1. 1. Why do you think Comfort Taxi was able to attract 16,000 taxi drivers and to
adopt the GPS-dispatch system within two years, whereas Taiwan Taxi
managed to recruit only 6,700 members over a seven-year span?
Although both Comfort Taxi and Taiwan Taxi adopted the same GPS system
to facilitate dispatch, the overall cab driver recruitment of each company differed
greatly, with Comfort Taxi’s recruitment reaching approximately 16,000 cab drivers
over a two-year-span, and Taiwan Taxi’s recruitment fluctuating to a level of 6,700
members over a seven-year-span.1 Our text gives little information with regard to
Comfort Taxi’s method of training and education of its members on CabLink,
however from what I can glean from the reading, Taiwan Taxi’s initial operational
model did not provide its members with as intensive of training as was necessary to
optimize the value of the iCall system. Moreover, it would seem that perhaps it is
also a matter of individual taxi driver’s refusal to evolve along with the innovative
technology of iCall.
To explain, the implementation of new technology can be challenging when
trying to train or educate individuals who have been working in an industry prior to
its existence. An individual must be willing to dedicate some time to learning the
new technology, and how it may assist them in their every day work environment.
With specific regard to Taiwan Taxi, turnover of drivers was a significant issue –
many drivers maintained membership for only three months.2 One complaint
1 Rueylin Hsiao, Deborah Compeau and Sheng-Tsung Hou, “Taiwan Taxi’s iCall System: Realizing the
Value of GPS-Dispatch Systems,” College of Commerce National Chengchi University and Ivey
Management Services, 2009, pp. 3-7.
2 Rueylin Hsiao, Deborah Compeau and Sheng-Tsung Hou, “Taiwan Taxi’s iCall System: Realizing the
Value of GPS-Dispatch Systems,” College of Commerce National Chengchi University and Ivey
Management Services, 2009, p. 9.

2. related to the futility of the GPS system, and how it seemed unrealistic to simply
wait for clients to be dispatched through iCall rather than work the streets to garner
business. However, it is clear that members of Taiwan Taxi who were willing to
evolve along with iCall were able to successfully realize the value of the system.
Specifically, prior to iCall’s implementation, most cab drivers adopted four
practices: (1) cruising the city’s busy areas for passengers; (2) joining a taxi
company and waiting in one of the dispatch depots; (3) joining radiophone
dispatching companies; and (4) competing for passengers at taxi stands around
central Taipei.3 With the addition of iCall, taxi drivers could expand their territories
outside of those they would normally frequent by using the on-air queuing function.
This function allowed the driver to register virtually for the next incoming call in a
particular area while continuing to cruise for other customers. When the driver left
the geographical constraints of the queue, their car was automatically withdrawn
from the system. Therefore, the driver has some flexibility and is able to maximize
his or her income potential by continuing to search for customers on the street
while waiting for a potential customer through the queue.
The text outlines four approaches of effective iCall users, which basically
sums-up the idea that the individual must evolve with the system in order to really
maximize its value.4 The first method is to track golden points – pick-up locations
3 Rueylin Hsiao, Deborah Compeau and Sheng-Tsung Hou, “Taiwan Taxi’s iCall System: Realizing the
Value of GPS-Dispatch Systems,” College of Commerce National Chengchi University and Ivey
Management Services, 2009, p. 9.
4 Rueylin Hsiao, Deborah Compeau and Sheng-Tsung Hou, “Taiwan Taxi’s iCall System: Realizing the
Value of GPS-Dispatch Systems,” College of Commerce National Chengchi University and Ivey
Management Services, 2009, pp. 10-14.

3. that were frequently repeated on iCall over a period of time. Drivers listened to the
dispatch information from iCall, and recorded points that were frequently booked
by clientele. This allowed drivers to quickly locate a golden point that is nearest to
them at any point in time, thus basically guaranteeing that they would locate a
customer. Some drivers went so far as to form clubs where the members would
share the information garnered on golden points, and then plot the locations in a
computer program based on pick-up times and pick-up and drop-off locations. This
method reduced vehicle redundancy, and in turn, reduced petrol costs and
increased individual profits.
The second approach identified as being successful in taxi driver’s
implementation of iCall is operating around “hunting points.” Basically, a driver
gathers information on various passengers’ individual routines – the time a person
leaves for work, takes his or her child to daycare, etc. Then, rather than arrange
daily pick-ups with these particular clients, the driver maintains flexibility by simply
travelling around the “hunting points” – the usual location that the client frequents –
and waiting for the iCall dispatch. Some drivers use iCall’s GPS coordinates for a
specific building or high-traffic area in order to be immediately available for
customers.
The third approach used by successful iCall users was to identify “caring
points,” which were pick-up points identified as being favorites of the drivers based
on their knowledge of the type of client they would be servicing at that location.
Some drivers chose to use this method by taking on corporate contract jobs, while

4. others simply attached themselves to specific companies and rescheduled their
work routines to coordinate with that particular business’ requirements. Drivers
enhanced their professional image by providing larger more spacious vehicles,
cleaning their vehicles twice a day and displaying fresh flowers. Further, the driver
would provide additional personal services to the client, such as buying breakfast at
no extra charge and ensuring female passengers were safely inside their homes
prior to leaving the area. This particular strategy of providing high quality
individualized service effectively turned business-to-business relationships into
personal connections, which then transgressed into positive word-of-mouth
referrals for that driver.
The fourth method drivers used to maximize iCall’s benefits was to scrutinize
profit points from virtual taxi stands. The drivers would analyze specific times and
particular locations that would have a higher volume of clients, and what kind of
client they could anticipate (business fares, foreign travelers, etc.). They would plan
their logistics around particular profit points throughout their workday, and
thereby maintain a steady stream of clientele and profits, all the while minimizing
vehicle redundancy.
To conclude, it would seem that Taiwan Taxi would recruit higher numbers
of taxi drivers, and also reduce the member turnover rate, by educating the
members to utilize the aforementioned techniques in their initial training period. As
previously mentioned, many members only stay with the company for a period of
three months, which hardly affords enough time to learn the methods from mere
practice. The four methods named above were carefully instituted over time, with a

5. great deal of care and patience. If Taiwan Taxi were to inject these methods in the
initial training, and then introduce new methods as they come along in its
continuing education efforts, it is likely that those drivers who are open to learn and
use the technology will succeed in earning a significant income.
2. How has Taiwan Taxi’s business model evolved over time, and how does this
influence the potential value and usage of iCall?
Taiwan Taxi’s business model has evolved from the creation of a narrowly
focused company built on brand equity and individual transport, to a company with
a broader focus based on meeting customers’ needs outside the realm of mere
transport.
During its launch period, between March and July of 2002, Taiwan Taxi’s
focus was on building brand equity. At a time where personal security and quality
service were two main concerns of taxi clientele, Taiwan Taxi quickly attracted a
loyal customer base by projecting an image of safety, high-quality service and
technology-enabled business innovation. Taiwan Taxi’s good reputation attracted
several drivers, causing subscriptions to skyrocket from 600 to 1,600 members
between August of 2002 and March of 2004.
Although favorable, rapid growth in membership also led to system
instability, dispatch errors and customer complaints. In this time period, Taiwan
Taxi required two separate cash infusions and ultimately corporate reorganization.
The call center was restructured to focus on dispatch efficiency, and core members
were invited to return to the company. In addition, Taiwan Taxi focused more on

6. contracting with businesses for taxi service, including an exclusive contract with
High-Speed Rail to provide transportation services at stations in different cities.
The business plan continued to be driven by brand equity, however the focus was
still narrowed to taxi transport.
In 2007, Lin Chun-Tian took majority ownership and management of Taiwan
Taxi, and began implementing a broader business plan, known as the “channel
model,” for the company. The main idea of the channel model was to offer taxi
drivers the ability to become franchise retailers. Taiwan Taxi would essentially be
the wholesaler, while each driver would treat his or her vehicle as a convenience
store. The strategy behind this model was to manage a critical mass of users to
generate more additional revenue for the company, and avoid having to solely rely
on subscription fees.
Taiwan Taxi began to develop new businesses and business relationships in
an effort to diversify and generate revenue in other playing fields. The initial
development was focused on improving customer service. The first attempt in
achieving such an improvement was into the field of telecommunications, whereby
Taiwan Taxi worked with a company to provide mobile phone dispatches. A
customer would use a mobile phone to book a vehicle, and Taiwan Taxi would split
the charges with the telecommunications operator. In its second movement, Taiwan
Taxi delved into the tourism market, and designed several one-day tour packages
that drivers could offer to tourists with taxi fare included in the cost of the tour.
Third, Taiwan Taxi established mobile shops to sell music, books, concert tickets
and special promotional items through the driver. Finally, Taiwan Taxi expanded

7. into the logistics field by providing express delivery for things such as flowers,
product samples and parcels, which paved the way for more premium services such
as corporate chauffer services and dispatching press releases.
Taiwan Taxi also transformed its business model to focus on how its vehicles
could be used for more than just transportation, therefore marking the beginning of
using the vehicles as tools for advertising media. Cars could be painted to display
various business logos, brochures and business cards were placed in seatback
holders and LCD screens were installed to allow clients the ability to stay in touch
with the latest news, local entertainment offerings or shop online.
In terms of Taiwan Taxi’s broadened and diversified business perspective, it
can be argued that iCall’s value is heightened in relation to the activity the driver is
undertaking at that moment. For example, in the realm of logistics, the real-time
tracking afforded by the GPS makes finding a driver close in proximity to a pick-up
location virtually seamless. If a corporate client calls the dispatch center looking for
an urgent currier of important documents or sample products, iCall can locate the
closest member and send them to the location. This is both good for the driver
because he or she is making a profit, and good for Taiwan Taxi because they are able
to provide the customer service that is the bottom line of their company. Moreover,
should the vehicle bear a company logo, Taiwan Taxi is also fulfilling their plan of
utilizing their vehicles for advertising.
On the other hand, it is difficult to say exactly how valuable iCall will remain
in the long run, given the wealth of innovative technology that is streaming into the
business world daily. Even if Taiwan Taxi continues to broaden its business plan

8. into other realms, it is arguable that iCall will reach its limits as far as usefulness in
those specific areas.
Another consideration as to iCall’s potential value in the future is the
introduction of competition in the marketplace itself. Uber Technologies Inc. is a
San Francisco-based company that has created an app that, once downloaded to
your smartphone or tablet, will find out where you are geographically and pick you
up – all while you are tracking the driver’s progress in real-time on your device
screen.5 Users can stores their credit card in the system, which makes the issue of
carrying cash for taxis that do not have credit card readers non-existent, and it even
figures in the tip for the driver, should you feel one is warranted. In addition, the
company uses crowdsourcing to promote quality among its drivers by asking
customers to rate their drivers after every trip. Customers can view this rating
information before the vehicle even arrives, and the driver is well aware of that fact.
The introduction of the Uber app could phase-out technology such as iCall, in
that a dispatch center is no longer needed to tunnel calls from the customer to the
driver. Both individual and business customers could simply open the Uber app and
request a taxi directly, watch as the taxi is getting closer to the pick-up location and
make the payment for the services automatically upon reaching your destination.
In sum, Taiwan Taxi’s business plan has clearly evolved over time from a
very narrow vision focused on brand equity and individual transport. The company
has embraced a broader focus based on meeting customers’ needs outside the realm
5 Sunstein, Cass R., (2013, June 10). Uber Cab App Threatens Death of Taxi Dinosaurs.
Retrieved from http:// http://www.bloomberg.com/news/2013-06-10/uber-cab-app-
threatens-death-of-taxi-dinosaurs.html

9. of mere transport by diversifying its business relationships in the areas of
telecommunications, advertising and logistics. It is because of this diversification
that iCall and its GPS-dispatch technology will continue to at least hold value in the
face of competitors and innovative technology such as the Uber Cab App. As far as
continuing to add value, that would depend on Taiwan Taxi’s continued ability to
generate revenue from other sources, while using the GPS-dispatch system iCall to
do so.