Vehicle fleet size: 1200
Location: North America
Buyer: Part Owner Operator- Part COOP
Uber came into the market and drove down this organization’s revenue by 35%. They lost drivers, they lost clients and their cost per booking went up.
Market was changing rapidly and owner operators were looking to generate revenue by having flexibility in dispatching platform, ability to save cost, expanding to different business models, and configurable system to allow them focus on passenger satisfaction but still be fair to drivers and keep them happy.
They leadership met at an offsite to come up with ideas and broke down their ideas into two major categories. Generate revenue, save costs.
- Spend money on advertising
- Promote and focus on corporate customers and customer retention
- Replace the system that can automatically shift between customer needs and driver fairness based on time of the day or areas of the city
- Partnership with other business models such as Paratransit, delivery, hotel booking kiosk, etc to generate more revenue for the taxi company
- Shift cost
- Outsource call center
After a number of meetings a few options came to light:
- Outsourcing dispatch was something, that definitely needed to be looked at further.
- Advertising was going to be way too expensive, and there is no guarantee on the impact.
- Focusing on corporate , may help, but will not necessarily be a long term solution .
- Realized can’t achieve partnership without having a flexible dispatch solution
- Changing to a configurable dispatch system, would allow flexibility to operate business and to shift focus between passenger and driver needs.
So, what next? Decision made to move forward on three major next steps, immediately. .
- Move to a PathFinder dispatch system
- Configure the system on time and zone based to focus on passenger satisfaction and fasted pick up on busy times or special events and allow drivers to operate on zone based on less busy time to achieve both driver fairness and customer satisfaction
- Starting partnership with other business units to have multiple source of bookings
After moving to the DDS PathFinder System. There were able to increase their booking by 30% by serving paratransit jobs. Also, by configuring the system, they could reduce their service time and assign right job to right driver which resulted in higher customer satisfaction and increase in driver’s revenue.
Note: This not an actual case study of a customer. This is an amalgamation of a number of similar types of customers that have moved to DDS.