The Hundred-Year Old Taxi Company Unyielding the Fierce Storm of Uber

Taxi

Nov 22

Case Study: A Digital Transformation Journey in the Taxi Industry

Introduction

This company founded in 1905, and since 1960, it continuous looks for improvement and ways to satisfy its customers. It knows there is always modernization along the way. They take a proactive role in searching for tools to help them stay ahead of the competition. Even in the age of digital, they are ready to take the challenge and welcome any competitors as they said that competition is part of their DNA.

The fierce storm of Uber, a disruptor in the taxi industry, has swept the globe, making a hostile takeover of market share. Waves of protests occur in every city corner as the number of lawsuits piling up and local government watched helplessly. Let's discover how the company has been prepared and led the taxi industry to counteract the threat.

Types of Transformation

Cross Industry Innovation

Steps of Digital Transformation

1. Transformation Objectives. Any business issues encountered?

The arrival of Uber in France is inevitable, and it affects not only a few companies but also the entire taxi industry.
Since Uber is operating as a digital platform rather than a licensed cab company, it gives Uber an unfair advantage of a low operating cost than the regulated taxi companies.

2. Set Goals

Improve the taxi app that can compete with the app functions of Uber
Strengthen the capabilities and relations in networks of taxi drivers and other non-network taxi companies
Improve the quality of experience for the passengers
Fight against the unfair competition from Uber

3. How to implement

Overhaul of the G7 Brand to include a new logo, dress code, app, and website
Create a new digital business strategy that thrives on customer-centric experience
Adjust the approach fee and rates include the fixed prices for airports, type of vehicles
Provide free etiquette lessons to all taxi drivers in the industry even if they are out-of-network taxi drivers and other minicab companies
The CEO invited all taxi drivers in the industry and convinced them to improve their digital capability and politeness issues
In December 2017, the European Court of Justice ruled that Uber should be recognized and regulated as a cab company and not a digital service.

4. Technology Tools

Continuously enhance the existing and sophisticated systems that provide the digital journey-dispatching system includes
- G7 Taxi booking center, taxi services, taxi equipment, ADA vehicle rental, and HomeBox self-storage, and support services
Add an app to replace outdated credit card machines
Add G7 onboard devices carried by taxis (WIFI available for the passenger in 80% of vehicles)
Create a 'mobile-first' approach to the rental car ADA platform
Provides taxi driver supports: training, vehicle rental/purchase, body workshop, and insurance, physical/electronic filling system

5. Process Review

It has 10 companies spread over three business sectors: Mobility, Storage, and Support Services.

1,100 employees, 664 ADA network agencies, 100 cities connected to the Group's booking platforms

Customers grade the service quality; Score is 4.5 out of 5.

Strategy Analysis

The company defends and develops the entrepreneurial spirit that exists within the services industry in France.

Didn't consider smartphone tech a disruptor, but a complementary distribution channel
Let local operators run local, so it's more responsive
Be prepared to adapt in an ever-changing world
Differentiate between progress and trends so to project a long-term outlook with clarity
Aiming to satisfy customers with a mean of combining both human and digital worlds
Every subsidiary is independent, and the managers hold a stake in their subsidiary's capital

Results

G7 company has begun to provide sophisticated services and products since as early as 1960. The company continues to innovate itself by focusing on satisfying customer needs and providing a series of overwhelming supports to a taxi driver. The company realizes the importance of putting humanity at first and understands that there always will be an emerging competitor somewhere in the future. Continuous innovation and be sensitive to the changes in the marketplace and aware of technology advancement, G7 welcomes competitors like Uber because the competitor can only help them to improve. They know that they are here to stay permanently and treats Uber, just another storm that they will get through it. Competition is a day-to-day reality for the company in this industry.