EXECUTIVE SUMMARY

This study examines the comparative service quality of auto-rickshaws and cabs in
Surat, analyzing customer preferences and satisfaction levels. With the rise of ride-
hailing apps, the urban transport sector has experienced significant changes,
necessitating an evaluation of key service dimensions such as affordability, availability,
safety, comfort, and driver behavior.

A survey of 224 respondents revealed that auto-rickshaws remain the preferred mode
of transport (57.6%), primarily due to their affordability and availability. Cabs (Ola,
Uber, Rapido, Jugnoo) are favored by 32.1% of respondents, with comfort and safety
being their key advantages. The study found that while auto-rickshaws are more cost-
effective, cabs offer superior cleanliness, reliability, and security, especially at night and
during the rainy season.

The research highlights fare transparency, digital payment adoption, and driver
behavior as critical factors influencing customer satisfaction. Although auto-rickshaws
dominate daily commuting, many respondents support meter-based fare systems,
similar to Mumbai, to ensure fair pricing.

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1.1 INDUSTRY AT GLOBAL LEVEL

1.1.1 Meaning of Transportation at Global Level:

Meaning:

Transportation is the movement of people, animals, and goods from one location to
another. It is a fundamental aspect of modern society, enabling trade, communication,
and travel.

Definition:

Transportation is the movement of goods and people from one place to another. It is a
fundamental aspect of modern society, enabling trade, commerce, and social
interaction.

1.1.2 Types Of Transportation At Global Level:

1. Public Transit:

• Buses:The most ubiquitous form of public transport globally, buses operate on

fixed routes and schedules, providing affordable and accessible transportation n
cities and towns of all sizes.
• Trains:Rail based systems offer capacity and speed, including:
Subways/Metros: Underground systems common in densely populated cities,
offering rapid transit and avoiding traffic congestion.
Light Rail/Trams: Surface-level rail systems often integrated with street traffic,
providing frequent stops and connecting urban centers.
Commuter Rail: Connecting suburban areas to city centers, facilitating daily
commutes over longer distances.
Ferries: Essential in coastal cities and island nations, ferries provide
transportation across waterways, connecting different parts of a city or region.

2. Private Vehicles:
• Cars: The most common form of private transportation globally, offering
flexibility and convenience, but contributing to traffic congestion and pollution
in many cities.

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 • Motorcycles/Scooters: Popular in many parts of the world, especially in Asia
and some European cities, offering a more agile and fuel-efficient alternative to
cars.
• Bicycles: An increasingly popular mode of transport for short distances,
promoted for its health and environmental benefits, with bike-sharing programs
available in many cities.

3. Shared Mobility Services:

• Taxis: Providing on-demand, door-to-door service, taxis are a common sight in
most cities, often regulated and licensed by local authorities.
• Ride-sharing: Technology-driven services connecting passengers with private
drivers through apps, offering an alternative to taxis and private cars.
• Car-sharing: Allowing individuals to rent vehicles for short periods, providing
access to cars without the need for ownership.
• Bike-sharing: Publicly available bicycles for short-term rental, promoting
cycling as a mode of transport and recreation.

4. Other Modes:
• Rickshaws:Human-powered or motorized, rickshaws are common in some
Asian and African cities, providing short-distance transportation in congested
areas.
• Tuk-tuks:Three-wheeled motorized vehicles, also known as auto-rickshaws,
popular in many developing countries, offering affordable and convenient
transportation.
• Cable cars:Used in mountainous areas or cities with steep inclines, providing
unique and scenic transportation.
1.1.3 Characteristics Of Transportation At Global Level:

1. Essential for Daily Life:

➢ Universal Need: Regardless of location, people need to move within their

communities for work, education, shopping, healthcare, and leisure. Local
transportation fulfills this fundamental need.

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 ➢ Accessibility Varies: The ease and affordability of local transport, however,
varies drastically. In some cities, it's efficient and accessible to all, while in
others, it's a daily struggle.
2. Mode Diversity:
➢ Global Modes: While the specific mix varies, certain modes are common
worldwide:
➢ Walking: The most basic and universal form.
➢ Cycling: Increasingly popular for short distances, especially in cities with
dedicated infrastructure.
➢ Buses: A mainstay in most urban areas, offering flexibility and wide coverage.
➢ Trains/Subways: Crucial for high-capacity, rapid transit in densely populated
cities.
➢ Cars: Dominant in many regions, offering personal freedom but contributing to
congestion and pollution.
➢ Taxis/Ride-sharing: Provide door-to-door service, often facilitated by
technology.
➢ Regional Variations: The prominence of each mode is influenced by factors
like:
➢ Urban Density: Densely populated cities often rely heavily on public transit.
3. Shaped by Urbanization:
• City Growth: Rapid urbanization puts immense pressure on local
transportation systems, leading to challenges like:
• Congestion: Traffic jams are a global problem, impacting productivity and
quality of life.
• Pollution: Air and noise pollution from vehicles are major health concerns.
• Accessibility: Ensuring equitable access for all residents, including those with
disabilities, is crucial.
• Planning & Investment: Cities worldwide are grappling with how to plan and
invest in sustainable local transportation to address these challenges.
4. Technology Integration:
➢ Smart Solutions: Technology is transforming local transportation:

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 ➢ Real-time Information: Apps provide updates on schedules, delays, and
routes.
➢ Ride-sharing: Platforms connect passengers with drivers, offering on-demand
transportation.
➢ Electric Vehicles: Growing adoption of EVs aims to reduce emissions.
➢ Autonomous Vehicles: The future of self-driving cars has the potential to
revolutionize urban mobility.
➢ Data & Optimization: Data analytics is used to optimize routes, improve
efficiency, and personalize the passenger experience.
5. Sustainability Imperative:
➢ Environmental Concerns: The environmental impact of local transportation
is a major focus:
➢ Greenhouse Gas Emissions: Reducing emissions from vehicles is critical to
combat climate change.
➢ Air Quality: Cities are implementing measures to improve air quality and
reduce pollution.
➢ Sustainable Modes: Promoting walking, cycling, and public transit is essential
for creating environmentally friendly cities.
6. Social Equity:
➢ Accessibility for All: Local transportation should be accessible to everyone,
regardless of income, ability, or location.
➢ Affordability: The cost of transportation can be a barrier for low-income
residents, limiting their access to opportunities.
➢ Social Inclusion: Well-designed local transportation systems can promote
social inclusion and connect communities.
1.1.4 Benefits Of Transportation At Global Level:

1. Economic Growth & Accessibility: Boosts local economies, connects residential

and commercial areas, and provides affordable mobility for all income groups.
2. Environmental Sustainability: Reduces carbon emissions, promotes eco-friendly
transport options, and supports sustainable urban development.
3. Reduced Traffic Congestion: Decreases dependence on private vehicles, integrates
multimodal transport, and improves urban traffic flow.

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4. Social Inclusion & Equity: Ensures access for all, including low-income groups,
elderly, and disabled individuals, reducing social inequality.
5. Improved Public Health: Encourages walking and cycling, reduces pollution-
related illnesses, and enhances overall well-being.
6. Enhanced Tourism & Local Business Growth: Improves accessibility to tourist
spots and commercial hubs, boosting local businesses.
7. Supports Smart City Development: Enables better urban planning, digital
ticketing, and data-driven mobility solutions for efficient transport management.
1.1.5 Challenges Faced By Transportation At Global Level:

1. Funding Shortfalls: Many systems struggle with inadequate funding, leading to

deferred maintenance, outdated technology, and limited service expansion. This is
exacerbated by declining ridership in some areas and rising operational costs.
2. Aging Infrastructure: Aging infrastructure, such as tracks, tunnels, and stations,
requires significant investment for repairs and upgrades. Failure to address these issues
can lead to safety concerns and service disruptions.
3. Changing Demographics and Urban Sprawl: Shifting demographics and urban
sprawl patterns create difficulties in providing efficient and equitable service.
Traditional fixed-route systems may not adequately serve dispersed populations,
necessitating flexible and on-demand options.
4. Technological Disruption: New technologies, such as ride-sharing and autonomous
vehicles, present both opportunities and challenges. Integrating these technologies
while ensuring equitable access and addressing potential job displacement is crucial.
5. Accessibility and Equity: Ensuring accessibility for individuals with disabilities and
addressing disparities in service availability and affordability across different
communities are ongoing challenges.
6. Environmental Concerns: Reducing the environmental impact of local
transportation is paramount. Transitioning to cleaner fuels, electrifying fleets, and
promoting sustainable modes like walking and cycling are essential.
7. Safety and Security: Ensuring the safety and security of passengers and employees
is a constant concern. Addressing issues such as crime, harassment, and accidents
requires comprehensive strategies and investment.

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8. Coordination and Integration: Effective coordination and integration between
different modes of transportation, such as buses, trains, and paratransit, are crucial for
seamless journeys.
9. Workforce Challenges: Attracting, training, and retaining a skilled workforce,
including operators, maintenance personnel, and planners, is essential for the long-term
sustainability of local transportation systems.
10. Pandemic Impacts: The COVID-19 pandemic has had a profound impact on local
transportation, with reduced ridership and revenue losses. Systems need to adapt to
changing travel patterns and prioritize public health and safety.

1.2 Industry At National Level

1.2.1 Types Of Transportation At National Level

1. Roadways:

Dominant Mode: Roads are the most widely used mode of transport in India, carrying
the majority of passenger and freight traffic.

Extensive Network: The country has a vast network of roads, including national
highways, state highways, and rural roads, connecting even remote areas.

Challenges: Road congestion, especially in urban areas, and the need for better
infrastructure are ongoing concerns.

2. Railways:

Lifeline of the Nation: Indian Railways is one of the largest and busiest rail networks
in the world, crucial for long-distance travel and bulk freight transport.

Passenger and Freight: Railways cater to both passenger and freight needs, connecting
major cities and industrial centers.

Efficiency: Rail transport is generally more fuel-efficient and environmentally friendly

compared to road transport, especially for long distances.

Development: Initiatives like high-speed rail corridors and dedicated freight corridors
are aimed at modernizing the railway network.

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3. Airways:

Fastest Mode: Air transport is the fastest way to travel long distances, connecting
major cities within the country and with international destinations.

Growing Sector: India's aviation sector is one of the fastest-growing in the world, with
increasing domestic and international air traffic.

Connectivity: Air transport is essential for connecting remote areas and promoting
tourism and business travel.

Infrastructure: The development of modern airports and air traffic management

systems is crucial for the growth of the aviation sector.

1.2.2 Characteristics Of transportation at National Level:

➢ Interconnectedness: A national transportation system involves a network of
various modes of transport like roads, railways, waterways, and airways, all
interconnected to facilitate seamless movement of people and goods across the
country.
➢ Scale and Coverage: National transportation systems typically cover vast
geographical areas, connecting major cities, towns, and remote regions. They
handle a massive volume of traffic, both passenger and freight.
➢ Infrastructure Intensive: Building and maintaining a national transportation
system requires significant investment in infrastructure such as roads, railways,
airports, seaports, and inland waterways.
➢ Regulation and Governance: National governments play a crucial role in
regulating and governing transportation systems. They set safety standards,
environmental regulations, and policies related to infrastructure development
and operations.
➢ Economic Significance: Transportation is a critical component of a nation's
economy. It enables trade, commerce, and movement of labor, contributing to
economic growth and development.
➢ Social Impact: Transportation systems have a significant social impact,
influencing accessibility to jobs, education, healthcare, and other essential
services. They also shape patterns of urbanization and regional development.

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 ➢ Sustainability Challenges: Transportation is a major contributor to greenhouse
gas emissions and environmental pollution. Therefore, sustainable development
is a key concern in national transportation planning.

1.2.3 Benefits Of transportation At National Level:

1.Economic Benefits:

➢ Facilitates Trade and Commerce: Efficient transportation networks enable the

smooth flow of goods and services across the country, fostering domestic and
international trade. This stimulates economic growth and creates job
opportunities.
➢ Reduces Transportation Costs: Well-developed transportation infrastructure
lowers the cost of moving goods and people, making businesses more
competitive and benefiting consumers.
➢ Connects Markets and Resources: Transportation links producers with
consumers and facilitates access to raw materials and resources, promoting
industrial development and economic diversification.
➢ Boosts Tourism: Accessible and efficient transportation systems encourage
tourism, generating revenue and contributing to the hospitality sector.

2. Social Benefits:

➢ Improves Accessibility: Transportation provides access to essential services

such as education, healthcare, and employment opportunities, especially for
people in remote or underserved areas.
➢ Increases Quality of Life: Efficient transportation reduces travel time and
stress, allowing people to spend more time on leisure activities and improving
their overall quality of life.
➢ Facilitates Emergency Response: Reliable transportation systems are crucial
for disaster relief efforts, enabling the swift movement of emergency personnel
and supplies to affected areas.

3. Environmental Benefits:

➢ Reduces Congestion and Pollution: Efficient public transportation

systems can reduce traffic congestion and air pollution in urban areas,
leading to improved public health and environmental quality.

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 ➢ Promotes Sustainable Development: Investing in sustainable transportation
options, such as electric vehicles and public transit, can help reduce greenhouse
gas emissions and mitigate climate change.

1.2.4 Challenges Faced By Transportation At National Level

1. Infrastructure Gaps and Maintenance:

➢ Inadequate Infrastructure: Many countries face a shortage of well-

maintained roads, railways, airports, and seaports, hindering efficient
movement of people and goods.

➢ Aging Infrastructure: Existing infrastructure may be outdated or deteriorating,

requiring significant investment in repairs and upgrades.

➢ Capacity Constraints: Overcrowding and congestion in transportation

networks, especially in urban areas, lead to delays and reduced efficiency.

2. Environmental Concerns:

➢ Greenhouse Gas Emissions: Transportation is a major contributor to

greenhouse gas emissions, exacerbating climate change.

➢ Air and Noise Pollution: Vehicle emissions and noise pollution negatively
impact public health and environmental quality, particularly in urban areas.

3. Safety and Security:

➢ Road Accidents: Road accidents are a major cause of death and injury, posing
a significant challenge to national transportation systems.

➢ Security Risks: Transportation networks can be vulnerable to security threats,

such as terrorism or cyberattacks, requiring robust security measures.

4. Social and Equity Issues:

➢ Accessibility Disparities: Not all communities have equal access to

transportation services, leading to social and economic disparities.

➢ Affordability: The cost of transportation can be a burden for low-income

households, limiting their access to jobs, education, and other opportunities.

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5. Governance and Policy Issues:

➢ Lack of Coordination: Poor coordination between different government

agencies and stakeholders can hinder effective transportation planning and
implementation.

➢ Policy Gaps: Inadequate or outdated policies can create barriers to innovation

and sustainable transportation development.

1.3 Industry At State Level

1. Roadways:

➢ Gujarat State Road Transport Corporation (GSRTC): This is the primary

public bus service provider, connecting cities, towns, and villages within
Gujarat and also offering services to neighbouring states. They have a wide
range of buses, including Volvo, sleeper coaches, and mini buses.

➢ Private Buses: Many private operators offer bus services, often with more
luxurious options.

➢ Taxis and Auto-rickshaws: These are readily available in urban areas for
shorter commutes.

➢ Personal Vehicles: Cars and motorcycles are a popular mode of transport,

especially for individual and family travel.

2. Railways:

➢ Indian Railways: Gujarat has an extensive railway network connecting major

cities within the state and to the rest of India. Major stations include
Ahmedabad, Vadodara, Surat, Rajkot, and Jamnagar.

➢ Ahmedabad Metro: Ahmedabad has a metro system that is currently under

expansion, providing a convenient mode of transport within the city.

3. Airways:

➢ Airports: Gujarat has one international airport (Sardar Vallabhbhai Patel

International Airport in Ahmedabad) and several domestic airports (Surat,

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 Vadodara, Rajkot, Bhavnagar, etc.). These airports connect Gujarat to major
cities in India and abroad.

4. Waterways:

➢ Ports: Gujarat has a long coastline and several major ports, including Kandla
Port, Mundra Port, and Pipavav Port. These ports are crucial for international
trade and cargo transport.

➢ Ferries: Ferries are used to connect coastal areas and islands.

5. Other Modes:

➢ Cycle Rickshaws: These are still common in some smaller towns and cities for
short distances.

➢ Tongas (Horse-drawn carriages): These are mainly used for tourist rides in
certain areas.

1.3.1 Characteristics Of Transportation At State Level:

1. Robust Road Network:

➢ Extensive Coverage: Gujarat boasts one of the most extensive and well-
maintained road networks in India. This includes national highways, state
highways, and rural roads, ensuring connectivity to even remote areas.

➢ High Road Density: Compared to the national average, Gujarat has a higher
road density, meaning more roads per unit area. This facilitates easier access
and smoother traffic flow.

➢ Well-maintained Roads: The state government prioritizes road maintenance,

resulting in generally good quality roads that enhance travel comfort and safety.

2. Efficient Public Transportation:

➢ GSRTC's Wide Reach: The Gujarat State Road Transport Corporation

(GSRTC) plays a crucial role in providing affordable and accessible public
transport. Their extensive bus network connects cities, towns, and villages
across the state.

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 ➢ Variety of Bus Services: GSRTC offers diverse bus options, including express,
luxury, semi-luxury, and ordinary buses, catering to different needs and budgets.

➢ Growing Metro Network: The Ahmedabad Metro is expanding, providing a

modern and efficient mode of transport within the city and contributing to
reducing traffic congestion.

3. Strategic Railway Network:

• Key Railway Lines: Gujarat is well-connected to the rest of India through

major railway lines, facilitating both passenger and freight movement.

• Important Stations: Major railway stations like Ahmedabad, Vadodara, Surat,

and Rajkot serve as important hubs for travel and trade.

4. Growing Air Connectivity:

➢ International Airport: Ahmedabad's Sardar Vallabhbhai Patel International

Airport provides international connectivity, boosting trade and tourism.

➢ Domestic Airports: A network of domestic airports connects Gujarat to major

cities across India, facilitating faster travel.

➢ Focus on Development: The state government is investing in airport

infrastructure to enhance capacity and improve services.

5. Strategic Ports and Waterways:

➢ Major Ports: Gujarat's long coastline is home to major ports like Kandla,
Mundra, and Pipavav, which are crucial for international trade and cargo
movement.

➢ Coastal Shipping: Coastal shipping and ferry services play a vital role in
connecting coastal areas and islands, promoting trade and tourism.

6. Focus on Infrastructure Development:

➢ Continuous Investment: The Gujarat government consistently invests in

improving transportation infrastructure, including roads, railways, airports, and
ports.

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 ➢ Modernization Initiatives: The state is actively pursuing modernization
initiatives in the transportation sector, such as upgrading railway infrastructure
and developing smart transportation systems.

7. Addressing Challenges:

➢ Traffic Congestion: Like many rapidly developing states, Gujarat faces

challenges with traffic congestion in urban areas. The government is working
on solutions like expanding public transport and improving traffic management.

➢ Last-Mile Connectivity: Ensuring seamless last-mile connectivity, especially

in rural areas, remains an area of focus for improving overall accessibility.

1.3.2 Benefits Of Transportation At State Level:

1. Economic Growth:

➢ Facilitates Trade and Commerce: Efficient transportation networks enable the

smooth movement of goods and services, fostering trade and commerce within
the state and with other regions. This boosts economic activity and generates
revenue.

➢ Attracts Investment: Good connectivity and transportation infrastructure

attract businesses and industries to set up operations in Gujarat. This leads to
increased investment, job creation, and economic diversification.

➢ Supports Industrial Development: Reliable transportation is essential for

industries to access raw materials, transport finished goods, and connect with
markets. This promotes industrial growth and competitiveness.

➢ Boosts Tourism: Improved transportation infrastructure makes tourist

destinations more accessible, leading to increased tourism. This generates
revenue and employment in the tourism sector.

2. Social Development:

➢ Improved Accessibility: Better transportation connects remote areas and

communities, providing access to essential services like education, healthcare,
and employment opportunities.

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 ➢ Enhanced Quality of Life: Efficient transportation reduces travel time and
costs, making it easier for people to commute to work, access amenities, and
participate in social activities, thus improving their quality of life.

3. Environmental Benefits:

➢ Reduced Congestion: Efficient public transportation systems, like the

Ahmedabad Metro, help reduce traffic congestion in urban areas, leading to
lower pollution levels and improved air quality.

➢ Fuel Efficiency: Well-maintained roads and efficient transportation systems

contribute to better fuel efficiency, reducing fuel consumption and greenhouse
gas emissions.

➢ Sustainable Transportation: The state government is promoting sustainable

transportation options like electric vehicles and public transport, further
reducing the environmental impact of transportation.

1.3.3 Challenges Faced By Transportation At State Level:

1. Traffic Congestion in Urban Areas:

➢ Increasing Vehicle Ownership: Rapid urbanization and rising incomes have

led to a surge in private vehicle ownership, contributing to traffic congestion in
cities like Ahmedabad, Surat, and Vadodara.

➢ Limited Public Transport: Despite improvements, public transportation

systems in some cities struggle to keep pace with the growing demand, leading
to reliance on private vehicles and exacerbating congestion.

2. Last-Mile Connectivity:

➢ Rural Accessibility: Connecting remote rural areas to the main transportation

network remains a challenge. Poor road conditions and limited public transport
options hinder accessibility for many rural communities.

➢ Seamless Integration: Ensuring seamless integration between different modes

of transport, especially for last-mile connectivity, is crucial for efficient
movement of people and goods.

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3. Infrastructure Gaps:

➢ Road Maintenance: While Gujarat has a good road network, maintaining the
quality of roads, especially in rural areas, requires continuous efforts and
investment.

➢ Railway Capacity: Increasing capacity on existing railway lines and

developing new lines is essential to meet the growing demand for rail transport.

➢ Airport Infrastructure: Expanding airport infrastructure and improving

connectivity at some airports is needed to cater to the rising air traffic.

4. Environmental Concerns:

➢ Air Pollution: Increasing vehicle emissions contribute to air pollution in urban

areas, posing health risks and environmental challenges.

➢ Noise Pollution: Traffic noise in cities can be a significant nuisance and health
concern.

➢ Need for Sustainable Solutions: Promoting sustainable transportation options

like electric vehicles and public transport is crucial for reducing the
environmental impact of transportation.

5. Safety Issues:

➢ Road Accidents: Road accidents remain a major concern, highlighting the need
for improved road safety measures, driver training, and traffic management.

➢ Enforcement of Regulations: Strict enforcement of traffic rules and

regulations is essential to ensure road safety and reduce accidents.

6. Logistics and Supply Chain Challenges:

➢ Efficient Warehousing: Developing modern and efficient warehousing

facilities is crucial for smooth logistics and supply chain management.

➢ Coordination and Technology: Improving coordination among different

stakeholders in the logistics sector and adopting advanced technologies can
enhance efficiency and reduce costs.

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7. Funding and Investment:

➢ Infrastructure Development: Continued investment in transportation

infrastructure is essential to address the growing needs and overcome existing
challenges.

➢ Public-Private Partnerships: Encouraging public-private partnerships can

help mobilize resources and expertise for transportation projects.

1.4 Pestel Analysis Of Industry

Figure 1.1

A pestel Analysis is a framework or tool used by marketers to analyze and monitor the
macro-environmental (External Marketing Environment) factors that have impact on
an organization, company or industry. It examines the political, economic, social,
technological, environmental and legal factors in the external environment. A Pestel
analysis is used in a SWOT analysis.

Here Is A Breakdown Of How It is applied to Transportation Industry:

1. Political Factors:
Changes in government or political instability can lead to uncertainty and affect long-
term investments in public transportation infrastructure.

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These include subsidies, taxes, safety regulations, and environmental policies that can
significantly impact the industry's profitability and operations. The extent of government
involvement and the nature of public-private partnerships can shape the industry's
structure and efficiency.

2. Economic Factors:
A strong economy usually leads to increased demand for public transportation as more
people commute to work or travel for leisure.

➢ Fuel prices: Fluctuations in fuel prices can significantly impact operating costs,
especially for bus and rail systems.

➢ Inflation and interest rates: These can affect the cost of infrastructure
development and financing for public transportation projects.

➢ Unemployment rates: High unemployment can reduce demand for public

transportation as fewer people commute to work.

3. Social Factors:
The growth of cities increases the need for efficient and reliable public transportation
systems to manage congestion and facilitate mobility. Shifts in age distribution, income
levels, and lifestyle preferences can influence travel patterns and demand for different
types of public transportation. And Growing public concern about environmental issues
is driving demand for sustainable transportation options, such as electric buses and
trains. Public perception of safety and security can affect ridership and the willingness
to use public transportation.

4. Technological Factors:
Innovations like electric vehicles, autonomous driving, smart ticketing systems, and
real-time information platforms are transforming the industry. The use of data analytics
can help optimize routes, schedules, and resource allocation, improving efficiency and
customer satisfaction.
Availability of Wi-Fi and other connectivity options on public transportation can
enhance the passenger experience.

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5. Legal Factors:
Strict safety standards and regulations are essential to ensure the well-being of
passengers and the safe operation of public transportation systems. Regulations
mandating accessibility for people with disabilities can influence the design and
operation of public transportation infrastructure.

6. Environmental Factors:

The need to reduce greenhouse gas emissions is driving the adoption of cleaner
technologies and fuels in public transportation. Concerns about air pollution in urban
areas are pushing for the transition to electric or other low-emission public
transportation options. The availability and cost of resources like fossil fuels and
electricity can influence the choice of transportation technologies. Extreme weather
events can disrupt public transportation services and require investments in flexible
infrastructure.

1.5 Current Trends In The Industry:

The public transportation sector in India is undergoing a significant transformation,
driven by technological advancements, policy changes, and evolving consumer
preferences. Here are some of the key current trends:

1. Electrification of Bus Fleets:

➢ A strong push towards electric buses to reduce carbon emissions and combat air
pollution.

➢ State governments and private operators are increasingly investing in electric

buses, supported by policies and incentives from both central and state
governments.

➢ As of February 2025, there are about 10,000 electric buses operational in India,
with expectations of a fivefold increase in the next 2-3 years.
2. Improved Infrastructure:
➢ Focus on developing better infrastructure to support modern buses, including
dedicated bus lanes, bus rapid transit systems (BRTS), and upgraded bus
stations.

➢ This aims to improve efficiency and reduce travel time.

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3. Integration with Technology and Data-Driven Decisions:
➢ Rising adoption of technology, with features like GPS tracking, real-time
passenger information systems, and contactless payment methods becoming
more common.

➢ Data analytics is increasingly used to optimize routes, manage fleets more

effectively, and enhance service delivery based on passenger demand and
behavior.

4. Increased Involvement of the Private Sector and Public-Private Partnerships

(PPPs):
➢ Trend towards forming public-private partnerships to improve bus services.

➢ These collaborations aim to combine public sector resources and oversight with
private sector efficiency and innovation.

5. Focus on Multimodal Transportation:

➢ Emphasis on integrating different modes of public transport, such as buses,
trains, and metro systems, to provide seamless and convenient travel
experiences.

➢ Development of common ticketing systems and integrated transport hubs to

facilitate easy transfers between modes.

6. Enhanced Safety and Security:

➢ Increased focus on passenger safety and security, with measures like CCTV
cameras, panic buttons, and GPS tracking in buses.

➢ Deployment of trained security personnel in public transport vehicles and at

stations.
7. Accessibility and Inclusivity:
➢ Efforts to make public transport more accessible and inclusive for all, including
persons with disabilities, senior citizens, and women.

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 ➢ Introduction of features like low-floor buses, ramps, and designated seating
areas.

8. Sustainable and Eco-Friendly Practices:

➢ Growing emphasis on sustainable and eco-friendly practices in public transport,
such as the use of biofuels, CNG, and other alternative fuels.

➢ Promotion of energy-efficient technologies and waste management practices in

public transport operations.

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2.1 OVERVIEW OF AUTO-RICKSHAW COMPANIES
2.1.1 BAJAJ AUTO LIMITED
Founded in 1945 by Jamnalal Bajaj, Bajaj Auto is headquartered in Pune, Maharashtra.
It is the world's largest manufacturer of three-wheelers, including auto rickshaws, and
the third-largest motorcycle producer globally. The company operates manufacturing
plants in Chakan, Waluj (Aurangabad), and Pantnagar, with its oldest facility in Akurdi,
Pune, housing the R&D center 'Ahead'. Bajaj Auto's products are widely exported,
making it a significant player in both domestic and international markets.

Figure 2.1
2.1.2 ATUL AUTO LIMITED
Based in Rajkot, Gujarat, Atul Auto was incorporated
in 1986, with production commencing in 1992. The
company's origins trace back to the 1970s when
founder Jagjivanbhai Chandra modified motorcycles
to create vehicles suitable for rural transportation in
Saurashtra. Atul Auto manufactures a range of three-
wheelers, including auto rickshaws and e-rickshaws,
and has manufacturing facilities in Rajkot and
Ahmedabad. Figure 2.2

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2.2 OVERVIEW OF LEADING RIDE-HAILING
APPLICATIONS
2.2.1 OLA CABS

Figure 2.3

Type: Private Company

Industry: Transportation and Food Industry

Founded: 3 December 2010

Founders: Bhavish Aggarwal, Ankit Bhati

Headquarters: Bangalore, Karnataka

Area Served: India

Website: www.olacabs.com

Company Overview:
Ola Cabs, commonly known as Ola, is an Indian multinational ride-hailing company. It
also operates financial services such as peer-to-peer lending, credit cards and insurance.
Ola was founded by Bhavish Aggarwal and Ankit Bhati in 2010 and is headquartered
in Bangalore, India. As of 2019, Ola was valued at about $2 billion.

23
Ola Cabs Application:
The Ola Cabs application is a mobile app that allows users to book rides from their
smart phones. The app is available for Android and IOS devices. To use the app, users
must first create an account and provide their phone number and email address. Once
they have created an account, they can book rides by entering their pickup and drop-off
locations. The app will then show them a list of available drivers and the estimated fare
for the ride. Users can choose to pay for their rides using cash, credit card, or Ola
Money, Ola's own digital wallet.

Founders:

Figure 2.4
Ola was founded by Bhavish Aggarwal and Ankit Bhati. Aggarwal is the CEO of Ola
and Bhati is the CTO. Aggarwal and Bhati are both graduates of IIT Kanpur. They
founded Ola in 2010 after Aggarwal had a bad experience trying to hail a cab.

Key Features:
➢ Ride Booking: Users can easily book rides by entering their pickup and drop-
off locations. The app provides various ride options like bike taxis, auto-
rickshaws, and cabs (Mini, Prime Sedan, Prime SUV, etc.) to suit different
needs and budgets.
➢ Real-time Tracking: The app allows users to track their ride in real-time,
showing the driver's location and estimated arrival time.

24
 ➢ Multiple Payment Options: Ola supports various payment methods, including
cash, Ola Money wallet, credit/debit cards, UPI, and mobile wallets like
PhonePe and Amazon Pay.
➢ Ride Scheduling: Users can schedule rides in advance for future travel.
➢ Additional Services: Ola also offers services like Ola Rentals for hourly
bookings, Ola Outstation for intercity travel, and Ola Parcel for sending
packages within the city.
Benefits:
• Convenience: Book rides anytime, anywhere.
• Affordability: Choose from various ride options to suit your budget.
• Accessibility: Ola operates in numerous cities across India.
• Safety: Ola provides safety features for both riders and driver.

2.2.2 Uber

Figure 2.5

Type: Public
Industry: Transportation Mobility As a Service
Founded: March 2009
Founders: Garret Camp, Travis Kalnick

25
Headquarters: San Francisco, California, U.S
Area Served: 70 Countries and 10,500 Cities Worldwide.
Key People: Ronald Sugar (chairman), Dara Khosrowshahi (CEO)
Website: www.uber.com

Company Overview:
Uber, a global transportation network company, was founded by Travis Kalanick and
Garrett Camp in 2009. The company offers a variety of services through its mobile
app, including ride-hailing with cars (UberX, UberXL, Uber Black, etc.), ride-sharing
(Uber Pool), and food delivery (Uber Eats). In select markets, Uber also offers bike
and scooter sharing, as well as public transit information.
In India, Uber has integrated auto-rickshaws into its platform, allowing users to book
auto rides through the app. This service, known as Uber Auto, is available in several
Indian cities and provides a convenient and affordable mode of transportation.
Uber's services are designed to connect riders with drivers who have available vehicles.
Riders can request a ride through the app, track the driver's location, and pay for the
ride using various payment methods. Uber has revolutionized urban transportation by
providing a convenient, on-demand service that has become a popular alternative to
traditional taxis and public transportation.
These services are accessed through the Uber app, which is available for both Android
and IOS devices.
Uber Auto Rickshaw:
Uber Auto Rickshaw is a ride-hailing service that connects passengers with auto
rickshaw drivers. It is currently available in select cities in India and other countries.
Uber Auto Rickshaw is a convenient and affordable way to get around in congested
urban areas.
Both Uber Cab and Uber Auto Rickshaw offer a variety of features, including:

• Real-time tracking: Passengers can track the location of their driver in real-
time.
• Upfront pricing: Passengers can see the estimated fare before booking a ride.
• Multiple payment options: Passengers can pay for their rides using cash, credit
card, or mobile wallet.

26
 • Safety features: Uber has a number of safety features in place, such as driver
background checks and an in-app emergency button.

Founders:

Figure 2.6
Uber, a global transportation network company, was founded by Travis Kalanick and
Garrett Camp in 2009. In 2009, Garrett Camp, a co-founder of Stumble Upon, came up
with the idea to create Uber to make it easier and cheaper to procure direct
transportation.

27
2.2.3 Rapido

Figure 2.7

Type: Private
Industry: Transportation
Founded: 2015
Founders: Aravind Sanka, Pavan Gutupalli, SR Rishikesh
Area Served: India
Headquarters: Bangalore, Karnataka
Website: rapido.bike

Company Review:
Rapido is an Indian on-demand logistics and mobility platform founded in 2015 by
Aravind Sanka, Rishikesh Sarda, and Pavan Gunturu. It is headquartered in Bangalore,
India. Rapido is a bike taxi service that offers affordable and convenient transportation
to commuters. The company has raised over $1 billion in funding from investors such
as West Bridge Capital, Nexus Venture Partners, and Alibaba Group.
Rapido operates in over 100 cities across India and has over 100 million users. The
company offers a range of services, including bike taxis, auto-rickshaws, car rentals,
food delivery, and parcel delivery.
It primarily operates as a bike taxi aggregator, connecting commuters with riders who
use their own two-wheelers. This model offers a quick and often more affordable
alternative to traditional taxis and auto-rickshaws, especially in congested urban areas.

28
Over the years, Rapido has expanded its services to include auto-rickshaw and cab
hailing, parcel delivery, and even third-party logistics. The company has also ventured
into other areas, such as food delivery, though its primary focus remains on
transportation. Rapido operates in over 100 cities across India and has garnered
significant funding from investors, reaching a valuation of over $1 billion.
Key Features:
➢ Affordability: Rapido's bike taxi service is often cheaper than traditional taxis
or auto-rickshaws, making it a budget-friendly option for daily commutes.
➢ Speed: Bike taxis can often navigate through traffic more easily than cars,
reducing travel time.
➢ Multiple Services: Rapido has expanded beyond bike taxis to include auto-
rickshaw and cab hailing, parcel delivery, and even third-party logistics,
offering a range of services within one app.

2.2.4 Jugnoo

Figure 2.8

Type: Private
Industry: Transportation Network Company
Founded: November 2014
Founder: Samar Singla, Chinmay Agarwal
Headquarters: Chandigarh, India
Area Served: India
Website: https://jugnoo.io

29
Company Overview:
Jugnoo is an Indian ride-hailing and on-demand delivery platform that offers a variety
of services through its mobile application. Primarily known for its auto-rickshaw
hailing service, Jugnoo also provides other transportation options like taxis and bike
rides. Beyond transportation, Jugnoo has expanded its services to include on-demand
delivery of food, groceries, and other essentials, connecting users with local businesses.
Key Services:
➢ Ride-hailing: Jugnoo connects commuters with auto-rickshaws, taxis, and
bikes for convenient and affordable transportation.
➢ Hyperlocal Delivery: Jugnoo facilitates the delivery of food, groceries,
medicines, and other essentials from local businesses to customers' doorsteps.

Founders:

Figure 2.9

Jugnoo was founded in 2014 by Samar Singla and Chinmay Agarwal.

● Samar Singla: CEO of Jugnoo. He is an alumni of IIT Delhi with a degree in Physics.
Prior to Jugnoo, he worked as a researcher at IBM and CERN. He also founded Click
Labs, a SAAS technology solution provider.
● Chinmay Agarwal: Former COO of Jugnoo. He also graduated from IIT Delhi and
holds a Master's in Robotics from the University of Genoa. He has worked as a scientist
at Smart Cane and co-founded Click Labs with Samar Singla

30
3.1 WHAT IS SERVICE?
A service is an intangible offering that one party provides to another. Unlike a physical
good, you can't touch a service. Instead, it's an action, performance, or expertise that
someone offers to meet a need or want. Think about the work a teacher does, the
expertise a lawyer provides, or the pampering you get at a spa – these are all examples
of services. Services are a fundamental part of our economy, and they range from the
everyday, like getting a haircut, to the highly specialized, like brain surgery. What
makes services unique is that they are often produced and consumed simultaneously.
This means that the person providing the service and the person receiving it are often
interacting in real-time. This interaction is a key part of the service experience.
Additionally, services are often tailored to the specific needs of the customer, making
them highly personalized.
Characteristics Of Service:
• Intangibility: When thinking about the characteristics of services, intangibility
may come to your mind first. Service intangibility means that services cannot
be seen, tasted, felt, heard or smelled before they are bought. You cannot try
them, like you would maybe take a car on a test drive first. For instance, airline
passengers have nothing but a ticket and a promise that they will arrive at a
certain time at a certain destination. But there is nothing that can be touched.
• Inseparability: Inseparability may not come to mind first when thinking about
the characteristics of services, but it is an important part of every service.
Inseparability means that services are produced and consumed at the same time.
This also entails that services cannot be separated from their providers.
• Variability: is another key characteristic of services. It refers to the fact that
the quality of services can vary greatly, depending on who provides them and
when, where and how. Because of the labor-intensive nature of services, there
is a great deal of difference in the quality of service provided by various
providers, or even by the same providers at different times.
• Lack of Ownership: Lack of ownership is another key service characteristic.
It refers to the fact that you cannot own and store a service like you can a
product. This characteristic is strongly linked to several other characteristics of
services, such as intangibility, perishability, and inseparability.

31
 • Perishability: Perishability means that services cannot be stored for later sale
or use. In other words, services cannot be inventoried. This is one of the most
significant characteristics of services, since it may have a major impact on
financial results. Doctors or dentists often charge patients for missed
appointments because the service value has foregone. The value existed only
at that particular point and disappeared when the patient did not come.

3.2 DEFINITION OF SERVICE:

‘Services are economic activities that create value and provide benefits for
customers at a specific times and places a result of bringing about a desired
change in-or on behalf of-the recipient of the service.’ – Christopher Lovelock.

‘A Service is any activity or benefit that one party can offer to another, which
is essentially intangible and does not result in the ownership of anything. Its
production may or may not be tied to a physical product.’ – Kotler, Armstrong,
Saunders and Wong.

3.3 WHAT IS SERVICE QUALITY:

Service quality is a measure of a business offering services and meeting various
customer requirements and expectations. If the level of an organization’s
service quality is high, it means that customers often find satisfaction in its
services, which allows the business to possess a competitive advantage over its
competitors.

3.4 DEFINITION OF SERVICE QUALITY:

‘Service quality is the comparison between customer expectations and service
experience’. – Parasuraman, Zeithaml, and Berry.
‘Service quality is how well a business meets or exceeds customer
expectations. It’s a measure of customer experience and satisfaction’.

Below are some factors of service quality:

➢ Process quality: Also referred to as operational quality, this factor determines
the quality of procedures involved in production processes.
➢ Output quality: Also referred to as technical quality, this factor comes after
production and determines what customers receive from service providers.

32
 ➢ Physical quality: This focuses on the quality of the product that a customer
receives or the quality of support for the products.
➢ Organization quality: The perception or the reputation of an organization is
organization quality where customers having faith in a brand is important.

3.5 RIDE-HAILING APPLICATIONS IN SURAT CITY:

In Surat, you'll find several ride-hailing companies offering auto-rickshaws and cabs,
making it easy to get around the city. Here's a rundown of some of the major players:

Ola:
• Autos: Ola Auto is a popular choice for short-distance travel within the city.
You can easily book an auto through the Ola app, and the fare is displayed
upfront, eliminating the need for haggling.
• Cabs: Ola offers a variety of cab options, including Ola Mini (economy), Ola
Prime Sedan (comfortable sedan), and Ola Prime SUV (for larger groups).
Uber:
• Autos: Uber Auto is another convenient option for booking auto-rickshaws in
Surat. Similar to Ola, Uber provides a user-friendly app for booking rides and
viewing fares.
• Cabs: Uber offers cab services in Surat with options like Uber Go (economy),
Uber Sedan (comfortable sedan), and Uber SUV (for larger groups).
Rapido:
• Autos: Rapido Auto is known for its quick and affordable auto-rickshaw rides.
Rapido also offers bike taxis, which can be a faster option for navigating
through traffic.
• Cabs: Rapido cabs offer a comfortable and convenient way to travel around
Surat, especially for longer distances or when you have luggage.
Jugnoo:
• Autos: Jugnoo is another app-based auto-rickshaw service operating in Surat.
They focus on providing affordable and reliable rides.

33
3.6 MEANING OF CUSTOMERS:

Figure 3.1
A Customer is an individual or business that purchases goods or services from another
business. Customers are essential to any business because they generate revenue, which
is lifeblood of any commercial enterprise. Without customers a business cannot survive
or thrive. Customers can be individuals who buy products for personal use or
organizations who buy goods or service for operational needs. They can be categorized
in various ways, such as demographics, purchasing behavior, or Loyalty to a brand.

3.7 DEFINITION OF CUSTOMERS:

Customer can be defined as ‘Someone who pays for a product or service to meet their
needs’. – Kotler.
‘Customers are defined as who exchanges something, usually monetarily, for goods or
service. Customers experience short interactions between themselves and the seller,
which end once the customer leaves with their desired product’.

34
Simon E. Harding, Madhav G. Badami, Conor C.O. Reynolds &
Milind Kandlikar (2016), Auto-rickshaws play a crucial role in urban transport in
India but often face criticism from the public, media, and policymakers. This study aims
to bring balance to the debate by incorporating the perspectives of drivers, users, and
the wider public in policy discussions. It critically examines the criticisms and
perceptions surrounding auto-rickshaws, highlights their niche role in urban mobility,
and explores the economic realities of their ownership and operation.

Himanshu Zade, Jacki O'Neill (2016), Ola, a peer-to-peer (P2P) platform similar to
Uber, connects passengers with car and auto-rickshaw drivers in India. Many auto
drivers face challenges in adopting the Ola app, as it is often their first experience with
internet-based technology. The platform significantly changes their workflow,
introducing new practices and processes. This study examines the contrast between
drivers' workflows before and after adopting Ola from a user experience (UX)
perspective. Based on these insights, design implications are proposed to improve the
experience and support the adaptation of auto drivers to the digital platform.

Srihari Hulikal Muralidhar (2016), Ola, an app-based taxi service in India, was
founded in 2010 as a venture capital-backed startup. Owned by ANI Technologies and
headquartered in Bangalore, Ola initially offered weekend trips during the 2010
Commonwealth Games before shifting its focus to point-to-point transportation. This
paper explores Ola’s growth into India's leading ride-hailing service, the country's taxi
industry, opportunities and challenges, Ola’s business model, competitive strategies,
and the impact of Uber’s rapid expansion in India.

Dr .S. Yuvaraj, S.Siva (2018), This study aims to identify the issues faced by
consumers of mobile app-based cab services. Due to a lack of published research on
this topic, particularly in the study area, the research addresses a significant gap. It
examines consumer demographics, usage patterns, and challenges encountered with
online transport network companies. Data were collected from an adequate sample size
and analyzed using statistical tools such as Percentage Analysis (for demographics),
Chi-Square Test (to assess relationships between demographics and usage patterns), and
Factor Analysis (to classify key issues). The findings indicate that driver-related issues
are the most significant concern for consumers, followed by regulatory challenges.

35
Srihari Hulikal Muralidhar (2018), This doctoral study explores how India's digital
payments ecosystem can be redesigned to better serve the poor. It acknowledges that
digital money is not necessarily the best solution for financial challenges but
distinguishes between a preference for cash and a forced reliance on it. The study
examines digital payments within a broader financial ecosystem, focusing on how the
poor engage with digital money and the 'acceptance network' of card- and mobile-based
transactions. It highlights the need for integrating different parts of the ecosystem to
make digital payments more accessible and beneficial for the poor.

Anna Fleitoukh & Kentaro Toyama (2020), This study examines the impact of ride-
sharing platforms like Ola and Uber on taxi and auto-rickshaw drivers in New Delhi
using a mixed-methods approach with 60 participants. The findings show mixed
outcomes, with no statistically significant change in drivers' average daily revenue,
though potential income gains of 7–18% appear to result from longer working hours.
Contrary to corporate claims of driver autonomy and flexibility, many drivers reported
experiencing less control over their work. Additionally, income uncertainty increased
due to intermittent promotional incentives from ride-sharing companies. The results
align with technological amplification theory, suggesting that ride-sharing platforms
reinforce power imbalances by reducing driver control while offering minimal benefits.

Aravinda Devaraj, Ganesh Ambi Ramakrishnan, and Ram M. Pendyala (2020),

This study explores the adoption and usage of mobile application-based ride-hailing
services, which integrate technology, vehicle supply, and real-time demand. While there
is significant interest in measuring demand for such services, existing research often
overlooks the interdependence between adopting ride-hailing and its usage intensity.
The literature on ride-hailing is particularly sparse in developing countries, where
factors such as vehicle ownership and the availability of transit and intermediate public
transport (IPT) influence demand differently compared to developed nations. This study
addresses these gaps by examining three interconnected choices among workers in
Chennai: the consideration of IPT modes, the adoption of ride-hailing services, and the
intensity of ride-hailing usage.

Gopindra Sivakumar Nair, Aravinda Devaraj & Karthik K. Srinivasan (2020),

This study examines the adoption and usage of app-based ride-hailing (RH) services,
particularly in developing countries where research is limited. Unlike developed

36
nations, RH demand in these regions is influenced by factors such as lower vehicle
ownership and the widespread use of Intermediate Public Transport (IPT), which
accounts for up to 40% of trips. Existing studies often overlook the interdependence
between adopting RH services and their usage intensity. To address this gap, the study
focuses on Chennai city, analyzing three key decision dimensions among workers: RH
adoption, usage frequency, and the role of IPT modes.

Arora, Garima, Kumar, Ashok (2021), The study examines the perceived service
quality of cab aggregators and traditional public transport services in India's National
Capital Region (NCR) using the SERVPERF model. With the rapid development of
India's transportation sector, the entry of radio cabs in the early 2000s transformed the
previously unorganized taxi market. To assess service quality, primary data was
collected through standardized questionnaires. A paired t-test analysis revealed
significant differences in perceived service quality across tangibility, responsiveness,
assurance, and empathy, favoring cab aggregators. However, no significant difference
was found in reliability, highlighting a key area for improvement for cab aggregators.

Jananie Kalyanaraman (2022), This article examines the work of share-auto rickshaw
drivers in peripheral Bengaluru, focusing on local men from formerly farmland-owning
households. It highlights how global capital and urbanization processes categorize
certain jobs as "formal" while labeling others as "informal" and "unregulated." The
study explores why these drivers engage in their specific work practices and how they
perceive their role in the rapidly transforming city. It argues that their identity as "local"
is shaped by deep ties to agrarian land, place-based knowledge, and a distinct
operational logic. This "local" identity differentiates them from outsiders and positions
their work beyond conventional formal-informal classifications. Ultimately, the article
suggests that embracing "local" allows these drivers to navigate and adapt to urban
change on their own terms.

Woro Wijayanti, Vincentius Hadi Wiyono & Rr. Retno Sugiharti (2022),
Modernization has transformed transportation, introducing convenient options like
motorbike taxis and online-based services, which have negatively impacted traditional
vehicles like pedicabs. This research examines how pedicab drivers in Solo adapt to
these changes, analysing their characteristics and economic strategies. Data from
questionnaires, interviews, and observations show that age, education level, and address

37
significantly influence their decision to take side jobs, while the number of dependents
and monthly income do not. To cope economically, pedicab drivers engage in part-time
jobs, save money, and rely on support from working family members.

Ayush Vatal (2023), The rise of ride-hailing services like Uber has disrupted traditional
transportation globally, including in India, where Uber competes with widely used
autorickshaws. This study examines Uber's impact on the autorickshaw industry in
Pune, a city with 4.3 million people. With over 1 million registered users in Pune, Uber
offers advantages such as cashless payments, reliable service, and real-time ride
tracking. In contrast, the autorickshaw industry operates within a closed system that
often prioritizes drivers over customers, leading to poor service quality and limited
innovation. Uber’s presence has increased competition, encouraging service
improvements in the autorickshaw sector. The study highlights the broader impact of
the sharing economy on traditional industries in emerging markets.

C.M. Naveen Kumar (2023), The sharing economy has long existed, with bartering as
its earliest form. The rise of the internet has revolutionized traditional industries by
enabling content sharing and expanding market reach. The platform economy,
exemplified by taxi aggregators like Uber and Ola, has significantly impacted the
transportation sector, promoting efficiency and sustainability. The car rental industry in
India is growing rapidly, driven by increasing consumer demand for hassle-free travel
and corporate services. Despite the Indian taxi market being valued at $9 billion, only
a small portion is organized. This study explores the industry's transformation, focusing
on Uber and Ola's influence on middle-class commuting, using data from multiple
sources.

Shanmugavel, C. Parsuvanathan & S. Nail (2023), Shared mobility involves multiple

users sharing a ride, travel costs, or a vehicle simultaneously. In India, shared mobility
options like share-autos (three-wheelers) and share-cabs (four-wheelers) are widely
used as informal public transportation. Unlike taxis and auto-rickshaws, share-cabs
operate on semi-fixed routes with flexible boarding and alighting points. While their
popularity is growing, authorities are undecided on whether to regulate and integrate
them into public transport or ban them as competition. A stakeholder-based study using
surveys and an indexing system rated share-cabs' sustainability at 3.01 out of 5,

38
indicating moderate viability with potential for improvement through standardization
and regulation.

Thakur, Shilpa and Sachdev, Naresh (2025), This study examines customer preferences
and perceptions of Ola and Uber in India, focusing on service quality aspects such as
reliability, pricing, safety, and customer support. Using a survey-based approach with
statistical analysis, it highlights how factors like pricing policies, driver behavior, and app
design influence user choices. The research also explores the impact of demographics like
age, gender, and occupation on consumer decisions. Findings from 200 respondents in
Ludhiana indicate that affordability and availability are key reasons why Ola is preferred
over Uber. The study provides insights into consumer behavior in the digital age, with
implications for service marketing and ride-hailing business strategies.

39
5.1 MEANING OF RESEARCH
This Research aims to analyze and compare the level of service provided by these two
modes of transportation. Service quality in public transport is a crucial factor that
influences customer satisfaction, preferences, and overall commuting experience. This
research examines key aspects such as affordability, availability, safety, comfort,
convenience, driver behavior, and technological integration (such as app-based booking
for cabs). By collecting data from passengers, the study seeks to identify the strengths
and weaknesses of both transport options, understand customer perceptions, and
provide insights into improving urban transportation services in Surat. The findings will
help policymakers, service providers, and commuters make informed decisions
regarding their choice of transport and potential improvements in service quality.

5.2 RESEARCH OBJECTIVES

• To identify and evaluate the key dimensions of service quality perceived by customers
of auto-rickshaws and cabs in Surat.
• To compare the service quality offered by auto-rickshaws and cabs across these
dimensions.
• To analyze the factors influencing customer satisfaction with auto-rickshaw and cab
services.
• To determine customer preferences related to auto rickshaw and cab usage.
• To provide recommendations for improving service quality in both sectors.

5.3 RESEARCH DESIGN

➢ Descriptive: To describe the service quality factors in auto rickshaws and cabs.
➢ Comparative: To compare customer satisfaction and service parameters
between auto rickshaws and cabs.
➢ Exploratory: To explore new trends, challenges, and potential improvements
in the public transport sector.

40
5.4 DATA COLLECTION METHOD
In this research primary data collection method is used and data is collected by
conducting survey.

Surveys: Surveys will be administered through: Online platforms (Google Forms).

Questionnaires: questionnaires will be developed to assess customer perceptions of service

quality.

5.5 SAMPLE DESIGN AND SIZE

5.5.1 SAMPLE DESIGN

Target Population:

The target population includes:

• Frequent passengers of auto-rickshaws and cabs in Surat city, including daily

commuters, tourists, and occasional users.
• Demographic segments: Age (18+ years), gender, occupation, and income levels can
be considered to analyze variations in service perception.

Sampling Method:

• Stratified Sampling: The sample will be stratified based on the frequency of

auto-rickshaw and cab usage.
• Convenience Sampling: To gather data from locations where target customers
are likely to be found.

5.5.2 SAMPLE SIZE

• A sample size of 224 respondents will be targeted to ensure statistical

significance.
• The sample will be divided to ensure adequate representation of both auto
rickshaw and cab users.

41
5.6 ADVANTAGES OF THE STUDY
1. Provides an understanding of customer preferences and pain points
Quantitative.
2. Can help in transport policy formulation and improving urban mobility.
3. Highlights the impact of digitalization on transport choices.
4. Assists businesses (cab companies, rickshaw unions) in improving service
quality.
5. Focuses on Surat, aiding local transport planning.

5.7 LIMITATIONS OF THE STUDY

1. Customer perceptions may be biased and vary based on personal experiences.
2. Findings may not fully represent all users of auto rickshaws and cabs.
3. Quality can differ significantly across different times of the day, seasons, and
areas.
4. Unlike cabs, service in auto rickshaws is not uniform, making comparisons
challenging.
5. Ride-sharing apps frequently update pricing and policies, making data outdated
quickly.

42
6.1 PRIMARY DATA
A sample size of 224 respondents is chosen to ensure statistical importance.

Q1) Age

Table 6.1.1

Age Respondents Respondents (%)

Below 18 5 2.2
18-25 150 67
26-35 52 23.2
36-50 17 7.6
Above 50 0 0
Total 224 100

Chart 6.1.1

Age

8%0%
2% Below 18
18-25
23%
26-35
36-50
67%
Above 50

Interpretation: The majority of respondents (67%) belong to the 18-25 age group,
indicating that young adults form the primary demographic in this survey. Second-
largest group is 26-35 years old, making up 23.2% of respondents. This suggests that
middle-aged young professionals also have a significant presence. 36-50 age group
represents 7.6%, showing lower participation from older individuals. Only 2.2% of
respondents are below 18, indicating minimal engagement from teenagers. No
respondents are above 50, suggesting that this age group is either less involved or was
not part of the target audience.

43
Q2) Gender

Table 6.1.2

Gender Respondents Respondents (%)

Male 177 79
Female 47 21
Total 224 100

Chart 6.1.2

Gender

21%

Male
Female

79%

Interpretation: Male respondents constitute 79% (177 out of 224), indicating that the
majority of participants in this survey are male. Female respondents make up 21% (47
out of 224), showing a significantly lower representation compared to males. This data
suggests a gender imbalance among the respondents, which may impact the study’s
findings if gender plays a role in decision-making patterns.

44
Q3) Occupation

Table 6.1.3

Occupation Respondents Respondents (%)

Student 109 48.7
Working Professional 75 33.5
Business owner 31 13.8
Homemaker 5 2.2
Other 4 1.8
Total 224 100

Chart 6.1.3

Occupation

2%
2% Student
14%
Working professional
49% Business Owner

33% Homemaker
Other

Interpretation: Students make up the largest group (48.7%), indicating that nearly half
of the respondents are currently studying. This suggests that younger individuals,
possibly with limited work experience, are a major part of the survey. Working
professionals account for 33.5%, representing a significant portion of respondents who
are actively employed. Their responses may provide insights into consumer behaviour
from an income-earning perspective. Business owners form 13.8% of the sample,
showing that a small but notable segment consists of entrepreneurs or self-employed
individuals. Homemakers make up only 2.2%, indicating minimal representation from
individuals primarily engaged in household responsibilities. The ‘Other’ category
accounts for 1.8%, likely representing respondents whose occupations do not fit the
predefined categories.

45
Q4) Do You Use Public Transport?

Table 6.1.4

Do you use Public Respondents Respodents (%)

Transport?
Yes 218 97.3
No 6 2.7
Total 224 100

Chart 6.1.4

Do You Use Public Transport?

3%

Yes
No

97%

Interpretation: A vast majority (97.3%) of respondents use public transport, indicating

heavy reliance on it for daily commuting or travel. Only 2.7% of respondents do not
use public transport, suggesting that very few individuals prefer alternative modes of
transport, such as private vehicles, taxis, or ride-sharing services.

46
Q5) How often do you use public transport?

Table 6.1.5

How Often Do You Use Respondents Respondents (%)

Public Transport In
Surat?
Daily 40 17.9
2-3 Times a Week 77 34.4
Once a Week 55 24.6
Occasionally 52 23.2
Total 224 100

Chart 6.1.5

How Often Do You Use Public Transport In

Surat?

23% 18%
Daily
2-3 times a week
once a week

25% 34% occasionally

Interpretation: Most respondents (34.4%) use public transport 2-3 times a week,
indicating a frequent but not daily reliance. 24.6% use public transport once a week,
showing a moderate level of dependency. 23.2% use it occasionally, suggesting they
might have alternative transport options. Only 17.9% use public transport daily, which
means a relatively smaller proportion depends on it for everyday commuting.

47
Q6) What Mode of Transport Do You Prefer?

Table 6.1.6

What Mode of Transport Respondents Respondents%

Do You Prefer?
Auto-Rickshaws 129 57.6
Cabs(ola/uber/jugnoo/rapido) 73 32.1
Public Bus 20 8.9
Own Vehicle 3 1.3
Total 224 100

Chart 6.1.6

What Mode of Transport Do You Prefer?

9% 1%
Auto rickshaws
Cabs (ola/uber/jugnoo/rapido)
33% Public Bus
57%
Own Vehicle

Interpretation: Auto-rickshaws are the most preferred mode of transport (57.6%),

indicating their dominance in daily commuting. Cabs (Ola, Uber, Jugnoo, Rapido) are
the second most preferred option (32.1%), showing a significant reliance on app-based
ride services. Public buses are used by only 8.9% of respondents, suggesting limited
preference for public transit. Only 1.3% of respondents prefer using their own vehicles,
implying that most commuters rely on shared or public transport.

48
Q7) Main Reason for Choosing Your Preferred Mode (Multiple options can be
selected)

Table 6.1.7

Main Reason for Respondents Respondents (%)

Choosing Your
Preferred Mode
Affordability 132 58.9
Convenience 80 35.7
Availability 97 43.3
Safety 36 16.1
Comfort 64 28.6
Number Of Respondents 224 100

Chart 6.1.7

Main Reason for Choosing Your Preferred

Mode
COMFORT 64

SAFETY 36 Affordability
Convenience
AVAILABILITY 97
Availability

CONVENIENCE 80 Safety
Comfort
AFFORDABILITY 132

0 20 40 60 80 100 120 140

Interpretation: Affordability is the most significant factor (58.9%) – A majority of

respondents prioritize cost-effectiveness in their transport choices. Availability is the
second most important reason (43.3%) – This suggests that people prefer transport
modes that are easily accessible. Convenience influences 35.7% of respondents – Many
people opt for transport options that offer flexibility and ease of travel. Comfort (28.6%)
and Safety (16.1%) are less prioritized** – This indicates that while comfort and safety
matter, they are secondary to affordability and availability.

49
Q8) How Important Is The Availability Of Digital Payment Options To You?

Table 6.1.8

How Important Is The Respondents Respondents (%)

Availability Of Digital
Payment Options To
You?
Very Important 65 29
Important 68 30.4
Neutral 58 25.9
Not Important 33 14.7
Total 224 100

Chart 6.1.8

How Important Is The Availability Of Digital

Payment Options To You?

15% Very Important

29%
Important
26% Neutral
Not Important
30%

Interpretation: Digital payment options are considered important by the majority:

29% of respondents find them very important. ,30.4% consider them important. This
means nearly 60% of respondents prefer digital payments.

Neutral and Not Important Opinions: 25.9% of respondents are neutral, indicating they
can adapt to both cash and digital payments.14.7% do not find it important, meaning a
small portion of travellers still prefer traditional cash payments.

50
Q9) How Would You Rate The Behavior Of Drivers? (1 = Very Rude, 5 = Very
Polite)

Table 6.1.9

How Would You Rate Respondents Respondents (%)

The Behavior Of
Drivers?
Auto- Cabs Auto- Cabs
Rickshaw Rickshaw
1 (Very Rude) 17 16 7.58 7.1
2 (Rude) 9 22 4 9.8
3 (Moderate) 47 30 20.9 13.39
4 (Polite) 114 94 50.89 41.96
5 (Very Polite) 44 72 19.64 32.14
Number Of Respondents 224 224 100 100

Chart 6.1.9

How Would You Rate The Behavior Of

Drivers? (1 = Very Rude, 5 = Very Polite)
114
94

72

47 44
30
17 16 9 22

1 2 3 4 5

Auto-rickshaw Cabs

Interpretation: Cab drivers are rated more polite than auto-rickshaw drivers.

51% of auto drivers and 42% of cab drivers are rated polite (4).

32% of cab drivers are rated very polite (5), higher than auto drivers (19.6%).

Both services generally maintain good driver behavior with minimal rude ratings.

51
Q10) How Would You Rate The Cleanliness Of Vehicles? (1= Very
Poor, 5 = Excellent)

Table 6.1.10
How Would You Rate Respondents Respondents%
The Cleanliness Of
Vehicles?
Auto- Cabs Auto- Cabs
Rickshaws Rickshaw
1 (Very Poor) 16 10 7.1 4.46
2 (Poor) 12 19 5.3 8.48
3 (Good) 60 34 26 15.1
4 (Outstanding)_ 129 86 57.5 38.39
5 (Excellent) 11 85 4.9 37.9
Number of Respondents 224 224 100 100

Chart 6.1.10

How Would You Rate The Cleanliness Of

Vehicles?

129

86 85

60

34
16 10 12 19 11
Auto-rickshaws Cabs
1 (VERY POOR) 2 (POOR) 3 (GOOD) 4 (OUTSTANDING) 5 (EXCELLENT)

Interpretation: The survey indicates that cabs are rated cleaner than auto-rickshaws.
While 85 respondents rated cabs as "Excellent", only 11 gave the same rating to auto-
rickshaws. Additionally, more respondents found auto-rickshaws "Outstanding" (129)
compared to cabs (86). However, more auto-rickshaws received "Very Poor" and
"Poor" ratings than cabs. This suggests that cabs generally maintain better cleanliness
standards, though some auto-rickshaws are well-maintained.

52
Q11) How Safe Do You Feel While Traveling? (1= Very Unsafe, 5 =
Very Safe)

Table 6.1.11
How Safe Do You Feel Respondents Respondents%
While Traveling?
Auto- Cabs Auto- Cabs
Rickshaws Rickshaws
1 (very unsafe) 21 14 9.37 6.25
2 (Unsafe) 12 21 5.3 9.37
3 (Neutral) 51 30 22.7 13.39
4 (safe) 121 109 54 48.6
5 (Very Safe) 25 61 11 27.2
Number Of Respondents 224 224 100 100

Chart 6.1.11

How Safe Do You Feel While Traveling?

121
109

61
51
21 14 12 21 30 25

1 (VERY UNSAFE) 2 (UNSAFE) 3 (NEUTRAL) 4 (SAFE) 5 (VERY SAFE)

Auto-rickshaw Cabs

Interpretation: Majority feel safe: 54% of auto-rickshaw users and 48.7% of cab users
rated safety as 4 (safe). Cabs rated higher in feeling very safe: 27.2% (61 respondents)
for cabs vs. 11.2% (25 respondents) for autos. Neutral or unsafe responses: More auto-
rickshaw users (51 neutral, 33 unsafe) than cab users (30 neutral, 35 unsafe). Overall,
cabs provide a stronger sense of safety compared to auto-rickshaws.

53
Q12) How Would You Rate The Fare Transparency? (1= Very Unclear, 5 = Very
Clear)

Table 6.1.12

How Would You Respondents Respondents%

Rate The Fare
Transparency?
1 (Very Unclear) 17 7.58
2 (somewhat unclear) 13 5.80
3 (Neutral) 46 20.53
4 (somewhat clear) 121 54.01
5 ( very clear) 29 12.95
Total 224 100

Chart 6.1.12

How Would You Rate The Fare

Transparency?

121
106

46 51

29 31
17 17 13 19

1 (VERY UNCLEAR) 2 (SOMEWHAT 3 (NEUTRAL) 4 (SOMEWHAT 5 (VERY CLEAR)

UNCLEAR) CLEAR)

Auto-rickshaws Cabs

Interpretation: Most respondents found fares somewhat clear: 54% rated it 4

(somewhat clear). Only 12.5% rated it very clear, showing room for improvement in
fare transparency. Neutral responses (20.5%) indicate mixed opinions. A small
percentage (13.4%) found fares unclear, signalling some dissatisfaction. Overall, fare
transparency is fairly good but could be more transparent.

54
Q13) Which service do you think provides better overall service quality?

Table 6.1.13

Which service do you Respondents Respondents%

think provides better
overall service quality?
Auto-Rickshaws 145 64.7
Cabs 79 35.3
Total 224 100

Chart 6.1.13

Which service do you think provides better

overall service quality?

35%
Auto-Rickshaws
Cabs
65%

Interpretation: Auto-rickshaws are preferred for overall service quality, with 64.7%
of respondents favoring them. Cabs are rated lower, with only 35.3% of respondents
considering them better. This suggests that auto-rickshaws are perceived as more
reliable or convenient in Surat. The preference gap indicates that cabs may need to
improve aspects of their service to compete.

55
Q14) How would you rate the affordability of the following service? (1 = very
expensive, 2 = expensive, 3 = neutral, 4 = affordable, 5= very affordable)

Table 6.1.14

How would you rate Respondents Respondents%

the affordability of
the following service?
Auto- Cabs Auto- Cabs
Rickshaws Rickshaw
1 (very expensive) 17 16 7.59 7.1
2 (expensive) 12 38 5.36 16.96
3 (neutral) 23 81 10.27 36.16
4 (affordable) 29 69 12.94 30.80
5 (very Affordable) 143 20 63.84 8.93
Total 224 224 100 100

Chart 6.1.14

How would you rate the affordability of

the following service?

143

81
69
0 0 17 16 12 38 23 29 20

1 (VERY 2 (EXPENSIVE) 3 (NEUTRAL) 4 (AFFORDABLE) 5 (VERY

EXPENSIVE) AFFORDABLE)

How would you rate the affordability of the following service? Column1

Interpretation: Auto-rickshaws are perceived as much more affordable than cabs. 143
respondents (overwhelming majority) rated auto-rickshaws as "very affordable". Only
20 respondents felt the same about cabs. Cabs are more likely to be seen as expensive.
38 respondents rated cabs as "expensive", compared to just 12 for auto-rickshaws. 81
respondents were neutral about cab affordability, indicating mixed perceptions.

56
Q15) Most Comfortable While travelling?

Table 6.1.15

Most Comfortable Respondents Respondents %

While travelling?
Auto-rickshaws 89 39.7
Cabs 135 60.3
Total 224 100

Chart 6.1.15

Most Comfortable While travelling?

40%
Auto-rickshaw
Cabs
60%

Interpretation: Most respondents (60.3%) find cabs more comfortable than auto-
rickshaws (39.7%). This is likely due to better seating, air conditioning, and a smoother
ride. However, some still prefer auto-rickshaws for ventilation and Flexibility.

57
Q16) Are you aware of the fare pricing structure for both auto-rickshaws & Cabs
in Surat?

Table 6.1.16

Are you aware of the Respondents Respondents %

fare pricing structure
for both auto-rickshaws
& Cabs in Surat?
Yes 205 91.5
No 19 8.5
Total 224 100

Chart 6.1.16

Are you aware of the fare pricing structure

for both auto-rickshaws & Cabs in Surat?

8%

Yes
No

92%

Interpretation: the majority of respondents (91.5%) are aware of the fare pricing
structure for both auto-rickshaws and cabs in Surat, while only 8.5% are not. This
indicates a high level of awareness among commuters regarding transportation costs.

58
Q17) In Mumbai Auto-rickshaw fare are decided on meter basis. Do you think
that the same system should be adopted in Surat too?

Table 6.1.17

In Mumbai Auto- Respondents Respondents %

rickshaw fare are
decided on meter basis.
Do you think that the
same system should be
adopted in Surat too?
Strongly Agree 42 18.8
Agree 81 36.2
Neutral 80 35.7
Disagree 16 7.1
Strongly Disagree 5 2.2
Total 224 100

Chart 6.1.17

In Mumbai Auto-rickshaw fare are decided

on meter basis. Do you think that the
same system should be adopted in Surat
too?
Strongly Agree
2%19%
7% Agree

36% Neutral
36% Disagree
Strongly Disagree

Interpretation: A majority of respondents (55%) either agree or strongly agree that

Surat should adopt a meter-based fare system for auto-rickshaws, similar to Mumbai.
Meanwhile, 35.7% remain neutral, and a smaller portion (9.3%) disagrees with the idea.

59
Q18) Which one of these ride do you prefer during rainy season?

Table 6.1.18

Which one of these ride Respondents Respondents %

do you prefer during
rainy season?
Auto-Rickshaws 58 25.9
Cabs 166 74.1
Total 224 100

Chart 6.1.18

Which one of these ride do you prefer

during rainy season?

26%
Auto-Rickshaws
Cabs

74%

Interpretation: The data shows that a significant majority (74.1%) of respondents

prefer cabs over auto-rickshaws (25.9%) during the rainy season. This preference is
likely due to better protection from rain, increased comfort, and a smoother travel
experience in cabs compared to auto-rickshaws.

60
Q19) Which one of these vehicle do you feel is safer at night?

Table 6.1.19

Which one of these Respondents Respondents %

vehicle do you feel is
safer at night?
Auto-rickshaws 45 20.1
Cabs 179 79.9
Total 224 100

Chart 6.1.19

Which one of these vehicle do you feel is

safer at night?

20%
Auto-rickshaws
Cabs
80%

Interpretation: The data indicates that a significant majority of respondents (79.9%)

feel that cabs are safer at night compared to auto-rickshaws (20.1%). This preference
could be attributed to factors such as better security, GPS tracking, enclosed seating,
and the perception that cab services offer a more controlled and regulated environment
compared to auto-rickshaws, which are more open and may be considered less secure
during nighttime travel.

61
Q20) What improvements would like to see in these services? (Multiple Options
can be selected)

Table 6.1.20

What improvements Respondents Respondents%

would like to see in these
services?
Better pricing 78 34.82
More availability 82 36.6
Improved safety 122 54.46
Better driver behavior 111 49.55
Cleaner Vehicles 71 31.69
Total Number of 224 ------
Respondents

Chart 6.1.20

What improvements would like to see in

these services?
CLEANER VEHICLES 71

BETTER DRIVER BEHAVIOR 111

IMPROVED SAFETY 122

MORE AVAILABILITY 82

BETTER PRICING 78

0 20 40 60 80 100 120 140

What improvements would like to see in these services?

Interpretation: Passengers prioritize safety (122 responses) and better driver behavior
(111 responses) as key improvements in auto-rickshaw and cab services. Availability
(82 responses) and pricing (78 responses) are also concerns, while cleaner vehicles (71
responses) matter but are less critical. Enhancing safety and driver professionalism
should be the top focus for service providers.

62
The study provides valuable insights into the comparative service quality of auto-
rickshaws and cabs in Surat, highlighting key factors that influence consumer
preferences. The findings indicate that while auto-rickshaws are preferred for their
affordability and availability, cabs are rated higher in terms of comfort, safety, and
cleanliness.

Consumer preferences are largely shaped by pricing, convenience, and digital payment
options. A significant number of respondents Favor implementing a meter-based fare
system for auto-rickshaws to improve fare transparency. Additionally, ride-hailing
services like Ola and Uber continue to gain traction, particularly in specific scenarios
such as nighttime travel and rainy seasons, where passengers prioritize safety and
comfort.

The study suggests that enhancing driver behavior, vehicle cleanliness, and overall
safety measures could lead to greater customer satisfaction and loyalty. Service
providers, both auto-rickshaw operators and cab aggregators, must address these key
concerns to remain competitive in Surat’s evolving urban transportation landscape.

63
1. Implement a meter-based fare system for auto-rickshaws to ensure
transparency and fairness.
2. Conduct regular training sessions to improve driver behavior, professionalism,
and customer service.
3. Introduce GPS tracking, emergency buttons, and stricter background checks for
drivers.
4. Mandate regular vehicle cleaning and maintenance for both auto-rickshaws and
cabs.
5. Expand service coverage, especially during peak hours and in underserved
areas.
6. Promote digital payment options and app-based bookings for convenience.
7. Implement a structured feedback system to address passenger concerns
effectively.
8. Encourage shared rides to reduce congestion and improve affordability.
9. Strengthen government regulations to ensure compliance with service quality
standards.
10. Educate passengers and drivers about rights, responsibilities, and service
expectations.

64