Mytaxi (Intelligent Apps Gmbh) Extension from Germany to the Philippines Essay

Original paper is full of Appendices. You may get in touch with me if you would like to have a copy of the FULL VERSION – with external links, charts, images, etc. PROJECT PROPOSAL: myTaxi HOME COUNTRY: Germany TARGET COUNTRY: Philippines OBJECTIVE: To expand the usage of the myTaxi (Intelligent Apps GmbH) application to Filipino Smartphone Users-Taxi Drivers PRODUCT INFORMATION Developed by Niclaus Mewes and Sven Kuelper in 2009, myTaxi is a Smartphone application that directly connects Taxi driver and passenger, enabling more efficient pick-up and drop-off transportation services. CATEGORY: Travel / Transportation TARGET USERS: Taxi Drivers, Taxi Passengers, Taxi Corporations CURRENT MARKETS: (Domestic) Germany: Berlin, Bonn, Cologne, Dortmund, Dusseldorf, Frankfurt, Hamburg, Hannover, Leipzig, Munich, Nuremburg, Stuttgart, Sylt (Regiocentric) Vienna: Austria Spain: Barcelona, Madrid Poland: Warsaw (Geocentric) Washington D. C. , United States of America Currently Under Development In: (Germany) Augsburg, Braunschweig, Bremen, Darmstadt, Essen, Heilbronn, Gera, Kaiserslautern, Karlsruhe, Kassel, Leverkusen, Mainz, Offenbach, Potsdam, Salzburg, Wiesbaden, Wurzburg Domestic Market Conditions (2012): Number of Taxi Passengers Per Year: 260 million est. Total Revenue in Taxi Fares: 2. 6 billion Euros – – – Number of Mobile Subscriptions: 114. 2 million Smartphone Market Penetration: 53% Number of 3G/4G Subscriptions: 53. 2 million 3G Market Penetration: 65% REQUIREMENTS: Smartphone (Android or iOS), Internet (at least 500 MB) AVAILABILITY: iTunes (Apple Store) for Apple ; Google Play for Android PRICE: For Passengers: FREE DOWNLOAD (Application) Standard Taxi fares apply with no additional costs for using myTaxi (Transportation Service) For Drivers: 2,75% (net) for every service mediated via myTaxi HOW IT WORKS: For Passengers : Immediately upon opening the application, myTaxi uses GPS to pin point the user’s location. The app will then locate all of the available myTaxis in the area. The user can then send a pick-up request, as well as specify a destination (optional). Once a pick-up is confirmed, the user can see the driver’s information: name, vehicle registration, as well as his rating from other myTaxi users. The user can then track the progress of the Taxi until it picks him up. For Drivers: Taxi drivers need to register with myTaxi in order to be part of the system. This can be done via the myTaxi application, at a myTaxi office, or on the mytaxi. net website . Upon acceptance of a pick-up request, the driver receives the application user’s mobile number in case of extenuating circumstances, such as a traffic jam. FEATURES : †¢Favorite Drivers: Drivers can not only be rated, but also be saved and prioritized for future trips. Fare Calculator : Cost transparency via the integrated fare calculator that may be used before booking a trip. †¢Flexible Payment Options: Users can pay with cash or use credit, debit, or even PayPal. myTaxi has pioneered the cashless and even cardless payment of Taxi trips through the application . †¢Advanced Booking: Bookings can be made up to four days in advance of the user’s desired pick-up date, time, and place. †¢Personalize d Booking Options: Eco-taxis, 5-star Taxis, Airport trips, Luggage, Pet-friendly Taxis, Number of expected passengers TERMS AND CONDITIONS: For Passengers : I. Performance of myTaxi II. Second amendment and termination of service III. Availability IV. Liability V. General Obligations of the user VI. Responsibility for Content VII. Final Provisions For Taxi Driver : I. Gratuitous services of myTaxi II. Settlement of mediation services III. Payment IV. Amendment and termination of service V. Availability VI. General obligations of the user VII. Obligation to accept transfer order VIII. Termination of contract / disqualification of use IX. Rating system X. Responsibility for content XI. Final provisions For Business Accounts : I. Contract II. Contractual obligations of the contractor III. Invoicing by myTaxi IV. Employee Training V. Liability VI. Term and Termination VII. External representation of cooperation VIII. Of assignment, final provisions EXISTING PARTNERSHIPS: Car2Go HRS Ds Hotelportal Miles & More Lufthansa Samsung T Mobile AirPlus International myTaxi is an innovative application that combined two different industries: The first is the relatively stable Transportation Industry, wherein passengers are given the option to commute semi-privately via Taxi. The second is the new and booming Smartphone + Internet Industry. The combination of both industries created a product (the application) AND service (the features) that covers both the daily transportation needs of commuters with their want of efficiency, reliability, and personalization in tune with the lifestyle of Today. With all this in mind, it is no surprise that myTaxi first focused on its domestic market to establish its name and create awareness of what they have to offer. Following their domestic success, myTaxi marketed itself to its immediate neighboring countries, a strategic move on their part, since their popularity would logically trickle itself to those right next to them, and not those far away – being involved in Travel and Transportation, this was clearly a logical step. The real trick however, to marketing myTaxi was through partnerships – with individual Taxi drivers and Taxi dispatch companies, and with complementary product brands, such as Samsung wherein the application is pre-installed in all their Smartphone units. Its strength lies mostly in its reputation. In its attempt to expand to the U. S. market, myTaxi had to compete with a few competitors, as the U. S. already had a few Taxi applications to choose from, depending on which city you were in. However, because of its popularity, its brand strength boasting to already have 2. 3 million users, it was able to secure a partnership with the D. C. Taxicab Commission. With their endorsement, myTaxi managed to escalate itself as more legitimate in the eyes of the market than its competitors. Lastly, one must consider that being a pioneer, myTaxi has been and is still reaping the benefits of the First Mover Advantage. It has already created its niche in the Transportation Industry and is transforming the preexisting Taxi market as well. myTaxi was already hailed as one of the top applications of 2012. TARGET MARKET INFORMATION TARGET MARKET: Metro Manila [NCR], Philippines (Lower-Middle Income) (Market Capitalism: constitutional democratic republic) GENERAL DEMOGRAPHICS: Population: 103,775,002 (Philippines, July 2012); 21,050,000 (Metro Manila, 2010) Size: 638. 55 km2 (Total Area) with a density of 18,567/km2 Rate of Urbanization: 2. 3% (2010-2015 estimated) annual rate of change Currency: Philippine Pesos (? Currency Inflation Rate: 2. 6% (March 2012) VEHICLES AND TRAFFIC: Number of Motor Vehicles Registered : 1,740,812 (2012) > approx. 30% of total: 6,316,522 Number of Motor Vehicles Registered by Classification : for the entire PH Private: 5,410,783 (2012) > approx. 86% of total: 6,316,522 For Hire: 840,974 (2012) > approx. 13% of total: 6,316,522 Number of Taxis : 40,000 (2009) for the entire PH Annual Average Daily Traffic: approx. 10,927,245 (2011) vehicles > approx. 4,049,314 caused by Passenger Cars (37%) > approx. 2,195,860 caused by Utility Passengers (20%) Number of Apprehended Drivers : 14,439 (2012) > approx. 2% of total: 761,743 Committed Traffic Violations: 1. RA 8750 Seatbelt Use Act 2. No CR/OR On Hand 3. Obstruction 4. Student Driver Operating an MV w/o Accompanying Licensed Driver 5. Driving w/o License 6. Unregistered/Invalid MV Registration 7. Reckless Driving 8. Driving w/ Delinquent/Invalid, Suspended, Ineffectual or Revoked License 9. No Brake Light 10. No EWD Carried MOBILE PHONES AND INTERNET : Number of Internet Users: 33. 6 million (2012) Internet Usage Growth Rate: 11% (2012) Smartphone Sales Value: $606. 5 million (2011) Number of Smartphone Subscribers: 15 million (2012) Smartphone Subscribers Growth: 38% (2012) Mobile Internet Users: 24% of all Filipino Internet users on a daily basis > 56% intend to access the Internet via mobile phone in the next 12 months (2011) Leading Telecommunication Operators : (Q1 2012) †¢Smart Communications, Inc. > Market Share: 68% > Mobile Connections: 66. 1 million > Prepaid Subscribers: 97% of total subscribers > 3G Subscribers: 24% of total subscribers †¢Globe Telecom, Inc. > Market Share: 32% Mobile Connections: 31 million > Prepaid Subscribers: 95% of total subscribers > 3G Subscribers: 27% of total subscribers OTHER STATISTICS: Fuel Prices : (as of 11 April 2013) Diesel: ? 40. 00 per liter Unleaded: ? 50. 72 per liter EXPANSION PLAN TO THE PHILIPPINES IMPETUS: Statistics are not needed to see that there are too many cars in Metro Manila, more than what the roads can actually accommodate. Traffic is a serious problem in the city, and though much can be s aid about the many reasons behind it, the reality remains that â€Å"for every bus there are 50 cars on the road† (Murphy, 2010). That is how congested the city roads are. There is definitely a need to limit the number of vehicles, or one day all movements on the streets will come to a stop. A more efficient and trustworthy Taxi-riding environment may encourage people to commute more, instead of driving out in their own cars for the simplest errands, or from even buying their own. A more centralized and systematized Taxi system may also encourage more discipline in drivers AND passengers, for example lessening the number of pick-ups and drop-offs in the middle of the road. ADVANTAGES: †¢EASE: Streets in the Philippines can be tricky . A lot of roads are not frequented by Taxis; Taxis are usually already occupied when spotted on the main roads; There are usually just certain places where Taxis are most available i. e. malls, markets – Getting back from those places may be easy enough, but getting there from wherever is the hard part. Hailing a Taxi is tedious and time-consuming in a busy city like Metro Manila. †¢TRUST: Both for foreigners and locals alike, there is always a chance of hailing a cab that has a fixed Taxi Meter, and you only find out until it is too late. myTaxi’s Fare Calculator works against that. You may also experience a driver bent on swindling you for extra money just because you have luggage or are with someone in need of assistance. With myTaxi’s Personalized Booking Options, you can already pre-bargain with your Taxi driver and let him know what to expect from you. Any additional costs need not be a surprise. †¢SAFETY: If you’re in the middle of nowhere in the middle of the night, order a cab via myTaxi instead of walking around looking for one. †¢FEEDBACK: Taxi drivers usually have no fear because they answer to no one, or at least no one bothers to go through the trouble of reporting them to their supervisors if they have one. yTaxi lets you provide feedback of your trip and your driver, removing them from the service if they have done you any wrong, or warning future passengers. PRICE: For Passengers: Application remains free. For Drivers: Following the 2,75% (net) for every service mediated by myTaxi†¦ Taxi Fare Flag Down Rate: ? 20. 00 > ? 1. 50 per 500 meters *There is a possibility however, of lowering the rate to 2% due to Taxi drivers generating a below-average income in the Philippines. Average Income of Taxi Drivers: ? ,500. 00 per week MARKET ENTRY: (Product Extension-Communication Adaptation) Product itself remains relatively unchanged, aside from the necessary calibrations for the myTaxi application to work in Metro Manila. Communication approach will have to be different however, as the Philippines is a completely new market to this type of peer-to-peer service . Communication approach to potential passengers will also differ from potential drivers. Pre-Installed Application in Smartphones Units deployed to the Philippines will already have myTaxi pre-installed like in Germany -Pre-Installation leads to awareness that product is available > Constantly seeing application will peak customer’s interest > Trying out what this application and how it works leads to its evaluation and trial > Upon first successful order of Taxi, customer adopts to the usage of the application whenever a Taxi is needed, as well as becoming more confident in exploring its other features > Product loyalty is established, as well as recommendation of it to peers -myTaxi avatar/widget to be included in the list of Product Features, both online and in print Personalized Proposals to Taxi Corporations Direct contact between myTaxi Sales Representative/s and owner/manager of Taxi corporation through a meeting -Email point of contact of Taxi corporation a myTaxi business plan and proposal -eAdvertisements Personalized Proposals to Individual Taxi Drivers -Group Learning and Information Sessions managed by myTaxi Sales Representative/s -Free trial period -Flyers distributed in strategic areas -eAdvertisements Partnerships with Transportation-Related Government Offices to Aid in Endorsement of Service -Department of Transportation and Communications: Land Transportation Office [LTO] http://lto. gov. ph/ -Metr opolitan Manila Development Authority [MMDA] http://www. mmda. gov. ph/ Others -myTaxi stickers (on Taxis) to increase awareness and curiosity -myTaxi application to be featured in a local newspaper article LEGALITY AND REGULATIONS : No known regulation for the usage of Smartphone applications in the Philippines. Application is an add-on to an already registered business – whether by the individual Taxi driver or a Taxi Corporation thus, no taxes, licenses, permits, etc. involved. Political, legal, and regulatory environment poses no known risk. See also myTaxi Term and Conditions. CHALLENGES: †¢Limited Features (cabs in the Philippines are not equipped for payments via debit, credit, or PayPal) †¢Training on how to use the application (more for the drivers than the passengers) †¢Investment on Smartphone and Mobile Internet Plan (many options are offered however by Smart and Globe) Hofstede’s Cultural Typologies : Power Distance: Acceptance and willingness to try application by the â€Å"head/leading Taxi driver† or owner/manager of a Taxi corporation is a must. Other drivers will easily follow once connection with the â€Å"boss† is established. Collectivistic: Word-of-mouth will be the strongest marketing tool both for passengers and potential myTaxi drivers. Masculine: Most if not all Taxi drivers in Metro Manila are male. This must be taken into consideration when marketing myTaxi to them. Expect assertive, challenging and highly skeptical questions. Uncertainty Avoidance: Hypothetically no problems in getting Filipinos to accept myTaxi, especially once German origins are made known. Innovation especially American and European ones, are not seen as threatening. Use this as an advantage. Short-Term Orientation: Acceptance of myTaxi â€Å"now† may be achieved, but users, both driver and passenger, may grow bored and/or negligent of the application in the future. Ensure that its long-term advantages are very appealing and well communicated to drivers. Create a dependence on myTaxi for passengers. Sources: AJTP Information Center. (n. d. ). Road Transport Philippines [Data file]. Retrieved May 11, 2013, from http://www. ajtpweb. org/statistics/Philippines/road-transport-philippines Alternat1ve. (n. d. ). 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