Determinants of the development of traditional taxi services

Abstract

PURPOSE: Numerous media reports about dissatisfied taxi drivers, as well as harmed customers (as referenced in the article) and the relatively limited amount of literature data prompted the authors to organize existing knowledge on the factors influencing the development of the traditional taxi service market and to search for a way out of the deadlock in this sector. To gain insight into how traditional taxi companies can maintain their presence in the market.

DESIGN/METHODOLOGY/APPROACH: The CAWI method was applied and the questionnaire survey was distributed using Google Forms. Personalized, direct interviews were conducted with taxi entrepreneurs. The research results were analysed using statistical methods with the support of MS Excel and Gretl software. A literature review was also conducted.

FINDINGS: Contains practical recommendations for Taxi companies. The subject of the study was the taxi sector in a Polish city — Zielona Góra — with a population of nearly 140.000 residents. The difficult situation of traditional taxi drivers in Poland was compared with the conditions faced by taxi drivers in Zielona Góra, located in the Lubusz Voivodeship.

PRACTICAL IMPLICATIONS: Determinants of market sustainability for traditional Taxi Services. Service providers operating within this narrow group identify with a national and even European and global, issue. An initial round of interviews with entrepreneurs in this medium-sized city, combined with an in-depth literature review, prompted the researchers to continue with further stages of the research process.

ORIGINALITY/VALUE: The analysis of actual customer preferences regarding taxi services and the economic situation of enterprises in western Poland serves as a point of reference for other regions in Europe affected by the decline in profitability within this industry.