Black car presentation

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Black car presentation

  1. 1. Business Environment of ChinaGroup 1
  2. 2. The Challenge ReviewedThe shortage of Taxis in Luo Hu, Shenzhen• Long Queues• Tempting to take the “Black Car” -> UnsafeOpportunity:• There are people who are willing to pay more to avoid lines
  3. 3. Solution?A Luxury Taxi 
  4. 4. The Business Model Per Unit Fee Tax Fee Luxury TaxiTaxi Companies
  5. 5. The Business Model Per Unit Fee Tax Fee Luxury TaxiTaxi Companies
  6. 6. How Do we “Add Value”•Provide the Service of Upgrading Taxis•Economies of Scale•Marketing•Market Targeting•Etc.
  7. 7. How to implement this?•Introduce in places where the shortage problem isespecially serious, e.g. Border spots / Airports•Only operate in these places (Destinations are not fixed)•Coordinate the flows using monitoring system
  8. 8. Total Supply EffectsSuppose we have n taxis at Luo Hu at initially.Now within the n taxis, some (l1) will be upgradedto be luxury taxis.If this is the only thing, total supply will remainunchanged.However, it is very likely that taxis from otherregions will join the upgrading process (l2).Thus total supply effects would be:New supply = n-l1 + l1 + l2 = n + l2Taxi supply at Luo Hu will increase.
  9. 9. To Consumers•An alternative to waiting in the long line•Minimize total cost (= money cost + time cost)•Safe•Comfortable•Convenient
  10. 10. To the Government•As a trial of method to alleviate the taxi shortage problem•The targeted places are usually active spots of black cars,and thus the business can help contain black car activities.•If this succeeds, luxury taxi supply can be further increased.•Approach service differentiation to serve various kinds ofcustomers.
  11. 11. Long Term Benefits / Sustainable?•Demand is constantly high in the targeted places.•Numerous potential customers who want to waste no time•Able to pay higher prices

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