Case Study of Uber

CASE STUDY ON DEMAND ANALYSIS OF UBER CABS How Uber works ? The process is simple from the consumer’s point of view: You request a car by texting your address or by using Uber’s iPhone or Android app. Because Uber sends the nearest driver to your location to pick you up, your ride arrives within 5 to 10 minutes. Then you just hop into your car and get out at your destination, with no need of fumbling with money because Uber automatically charges your credit card. (You punch in your credit card information into the app before requesting a car. The Algo: †¢ From the computer scientist’s point of view, the process is a noble attempt at solving the complicated traveling-salesman problem, in which you’re trying to determine the shortest path visiting each location only once. â€Å"Each car has its own traveling-salesman problem,† Kalanick told Wired. †¢ Uber has created algorithms that try to connect car-hailers with the nearest car. And it tweaks this algorithm every day, when they analyze car demand and routes. Ensuring that everything works smoothly are a bunch of operation managers looking at a â€Å"God View† (pictured above) that shows where each Uber car is. Demand: The way the company ensures there are enough cabs for demand is also complicated: They analyze weather forecasts, knowing that there will be more demand for rides when it rains, and also take sporting and other events into consideration, and increase fares depending on how high that demand is. So more cabs will be on the road when demand is high because the drivers will be getting paid more. And from the other perspective, only people who are willing to pay the higher price will be riding, which also moderates demand. ) Microsoft on Demand Analysis: http://blogs. discovermagazine. com/discoblog/2010/11/05/the-secret-knowledge-of-taxi-drivers-could-be-added-to-online-maps/ MERU CABS:: Driver Audit of Meru Cabs: This academy is for the chauffeurs. The professionals at the academy focus on personal key attribute of them . The academy runs a few comprehensive programs on personal grooming and hygiene and social hehaviour. To start with, the subscriber is given a one-week extensive training program on customer handling, safe driving skills, company processes, city road knowledge and operation of the vehicle hardware including the electronic meter and the devices in the vehicle. A refresher course is also conducted every quarter to ensure that the subscribers remain courteous to passengers and provide the best quality of service possible. How big is the fleet at present? What are the expansions plans, given the increasing demand? Currently we have 5000 cabs across four cities. ,800 in Mumbai, 800 in Hyderabad, 1,200 in Delhi, and 1,200 drivers in Bangalore. We plan on adding an additional 500 drivers in each city by March 2011. Meru cabs ply in Mumbai, Delhi, Bangalore and Hyderabad. We are evaluating the cities of Chennai, Pune and Kolkata. What are the various technology best practices adopted by the company? We have installed various automated systems like a digital tamper proof meter on board, high- end GPS and GPRS to ensure real-time cab location and dispatch, a mobile data terminal (MDT). Currently, consumers also have the option to pay for their fare by a credit/debit card. Further, an automated speed control alarm in the cab warns the chauffeur if he crosses the speed limit. We get around 2. 5-3 lakh calls per week across the four cities that we operate in. The call center uses advanced interactive voice response (IVR) system. Also to increase productivity and improve service levels we have implemented ERP System from Oracle, Siebel. Our data center hosts a set of communication servers, application servers, and database servers which are connected with each taxi through GPRS. We are the only Indian company which has built such a world-class IT infrastructure. Does Meru have a segmented category of corporate and individual customers? What would be the figures like? Meru has incorporated additional facilities like a card payment option that has been launched in Bangalore, Delhi and Hyderabad, and will soon be launched in Mumbai. More than 1 million passengers travel per month across four cities. Meru Cabs are used for business travel, entertainment occasions, airport and railway drops. Today there is an increasing usage for shopping trips and sometimes even school trips due to parking issues.