Question

In: Economics

1. On-demand taxi service is a relatively new phenomenon that many believe is potentially disruptive of...

1. On-demand taxi service is a relatively new phenomenon that many believe is potentially disruptive of the traditional transport services in Ghana. Explain at least five features of this phenomenon that differentiates it from the traditional transport services and also makes it preferable.

Solutions

Expert Solution

On-demand taxi have made structural changes to an d industry that functioned much the same way it did decades ago. Individuals need of a taxi had to physically wave at a taxi or call a local service to reserve a car at least half an hour prior to the pickup time. These on demand taxis have several distinct advantages and disadvantages over traditional taxis.

  • Convenient and Cashless:- Instead of chasing down a car at street or waitng half an hour for a called service a e- hail app users are able to hail a car at any location and have it arrive within minutes. passengers credit card is make use for payment.
  • Competitive pricing:- Generally on-demand taxis are less expensive than traditional taxus and car services.
  • Safer and more Flexible for Drivers :- Drivers working with on-demand taxis ensure safety for the passengers and themselves. Because the transaction is cash less a driver doest face any unpaid fares. Consistently low ratings or report of unsafe behaviour towards drivers can cause deactivation of account.
  • 'Surge pricing' for on-demand taxis or 'prime time pricing' is controversial and a major annoyance for the customers. Surge pricing is a method of pricing in the lower market that involves raising or lowering of price depending on supply and demand. Here it deals with how many cars are available ( supply ) and how many passengers want to ride in them( demand). Depending on the intensity of demand the prices for the services may increase by several percentage.
  • Negetive impact of price competition:- Price competition can be destructive for any industry. In case of on-demand taxis, they are directly competing with existing traditional car services for both customers and drivers.This has led to drop in taxi medallion and black car prices in cities. That is good for drivers but bad fir for traditional taxi and cae service groups.

Rahul Sunny answered 8 months ago
Next > < Previous

Related Solutions

City Taxi Service purchased a new auto to use as a taxi on January 1, Year...
City Taxi Service purchased a new auto to use as a taxi on January 1, Year 1, for $20,800. In addition, City paid sales tax and title fees of $1,390 for the vehicle. The taxi is expected to have a five-year life and a salvage value of $6,980. Required a. Using the straight-line method, compute the depreciation expense for Year 1 and Year 2. (Round your answers to the nearest whole dollar amount.) b. Assume the van was sold on...
City Taxi Service purchased a new auto to use as a taxi on January 1, 2018,...
City Taxi Service purchased a new auto to use as a taxi on January 1, 2018, for $36,000. In addition, City paid sales tax and title fees of $1,200 for the vehicle. The taxi is expected to have a five-year life and a salvage value of $4,000. Using the straight-line method, compute the depreciation expense for 2018 and 2019. Assume the van was sold on January 1, 2020, for $21,000. Determine the amount of gain or loss that would be...
Energy demand management is a relatively recent phenomenon. What are the principal driving forces of energy...
Energy demand management is a relatively recent phenomenon. What are the principal driving forces of energy demand management? Explain. “Saving a unit of energy consumption saves lot more energy in nature” Do you agree or disagree with this proposition? Illustrate your argument using a numerical example.
Customer Profitability Analysis and Management How is this relatively new advancement in management accounting potentially a...
Customer Profitability Analysis and Management How is this relatively new advancement in management accounting potentially a useful and powerful tool? What types of data must be captured and tracked that traditionally was not measured? How would this affect the way we prioritize certain customers vs. others and the way we price and provide services? (Side note: for those of you who travel by air frequently as I do, how does the recent strategy of traditional airlines like American and Delta...
Speedy Taxi Service purchased a new cab for $33,500. It is expected to have a salvage...
Speedy Taxi Service purchased a new cab for $33,500. It is expected to have a salvage value of $1000 and a life of 3 years. The cab is expected to be driven 150,000 miles over those three years. It has been driven 30,000 miles in year 1 and 20,000 miles in year 2. Compute the annual depreciation for the first two years under each of the following methods: Straight Line Units-of-Activity Double-Declining If you were the owner of the Taxi...
On January 1, Year 1, the City Taxi Company purchased a new taxi cab for $90,000....
On January 1, Year 1, the City Taxi Company purchased a new taxi cab for $90,000. The cab has an expected salvage value of $38,000. The company estimates that the cab will be driven 200,000 miles over its life. It uses the units-of-production method to determine depreciation expense. The cab was driven 45,000 miles the first year and 102,000 the second year. What would be the depreciation expense reported on the Year 2 income statement and the book value of...
On January 1, Year 1, the City Taxi Company purchased a new taxi cab for $90,000....
On January 1, Year 1, the City Taxi Company purchased a new taxi cab for $90,000. The cab has an expected salvage value of $38,000. The company estimates that the cab will be driven 200,000 miles over its life. It uses the units-of-production method to determine depreciation expense. The cab was driven 45,000 miles the first year and 102,000 the second year. What would be the depreciation expense reported on the Year 2 income statement and the book value of...
The demand for personalised point-to-point passenger transportation (traditionally known as “taxi”) service is given by P...
The demand for personalised point-to-point passenger transportation (traditionally known as “taxi”) service is given by P = 100 − Q where P and Q are the price ($ per hour) and quantity (in hours) of taxi service, respectively. There are infinitely many people who are willing to supply taxi service as long as they can get $30 per hour for driving a taxi. In other words, the market supply of taxi service is horizontal at P = 30. All passengers...
1) With regard to demand, Alfred Marshall          a.      believed that the phenomenon known as diminishing...
1) With regard to demand, Alfred Marshall          a.      believed that the phenomenon known as diminishing marginal utility had little to do with downward-sloping demand curves.          b.      stated that “the amount demanded increases with a fall in price, and diminishes with a rise in price.”          c.       declared consumer surplus non-existent.          d.      all of the above. 2) It was Alfred Marshall who pointed out that elasticity of demand tends to be great(er)          a.      when a good has...
A good with many close substitutes is likely to have relatively demand, since consumers can easily...
A good with many close substitutes is likely to have relatively demand, since consumers can easily choose to purchase one of the close substitutes if the price of the good rises. A good’s price elasticity of demand depends in part on how necessary it is relative to other goods. If the following goods are priced approximately the same, which one has the least elastic demand? A home heating system in Canada Diamond necklace The price elasticity of demand for a...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT