STUDY ON THE PREFERENCE OF ONLINE CAB SERVICES

A Paper Presentation

Presented as Fulfilment of

Business Research Methodology Assignment

Done by: Group 6 (Akshara Shylesh, Amruth, Azad, Dhanya and Wissam)
 DECLARATION

We, Akshara Shylesh, Amruth, Azad, Dhanya and Wissam hereby declare that the project

report entitled “STUDY ON THE PREFERENCE OF ONLINE CAB SERVICES” submitted

to Bejoy Joseph Sir, faculty of RCBS, Kakkanad, Kerala, India. We also declare that no

malpractices or alterations were conducted in carrying out this research, this written

submission represents our ideas in our own words and where other’ ideas or words are have

been included; we have adequately cited and referenced the original sources. The project is

an original record of work undertaken in fulfilment of the Business Research Methodology

assignment for our second semester under the guidance of Mr. Bejoy Joseph.

Akshara Shylesh, Amruth, Azad, Dhanya and Wissam

MBA-A, SECOND SEMESTER, RCBS

1
ACKNOWLEDGEMENT

The completion of this research paper was made possible due to the co-operation, guidance,

constructive suggestions and assistance of many to whom we would like to express our

sincere gratitude.

First of all, we would like to thank Bejoy Jospeh Sir, (faculty of RCBS, Kakkanad, Kerala)

for his immense help, motivation, support and timely intervention which made it possible for

us to complete this paper.

Next, we are extremely grateful to everyone who cooperated with us and helped us fill out

our questionnaire. Their contributions were immensely prominent for the purpose of data

collection. We would also like to thank our friends and family for all their love, support,

guidance and reassurance enable us to complete the paper successfully.

Finally, we would like to thank RCBS for providing us the platform for conducting the

research study.

THANK YOU ALL

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LIST OF CONTENTS

3
LIST OF TABLES

4
EXECUTIVE SUMMARY

The call taxi sectors has evolved and changed over the years and has become a business with

significant growth in the current market, it is expected to grow in the near future as well. The

growth fundamentally occurred at the cost of various online cab aggregators such as Uber

cabs, Ola cabs, Meru cabs and so on. Online cab services became popular because they could

provide services to bridge the gap in intra-city transportation area, something that the public

transport was unable to do. The ease of availing an immediate ride at reasonable rates using a

smart phone contributed to the increase in popularity of online cab services. The customers

preference for each online cab aggregator differs according to the motivational factors that

induced them to select the particular cab and the satisfaction level experienced by them This

research paper focuses on identifying the preference and satisfaction of the customers with

relation to various online cab service providers in Ernakulam district, the reasons for such

preference are analysed by conducting descriptive research, using convenience sampling the

data will be gathered and suggests ways to bring in improvements.

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STUDY ON THE PREFERENCE OF ONLINE CAB SERVICES

PROBLEM FORMULATION- BACKGROUND OF THE STUDY

In this fast-moving era of modern age, technology has been a major part of evolution and

change that has contributed to the overall development of the various aspects of one’s

lifestyle. One such technological development in the taxi services has changed the entire

dimension of how people view the same. With the introduction of online cab services, it has

led to efficient and easy lifestyle with no tension. Though the establishment of online cab

services has been a boon than a bane, it’s a field with a strong cut-throat competition and to

survive in the market they have to adopt various unique strategies. The study is conducted

from the perspective of what online cab aggregators that are not in demand, do in order to be

preferred by the customers. By this research study we are trying to find out the reasons

behind the preference of customers towards a particular online cab aggregator. Therefore, this

study revolves around identifying the preference and satisfaction of customers, the reasons

for such preference and suggests ways to improve the services.

STATEMENT OF THE PROBLEM

There are numerous online cab aggregators available all over India, that is with existence or

availability of such large number of online cab operators it will often lead to the preferences

of the customer to being biased to certain particular online cab aggregators based on various

motivational factors such as service quality, price, reliability, safety and so on. Hence, the

problem here would be the lack of demand for certain types of online cab aggregators in

relation to others such uber. The study thus focuses on finding out reasons for such bias and

suggests ways to improve the same.

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RELEVANCE OF THE STUDY

In every sphere and aspect of the businesses the customers perceived expectations about the

service and quality should be matched to retain the customer and for inducing loyalty. This is

one of the main reasons why the market leaders in online cab services are interest and

particular in enhancing and improving their services on a regular basis to retain a stronger

customer base. Cab services a provision that is used by almost everyone in India and all

around the world. In India online cab services have grown significantly due to the increase in

various factors contributing to the same. This study will enable us to know the satisfaction

level of the customers towards the various motivational factors such as affordability, comfort,

convenience, service quality, reliability and so on. We also provide suggestions that can be

adopted to meet the expectations of the customers in the near future.

Now addressing the question of why the study is important?

 To know which is preferred cab service in Ernakulam?

 To identify why there is rise in the preference of a particular service over others?

 To know what are the motivational factors influencing customer preference?

The following are the benefits from this study

 It also helps the service providers that are least preferred to understand their

customers preference better and change their approaches or strategies accordingly

 Its helps the service providers to understand and get insights about the motivational

factors such as service quality, price etc that influences customers preference.

 The improvements incorporated would in turn increase the demand for their service.

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RESEARCH METHODOLOGY

OBJECTIVES

The online cab services and taxi service sector has faced a significant growth in India, in this

study specifically the Ernakulam district. Therefore, this research is focused on identifying

the preference of online cab services and the reasons for such preference.

 To identify the current preference of the customer.

 To identify the customer satisfaction level on the online cab services after the booking

has been made.

 To identify whether customers perception towards safety influence their preference.

 To identify the motivational factors that influences customer choice

SCOPE OF THE STUDY

This research study covers the current preference of the customers with relation to online cab

services, the level of satisfaction after the booking has been made, whether perception about

safety influences the decision of the customers to select an online cab service and the various

motivational factors affecting the preference on online cab services. There may be other

aspects that influences customers preference which may not be covered in this study

RESEARCH DESIGN

Descriptive research is used in this project. In the view of the objectives listed above

convenience sampling has been adopted as the sampling technique in this research design to

8
study the preference and satisfaction of customer using online cab services with special

reference to Ernakulam district targeted towards the youth and working categories.

 METHOD OF DATA COLLECTION:

The current research study is an empirical research based on both primary and

secondary data. It’s a combination of both descriptive and analytical methods of

study. The study is aimed at identifying the preference and satisfaction of customers

in relation to online cab services, identifying the reasons for such preference and

suggests ways to improve the same.

 Primary Data:

Primary data was collected using questionnaires in google forms. A sample of 103

respondents selected at random from both the youth and the working categories.

Questionnaires using google forms for the collection of primary data and analysis of

the same was done using SPSS software. Interviews with certain individuals enable

to gain further insights into the topic and obtain suggestions for improvements.

 Secondary data:

Secondary data was collected from publication, research studies, articles and

websites etc.

 TOOLS FOR DATA COLLECTION:

The main tool used for collection of data collection was by using google forms

therefore the instrument used for collecting the primary data is questionnaire and

analysis of the collected data was done using SPSS. The secondary data was

collected from various other publications, research studies, websites and articles. The

various tools used for analysis are frequency tables, pie charts and graphs and Chi

square test.

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  SAMPLE SIZE AND TECHNIQUE:

The sample size of the research study is 103 people under youth and working

categories. The sampling technique used is convenience sampling in order collect

data through a structured questionnaire with ease.

LITERATIURE REVIEW

 Tazyn Rahman and Peng et. al., (2014)

The rapid development of infrastructure of India, the increase in the disposable

income of the middle class and the rise in the gross domestic product are some of the

factors the popular demand for online cab aggregators. This growth has been

prominently seen in the metropolitan cities in India. Hence it is important to

understand the users of online cab services by the cab service providers to sustain and

survive in this competitive market. The cabs service apps have provided the

customers with the ease of availing the cab services immediately as and when they

require and has the feature of tracking the service provider and the customer for

safety purposes. These applications are mostly user friendly and is subjective to

norms that is used by various cab operators.

 Horsu and yeobah, 2015 and Paronda, et. al., (2016)

In a research conducted in Ghana they discovered there was a negative correlation

between drivers’ behaviours and customer satisfaction this is a major indicator of

various motivational factors that affect customers preference and satisfaction level.

Some of the motivational factors that are crucial identifying customers preference are

affordability, reliability (waiting time), continuous service and so on. According to

Kavitha and Rajeshawari, 2016 they mentioned that the incorporation or the use of

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 online payment modes or mobile wallets has led to the travelling comfort to be hazel

free to the customers providing them with various offers and discounts.

 Dipesh Bhawnani, et. al.,(2015) and Kumar, Kishore & Namavaram, Ramesh.

(2016)

Concentrating focus on the analysis the customer data in order to identify the

frequency of frequent customers which enable the service provider to identify and

understand the desires of the customers and provide offers and discounts that cater to

their needs or request for specific cabs , at specific locations, at a specified time

period so that they can make arrangements for the same such as mini cabs, sedan,

luxury cars etc according to the preference of the customer. With the analysis of the

customer data the cancellation possibilities have also been considered. The main aim

of the service providers is to reduce the cost therefore updated information about

cancellations by the customers would be provided to the drivers. The aim of the

research is to study the various elements that influence the customers while selecting

a cab operator service.

In the study conducted the dependent variable was behaviour of coupon redemption

and independent variable were innovation and price. The relationship between the

two variables were analysed using statistical tools such as correlation, regression and

descriptive statistics. It was found that customers were comfortable to redeem

coupons while booking cab services through their smart phones.

Harding, et. al.,(2016) The auto-rickshaws( three wheelers) were in demand as main

transport system prior to the introduction of online cab services.

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 Dr. S. M. Yamuna, R Vijayalakshmi, K Jeeva Mani, D Boopathi ,P Ranjith

Kumar, 2019

Cab providers offer excellent quality service to passengers throughout. This study

emphasizes that India's taxi industry is largely an unorganized sector; but, over the

years, the private sector has created opportunities in that sector that have produced the

organized taxi market in India. In addition, a significant one has been the rise of taxi

aggregators in the organized transport sector. The unorganized sector's share is rising

year by year since taxi aggregators first launched in 2010. As per the Taxi industry

report, Indian Society's revenues are declining slowly. The mindset of cab service

users is constantly changing and expects many more in the future to add to the

benefits. Half of the passengers in Coimbatore are happy to use cabs rather than using

public transport mode and are not much aware of the cost of cab services. Customers

are always kings in every business. So, cab providers have to run in the race and adopt

to offer many innovative features and facilities for customers to increase revenue in

this taxi industry in order to increase market capitalization.

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 PRESENTATION AND ANALYSIS OF DATA

Gender and Age responding

54% of the responders are male and 45% of the responders are female. 53% of the responders
fall under the age group of 15-25
Table 1: Gender

Frequency Percent Valid Percent Cumulative

Percent

male 56 54.4 54.4 54.4

Valid female 47 45.6 45.6 100.0

Total 103 100.0 100.0

Table 2: Age of respondents

Frequenc Percent Valid Cumulative

y Percent Percent

15-25 54 52.4 52.4 52.4

26-35 30 29.1 29.1 81.6

Valid
36-45 19 18.4 18.4 100.0

Total 103 100.0 100.0

Status of the respondents

55% of the responders are students. Remaining 44% are the employed people.
Table 3: student/employee

Frequency Percent Valid Percent Cumulative

Percent

Student 57 55.3 55.3 55.3

Valid Employee 46 44.7 44.7 100.0

Total 103 100.0 100.0

Usage of online cab services

43% of respondents using cab service sometimes. 36% often using cab services.

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 Table 4: Usage of online cab services

Frequency Percent Valid Percent Cumulative

Percent

Always 12 11.7 11.7 11.7

Often 37 35.9 35.9 47.6

Valid Sometimes 44 42.7 42.7 90.3

Rarely 10 9.7 9.7 100.0

Total 103 100.0 100.0

Type of online cab using by respondents

Majority of respondents using the Uber cab service i.e., 59%

responders using Uber. 32% using Ola cab service.
Preference influence
Table 5: Type of online cab using by respondents

Frequency Percent Valid Percent Cumulative Preference of influence

Percent
is deal with which is
Uber 60 58.3 58.3 58.3
the main factor that the
Ola 33 32.0 32.0 90.3
respondent is more
Valid Savaari 2 1.9 1.9 92.2

Others 8 7.8 7.8 100.0

concerns when he
Total 103 100.0 100.0 choose particular cab
service. Respondents
ranked the preference according to their perceptions. In case of price preference 42% of the
respondents were ranked as 1st and 15% of the respondent is not concerned with price. In case
of safety preference 42% of the respondents were give 3rd rank and 15% of the respondent is
not concerned with safety. 46% gave 3rd rank to reliability and 1% of the respondent is not
concerned with reliability. 46% of the respondents gave 4th rank for convenience.

Table 6: Rank of price

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 Frequency Percent Valid Percent Cumulative
Percent

1st rank 44 42.7 42.7 42.7

2nd rank 23 22.3 22.3 65.0

Valid 3rd rank 21 20.4 20.4 85.4

4th rank 15 14.6 14.6 100.0

Total 103 100.0 100.0

Table 7: Rank of safety

Frequency Percent Valid Percent Cumulative

Percent

1st rank 21 20.4 20.4 20.4

2nd rank 32 31.1 31.1 51.5

3rd rank 43 41.7 41.7 93.2

Valid
4th rank 6 5.8 5.8 99.0

5th rank 1 1.0 1.0 100.0

Total 103 100.0 100.0

Table 8: Rank of reliability

Frequency Percent Valid Percent Cumulative

Percent

1st rank 10 9.7 9.7 9.7

2nd rank 34 33.0 33.0 42.7

3rd rank 47 45.6 45.6 88.3

Valid
4th rank 11 10.7 10.7 99.0

5th rank 1 1.0 1.0 100.0

Total 103 100.0 100.0

Table 9: Rank convenience

Frequency Percent Valid Percent Cumulative

Percent

Valid 1st rank 17 16.5 16.5 16.5

2nd rank 14 13.6 13.6 30.1

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 3rd rank 27 26.2 26.2 56.3

4th rank 41 39.8 39.8 96.1

5th rank 4 3.9 3.9 100.0

Total 103 100.0 100.0

Service quality satisfaction

In case of service quality 45% is highly satisfied on the cab service. Only 1% is dissatisfied
with the service quality. 32% of the respondents are neutrally satisfied with service quality
offered by cab.

Table 10: Satisfaction with service quality

Frequency Percent Valid Percent Cumulative

Percent

Dissatisfied 1 1.0 1.0 1.0

Neutral 33 32.0 32.0 33.0

Valid Satisfied 23 22.3 22.3 55.3

Highly satisfied 46 44.7 44.7 100.0

Total 103 100.0 100.0

Have you faced any challenges while using the app

78% of the respondents never faced any challenges while they use the cab app. 22% of the
respondents were face some issues with the cab apps.

Table 11: Have you faced any challenges while using the app

Frequency Percent Valid Percent Cumulative

Percent

Yes 23 22.3 22.3 22.3

Valid No 80 77.7 77.7 100.0

Total 103 100.0 100.0

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Customers preference of a particular cab because they perceive it to be safer
38% strongly agree and 18% agree therefore combined around 55% are influenced by safety

Table 12: Safety perception influencing preference

Frequency Percent Valid Percent Cumulative
Percent

Strongly agree 39 37.9 37.9 37.9

Agree 18 17.5 17.5 55.3

Neutral 30 29.1 29.1 84.5

Valid
Disagree 11 10.7 10.7 95.1

Strongly Disagree 5 4.9 4.9 100.0

Total 103 100.0 100.0

Motivation factors
The prominent motivating factors are fair price i.e., 51% safety i.e.53% then user-friendly app i.e.
54%, and service quality is 40%. Only 1% of the respondents are disagreeing with the price factor and
in the case of reliability 43% is neutral. 1% is strongly disagreeing with reliability. Majority of the
respondents are neutral with the payment mode.

Table 13: Fair price

Frequency Percent Valid Percent Cumulative

Percent

Strongly agree 52 50.5 50.5 50.5

Agree 36 35.0 35.0 85.4

Neutral 13 12.6 12.6 98.1

Valid
Disagree 1 1.0 1.0 99.0

Strongly Disagree 1 1.0 1.0 100.0

Total 103 100.0 100.0

Table 14: Accessibility

Frequency Percent Valid Percent Cumulative

Percent

Valid Strongly agree 19 18.4 18.4 18.4

Agree 46 44.7 44.7 63.1

Neutral 35 34.0 34.0 97.1

Disagree 2 1.9 1.9 99.0

Strongly Disagree 1 1.0 1.0 100.0

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 Total 103 100.0 100.0

Table 15: Reliability

Frequency Percent Valid Percent Cumulative

Percent

Strongly agree 22 21.4 21.4 21.4

Agree 35 34.0 34.0 55.3

Valid Neutral 44 42.7 42.7 98.1

Strongly Disagree 2 1.9 1.9 100.0

Total 103 100.0 100.0

Table 16: Safety

Frequency Percent Valid Percent Cumulative

Percent

Strongly agree 55 53.4 53.4 53.4

Agree 21 20.4 20.4 73.8

Neutral 23 22.3 22.3 96.1

Valid
Disagree 3 2.9 2.9 99.0

Strongly Disagree 1 1.0 1.0 100.0

Total 103 100.0 100.0

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 Table 17: Past experience

Frequency Percent Valid Percent Cumulative

Percent

Strongly agree 14 13.6 13.6 13.6

Agree 29 28.2 28.2 41.7

Neutral 52 50.5 50.5 92.2

Valid
Disagree 3 2.9 2.9 95.1

Strongly Disagree 5 4.9 4.9 100.0

Total 103 100.0 100.0

Table 18: Service quality

Frequency Percent Valid Percent Cumulative

Percent

Strongly agree 41 39.8 39.8 39.8

Agree 36 35.0 35.0 74.8

Neutral 21 20.4 20.4 95.1

Valid
Disagree 4 3.9 3.9 99.0

Strongly Disagree 1 1.0 1.0 100.0

Total 103 100.0 100.0

Table 19: Payment mode

Frequency Percent Valid Percent Cumulative

Percent

Strongly agree 21 20.4 20.4 20.4

Agree 29 28.2 28.2 48.5

Neutral 46 44.7 44.7 93.2

Valid
Disagree 6 5.8 5.8 99.0

Strongly Disagree 1 1.0 1.0 100.0

Total 103 100.0 100.0

Table 20: user friendly app

Frequency Percent Valid Percent Cumulative

Percent

Strongly agree 55 53.4 53.4 53.4

Agree 19 18.4 18.4 71.8

Neutral 26 25.2 25.2 97.1

Valid
Disagree 2 1.9 1.9 99.0

Strongly Disagree 1 1.0 1.0 100.0

Total 103 100.0 100.0

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 User friendly app

Frequency Percent Valid Percent Cumulative

Percent

Strongly agree 55 53.4 53.4 53.4

Agree 19 18.4 18.4 71.8

Neutral 26 25.2 25.2 97.1

Valid
Disagree 2 1.9 1.9 99.0

Strongly Disagree 1 1.0 1.0 100.0

Total 103 100.0 100.0

Preference of particular cab to other

42% of the respondents suggest the cab app to others and only 30% not suggest the particular
app to others.
Table 13: Preference a particular cab service to others

Frequency Percent Valid Percent Cumulative

Percent

Yes 43 41.7 41.7 41.7

No 31 30.1 30.1 71.8

Valid
Maybe 29 28.2 28.2 100.0

Total 103 100.0 100.0

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 FINDINGS

 It has been observed that most of the respondents in this survey are males that is 53%

within the age group of 15-25. This shows that highest number of respondents are

from the student category.

 Most of the respondents around 79% use online cab services.

 The current preference of the customer is found to be Uber with 59% followed by

Ola with 32%.

 The customers are satisfied after the booking has been made, with a percentage

level of 45% highly satisfied and 32% are neutral with a mean of 4.11 and standard

deviation is 0.896

 It has been noted that perception about safety influences the customers preference

of online cab services since 55% of the respondents supported this statement.

 The prominent motivating factors that influences customers preference of online

cab services are fair price i.e., 51% safety i.e.53% then user-friendly app i.e.

54%, and service quality is 40%.

 Most of the respondents were of the opinion that they would prefer a particular online

cab service.

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 SUGGESTIONS/ RECOMMENDATIONS

The purpose of the study is to provide the online cab aggregators that are least preferred by

customers to get a better insight on the reasons for non/ least preference by the customers.

Therefore, the various suggestions that can be adopted by them to improve their services and

be on demand by the customers are as follows :

 Provide more offers and discounts since this attracts more customers. Special

discounts can be provided to regular customers as well.

 Maximising services by providing 24/7 availability.

 Provide cab services even during the rainy seasons with the same price structures.

 Maintain the cleanliness of the vehicle and be more reliable that is reduce the waiting

time after the booking has been made.

 Select drivers that are courteous and have a friendly attitude with the customer or

train them to be so.

 Ensure that proper training be provided to drivers on different routes to increase the

efficiency so that maintains promptness in reaching the destination.

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 CONCLUSION

In the past decades the transportation facilities in urban area have undergone astounding

changes. The result of that, among the various mode of transportation the cab that become

important mode of transportation in urban cities. The customers booking cabs through online

booking apps at anytime and anywhere. From this research we understood that, motivational

factors contribute to the customer satisfaction which thereby influences their preference.

Customer’s perception about safety is the mostly influenced preference while they book the

cab service. The current preference of the customer is Uber. Most of the responders using

Uber service which give more convenient journey to the customers. Uber service meets

almost all requirements of the customer. Therefore, since customer is king in every business.

Hence the online cab aggregators have to offer new and innovative features that would satisfy

the customer’s needs and wants which would lead to increase in their profit margins.

BIBLIOGRAPHY
 https://www.researchgate.net/publication/329504341

 http://www.ijamtes.org/gallery/191.aug%20ijmte%20%20-%20917.pdf

 http://ijraset.com/fileserve.php?FID=21723

 http://www.businessworld.in/article/Ola-Vs-Uber-Vs-Meru-Vs-Mega-Cabs-Numr-

Research-Finds-Out-Which-Taxi-App-Indians-Prefer/23-06-2019-172499/

 https://acadpubl.eu/hub/2018-119-12/articles/6/1391.pdf

 file:///C:/Users/Don%20Mohan%20Varghese/Downloads/A%20Study%20on

%20Factors%20Influencing-3700%20(1).pdf

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 ANNEXURE

1. Name:

2. Age: 15-25/ 26-35/36-45

3. Gender: male/female

4. Status: student/ employee

5. How frequently do you use online cab services?

Always/ Often/ Sometime/ Rarely/Never

6. Which online cab operator do you typically use?

Uber/ Ola/ Meru/ Savaari/ Others

7. Rank the following factors that influence your preference (1-highest rank and 5-
lowest rank)
a. Price 12345
b. Reliability 12345
c. Safety 12345
d. Convenience 12345
e. Others 12345

8. Are you satisfied with service quality? (1-highly satisfied and 5-highly dissatisfied)
1-Highly satisfied/ 2-Satisfied/ 3-Neutral/ 4-Dissatisfied/ 5-Highly Dissatisfied

9. Have you faced any challenges while using the app? Yes/No

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10. “Customers prefer a particular cab because they perceive it to be safer”. Do you agree
with this statement? (1-strongly agree and 5-strongly disagree) 12345

11. Indicate your level of agreement to the following factors that motivates you to choose
an online cab operator (1- strongly agree and 5- strongly disagree)
a. Fair Price 12345
b. Accessibility 12345
c. Reliability 12345
d. Safety 12345
e. Past experience 12345
f. Service Quality 12345
g. Payment Mode 12345
h. User-friendly app 12345

12. Would you prefer a particular cab to other? Yes/ No/ Maybe

25