015) mentioned that by leveraging the benefits of efficient algorithm as well as concentrated computational energy, the software platforms capable of offering the services that could be ineffective. These advances could allow commerce to accommodate and coordinate the pick-up, shared ride as well as the drop of multiple unrelated parties with the minimal time penalties. However, it could be difficult to conceptualize the radio dispatchers gathering as well as organizing enough data regarding the customer requirement as well as the vehicle location to provide a similar service.

Conclusion 

The study has been conducted on the investigation of real-time information used by the cab service providers in Australia. The introductory chapter of the dissertation shows the relevance of the study presenting the popularity of smartphone apps. The introductory section of the study presents the facts that people in Australia embrace the advancement of technology in the transportation services. In the literature review, it was found that cab service sector in Australia has observed a tremendous growth due to the entry commercial transportation apps service providers. The literature claims that as people in Australia have access to technology such as smartphone, they always prefer the easiest options, which are provided by the cab service providers like UBER and Go Catch.  In the third section of the study, the research techniques such as positivism, inductive research approach and other relevant methods that are used in the study have been presented. The findings indicate that commercial transport apps owner like UBER with the help of the technology use the real time information track the location of the passengers and reach the pick-up point. In addition to this, the findings indicate that UBER implements the Information Technology embedded with the technological devices like GPS and GSM to keep the track of the passengers.

Objective 1: To critically investigate the use of real-time information flow in the transportation service of Australia  

This particular objective focuses on the real-time information flow that has been used in the transportation services in Australia. Hence, the literature review indicates that transport industry- especially, the taxi industry in the nation has observed a sudden and significant growth due to the advancement and the implementation of technology. The literature review also indicates that ride-sharing practices in the transportation certainly increase the popularity real time information use. The previous works have demonstrated a relationship between blurring consumer and the regulatory lines.  In addition to this, previous studies also paid attention to the regulatory framework in the use of commercial transport apps. On the other side, the findings did not include any facts related to the regulatory framework. Moreover, the findings talk about the supply and demand of commercial transport apps services.

Objective 2: To analyze the impact of app-based cab booking services on traditional taxi market

This objective focuses on the impact of app-based cab booking services on the conventional taxi sector. The literature review indicates that due to the use of real-time information flow in the form of commercial transport apps. This means the traditional taxi sector has negatively been affected by such new trend because the commercial transports apps owners acquire the large market due to its capacity of reaching the wide market. In addition to this, the commercial transports apps owners provide more sophisticated as well as an enhanced service compared to the traditional taxi drivers. Thus, due to the quality of services and less of capability of covering the market affects the traditional taxi service providers.

Objective 3- To develop suitable strategies for deriving the real-time information about the people in remote areas of Australia 

This recommendation is on the development of suitable strategies for obtaining the real-time information regarding the people in the remote areas of Australia. The literature review indicates that even though the commercial transports app is a relevant and an easy option for the people in Australia when they need to hire a cab, the arrival time to the pick-up point is much, which certainly affects consumer-buying behavior. The following strategies have been provided to deal with such issues.

The above-mentioned discussion in theme 1 indicates that due to the ride sharing services in Australia, the traditional taxi sector is lagging behind. The percentage of profits continues to go down. Therefore, to back the sector, the traditional taxi service providers could implement the following suggestion.

“Get Appier” at the same fare

The traditional taxi service providers could follow an app-based approach, which includes some quality coding. Such practice could go a long way to acquire the customers, as it would make easier to perform. This means the app should indicate where nearby cab rank and the location of a booked car. The taxi sector also needs to focus on the advertising to launch this new service. However, the fare for the service should not increase; if the price is high, the new service does not make any difference. To acquire, the market, the taxi sector should keep the price low for the rides. 

Development of the smart apps

To minimize the required time between when the cab is booked and the time when the cab reached the pick-point, the app can be developed in a way where that resolves this issues. More specifically, the apps should be designed in a way where the customers can book the most nearest cab. This will certainly reduce the waiting time. This means that cabs should not be allocated on a randomly; instead, they should be allocated on a logical manner. For example, if a driver is passing through the downturn of Adelaide, the consumer should get the nearest cab passing by him in the downturn of Adelaide.

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