- Sai Supreeth Vattem
- October 15, 2024
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Sai Supreeth Vattem is global vendor program manager in Uber Leading the partner management and vendor operations. Access Sai Supreeth’s full executive profile here.
Context and Background
The landscape of transportation and the way we get around nowadays has undergone a remarkable transformation over the past decade, this is primarily driven by the rise of ride-hailing companies and other digital platforms. These platforms have literally transformed the traditional ride-hailing industry by bringing too much convenience, affordability, and accessibility to millions of commuters globally.
The evolution of ride-hailing Services happened through the utilization of mobile apps for booking rides, cashless transactions, and gig economy model for drivers which represented a paradigm shift in the transportation sector.
Market Saturation and Competition where the industry has become increasingly competitive, with numerous ride-hailing platforms that are trying to capture maximum market share.
This ride-hailing industry has matured and it's facing a lot of complex challenges and competitive pressure which lead to the necessity of innovative strategies for sustainable growth and customer retention.
Entering the ride-hailing industry is extremely challenging due to intense competition, expensive efforts to attract customers, price sensitivity among users, imbalances in supply and demand, and the difficulty of retaining both customers and driver partners. Additionally, state government policies & specific operational challenges in certain areas, such as Delhi, can further complicate the entry and success of companies in this sector. It is imperative to take into account each of these aspects before entering the ride-hailing industry.
The Economic Times reported that since 2012, more than 100 ride-hailing businesses have opened in India.. Of these, only a handful of companies have survived, which includes Ola, Uber, Rapido, and Meru Cabs.
With an estimated $15 billion in market size, the ride-hailing business in India is among the fastest growing globally. Although there are several smaller players, Ola and Uber are the two big participants in the market. In India, city rides account for the majority of travel, but interstate and airport transfers are also expanding quickly. Although ride-hailing 's overall market share in India is still modest in comparison to other countries, it is predicted to increase to more than 20% by 2030.
Literature Review
Introduction
The introduction of ride-hailing services and other factors have caused a rapid shift of the Indian transportation sector, forcing businesses to adopt creative marketing approaches.
Mobility in the consumer space has been exploited in the right way since the last decade, especially in the ride hailing business. Similar is the trend with technology, social media adoption with more employment, business empowerment and overall trajectory of India in it’s evolving trajectory from a 3rd economic superpower for better.
In the generational run ride hailing agencies and individuals dominated business, technology with it’s innovation and marketing strategies disrupted for greater good which has only evolved over time.
The ride-hailing sector now relies heavily on social media marketing. Through social media, ride-hailing businesses may connect and interact with both new and returning consumers, advertise their services, and establish credibility and brand awareness.
Social media marketing has attracted a lot of attention in this dynamic context as a potent tool for building brands and engaging customers (Smith, 2018).
Evolution of Social Media Marketing in ride-hailing
Ride-hailing companies have adopted social media marketing since the early days of the industry. In the early years, ride-hailing companies primarily used social media to share information about their services and to promote discounts and promotions.
Now the strategies involve generating & disseminating informative content, it can be such as blog entries, data visualizations, & videos, as well as specific advertisements on social media to reach specific people. Additionally, ride-hailing services use social media a lot to promote special offers and promotions and to communicate with customers by replying to questions, comments, and complaints.
Challenges in the Modern Transportation Landscape
Consumers in the contemporary transportation environment encounter several obstacles, such as:
- Congestion in the roads
- Unpredictability of services (polarity of supply and demand)
- Having trouble locating parking
- Public transit is unreliable.
- hefty transportation costs
Consumers might discover it challenging and annoying to navigate around as a result of these issues. A practical and economical answer to these problems may be found with ride-hailing services.
Customer Engagement and Personalization
Customer engagement and experience are critical components. Customers that are actively involved in the ride-hailing process are inclined to utilize the services more regularly and to refer friends and family to them.
Customer engagement is based on trust and commitment that then generate satisfaction and positive emotions (Pansari and Kumar 2017).
Enhancement of Brand Perception and Trust
Social media marketing has the potential to shape brand perception and build consumer trust.
A study found that 80% of consumers believe that social media is a credible source of information about brands have explored the influence of social media content on consumer attitudes (Study by Edman). Positive, transparent, and responsive interactions on social media platforms contribute to improved brand image and trust among consumers.
Social media can play a key role in enhancing brand perception and also trust.
By using social media to share positive customer stories, promote their commitment to safety and security, and respond to customer feedback in a timely and respectful manner, ride-hailing companies have built a positive brand image and continue to commit to create trust with consumers.
Customer Feedback and Operational Efficiency
Social media platform user reviews have a significant impact on improving customer satisfaction and operational effectiveness by incentivizing others to use the services that the reviewer found valuable.
Li and Zhang's (2020) research demonstrates how ride-hailing companies use consumer input to make real-time adjustments to their services to improve service quality and operational efficiency.
For ride-hailing businesses to increase the quality of their services and their operational efficiency, social media customer input is crucial. ride-hailing companies may identify areas that require enhancement by maintaining an eye on social media for input from their customers.
Companies that use social media to collect and assess customer input can increase operational efficiency by 25% and customer satisfaction scores by 10%, (McKinsey & Company study)
Companies can cut their customer care expenses by 20% by using social media to address customer criticism, (Study by Forrester).
Regional Variations in Social Media Strategies
Regional variations in social media strategies are evident, particularly in countries like India. Research by Gupta and Sharma (2019) indicates that ride-hailing companies in India adapt their social media marketing to cater to diverse regional preferences, languages, and cultural nuances.
Promoting Sustainable Transportation
Sustainable transportation advocacy on social media has exploded in popularity. According to research by Lee et al. (2021), ride-hailing companies utilize social media channels to communicate data regarding their sustainability tasks, like the adoption of electric cars and carbon offset programs, to assist them in achieving larger goals related to sustainability.
According to an Edelman study, 78% of consumers are more likely to choose a purchase from an organization that promotes sustainability.
74% of consumers are more inclined to interact with a brand on social media if it provides sustainable goods or services, according to a Hootsuite survey.
There are still gaps in the literature that need to be filled, despite the fact that it hasn't offered many insights into how social media marketing affects the ride-hailing sector.
In order to close these knowledge gaps and enhance our comprehension of the role that social media marketing plays in revolutionizing ride-hailing services, my study went deeper into the particular strategies and tactics that can revolutionize transportation specific to Indian Market . It also examined long-term sustainability and the changing ride-hailing landscape.
This study shed light on the transformative role of social media in the realm of ride-hailing services. As the modern transportation era continues to evolve, these key areas bear profound significance.
It shows the importance of safety in the ride-hailing industry.
A substantial portion of respondents quantifiably expressed safety concerns, emphasizing the need for ride-hailing companies to prioritize and promote safety.
The second salient finding pertains to the growing concern for sustainability among ride-hailing users. As data quantifies the user preference for eco-friendly transportation options, it accentuates the industry's responsibility to promote sustainable practices.
Thirdly, the study spotlights the significance of user engagement and personalization in fostering brand favorability and trust in the ride-hailing landscape.
Quantified data reaffirms the preference for personalized recommendations, including discounts and sustainable transportation options.
They offer a roadmap for ride-hailing companies to navigate the contemporary landscape effectively. Prioritizing safety and sustainability in their social media marketing efforts not only caters to user demands but also elevates brand credibility. Fostering sustainability through electric vehicles and ride-sharing options aligns with the global wave of environmental consciousness. Personalization strategies based on user data, as quantified in the study, can boost user adoption of sustainable and cost-effective transportation
Future Scope & Research
Future research in the realm of ride-hailing services can significantly advance the industry by delving into the impact of emerging technologies. To achieve this, researchers can explore how autonomous vehicles and blockchain can be integrated into the existing infrastructure. Investigations should focus on how these innovations can enhance safety, improve sustainability, and elevate customer experiences in these ride hailing platforms all while utilizing social media channels for communication and promotion.
A viable approach to customizing ride-hailing services is the amalgamation of machine learning algorithms with artificial intelligence (AI). In actuality, scientists ought to look into how these algorithms are created and used by ride-hailing services. This would entail working with data scientists and user experience specialists, as well as analyzing and developing machine learning models. The goal is to better understand customer preferences and habits in order to provide more accurate suggestions for sustainable transportation solutions all while recognizing the importance of harnessing social media data for user behavior analysis and personalized service recommendations.
ride-hailing drivers and customers can benefit from enhanced safety and training experiences through the utilization of Augmented Reality (AR) and Virtual Reality (VR).
Virtual safety instructions and realistic training simulations would need to be developed by researchers. It would be crucial to work with creators of AR and VR as well as specialists in human-computer interface. These innovations could make for a safer and better-informed riding experience by being included in driver training facilities and as in-app safety features for passengers.
They should consider integration options while examining ride-hailing services' place within the larger framework of Mobility as a Service (MaaS) they can leverage social media to enhance communication and engagement with users. Working together with lawmakers, transportation specialists, and urban planners would be necessary for this.
Analyzing ride-hailing 's potential integration into a smooth, multi-modal transportation ecosystem is the aim. To guarantee a coordinated strategy, it should be carried out through collaborations with other transportation companies and governmental organizations.
The information gathered by ride-hailing services has a big influence on policy and urban development. To determine the best use for this data, researchers should collaborate with urban planners ,city officials and social media can play a pivotal role in data dissemination and community engagement.. Data scientists and urban planners must work together in order to improve transportation infrastructure, reduce traffic, and also optimize the traffic flow.
Encouraging the usage of electric vehicles (EVs) in ride-hailing services would require extensive research. It includes a financial study of the uptake of EVs and the construction of infrastructure for charging them. Social media can be used to educate users about the economic viability of EVs, the expansion of charging infrastructure, and the incentives available for sustainable transportation, thereby facilitating their widespread adoption. It is essential to work together with automakers, charging station operators, and government authorities. Researchers want to look into incentive programs and assess strategies for advancing environmentally friendly transportation. In order to implement incentives, cooperation with government agencies is essential.
Researchers need to collaborate closely with ride-hailing companies to investigate the viability of carbon offsetting schemes. To include these initiatives into marketing campaigns social media outreach, hand in hand with ride-hailing companies and employ social media channels for environmental awareness and engagement. Businesses can start the process of reducing their environmental effect by putting in place carbon offsetting programs.
The utilization of predictive analytics, supported by social media insights, allows researchers to anticipate user preferences and needs effectively. Researchers ought to explore the potential of predictive analytics to foresee user inclinations and requirements, resulting in the effective delivery of tailored offers, routes, and amenities. In this study, user data would be analyzed, and algorithms capable of making these predictions would be developed.
Finally, researchers must work with AI and marketing experts on campaigns powered by AI. All while capitalizing on social media platforms for targeted advertising and user engagement. Social media marketing can help in tailoring campaigns to specific customer segments, amplifying the impact of AI-driven strategies.
Bibliography
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