The project analyses the operations of Cab Gett Company in the market. The report provides with the history of its origin and the things the company is doing to become a leading taxi company. The research also looks into the available competitors and how the company is strategizing to outdo them in the market of transportation through different means such as constant pricing, good customer relations and many more others. The marketing mix of the company is also studied including the 7 P. The analysis hereby finds the strengths, weaknesses, opportunities and threat that affect the functioning of the Gett cabs.The research seeks to find the importance of employing technology in the transport sector.
Company Overview
Cab Gett COmpany, formally called GetTaxi, is a high demand transportation company that provides customers with transport services (Orpaz June 7, 2012). Customers order taxis or couriers through the website of the company or using a smartphone application of the company which is GPS-based. The application was originally developed and marketed by Cab Gett Company. The app is available to Android and iPhone users on Google store and app store. Gett operates currently in 100 plus major destinations across the United Kingdom, the United States of America and Israel and Russia (Attard, Haklay and Capineri, 2016). The costumers request for a cab through the company’s web or through an app in the phones having indicated their destinations and their starting points. The company’s system is the one that calculates the prices as per the distances and other factors considered through a certain route. The company is growing very fast due to its good customer relations and fairly cheap prices as compared to its competitors like the Uber. In London, Gett is the main taxi service provides since half of the black cabs in the city joined it making the firm major taxi service provider in the city. Gett Company involves the sharing of a car by more than one person which makes the system economical to use.
Competitive Advantage
Gett is trying to lure customers from other transportation companies like Uber through its relatively lower and fixed prices. Gett was launched in 2010 by Waiser and silently entered cities in the United States of America, Russia, and Israel. The company used the Uber surge pricing which leads it to a rise in its fare prices (Wood et al. 2017). Gett is not just challenging Uber on pricing across the industry, rather, it finds a competitive advantage in its stability of prices and the customers are never required to pay above the cost quoted as the ride begins. The amount a customer is required to pay for a particular route through Gett, for example, between his residence and workplace remains constant regardless of the factors in between the journey (Kavadias, Ladas and Loch 2016). The company’s pricing is affordable and it offers lucrative transportation activities. In countries where it operates, Gett services are available to everyone in need, and most of its activities and impressive development come from about 2500 corporate users accounts by which companies request for rides for their employees and customers (Attard et al. 2016). When the company was launched it curved up different cities to zones and provide fare ceilings for travels starting and ending within the same areas to attract businesses to sign up. The company wins a lot of customers signing up to their system because of their constant prices regardless of the duration of the ride, time of the day, or any other factor. The fare remains the one calculated by the company’s system during the start of the ride (Kavadias et al. 2016). A change in route to the same destination will not affect the fare agreed at the beginning. Gett does not rebuke completely the idea that motivation is necessary for drivers to remain in their jobs even during the worst times of the day. While Uber increases its charges during odd riding hours without increase pay to drivers, Cab Gett Company pays the drivers more from its account to motivate them to remain on the road. Gett drivers get compensated depending on the amount of time operated and the pay they receive may fluctuate as pricing level increase. Gett leverages its data expertise to set fairly reasonable fares ensuring that it loses less money than it makes. When using app’s system, fares can be cheaper during times when other taxis are charging the most expensive, such times are often when people travel the most. The opportunity to invade into Uber’s territory comes right away through the pricing (Yulia 2016). Once customers start to realize that they can ride around the city at any time they wish to even at odd hours of the day and during peak hours at the same fare during as normal time, returning to other high priced firms will be an impossible activity for one to do (Wood, Parry, Carruthers and Rose 2017). Gett depends on same quality services offered by their competitors that it too provides but with a difference in customer service and prices. People will choose the cheaper one but offers quality services which make the newcomer in the industry turns into a brand. Gett Company believes in making small profits many times rather than exploiting the few available customers in their service. The company in their last advertisement campaign it is expected that Uber is about to lose their valuable costumers to the new upcoming champion in town (Yulia 2016). Gett went against all odds to challenge Uber dominance in London as it has partnered with many black cab drivers to in order to provide services to the people in the city.
SWOT analysis of Gett Company
Strengths
weaknesses
opportunities
Threats
It is well organized.
The Apps connect the customer and the driver.
It records the distance covered and amount of fare paid by the customer (Orpaz June 7, 2012).
Cannot prevent imitations hence at risk of competition from newcomers in the market with similar services.
Cab Gett can venture into other countries like those in Africa and Asia.
Some countries have legal policies against Gett and similar projects.
Has high standard services. The customer service level is of a high standard as the drivers are quality oriented.
The future of the business is unpredictable.
Taxi markets are changing unpredictably due to the introduction of new cabs company and change in technology (Orpaz June 7, 2012).
The firm can exploit rural areas without taxis.
High competition leads to a decrease in prices and hence low profit.
Low operation cost which results in the low-profit-margin.
There are privacy issues
Introduction of electric cars which are cheaper can reduce the cost
Introduction of self-driving cars can be a threat to Gett
Has become a brand and a household name in countries that it operates.
There is no bonding between the customers and the company.
Gett can venture into other areas of the transport industry, for example, providing emergency services during illnesses.
Drivers are not happy of the low-profit-margin registered by the company.
Marketing mix
Product
Gett Cab Company provides its consumers with transportation services across different cities in the United States of America, Russia, Israel and the United Kingdom. The company boasts of a good costumer-relationship that it has and the level of integrity displayed by the drivers (Mohammad 2015). Gett makes sure that most of the customer needs are met and the clients are comfortable with the services rendered to them. The company puts the customer first before everybody to ensure that it grows to the top of the game. The security of the client is guaranteed because the company application shows the identity of the driver on board. A good service or product from a company acts as an advert for the company (Khan 2014).
Place
With the use of the company's app on their phones, consumers can order for the services of the Gett company cabs and within a very short time, a driver comes picking the costumer for the ride. Gett’s services are available in almost every place in a city that has been launched. The company ensures that there is no wastage of the costumer’s time by allowing the nearest company’s vehicle is then sent to pick the customer. This ensures convenience and more effectiveness of the service delivery to the consumers who depend on it for transport (Khan 2014). Most of the Gett company’s clients are corporate staff hence there is a need to keep time when delivering them to their destination.
Price
To compete effectively and win over costumes to one's side, the firm should be wise on the pricing of the products and services. Despite the fact that the law of demand and supply is mostly the one to determine the price, going against the law and setting a lower price that leaves you with a small profit but many costumes are essential. The firm wins new costumes into the market when it set a lower price than other competitors while maintaining the same good quality of service delivered to the clients. Gett Company is not left behind in this trick of price reduction to lure potential consumers into its side. While Uber may be providing good quality services to its clients, such services could come with an extra dollar lost by the client to the company (Orpaz June 7, 2012). Gett’s prices are far much lower than of Uber and thus it attracts more people to its side. One more important point on Gett’s prices is the fact that there is a consistency in their fares. Their fares do not change as by the factors encountered in between the ride like in the case of Uber. The price that the system calculates from the starting point to a destination is the same regardless of the time of the day or any other factor that other companies could use as a good excuse to exploit their customers.
Promotion
Gett Company does advertising in the respective cities that it operates. It also involves itself in public relations and social media advertisements. All these help the company to increase its empire in areas that it operates and hence an increase in profits. Creative adverts that catch the attention of a potential customer forcing him or her to try your product or service are chosen to help it increase its customer base and overcome the threat of competition.
People
Just like any other company, Gett Company relies on people to make it possible for service delivery to clients (Hashim and Hamzah 2014). From the management to the drivers, they are all important in the running of the company. To ensure good and effective service delivery is done, the company ensures that the right people have chosen all the fields that they are best at. For example, those members of staff that have the best marketing skills are assigned to marketing while the best drivers are employed (Mohammad 2015). The right people in a company leads to a higher productivity as compared to when substandard staff is employed.
Processes
Service delivery process to the clients is amongst the best in Gett Company, how the customer is served is part of the payment deal. A poor service should be followed by an equal pay while a good service delivery should be paid accordingly. The security of the process of delivery to is essential because the lives of the company's clients and property are precious (Hashim and Hamzah 2014).
Physical evidence
Gett provide physical evidence of payments through receipts, a customer should have a copy of the same for the sake of inquiries and complaints to the company.
Recommendations
Gett Company is a fast growing transportation company into an on-demand taxi service, and for it to grow into a competitive company there are a few things that it should work on. First, it should increase its area of coverage area in countries that it operates or even advances to other continents outside Europe and America. The company need to train its drivers annually to ensure they are aware of all the traffic rules. In addition, Gett needs to increase social media advertisement to capture more young customers in the industry. The company should partner with other shareholders in the industry to help it achieve more in the market.
Conclusions
Gett Company has made the transportation activity cheaper through a healthy competition in the market and more convenient in the cities that it operates on. There is a need to expand such a project like Gett to other countries that do not have such services because they are secure and cheaper than the normal taxi. The use of technology in the Gett services makes them effective and safe for those who ride on it. The company has the best customer service in the tax industry. It applies the marketing strategies to create awareness of its services in the market.
References
Attard, M., Haklay, M. and Capineri, C., 2016. The potential of volunteered geographic information (VGI) in future transport systems. Urban Planning, 1(4), pp.6-6.
Hashim, N. and Hamzah, M.I., 2014. 7P's: A Literature Review of Islamic Marketing and Contemporary Marketing Mix. Procedia-Social and Behavioral Sciences, 130, pp.155-159.
Kavadias, S., Ladas, K. and Loch, C., 2016. The transformative business model. Harvard business review, 94(10), pp.91-98.
Khan, M.T., 2014. The concept of'marketing mix and its elements (a conceptual review paper). International journal of information, business and management, 6(2), p.95.
Mohammad, H.I., 2015. 7PS marketing mix and retail bank customer satisfaction in northeast Nigeria. British journal of marketing studies, 3(3), pp.71-88.
Orpaz, Inbal (June 7, 2012). "Get Taxi raises $20 million to enter New York market". Haaretz
Wood, Z., Parry, G., Carruthers, J. and Rose, K., 2017. Assessing the impact of digital innovations in the London transportation network.
Yulia, T., 2016. Internationalization strategy of Internet transportation network companies (iTNCs): Cross-country case study of Uber Technologies Inc.
