11Aug, 2017

What Conventional Taxis Must Do to Survive the Bumpy Road

public relations, What Conventional Taxis Must Do to Survive the Bumpy Road-Public Relations Portal and Communications Business News Indonesia 1

By: Triyo Saputra – Account Manager of Fortune PR

 

Those who won’t keep up with digital technologies will eventually get left behind. That is why, conventional business today must change its business model to survive the digital disruption. They must start collaborating to digital players and utilize digital technologies today.

Ride-hailing app services, which are well known for its cheaper fare and sophisticated technology, have been taken into an important role in the dynamics of Indonesians daily life, particularly within urban areas. Data showed that consumers today prefer riding online taxis compare to conventional taxis, and this has become a major loss for Blue Bird over the recent years.

We can learn from the case of Blue Bird Group, and how they now struggle to compete with online taxis operating with different types of vehicles and equipped with tech-savvy drivers who rely solely on Google Maps. The company lost three-quarters of its market value over a 20-month period from the beginning of 2015, which coincided with the emergence of ride-hailing apps. Its share recovered after announcing a partnership with ride-hailing app Go-Jek, allowing customers to order cabs through the Go-Jek app. But its market value remains well below 2015 peaks.

We can consider the partnership as a right step. Through this, Blue Bird have the opportunity to slowly come back and build their image as a company that will go digital. But it is important to note that for Blue Bird and other taxi companies planning to go-digital, that the road to digital transformation requires a lot of changes to internal infrastructure and system. In addition, going digital requires educating employee’s mindset and knowledge about digital literacy, so they will able to face the changes and challenges in the future.

After announcing a partnership with ride-hailing app Go-Jek, its share recovered. But its market value remains well below 2015 peaks. Collaborating with Go-jek through the Go-Car service is a right move for Blue Bird Group in competing with digital market. Customers can call Blue Bird taxi on the street, in taxi pool, My Blue Bird app, Call Center and also through the Go-jek app.  Go-Car user who gets Blue Bird taxi can enjoy the rate and promo of Go-Car and customers can pay using Go-Pay including its 30% discount. The whole joint initiative focuses on improving transportation services through a mobile solution that is easy and convenient for people across Indonesia. Through this, Blue Bird can slowly come back and build their image as a company that will go digital.

The road to digital transformation requires a lot of changes in internal infrastructure and system. To keep up with the ongoing digital disruption, traditional taxi companies should become a company that supports digital disruption itself. They should be open with changes and find creative solutions to attract customers. Actions should be done internally too. Going digital requires educating employee’s mindset and knowledge about digital literacy, so they will able to face the changes and challenges in the future.

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