Answer To: Assignment 2 Question – 1200 words Comfort Transportation Pte Ltd, commonly known as Comfort, is a...
David answered on Nov 30 2019
Case scenario: Comfort Transportation Pte Ltd
Comfort Transportation Pte Ltd, a
eviated as Comfort, is a taxi company operating as a venture of ComfortDelgro Corporation Ltd (Loh, 2016). While operating as a renowned and leading player in taxi and cab industry, the advent of the sharing economy and other new trends posed threat to the present sustainability and growth of Comfort. The main challenges faced by Comfort in light of industry dynamics are:
Challenges faced by Comfort Transportation Ltd and Singapore taxi industry
a) Difficulties in coping with technological disruption
Comfort and related taxi companies are facing challenges of empowering drivers to use hotline apps such as EasyTaxi and GrabTaxi (Hwei, 2015). These apps have grown quite popular, but came with several issues. The taxi drivers are not identified as confident in using these apps for handling booking process and accommodating high traffic in peak hours. As a result, they are missing opportunities and displaying ‘no-shows’ to customers during peak hours, making them frustrated on account of losing earning opportunities.
) Stringent rules
Another grey area in Singapore taxi industry threatened the credibility is the strict rules required to be pass by taxi drivers. In Singapore, it appeared quite difficult for being a taxi driver from the last few decades. The factors responsible for this worsened situation is the need of drivers to pass through a tough vocational license course, attending refresher course every six years, etc making it difficult for relatively new and inexperienced drivers to follow and comply with it (Loh, 2016).
c) Cutting rentals and strict employment conditions due to stiff competition
According to the data shown by Land Transport Authority, there is significant rise in the number of taxis remained unhired in 2015. In the first II months of 2015, the average rate of unhired taxis increased from 4.2 % to 5.9%. Estimation showed that around 1620 taxis were sitting idle at the end of 2015 in the yards of taxi companies, increased from 1190 forcing drivers leaving their jobs (Lim, 2017). The increase in the number of unhired taxis has led taxi companies in cutting rentals, and, so on, driver pay and fees along with strict contractual conditions for retaining them. As per the findings of the Strait Times, taxi rentals has cut to below $100 a day with the condition that taxi drivers has to sign a six months long contract (Auyong, 2016).
Business goals using SMART:
Specific: Starting technology-training services, streamlining taxi-services for handling competition, and defining new rules and regulations with element of flexibility.
Measurable: Regularly reviewing progress in terms of how many taxi drivers are receiving training, conducting surveys for determining whether taxi drivers are handling...