THE CABFUSION NETWORK
THE CABFUSION NETWORK: TRANSFORMING THE TAXI AND PRIVATE HIRE INDUSTRY
Over the past decade, the industry has undergone a significant trans- formation, grappling with the emergence of disruptive digital apps. For many established operators, this
disruption has posed more of an annoyance than a critical business challenge. However, at TCN, we must convey that the issue is far from resolved.
The idea of a cross DMS System Network has been discussed before and operators are only too happy to be involved in this type of project, but up until now the stark reality of why the industry needs this offering and what the key USPs are with this Network
in
comparison to what other aggregated offerings deliver, has not been explored fully.
CHALLENGES FACED BY TRADITIONAL OPERATORS
1. Forgotten traditional users: Traditional users of taxi services are gradually fading into the background, overshadowed by the prevalence
of digital
alternatives. This shift is concerning as it indicates a decline in the industry’s recognition among its loyal customer base.
2 Youth disengagement: The younger generation, a crucial demographic for future sustainability, no longer associates traditional operators with mobility solutions. The integration of Uber into their culture has nearly eradicated the consideration of incumbent operators.
3. Risk of permanent customer loss: Rejecting a booking or leaving a customer stranded, especially when they lack an alternative phone number, puts traditional operators at risk of losing customers permanently. The convenience of apps makes it easy for customers to switch loyalties.
4. Lack of awareness: Operators are often unaware of the number of loyal customers they turn away due to unfulfilled bookings, underestimating the impact of such missed opportunities.
LEARNINGS FROM DISRUPTION IN OTHER INDUSTRIES
Drawing parallels with other disrupted industries, such as independent butcher and fruit and vegetable shops, reveals a 25% reduction in their numbers since 2008. Consumers opt for the convenience of supermarkets, posing a similar threat to the taxi/private hire industry.
16 TCN’S VISION FOR A RESILIENT INDUSTRY
In the face of these challenges, TCN envisions a pro- active approach to keep the industry relevant and thriving. Recognising the value of every booking turned away, TCN proposes innovative solutions to prevent the loss of loyal passengers.
DATA INSIGHTS: THE TURNING POINT
Analysis of data from major operators exposes a startling reality - between 6-10% of bookings are routinely rejected. This rejection becomes a critical juncture where operators risk losing customers to disruptors or must find alternative ways to fulfill the booking.
CABFUSION NETWORK: BRIDGING THE GAP The CabFusion Network
identifies a golden
opportunity within these turned-away bookings. By leveraging a sharing network, operators can redirect jobs to others better positioned to cover them efficiently, particularly those on the periphery of operational areas.
NOT JUST ANOTHER AGGREGATOR
The CabFusion Network will be bringing other B2B bookings to operators from partnerships that one might expect an aggregator to offer to fleets. Still, it is the ability for fleets to share and pool work that is unique. No one DMS provider can cover the whole country, so The CabFusion Network is working hard to integrate with all DMS providers in order to offer a ubiquitous capability right across the industry as soon as possible.
SEAMLESS PASSENGER EXPERIENCE
From the passenger’s perspective, all they know is they called their trusted operator and got a car - a seamless experience. This collaborative network ensures that, despite operational constraints, the operator can still say yes to the customer, fostering loyalty and satisfaction.
CONCLUSION: The CabFusion Network emerges as a strategic solution to the challenges faced by traditional taxi operators. By embracing innovation and adapting to changing consumer behaviours, the taxi/private hire industry can not only survive but thrive in the era of digital disruption.
MARCH 2024 PHTM
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