Rise in the Taxi Business for Chandigarh to Noida Routes

While alternative transportation methods are being sort out by commuters for the Chandigarh to Noida Routes, cab hailing companies are coming up to provide these services. The high demand is therefore being quenched by the various cab aggregator companies.

However, these companies offering services for taxi travel for this particular route may increase in number so much so that they overcome the market demand. This will bring forth the effect of more supply than demand in the transport industry which would cause adverse effects.

Regardless, taxi services have a high demand in the Indian transport market and the Chandigarh to Noida Routes are no exception. Many travelers will frequently use this route for leisure or work purposes. This is because both cities attract tourists – Noida, just like its name, is a hub for industrial development while Chandigarh is famed for its beauty and modern designs.

Yet, as the demand for ferrying between the two cities grows, taxi service providing agencies – including ambitious and upcoming firms - will only see the increase in business opportunities and seek to expand their territories to cater for the travel needs of their clients.

But, at some point this can cost such companies following stiff competition as each firm endeavors to gain more clients’ trust and loyalty.

How does this competition affect cab hailing companies?
Most times, when you hear the word competition, you may think that it is bad for business. This is because many rival companies can go to certain effects to ensure that they get and stay at the top position of their market sales. Sometimes, business competition can be extremely severe for some entities and can lead to horrible effects for a business.

However, did you know that competition can be good too for a business?

That’s right! The increase of these taxi service providing firms may increase competition towards one another as they race to target commuters between the Chandigarh to Noida Routes but, this can bring out various good effects.

In such cases, this competition is said to be healthy as it ensure that each business has a fair chance in the market.

Healthy competition effects
As our main focus is on the Chandigarh to Noida passage, it may not matter how a traveler may get there as long as they arrive safely. Since there is no direct passage via train, it may take a relatively longer time to connect to both cities via other towns and making train switches. The same case applies to bus travel and this sums up to a lot of time wastage - and sometimes money.

For this reason, many commuters will prefer to take taxi travel and this is where the competition for the market comes in among the cab hailing companies. Here are the good effects of this competition:

1. Improvement in vehicle maintenance
Taxi service will ensure that their firm vehicles are kept in a pristine and well maintained manner. This is because the failure to do so will not only get them zero customers but will also tarnish their reputation. As a traveler, you do not want to travel with a vehicle that is not properly serviced and which can be termed road unworthy.
Since the safety of their clients comes first, there is a need to improve on their current vehicles so as to attract more customers and beat competition.

2. Increased hiring
Competition has enabled taxi travel firms to increase the number of their drivers. This hiring process is to ensure that all their cabs get utilized and not lie idle due to lack of drivers. Some companies even go ahead to provide training for their drivers in forms of videos, driver manuals or holding training sessions. The effect of this is to make sure that their staff is highly professional so that customers enjoy the company’s services and grow loyal to the firm. This is in the bid to beat competition.

3. Lowered prices
Commuters get to enjoy affordable or even lower prices due to competition among cab hailing firms. The assumption is that the lower the prices, the more customers will get enticed to use their services. In a busy route such as the Chandigarh to Noida passage, prices can get insanely low to a point where it might strain the cab drivers. This form of strategy can sometimes be bad for business.

4. Booking space
Any cab hailing company that has not yet established their entity on to online platforms may probably not be willing to progress. It may seem as being outdated for any business firm in that matter to not have an online forum in this digital age and era. Most cab aggregator companies have established a booking space for their customers to conveniently book and get a cab as fast and easy as possible. Some of them even ensure that their customer support is readily available to assist clients who are having issues with online services.

5. One way taxi transport
As the distance between Chandigarh and Noida is quite long, commuters may mostly require outstation taxi travel. In traditional taxis, travelers would pay for both their journey and the return fare. While such charges were to ensure that the agency still makes money from both journeys, many agencies have conformed to one way taxi transportation. Even with no competition to beat, the traditional form of charging outstation travel was straining to travelers and many of these travelers would prefer other cheaper modes of transportation. Therefore, one way taxi travel comes as a way to attract more customers.

Now that healthy competition has good effects, how does unhealthy competition affect brands?

Unhealthy competition effects
1. Insanely reduced prices - This causes drivers and the companies in general to not make proper profits since the prices can go as low as possible to entice customers.
2. Shutdown of companies – Stiff competition may cause some cab aggregator companies to lack a market for their services and thus may end up closing down the company. This can be major set-back in the economy as many people would fall in the unemployment bracket.

How to resolve such issues
Even though competition may be stiff due to the numerous cab hailing companies providing taxi transportation between Chandigarh and Noida, it can be manageable in certain ways that would ensure each business stays in business.

Here are ways of resolving unhealthy competition issues that may arise from the Chandigarh to Noida Routes.
•    Promoting healthy competition – This can be done by setting threshold price rates such that no business would go below the threshold.
•    Government policy – The governments in Noida and Chandigarh can ensure that they set a limit to the number of cab hailing service providers to ensure that these businesses do not supply more than the market demand.
•    Branch out – Some of these cab aggregator companies would require to redirect their services to other routes to avoid overcrowding on one route.
•    Merging – This may probably be the best solution in resolving unhealthy competition issues. When companies come together to form one entity, they may end up creating a monopoly supply for the market which in turn would increase the demand.

Therefore, the increase of taxi businesses for the Noida and Chandigarh route can be a good and bad thing to both commuters and the cab aggregator companies.

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