Consumer behavior

In the following, findings in regards to using traditional taxi services, taxi applications and customization, Uber usage and potential service improvements, as well as reasons for using competitors will be presented.

5.4.1.1 Taxi usage

With regards to the preferred mode of transportation, findings of the paper show a tendency towards a preference of taking public transportation instead of using a taxi.

This is supported by statements such as “I prefer taking public transport because I’d rather save the money”, “if there is no public transport”, “no public transportation connections that are easy to reach” (Interviewees Uber). Other reasons for taxi usage are a missing Internet connection on the phone, when they are aware that it is the cheapest option available, or simply walking past a cab rank or seeing it on the street.

Uber was already discussed in this context as one interviewee mentioned taking a taxi at times when Uber is too expensive. Comparison of prices was stated as another decision criterion for taxi usage, and an Uber interview respondent stated wanting “the cheapest thing, as long as it is not extreme”. In addition, in case of a problem with a taxi a number would be needed “to call the company”. Another interviewee highlighted

not knowing a single phone number of a taxi company. Furthermore, respondents stated that in case of problems with a taxi it is not easy to place a complaint straight afterwards and that it would be necessary to write down the taxi number. In addition, interviewees also noted that in foreign cities “cab drivers often defraud you” and that one does not know “if he’s actually taking the shortest route”.

5.4.1.2 Taxi apps & customization

When asked whether the interviewees knew of any apps of taxi companies in Austria, only one was able to recall the name of an app – MyTaxi – but had never used it.

Another respondent had used one already but could not recall the name of the app.

However, the interviewee recalled that the app was rather “sparsely equipped”, especially in comparison to the Uber application. In general, customization of apps was deemed not necessary, yet “a nice add on” (Interviewee Uber), especially when it comes to social media. In reference to taxi applications, customization was deemed not important as taxi is viewed as a simple service that is used once. Additionally, it is only necessary to see “where you can drive to and how much it costs” and if “nothing is happening then I am not interested” in the application (Interviewee Uber).

5.4.1.3 Uber usage

Focus group participants as well as interview respondents first came to know of Uber either via media or via word-of-mouth. This is supported with statements such as

“heard about Uber via different media”, “in the news with the song”, “friend said to me”

and “via my former boss”. One focus group participant heard about Uber “from articles in newspapers concerning the bad working conditions”, and an interview respondent mentioned “news with some taxi protests”. When asked whether negative news would be influential, it was said that it depended on the type of news (Interviewee Uber).

With regards to how Uber is used, respondents painted a rather similar picture compared to taxis. Uber is used mostly during the night, on the way home, and when public transportation is either unavailable or inconvenient and taking Uber is the better solution. Additionally, it is used when going to the airport early in the morning or when one is abroad, not familiar with the city or lacking local language skills.

Findings reveal that the primary reasons for using Uber are convenience, cost-savings, reliability, quality and functionality (user-friendliness), and security. Familiarity with the platform was also mentioned.

Uber interviewees agreed on convenience being an important factor, with supporting statements such as “easy, and convenient, can reach my destination faster” and “here very fast”. Furthermore, the automatic payment process with credit card was named (Interviewees Uber).

Focus group, in-depth interview participants as well as online users share the opinion that cost-savings, mostly in comparison to taking a taxi, is one of the primary reasons of using Uber. “Tried Uber and realized can save euros”, “made the experience that you can save money with Uber” (Interviewees Uber), and “get more service for less money” (Netnography Uber) are examples. A Facebook user comment shows that Uber is preferred over taxis, as evidenced in “better drivers than cab drivers, with better cars than taxi cars (…) we could save hundreds of euros”. An Uber interviewee argued that Uber was “cheaper than a taxi”. Another interviewee also mentioned not using Uber if it was more expensive than a cab.

In terms of reliability, respondents of in-depth interviews share the opinion that Uber is doing a great job and that they have not made a bad experience so far. Quality and functionality were attributes named in connection with the service. User-friendliness was highlighted by all of the interview respondents as well as focus group participants.

Concerning the application with its simple, professional and user-friendly design, “you can get what you want with one click, without entering data multiple times” and “you don’t have to call, you just click” (Participants focus group). After using the service, users get e-mails stating “all the transparent things” (Interviewee Uber) such as the route and billing details, which was of importance to interviewees. Another reason for using Uber is the respondents’ familiarity with the platform.

With regards to the security of using an Uber, most of the respondents had the impression that taking an Uber was a safer option than using a taxi. One respondent,

however, mentioned a ride experience with a taxi driver during which the driver propositioned the respondent. Netnography also yielded information on cases in which a user was propositioned by an Uber driver during the trip, with the driver constantly texting the person afterwards. According to the user, this was a form of data abuse (Netnography Uber). In comparison to using a taxi, interviewees also highlighted that

“you get the information about the driver beforehand”, and that one can “immediately say what you liked, you can give the driver 5 stars” (Interviewees Uber).

5.4.1.4 Possible improvements

Research also yielded insights on factors disliked about using Uber. Netnography showed that some users were unable to register due to the lack of a credit card or paypal (Netnography Uber). In contrast to an Uber driver, a taxi driver has “a real employment contract” and is not being “exploited” (Interviewee Uber). Despite the skepticism in regards to Uber, the same respondent highlighted still being a student, mentioned that the issue was not an “exclusion criterion” and claimed further using the company’s service. In addition, the price surge function in times of high demand was deemed “complete randomness” and a “smoother curve” was desired (Interviewee Uber). However, one user on Facebook countered these points with “don’t complain because something is happening to my disadvantage once” and simply said “supply meets demand”. The user suggests that in case someone dislikes the price calculation, a conventional taxi or public transportation should be the chosen method of transportation instead (Netnography Uber).

5.4.1.5 Reasons for using competitors

With regards to trying or switching to another platform, an effective incentive for trial would be a voucher. Switching to another platform could also be induced by factors such as driving environmentally-friendly cars, a less fluctuating pricing system or being a local company. In regards to competition on price, it was noted that a service even cheaper would be “ethically questionable” (Interviewee Uber).