Issues in establishment of an advance cab in Islamabad

1. ISSUES IN ESTABLISHMENT OF AN
ADVANCE CAB (TAXI) SYSTEM IN
ISLAMABAD

2. Group-A
• Ammad-u-Din
• Muhammad Waseem Sajjad
• Dur-e-Sameen
• Qazi Azhar Ahmad
• Shehzad Lone

3. Table of Content
• Introduction
• Problem statement
• Literature review
• Research design & questions
• Data Collection
• Methodologies

4. Table of Content
• Frequency Distribution
+ summary of Data
+ Reliability
+ T-test
+ Correlation
• Conclusion and recommendation
• References
• Thanks and Questions

5. Introduction
• Travelling in a city like Islamabad without
one’s own vehicle is a misery.
• Moving across distant sectors of the Capital,
except for a few that are connected via Metro
Bus Service, is more than a trouble.
• Very limited public transport available across
the City is pathetic and uncomfortable.
• Only alternate available in such a scenario is
Taxi or cab.

6. Introduction
• Taxi system in Capital is
poorly managed. Taxis
are in vulnerable
conditions with zero
comfort.
• The 1970s FX model,
devoid of Air conditioner,
worn-out seats and no
meter to charge fairly is
a norm of a local Taxi.

7. Cab Driver and a passenger

8. Introduction
• Certain private firms like Metro Radio Cab,
White cab and Call a Cab in particular parts of
city are less successful.
• None of Uber like app-based taxi system is
available even in Islamabad.
• At governmental level, no as such policy exists
in Pakistan to regulate this sector. Fare
determination is also one of
the major problems.

9. Problem statement
Islamabad has been unable to establish
an advance cab (Taxi) system

10. Literature Review
• Actual cities are oversaturated, on one hand most
of the population is concentrated in large cities
(in 2030 more than 80% (UNFPA 2007) of the
population will live in urban areas), and on the
other hand mobility needs of the modern
population are growing continuously.
• Well planned, efficiently operated, and cost-
effective transportation system management
(TSM) strategies can improve mobility of existing
systems for transportation users.

11. Literature Review
• The taxi-cab sector is a more convenient
mode due to its speediness, door-to-door
attribute, privacy, comfort, long-time
operation and lack of parking fees.
• From the early 70’s many studies have been
published in relation to the taxi sector.
• Douglas (1972) developed the first taxi model
in an aggregated way, using economic
relationships from other sectors (goods and
services).

12. Literature Review
• The Radio cabs business has emerged as one
of the fastest growing businesses in the
developing countries transportation sector but
in Pakistan the scenario is totally different.

13. Research Design

14. Hypothesis
• An advance cab (taxi) system can be
established in Islamabad by creating
awareness, enacting laws and resolving issues
in fare determination of cabs.

15. Theoretical framework
• The theoretical framework of the research is
composed of the identification of different
variables and the relationship among them.
• Variable and their relationship
independent Variable Dependent Variables
Lack of awareness Advance cab system
Fare Determination
Lack of Legislation/Policy

16. Variables
Dependent
Variable
Lack of
awareness
Fare
Determination
IV-Lack of
legislation/policy
Independent
Variable
Advance Cab

17. Research Design
DV-Issues in Advance
Cab System
IV-Awareness
IV-Fare
determination
IV-Lack of
legislation/policy

18. Research Questions
i. What issues exist in designing and
implementing advance cab system in
Islamabad?
ii. How is the lack of awareness affecting
implementation of advance cab
system in Islamabad?

19. iii. What are the obstacles in fare
determination of cabs in the Federal
Capital?
iv. What legal complexities exist in way
of designing and implementing
advance cab system in Islamabad?

20. Unit of Analysis & Time Horizon
• Taxi Driver in Islamabad
• Cross- sectional

21. Sample Technique and size
• Non probability convenience sampling
technique will be employed. Stakeholders for
this study are taxi drivers of Federal Capital,
Islamabad.
• Sample size is 50.

22. Data Collection

23. METHODOLOGY
• Data collected from the responses of major
stakeholders related to the issue of research
i.e. cab drivers has been presented.
• The main data-gathering instrument used for
this study was the questionnaire..
• Analysis is carried out on Statistical Package
for Social Sciences Software (SPSS) and
different tests are applied to data.

24. • To check the internal consistency of data
gathered, reliability test is applied.
• To seek the relationship between two
variables Bivariate Correlations test is
applied.
• T-tests are also applied to data to judge its
significance value.
• Results indicate that value of Significance (2-
tailed) is around 0.000 illustrating that data is
significant.

25. Difficulties in data collection
• Wholehearted input of all stakeholders was
hard to find.
• Most respondents were not interested in
taking time out to fill up questionnaires.
• Language was a serious obstacle in
communication.
• A fear of unknown exists in poor taxi drivers.
• Awareness about advance cab systems running
in developed world is very limited.

26. Frequency Distribution
Participant
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid
Taxi
Drivers
50 100 100 100
Total 50 100 100
Summary of the participant

27. DV-Advance Cab System
SUMMARY OF ACS1:
Islamabad has an advance cab system
Frequency Percent Valid Percent
Cumulative
Percent
Valid Not Sure 10 20.0 20.0 20.0
Disagree 12 24.0 24.0 44.0
Strongly
Disagree 28 56.0 56.0 100.0
Total
50 100.0 100.0

28. DV-Advance Cab System
Educational constraint is an obstacle in
designing advance system in Islamabad
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid Strongly
Agree 6 12.0 12.0 12.0
Agree 22 44.0 44.0 56.0
Not Sure 14 28.0 28.0 84.0
Disagree
8 16.0 16.0 100.0
Total
50 100.0 100.0
SUMMARYOFACS2

29. DV-Advance Cab System
Use of cab system specific applications is
common in the Capital
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid Not Sure 9 18.0 18.0 18.0
Disagree
25 50.0 50.0 68.0
Strongly
Disagree 16 32.0 32.0 100.0
Total
50 100.0 100.0
SUMMARYOFACS3

30. 3G & 4G has provided an
opportunity for an advance cab
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid Strongly
Agree 11 22.0 22.0 22.0
Agree 23 46.0 46.0 68.0
Not Sure 7 14.0 14.0 82.0
Disagree 6 12.0 12.0 94.0
Strongly
Disagree 3 6.0 6.0 100.0
Total
50 100.0 100.0
SUMMARYOFACS4

31. DV-Advance Cab System
A regulatory authority oversees cabs in Islamabad
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid Agree
30 60.0 60.0 60.0
Not Sure
14 28.0 28.0 88.0
Disagree
6 12.0 12.0 100.0
Total
50 100.0 100.0
SUMMARYOFACS4

32. IV- AWARNESS

33. IV- AWARNESS
I have a phone with touch screen/paid
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid Yes 18 36.0 36.0 36.0
No 32 64.0 64.0 100.0
Total 50 100.0 100.0
SUMMARY OF AWS1

34. IV- AWARNESS
I can use modern mobile apps(Facebook, What Sapp)
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid Yes 15 30.0 30.0 30.0
No 35 70.0 70.0 100.0
Total 50 100.0 100.0
SUMMARY OF AWS2

35. IV- AWARNESS
I know how to use 3G/4G
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid Yes 18 36.0 36.0 36.0
No 32 64.0 64.0 100.0
Total
50 100.0 100.0
SUMMARY OF AWS3

36. Summary of Awareness
I have an e-mail address
Frequency Percent Valid Percent
Cumulative
Percent
Valid Yes 9 18.0 18.0 18.0
No 41 82.0 82.0 100.0
Total
50 100.0 100.0
SUMMARY OF AWS4

37. IV- Fare Determination
Price per KM is uniform from taxi to taxi
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid Strongly
Agree 2 4.0 4.0 4.0
Agree 14 28.0 28.0 32.0
Not
Sure 2 4.0 4.0 36.0
Disagree 20 40.0 40.0 76.0
Strongly
Disagree 12 24.0 24.0 100.0
Total 50 100.0 100.0
SUMMARYOFFD1

38. IV- AWARNESS
Govt. policy on prices of taxi fare exists in Islamabad
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid Strongly
Agree 9 18.0 18.0 18.0
Agree 20 40.0 40.0 58.0
Not Sure 13 26.0 26.0 84.0
Disagree 7 14.0 14.0 98.0
Strongly
Disagree 1 2.0 2.0 100.0
Total
50 100.0 100.0
SUMMARYOFFD2

39. IV- AWARNESS
There exists a Karaia Nama in every tax
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid Agree 6 12.0 12.0 12.0
Disagree 27 54.0 54.0 66.0
Strongly
Disagree 17 34.0 34.0 100.0
Total
50 100.0 100.0
SUMMARYOFFD4

40. IV- AWARNESS
Fare meters are easily available in the market
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid Agree 3 6.0 6.0 6.0
Not Sure 9 18.0 18.0 24.0
Disagree 31 62.0 62.0 86.0
Strongly
Disagree 7 14.0 14.0 100.0
Total
50 100.0 100.0
SUMMARYOFFD5

41. IV- AWARNESS
Meters are affordable to taxi owners
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid Agree 5 10.0 10.0 10.0
Not Sure 13 26.0 26.0 36.0
Disagree 26 52.0 52.0 88.0
Strongly
Disagree 6 12.0 12.0 100.0
Total
50 100.0 100.0
SUMMARYOFFD6

42. SUMMARYOFFD8
Installation of meter will improve taxi system
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid Strongly
Agree 5 10.0 10.0 10.0
Agree 15 30.0 30.0 40.0
Not Sure 9 18.0 18.0 58.0
Disagree 16 32.0 32.0 90.0
Strongly
Disagree 5 10.0 10.0 100.0
Total 50 100.0 100.0
IV- AWARNESS

43. IV- Lack of legislation/policy

44. IV- Lack of legislation/policy
Islamabad administration has a proper cab
management system
Frequen
cy Percent
Valid
Percent
Cumulative
Percent
Valid Agree 8 16.0 16.0 16.0
Not Sure 16 32.0 32.0 48.0
Disagree 19 38.0 38.0 86.0
Strongly
Disagree 7 14.0 14.0 100.0
Total
50 100.0 100.0
SUMMARYOFLOL1

45. IV- Lack of legislation/policy
There exist criteria for vehicles to be use a taxi
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid Agree 7 14.0 14.0 14.0
Not Sure 7 14.0 14.0 28.0
Disagree 33 66.0 66.0 94.0
Strongly
Disagree 3 6.0 6.0 100.0
Total 50 100.0 100.0
SUMMARYOFLOL2

46. IV- Lack of legislation/policy
Only five year old vehicle should be used as taxis
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid Strongly
Agree 5 10.0 10.0 10.0
Agree 10 20.0 20.0 30.0
Not Sure 6 12.0 12.0 42.0
Disagree 19 38.0 38.0 80.0
Strongly
Disagree 10 20.0 20.0 100.0
Total
50 100.0 100.0
SUMMARYOFLOL3

47. IV- Lack of legislation/policy
There should be a security camera in every cab
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid Strongly
Agree 11 22.0 22.0 22.0
Agree 23 46.0 46.0 68.0
Not Sure 2 4.0 4.0 72.0
Disagree 10 20.0 20.0 92.0
Strongly
Disagree 4 8.0 8.0 100.0
Total
50 100.0 100.0
SUMMARYOFLOL4

48. SUMMARYOFLOL5
Name/Mobile number of taxi driver
should be at display in taxi
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid Strongly
Agree 13 26.0 26.0 26.0
Agree 17 34.0 34.0 60.0
Not Sure 2 4.0 4.0 64.0
Disagree 17 34.0 34.0 98.0
Strongly
Disagree 1 2.0 2.0 100.0
Total
50 100.0 100.0
IV- Lack of legislation/policy

49. Reliability

50. Reliability
Case Processing Summary
N %
Cases Valid 50 100.0
Excludeda
0 .0
Total 50 100.0
a. List wise deletion based on all variables in the
procedure.

51. IV-AWARENESS
Reliability Statistics
Cronbach's
Alpha No. of Items
.938 4
DV- ADVANCE CAB SYSTEM
Reliability Statistics
Cronbach's Alpha No. of Items
.944 5

52. IV- FARE DETERMINATION
Reliability Statistics
Cronbach's Alpha No. of Items
.964 8
IV- LACK OF LEGISLATION/POLICY
Reliability Statistics
Cronbach's Alpha No. of Items
.954 5

53. T- TEST

54. T-TEST ALL VARIABLES
One-Sample Test
Test Value = 0
t Df Sig. (2-tailed)
Mean
Difference
95% Confidence
Interval of the
Difference
Lower Upper
Advance Cab
System
24.444 49 .000 2.71600 2.4927 2.9393
Awareness 28.652 49 .000 1.70000 1.5808 1.8192
Fare
Dererminatio
n
25.781 49 .000 3.05250 2.8146 3.2904
Lack Of Policy 19.383 49 .000 2.84400 2.5491 3.1389

55. T-TEST FOR ADVANCE CAB SYSTEM- DV
One-Sample Test
Test Value = 0.5
t Df Sig. (2-tailed)
Mean
Difference
95% Confidence Interval of the
Difference
Lower Upper
Islamabad has an advance
cab system
34.031 49 .000 3.86000 3.6321 4.0879
Educational constraint is
an obstacle in designing
advance system in
Islamabad
15.404 49 .000 1.98000 1.7217 2.2383
Use of cab system specific
applications is common in
the Capital
13.585 49 .000 1.38000 1.1759 1.5841
3G and 4G technology has
provided an opportunity
for designing of an
advance cab system
11.454 49 .000 1.84000 1.5172 2.1628
A regulatory authority
oversees cabs in
Islamabad
20.208 49 .000 2.02000 1.8191 2.2209

56. T-TEST FOR AWARENESS- IV
One-Sample Test
Test Value = 0.5
t df
Sig. (2-
tailed)
Mean
Difference
95% Confidence
Interval of the
Difference
Lower Upper
I have a phone with
touch screen/paid
16.625 49 .000 1.14000 1.0022 1.2778
I can use modern mobile
apps(Facebook,
WhatsApp)
18.330 49 .000 1.20000 1.0684 1.3316
I know how to use 3G/4G 16.625 49 .000 1.14000 1.0022 1.2778
I have an e-mail address 24.051 49 .000 1.32000 1.2097 1.4303

57. T-TEST FOR FARE DETERMINATION- IV
One-Sample Test
Test Value = 0.5
t Df
Sig. (2-
tailed) Mean Difference
95% Confidence Interval of
the Difference
Lower Upper
Price per KM is uniform from taxi to taxi 17.093 49 .000 3.02000 2.6649 3.3751
Govt. policy on prices of taxi fare exists in
Islamabad
13.416 49 .000 1.92000 1.6324 2.2076
Fluctuation in fuel prices leads to change in
price of taxi fare
11.538 49 .000 1.20000 .9910 1.4090
There exists a Karaia Nama in every tax 28.000 49 .000 3.600000 3.34163 3.85837
Fare meters are easily available in the
market
31.982 49 .000 3.34000 3.1301 3.5499
Meters are affordable to taxi owners 27.138 49 .000 3.16000 2.9260 3.3940
Meter installation helps in fare
determination
18.991 49 .000 1.66000 1.4843 1.8357
Installation of meter will improve taxi
system
14.805 49 .000 2.52000 2.1780 2.8620

58. T-TEST FOR LACK OF LEGISLATION/POLICY- IV
One-Sample Test
Test Value = 0.5
t df
Sig. (2-
tailed)
Mean
Difference
95% Confidence
Interval of the
Difference
Lower Upper
Islamabad administration has a
proper cab management system
22.778 49 .000 3.00000 2.7353 3.2647
There exist criteria for vehicles
to be use a taxi
16.398 49 .000 1.86000 1.6321 2.0879
Only five year old vehicle
should be used as taxis
15.763 49 .000 2.88000 2.5128 3.2472
There should be a security
camera in every cab
10.955 49 .000 1.96000 1.6005 2.3195
Name/Mobile number of taxi
driver should be at display in
taxi
11.286 49 .000 2.02000 1.6603 2.3797

59. CORRELATION

60. Correlations
Advance Cab
System Awareness
Fare
Determination
Lack Of
Policy
Advance Cab
System
Pearson Correlation 1 .792** .970** .988**
Sig. (2-tailed)
.000 .000 .000
N 50 50 50 50
Awareness Pearson Correlation .792** 1 .861** .800**
Sig. (2-tailed)
.000 .000 .000
N 50 50 50 50
Fare
determination
Pearson Correlation .970** .861** 1 .975**
Sig. (2-tailed)
.000 .000 .000
N 50 50 50 50
Lack Of Policy Pearson Correlation .988** .800** .975** 1
Sig. (2-tailed)
.000 .000 .000
N 50 50 50 50
**. Correlation is significant at the 0.01 level (2-
tailed).

61. CONCLUSIONS AND
RECOMMENDATIONS

62. CONCLUSIONS AND RECOMMENDATIONS
• First and foremost step in solving a problem is
to identify that there is one.
• The issues highlighted in this study are the
pre-conditions required for designing, at first
stage, and implementing an advance cab
system in the Federal Capital.
• Without considering these issues and
addressing them all-together, no system can
be effective.

63. Prominent findings of the study are as follows
• Currently, the Capital has a pathetic cab
system in it.
• Internal conditions of taxis are not much
different from their apparent outlook.
• Most of the cab drivers are illiterate or at
primary level of education. They are unable
to use modern information 3G & 4G
technology seems useless in this situation.
• Poor drivers neither can afford nor able to use
these complex things.

64. Prominent findings of the study are as follows
• Money lies at heart of any problem as well as
its solution. Agreement on a fare is next to
impossible.
• Legal cover, regulatory bodies, fare
determination instruments, government level
policies are just missing.
• Contrary to culture of developed nations, the
most senior vehicles and aged cars are used as
cabs here.

65. RECOMMENDATIONS
• Take care of education; it will take care of
society.
• Awareness campaigns should be launched in the
capital.
• Enact laws, Provide legal cover and support to
this sector to develop.
• A regulatory body is required to oversee this
industry. Constitute one.
• Utilize 3G with full potential for business oriented
purposes rather only for FB.
• Introduction of taxi apps like uber and smart cabs
etc.

66. • Define a proper mechanism for fare
determination in cabs.
• Fare meter installation may be suitable
option.
• A cab management system should be launched
in the city with a proper regulatory
mechanism.
• Strick policy regarding life span of vehicles
should be formulated and implemented.
• Security concerns should be kept in mind.

67. Reference
• Arnott R. (1996). Taxi Travel Should Be Subsidized. Journal of Urban
Economics 40, 316 – 333.
• Beesley M. E. (1973). Regulation of taxis, Royal economic society, The
economic journal, Vol. 83, No. 329 (Mar., 1973), pp. 150 - 172.
• Beesley M. E. And Glaister S. (1983). Information for regulating: the
case of taxis. Royal economic society, The economic journal, Vol. 93,
No.
371, pp. 594 – 615.
• Cairns R. D., Liston-Heyes C. (1996), Competition and regulation in the
taxi industry, Journal of Public Economics 59, 1 – 15.
• Cascetta E. and Cantarella G. E. (1991), A Day-to-day and Within-Day
Dynamic Stochastic Assignment Model, Transportation Research A, vol
25, pp 277 – 291.
CENIT.
• http://www.slideshare.net/SunstoneBusinessSchool/radio-cabs-
industry-in-india-case-study-sunstonebusiness-school.