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Group 4 BRM Interim Report

This interim report submitted by Group 4 discusses UberPool, a carpooling service launched by Uber. It provides an introduction to Uber and UberPool, and defines the problem statement of expanding UberPool services to Dubai. Secondary research findings are presented from various sources discussing factors that influence carpooling rates among immigrants, preferences for commuting options in Texas, and growth of public transportation ridership in Dubai. A literature review covers definitions and factors affecting carpooling choices. The target audience for UberPool in Dubai is identified as immigrants based on secondary research showing higher rates of carpooling among immigrant communities.

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0% found this document useful (0 votes)
84 views15 pages

Group 4 BRM Interim Report

This interim report submitted by Group 4 discusses UberPool, a carpooling service launched by Uber. It provides an introduction to Uber and UberPool, and defines the problem statement of expanding UberPool services to Dubai. Secondary research findings are presented from various sources discussing factors that influence carpooling rates among immigrants, preferences for commuting options in Texas, and growth of public transportation ridership in Dubai. A literature review covers definitions and factors affecting carpooling choices. The target audience for UberPool in Dubai is identified as immigrants based on secondary research showing higher rates of carpooling among immigrant communities.

Uploaded by

ShivamDhamija
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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You are on page 1/ 15

INSTITUTE OF MANAGEMENT TECHNOLOGY, DUBAI

BUSINESS RESEARCH METHODS

INTERIM REPORT
SUBMITTED TO:
DR. ABHISHEK
(PROFESSOR BUSINESS RESEARCH METHOD)
SUBMITTED BY:
GROUP: 4
ABHISHEK SARAOGI
AKSHAY JAIN
SATYAM GUPTA 180201138
SHIVAM DHAMIJA 180201139
SHIVANSH

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TABLE OF CONTENTS

Introduction ......................................................................................................... 3
UberPool............................................................................................................... 3
Problem Statement .............................................................................................. 4
Secondary Data Research................................................................................... 4

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INTRODUCTION
Uber is a transportation network company which offers services such as ridesharing, taxi cab
hailing, food delivery, and a bicycle sharing system. It operates in 785 metropolitan areas
worldwide.

 Founded: March 2009, San Francisco, California


 Headquarters: San Francisco, California, United States of America
 Subsidiaries: Uber Eats, Jump Bikes, etc.
 Founders: Travis Kalanick and Garrett Camp
The smartphone apps connect driver-partners and riders. The user has to request to a
ride and when a driver accepts your request the app displays and estimated time of
arrival for the driver-partner heading to your pickup location. The app also provides
info about the driver partner with whom you will ride such as name, license number,
etc.
When you arrive at your destination and exit the vehicle, the trip ends and fare
is automatically deducted from your account.

UBERPOOL
Carpooling (also car-sharing, ride-sharing) is the sharing of car journeys so that more than
one person travels in a car and prevents the need for others to have to drive to a location
themselves. By having more people using one vehicle, carpooling reduces each person’s
travel costs such as fuel costs, tolls, stress of driving, etc.

In August 2014, Uber launched UberPooL, a carpooling service in the San


Francisco Bay Area. The service expanded to various cities around the world such as Paris,
China, India, etc.

"Smarter transportation with fewer cars and greater access."

-Travis Kalanick

The UberPooL concept of sharing rides works efficiently when there is a decent number
of other riders in the same area. It provides a guaranteed fare when you enter your pick up
and drop off point. The only trade-off here is that it takes a comparatively longer time to
reach to your destination as compared to solo cab rides. However, the company has been

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working on its model to resolve the issue wherein the user will be communicated the
estimated fare and time at which he/she will reach its destination.

The company uses dynamic pricing, also known as surge pricing, demand pricing, or
time-based pricing. The prices are flexible based on current market demands. The company
change prices based on some algorithm that take into account competitor prices, supply and
demand, and other external factors in the market. It also uses congestion pricing where a
higher price at peak periods is used to encourage more efficient use of the service.

PROBLEM STATEMENT
UberPool has successfully implemented its car-pool service worldwide and is being accepted
by consumers with open arms. The company has reported a significant increase in revenue
and customer loyalty through this initiative. UberPool currently operates in 785 metropolitan
areas and is increasing every single day, Uber was launched in Dubai in August 2013 and
since then it has been able to cater to the needs of the riders efficiently.

With the successful implementation of UberPool in various cities across the world,
Uber is now contemplating the idea of launching a similar service in Dubai. It has

SECONDARY DATA RESEARCH


Secondary data refers to data which is collected by someone who is someone other than the
user. Common sources of secondary data for social science include censuses, information
collected by government departments, organizational records and data that was originally
collected for other research purposes.
The various secondary data sources that has helped Uber for market research as follows:
1. https://journals.sagepub.com/doi/full/10.1177/0042098013502825
FINDING:

A recent study in The United States revealed that immigrants are more likely to carpool than
US born. Solid ethnic ties in a migrant network may add to immigrant interest to carpool
because of increased chances of finding carpool partners and the likelihood of travelling to
common destinations. Analysis of Individual immigrants revealed that an immigrant is more
likely to carpool in an immigrant neighbourhood than an immigrant in a non-immigrant
neighbourhood.

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Previous research found that immigrants travel differently from non-immigrants and are
likely to use less cars and more public transport. Further factors that increased the chances of
carpooling of immigrants were origin of country, economic status, sex and household
structures.

Ethnic neighbourhoods result in more opportunities of transportation other than solo driving.
Such neighbourhoods can also ease the process of carpool formation due to the same race,
culture, language and may also provide common destinations that furthers make carpool
feasible.

 As of Oct, 2018 population is 3.13m


 As of 2013, UAE nationals = 15%
 Expatriate population = 71%
 85% of total expatriates are Asians mainly Indians = 51% and Pakistani = 16%
 Rest 16 % = living in collective labor and were not identified by ethnicity or nationality
but were thought of primarily Asians.
 REF: https://en.wikipedia.org/wiki/Dubai#Ethnicity_and_languages

2. https://journals.sagepub.com/doi/pdf/10.3141/2021-13

FINDING:

Another research, on how people use their mode of travel, was conducted on travelers in
Dallas Fort Worth and Houston in Texas. Several factors were considered such as enjoying
traveling with others, saving time, sharing vehicle costs, helping the environment and society,
preferred parking, Drop off kids at school/day care, etc. These factors varied significantly if
the commuter was on work or going for shopping. Travellers on work ranked saving time and
cost as one of the important factors. Results revealed that enjoying traveling with others,
travel time savings, vehicle cost sharing were considered important. Additional data was
collected on with whom the commuters like to travel. Most car-poolers were family
members. Second most popular type of carpool was between co-workers or someone in an
neighbourhood.

3.https://gulfnews.com/uae/transport/151-million-use-dubai-public-transport-daily-1.2178600
FINDING:

Popularity of public transport continues to increase in Dubai with the average daily
ridership reaching 1.51 million. The research indicates that there is a huge demand for

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public transport and Uber has a tremendous opportunity to grow its market share. Given
below are some of the findings that has helped Uber identifying the market gap in the
region. It also showcases the need represented by the increase in the demand for an
efficient public transportation system.

Public Transport Ridership

 551.7m: Overall ridership per year

1.51m Riders per day

 200.75m: Dubai Metro Travellers per year

0.55m riders per day

 155.032m: Bus Travellers per year

0.42m riders per day

 175m: Taxi Travellers’ per year

0.48m riders per day

 13.06m: Marine transport Travellers per year

0.038m riders per day

 6.023m: Dubai Tram

0.0165m riders per day

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LITERATURE REVIEW
In this paper the term carpooling is broadly defined as the casual grouping of travellers into
common commute trips by a single vehicle (2). Determinants that affect carpooling choices
examined by existing studies can be categorized in several ways.

 Internal factors include demographics (e.g., gender, age, etc.) and judgmental factors
(e.g., perceptions and incentives).
 External factors refer to third-party interventions (e.g., extra parking charges for
single occupancy vehicles (SOVs), and partner matching services) and situational
factors (e.g., travel time, and distance).

The survey data provide various pieces of information on OSU commuters’ travel behaviour:
the number of times per week that a person uses each travel mode (e.g. carpool, bicycle,
transit, walking, and driving alone), significant factors affecting mode choice, whether a
person is interested in participating in carpooling as a driver, passenger, or both, and
influential factors that encourage or deter carpooling. In this study, respondents were
classified into three carpool market segments-

1. Existing Carpool Users.


2. Potential Carpool Users.
3. Not interested commuters.

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Audience
As per the observations the major target audience for the carpool service has been seen as the
immigrants who live in countries far away from home. These include the groups which are
staying in countries as well as travelling (tourists). The concept of sharing a cab with a
complete stranger is perceived to be of unsafe and socially unacceptable but researches show
that this is one of the major reasons why the car-poolers prefer sharing a cab. They say that
this concept allows them to know more about a place and also share the knowledge and
experience of other individuals. It allows people to network with other individuals which they
do not expect to meet otherwise in general.

Daily commuters contribute widely to the concept of carpooling. The empty seats in every
commuter automobile constitute a great resource to policy makers. People going to the same
offices/location generally travel in different vehicles and researchers found that if these
commuters are clubbed together in a single mode of transport, it could result in saving time
and resource. Of course there are certain limitations to this concept like different office hours.

Another research, on how people use their mode of travel, was conducted on travellers in
Dallas Fort Worth and Houston in Texas. Several factors were considered such as enjoying
traveling with others, saving time, sharing vehicle costs, helping the environment and society,
preferred parking, Drop off kids at school/day care, etc. These factors varied significantly if
the commuter was on work or going for shopping. Travellers on work ranked saving time and
cost as one of the important factors. Results revealed that enjoying traveling with others,
travel time savings, vehicle cost sharing was considered important.

Additional data was collected on with whom the commuters like to travel. Most car-poolers
were family members. Second most popular type of carpool was between co-workers or
someone in an neighbourhood.

Blumenberg, E. and Smart, M. (2010) Getting by with a little help from my friends . and family: immigrants and carpooling, Transportation,
37(3), pp. 429–446.

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Social Aspects
In a survey done by Mechanical Turk in June and July of 2016, which had 997 respondents
across the United States found that the users of dynamic ridesharing reported that social
interactions were relevant to mode choice as compared to other factors such as time and
money.

As per the respondents the possibility of having a positive social interaction far outweighs the
possibility of having a negative social interaction. BUT, no definite result can be achieved
stating that the social interactions from dynamic ridesharing were always positive.

A major issue with this concept is that the behaviour of the user of sharing the backseat of a
car with an unknown fellow passenger. As per a survey done in 2009 of carpool participants
in Toronto area it was found that contrary to the assumption that women may be less likely to
share rides through carpool, it was found that women are 1.3 times more likely to have a
successful carpool than males making Gender to be the most significant factor in
determining the likelihood of respondents of carpool.

Age is another significant factor: As per the studies carpooling has increased with the
increase in age due to factors such as safety, companionship and assistance. Vehicle
ownership is another major factor which contributes to the study. People who own a vehicle
are less prone to using a cab due to convenience as compared to people who don’t own a
vehicle.

Income and occupation have also been identified as significant factors. People with less
income are more drawn towards carpooling as compared to working professionals with high
income and requirements to move to different places on regular intervals. Researches show
that those who only drive are less likely to try ridesharing than those who are familiar with
other modes.

Recent literatures show that certain demographic factors such as people of younger age
contribute towards participating in cab sharing due to non-ownership of vehicles and general
habit of travelling with companion/s.

Myers, D. (1997) Changes over time in transportation mode for journey to work: effects of aging and immigration, in:
Decennial Census Data for Transportation Planning, Vol. 2: Case Studies, pp. 84–99. Washington, DC: National Academy
Press.

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Behaviour Factors
In addition to socioeconomic factors, the literature has focused on personality types, attitudes,
and motivations with respect to ridesharing by investigating extroversion, disposition toward
diversity, convenience, reliability, comfort, safety, environmentalism, and constraints on
autonomy as potential factors.

The introvert and extrovert behavioural traits of individuals played an important role in
defining the nature of people towards sharing with strangers. It was observed that people with
introvert behaviour were more likely to travel alone whereas extrovert people who socialized
more while eating and drinking were more likely to use other alternatives.

Some research has indicated that existing social ties, even if weak, may influence travellers’
attitudes toward ridesharing. A study in New Zealand in 2010 found that 41% of commuter
survey respondents thought it would be difficult to trust someone they did not know who was
offering or requesting to share a ride. However, the same respondents were willing to share
rides with friends of friends (69%) and with other members of their university community
(50%); just 7% were willing to share a ride with a complete stranger. A study in 1997 found
similar results, showing that people preferred to form carpools with friends of the same sex
and job level.

In a recent review of the social aspects of transportation, researchers discovered a variety of


studies with relevant findings. They found that the establishment of social norms within
ridesharing and other travel modes is an important factor in an individual’s decision to use
that mode. Similar to the role of social capital and weak ties, one study found that carpooling
with familiar strangers-those we see on a regular basis in an urban setting but have never
interacted with—provided the positive benefits of a sense of security and the ability to
develop emerging rules on social aspects such as conversation and music choice without
imposing a burden of commitments and obligation to future interaction. The familiar-stranger
concept could inform dynamic ridesharing service design elements such as sharing
information about passengers, rating systems, and prompting social norms.

Charles, K. K. and Kline, P. (2006) Relational costs and the production of social capital: evidence from carpooling, Economic Journal,
116(511), pp. 581–604.

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Other Factors

Rayle et al. surveyed taxi and TNC (e.g., Uber and Lyft) users in San Francisco and found
that the majority of TNC rides would have taken significantly longer by transit. Overall,
passengers take taxis and TNCs to travel to and from transit stations and to access
destinations faster than it is possible when they take transit. A preliminary evaluation of peer-
to-peer car sharing services in Portland, Oregon, indicated that a significant number of trips
made by the service would not have been made if the service had not been available and that
the service frequently substituted for transit.

Category Possible Outcomes(If opt for Ride Sharing)


Auto  Provides access to necessary destinations at a lower overall cost (time and
money) than private vehicles, then auto ownership declines and use of non-
ownership
SOV modes increases.
Trip generation  Is affordable and access to a car and transit is limited, then new auto trips may
be induced.
Mode choice  Costs (time and money) are less than those of SOVs, then mode share increases
for DRS and decreases for SOVs.
 Costs (time and money) are less than transit, then mode share increases for
DRS and decreases for transit. Costs (time and money) for first and last mile
transit access and use are less than those by travel by SOVs, then mode share
for DRS and transit increases and decreases for SOV.
Destination  Contributes to lower overall travel time and costs to central areas relative to
outlying areas, then travel to central areas is more likely.
choice
 Contributes to lower overall travel time and costs to outlying areas than to
central areas, then travel to outlying areas is more likely.
Route choice  Involves additional travel to pick up and drop off passengers, then a longer
overall vehicle travel distance will be required for trips.
 Contributes to more overall congestion, then longer routes are possible to avoid
congestion and minimize travel time and there could be more stop-and-start
travel.
 Contributes to less overall congestion, then shorter, more direct routes are
possible and there could be more stop-and-start travel.
Urban form  Contributes to lower overall travel time and costs to central areas than to
outlying areas, then demand for residential and employment space may be
greater in central areas.
 Contributes to lower overall travel time and costs to outlying areas than to
central areas, then demand for residential and employment space may be greater
in outlying areas.
SOV= Single-Occupancy Vehicle.

Chatman, D. G. and Klein, N. (2009) Immigrants and travel demand in the United States, Public Works Management & Policy, 13(4), pp.
312–32

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QUESTIONNAIRE
Dear Sir/Madam
We are the students of Institute of Management Technology Dubai, a university recognised
by the Dubai Government. We are here to conduct a survey on the modes of transportation in
Dubai. We would like you to spare a few minutes and share your views with us.
Thank You

Q.1What modes of Transportation(s) do you use?


1. Private Vehicle
2. Cabs
3. Bus
4. Train
5. Other (please specify)
(If the answer is ONLY Private Vehicle proceed Q. 2, else proceed to Q. 5)

Q.2 Do you find parking a Problem?


1. Always
2. Occasionally
3. Never

Q.3 How much do you Spend on a car parking approximately? (Eg.-AED 50 per week OR
AED 1000 per year)?
___________________________

Q.4 What other mode of transportation would you prefer other than private vehicle?
1. Cabs
2. Bus
3. Train
4. Others(Specify)
5. Stick with Private Vehicle.
If the answer is “Stick with Private Vehicle” than move to Thank You slide and terminate the
interview.

Q.5 As per a research conducted, the factors mentioned below are considered important while
choosing a mode of transport. Please rank the options according to your preference.

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(Give rank 1 to the most important feature, Rank 2 to next important features and so on)
1. Cost
2. Travel Time
3. Safety
4. Reliability
5. Convenience
6. Number of People Travelling
7. Availability

Q.6 With respect to the mode of transportation you chose:__________ (bus, train, cab), Rate
the following factors as per the Likert scale given.
Dimension Strongly Agree Neutral Disagree Strongly
Agree Disagree
Cost is High
Travel time is more
Completely Reliable
Highly Safe
Highly Convenient
More than 1 person travelling
Easily Available

Q.7 On a scale of 1 to 5, how environment friendly are you? (1 = not environment friendly,
5 = Very Friendly)
_________________

Q.8 Have you heard of the concept of Carpooling?


1. Yes
2. No
(If No, then Carpooling (also car-sharing, ride-sharing and lift-sharing) is the sharing of car
journeys so that more than one person travels in a car, and prevents the need for others to
have to drive to a location themselves.)

Q.9 How comfortable are you to share a ride with a stranger? (1= Not Comfortable, 5 = Most
Comfortable)
_________________

Q.10What would motivate you to choose a carpool service?

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1. To save Cost
2. Meet new people
3. Reduce Environmental hazard
4. Reduce Traffic congestion
5. Other (Specify)

Q.11Would you prefer a carpool service over a private cab on the terms of reduced fares and
increased travel time?
1. Yes
2. No
3. Maybe

Q.12 Any other comments/suggestions regarding Carpool services?


__________________

Q.13 Please write your Name?


__________________

Q.14 Gender?
1. Male
2. Female

Q.15Age range?
1. Below 15 years
2. 15-20 years
3. 20-30 years
4. 30-40 years
5. 40-50 years
6. 50 and above

Q.16 Country of Origin?


___________________

Q.17Occupation?
___________________

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