This report investigates the effects and influence of Uber’s market entry in the greater Lisbon area. More specifically, the study evaluates the resulting impact on “Generation Y”’s perception of traditional taxi services. Based on the findings of the research, the report suggests concrete managerial implications to the traditional taxi industry.
The overall research was designed to derive insights based on both, qualitative and quantitative approaches. The qualitative research was performed with two focus groups and created the foundation for the quantitative research, which was executed using an extensive online questionnaire with 94 participants. Both approaches targeted respondents classified as “Generation Y”.
Core findings include the most significant attributes to evaluate traditional taxi services. Most importantly, the price, the friendliness of the driver and security were highlighted. Moreover, the overall satisfaction of customers is further determined by attributes such as availability, comfort and payment process. It must be considered however, that taxi services are rated significantly different among Uber users and non Uber users. As the former have ranked taxi services significantly worse than non Uber users, it can be concluded that the recent market entry of Uber influences and changes “Generation Y”’s perception of traditional taxis. The complementing finding that Uber services have been evaluated significantly more positive among the all respondents impressively emphasizes the thread for traditional taxis in the greater Lisbon area. The emerging competitor Uber is perceived as superior, even among the non Uber users.
Both, the qualitative and quantitative analysis revealed that the traditional taxi industry currently faces major problems related to the lack of trust, transparency and security of the services, as well as the limited options of payment methods. For the time being, this leaves the services’ availability as the only competitive advantage of the traditional taxi industry. In order to secure its competitiveness in any market scenario, it can be concluded that the industry needs to adapt its core services with regards to multiple service features. With a focus on “Generation Y”, the taxi industry must introduce tools and mechanisms to enhance and control transparency, foster the acceptance of credit cards as a payment method and ultimately drop prices to a perceived fair and competitive level.
Table of Contents
EXECUTIVE SUMMARY
INTRODUCTION & RESEARCH PURPOSE
QUALITATIVE RESEARCH
TARGET GROUP
METHODOLOGY
SUMMARY OF RESPONSES
FIRST INSIGHTS INTO THE RESEARCH QUESTIONS
INTERMEDIATE STATEMENT
QUANTITATIVE RESEARCH
TARGET GROUP
METHODOLOGY
STATISTICAL ANALYSIS OF RESPONSES
General habits (regarding use of Taxi / Uber services)
Performance ratings (Taxi and Uber services)
Profile of respondents
SUMMARY OF RESPONSES
CONCLUSIONS
MANAGERIAL IMPLICATIONS
LIMITATIONS AND FURTHER RESEARCH
Research Objectives and Themes
The research examines the impact of Uber's market entry in the greater Lisbon area on "Generation Y" consumers, focusing on their satisfaction and expectations regarding traditional taxi services to derive actionable managerial improvements.
- Analysis of consumer perception shifts between traditional taxis and Uber.
- Evaluation of key service attributes like price, security, and friendliness.
- Assessment of the competitive dynamics and market entry effects in Lisbon.
- Identification of gaps in service delivery (trust, payment methods, transparency).
- Development of managerial strategies for the traditional taxi industry to regain competitiveness.
Excerpt from the Book
INTRODUCTION & RESEARCH PURPOSE
The current debate about the presence of Uber in the Portuguese taxi industry raised attention to an ongoing conflict, as the traditional services fear nothing less than the loss of their competitive advantage.
Looking to revolutionize the way we travel and commute, the tech startup’s impact rises with its rapid and continuous expansion around the globe. (Fortune, 2014) Recent research suggests, that Uber and the concept of ridesharing in general meet a latent demand for educated young adults looking to travel in urban areas. Addressing similar needs of the traditional taxi industry’s customers, Uber appears to slowly shift from a complementary service to a powerful, direct competitor for fast point-to-point services. (Rayle et al., 2014)
In this context, this study examines the effects of Uber’s market entry on the consumers’ level of satisfaction and expectations towards taxi services from their managerial perspective. Thus, the main objective of this study is the introduction of concrete alternations in taxi service’s attributes, based on the current customers’ satisfaction and needs in the greater Lisbon area.
Summary of Chapters
INTRODUCTION & RESEARCH PURPOSE: This chapter outlines the market conflict between Uber and traditional taxis in Lisbon, defining the study's research objective and established hypotheses regarding "Generation Y".
QUALITATIVE RESEARCH: This section details the focus group methodology used to identify core consumer needs and the initial gaps in traditional taxi service quality.
QUANTITATIVE RESEARCH: This chapter describes the electronic survey conducted among 83 valid participants to confirm qualitative insights and perform statistical attribute analysis.
STATISTICAL ANALYSIS OF RESPONSES: This comprehensive section breaks down consumer habits, performance ratings, and psychographic profiles to isolate key influencers of satisfaction.
CONCLUSIONS: This chapter synthesizes findings to validate the research hypotheses, confirming that Uber is perceived as superior and highlighting the urgent need for industry adaptation.
MANAGERIAL IMPLICATIONS: This chapter proposes specific strategic actions for the taxi industry, including the adoption of mobile rating systems and modernized payment methods.
LIMITATIONS AND FURTHER RESEARCH: This final section acknowledges constraints such as the specific target demographic and geographic focus, suggesting paths for broader future studies.
Keywords
Uber, Traditional Taxis, Lisbon, Generation Y, Consumer Satisfaction, Market Entry, Service Quality, Ridesharing, Managerial Implications, Quantitative Analysis, Qualitative Research, Trust, Transparency, Security, Payment Methods
Frequently Asked Questions
What is the core focus of this research?
The research investigates the influence of Uber's market entry on how "Generation Y" in Lisbon perceives and evaluates traditional taxi services.
What are the primary themes analyzed in the report?
Key themes include consumer habits, satisfaction influencers (price, security, friendliness), service transparency, and the competitive threat posed by digital platforms.
What is the main objective of this study?
The objective is to provide concrete managerial recommendations for the traditional taxi industry to adapt and improve its service attributes to remain competitive against new digital rivals.
What research methodology was employed?
The study utilized a mixed-methods approach, combining qualitative focus groups with a quantitative online survey analyzed via SPSS.
What does the main body of the work cover?
The body covers target group profiling, performance ratings of current taxi services compared to Uber, and statistical models identifying what drives customer satisfaction.
Which keywords best characterize this work?
Key terms include Uber, traditional taxis, Lisbon, Generation Y, customer satisfaction, service quality, and managerial strategy.
Why are Uber users more critical of traditional taxis?
The findings suggest that exposure to Uber's superior technological interface and transparent pricing sets higher expectations, making traditional taxi deficiencies more noticeable.
Is the lack of credit card access a significant barrier for users?
While focus groups initially pointed to credit card access as a barrier, the quantitative analysis showed that it is not the primary explanatory factor for why some users have not tried Uber.
- Citar trabajo
- Benyi Heider (Autor), Carla Sofia Simões (Autor), Ivana Cizmar (Autor), Marvin Burmester (Autor), 2016, Uber versus taxi. Generation Y´s perception of taxi and Uber services in Lisbon, Múnich, GRIN Verlag, https://www.grin.com/document/320886
