City Taxi is a San Francisco-based company. Their mission is to provide safe, reliable and timely taxi services. The company will establish its presence in the industry by acquiring an existing taxi cab association, Mighty Cab, a family-owned business that was formed 12 years ago.
City Taxi will offer complete taxi cab services, using the most up-to-date equipment and technology. City Taxi’s products show that we are innovative and forward-thinking business that is able to respond to constantly changing customer requirements. At City Taxi, our philosophy is one that emphasizes service, and a realization that effective communication is a key component in our business. Company also recognizes the importance of professionalism and flexibility in a highly competitive market.
The drivers and employees at City Taxi are professional, friendly, and proficient in using the computer dispatch software. In order to increase safety, City Taxi Cabs are equipped with Global Positioning Systems. (GPS), which allows them to be tracked or found in an emergency. All City Taxi cabs are clean, well maintained, and regularly inspected for safety and comfort.
The company’s strategy is to gain reputation and market share through establishing our business as a viable alternative for existing taxi cab service providers in the region. The company will continue to market aggressively and aim to penetrate at least 65% of the market in the next 12 months. The company’s long-term goal, is to be San Francisco’s top-rated ground transportation company.
The company’s main focus is on the taxi industry, including dispatch, mobile data and credit/debit markets. These markets, taken together, are estimated to be worth more than $119million as of March 1999. City Taxi will be focusing on the most lucrative credit card/debit-card segment in these markets. When this segment is introduced to any area, although it started slowly, it has grown steadily over the last three years, increasing by 20% in Maryland and Virginia and 25-35% each year in New York.
City Taxi competes against Transportation, Inc., Capital Cab, Yellow Cab, Diamond Cab, as well as other companies. Their weaknesses are the lack of a credit/debit payment option and the use of the radio dispatcher system. Because our technology is unique to San Francisco’s taxi industry, the company has a competitive advantage. The GPS will give the company an accurate estimate time of arrival (ETA) so that they can provide prompt service. The credit/debit card feature provides customers with convenience and privacy throughout the transaction period.
Reliable communication is essential in any business. City Taxi will therefore use the KDT5000 system. KDT5000 provides multiple levels reliability, ensuring communications are maintained even in the most severe conditions. Rockwell International will manage a state-of the-art call center.
The company seeks $2.5 Million of financing to help fund the acquisition of Mighty Cab Association as well as its initial operations. This financing will be used to purchase Mighty Cab, market, buy additional vehicles, software, hardware, and marketing. Projected revenues for 1999 to 2001 are $200,000, $1.5 million, and $2.2 million, respectively.
1.1 Objectives
The company’s goal over the next 12 months is to run an aggressive marketing campaign, and from there, reach at least 65% of the market. The company’s goal in the next few years is to be the number one ground transportation company for San Francisco Metro Area.
Here are some key components to City TaxiՉ۪s initial strategy.
Establishing a Relationship with Rockwell International Rockwell International is the company’s current focus. City Taxi can now lock in the many services they offer, including but certainly not limited to:
- Managerial
- Call center efficiency and customer service efficiency
- Management consulting
- Technology consulting
- Product Management
- Continuous improvement
1.2 Mission
City Taxi’s goal is to provide reliable, efficient, and safe cab services. It does this by offering in-car credit/debit, as well as computer-aided dispatch.
Highlights 1.3
Highlights of City Taxi
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Technology
. City Taxi’s unique Global Positioning System allows the driver to provide an accurate estimate of the time. -
System of credit/debit cards
. This system is unique in San Francisco. Both the passenger and the driver can approve it instantly. The swipe machine is located in back of the car, giving passengers privacy. -
Trademarks
. The company is currently trying to register Patriot’s name as a mark. -
Advertising
. City Taxi is already in advanced discussions with TCI Media Services to provide advertising services and market research. -
Seasoned management
. The company’s management has extensive industry knowledge and is highly experienced. -
Strategic relationships
. The company has built and will continue to maintain relationships with organizations that support professional growth. These alliances are valuable to City Taxi because they allow us to get updates on technology, added tech support, and a strong presence in the market. - Exclusive Rights to Software. City Taxi has the exclusive rights to the latest taxi cab software in San Francisco.