Bech Taxi

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Introduction to Beck Taxi:-
Beck Taxi is the leading taxi brokerage with the highest number of taxis in the city of Toronto. Beck Taxi was founded by Jim Beck and is still a family run business. Today the founder's daughter, Gail Beck-Souter carries on the tradition of excellent service. With Ms. Beck-Souter's attention to detail and leadership, she has made Beck Taxi the largest and most successful taxicab company in the country. With over 1,400 available taxis operated by our professionally trained independent contracted drivers.

Issues faced by Beck:-
The issue faced by Beck Taxi was the pricing challenge in a three months summer season. Summer was the lean season for the taxi trade in Toronto, because educational institutions were closed, people were on vacation and many people were prefer to walk, cycle or take public transport instead of using a taxi. The challenge was to do business in this season.

The Beck Taxi’s CEO Gail Beck Souter was finding a solution to deal with this and need to do some modifications in current taxi fares. In this time Souter wondered to reduce the radio fee. Drivers and plate holders were also affected by this lean season.

Toronto had 4,851 cabs. At one cab for every 500 Torontonians, which opposed to one cab for every 1,000, which is the ratio of other metropolitan cities around the world. This is also an important issue related with Beck.

Direct and indirect stakeholders and their interests:-
There were two types of stakeholder in this case study. The direct stakeholders were company, taxi drivers and plate holders. Any kind of decision taken regarding fare change or any change in the policy was going to affect directly to these stakeholders, because they are directly connected to company. A total of 9,898 drivers and 1,476 plate holders were attached to Beck. The interests of these stakeholders were to sustain their position in the market. As they were having a good name and fame in cab industry of Toronto. Also there are 3,000 drivers already working for beck taxi most of them for more than 20 years now, they were also attached emotionally to Beck Taxi.

The indirect stake holders in this case were the customers and the competitors. And the major competitor of Beck was Diamond Taxi. Any decision taken by Beck was going to affect then as well. They also have to adjust pricing in comparison to Beck to retain in the market and do business. Customers were also affected why Beck’s decision as they will be choosing a low fare and first available cab. The interest of the competitor would be to attract more customers and to defeat Beck and attract more drivers and plate holders from Beck by giving good offers and compensation to customer and drivers.

In this case study available in this case study are money and relationship. As Beck is the major brokerage in cab industry, and they also having good relationship with their customer. Beck is capable of adjusting with their money for their customer.

The major three alternatives can able to meet the demand of the Beck taxis are:

1)Reduce the fixed fee for the radio and charge a fee for dispatch: This means cutting back the radio fee but the usage could be fixed. But here the competitors can reduce the fixed fee too and can still be in market. Stake holder’s analysis:

A.Drivers/ Plate holders: It is a batter idea to reduce fixed fee and charge a fee per dispatch. It can be good for both drivers and plate holders. They will be charged...
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