uber vs didi.pdf - For the exclusive use of M Sanchez 2017 IN1306 Uber vs Didi The Race for China\u2019s Ride-hailing Market 05\/2017-6223 This case was

uber vs didi.pdf - For the exclusive use of M Sanchez 2017...

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IN1306 Uber vs. Didi: The Race for China’s Ride-hailing Market 05/2017-6223 This case was written by Kuangzhen Wu, Research Associate at INSEAD, under the supervision of Guoli Chen, Associate Professor of Strategy at INSEAD, Tony Tong, Professor of Strategy and Entrepreneurship at Purdue University, and Xiaohua Su, Professor of Management at Jinan University. It is intended to be used as a basis for class discussion rather than to illustrate either effective or ineffective handling of an administrative situation. Additional material about INSEAD case studies (e.g., videos, spreadsheets, links) can be accessed at cases.insead.edu . Copyright © 2016 INSEAD C OPIES MAY NOT BE MADE WITHOUT PERMISSION . N O PART OF THIS PUBLICATION MAY BE COPIED , STORED , TRANSMITTED , REPRODUCED OR DISTRIBUTED IN ANY FORM OR MEDIUM WHATSOEVER WITHOUT THE PERMISSION OF THE COPYRIGHT OWNER . For the exclusive use of M. Sanchez, 2017. This document is authorized for use only by Monica Sanchez in Strategy (AY2017-18 Term 1) taught by Dr Victor Goh, Singapore Management University from August 2017 to November 2017.
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Copyright © INSEAD 1 The Taxi Industry “A taxicab, also known as a taxi or a cab, is a type of vehicle for hire with a driver, used by a single passenger or small group of passengers, often for a non- shared ride. A taxicab conveys passengers between locations of their choice. This differs from other modes of public transport where the pick-up and drop-off locations are determined by the service provider, not by the passenger.” Wikipedia The origins of the taxi can be traced to early 17 th century London, when the existence of the horse-drawn Hackney coach service was first documented. Today, in a context of accelerating urbanisation and people on the move, the market for taxi services is gigantic. According to the US Bureau of Labor Statistics, in 2014 there were 239,900 taxicab drivers in the US – 6,000 more than in 2012 – where the average annual salary is $22,440 (median $23,210), earning $11.16 per hour. In New York City alone there are over 50,000 taxi cab drivers, making 486,000 trips and moving 600,000 passengers per day. The average yellow taxi fare in 2013 was $13.40, up from $11.98 in 2012, and the tipping rate remained constant at 18%, even after fares increased. 1 Medallions in the US 2 New York – like other major US cities – operates a licensing scheme to control the number of taxicabs on the road. The Taxi and Limousine Commission (TLC) has been in charge of regulating taxicabs through medallions since the Haas Act of 1937. These small metal plates are attached to the hood of the vehicle as proof of the right to pick up passengers, who can only hail yellow cabs with a medallion in the street. Originally, the number of medallions was set at 16,900. That dropped to 11,787 after the Second World War and remained unchanged until 1996, when it was increased to 11,900. In 2014, there were 13,437 taxi medallions in New York City.
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