1. Executive Summary

This report describes the various means by which Beck Taxi can increase its revenue and market share in the highly commoditized Cab Industry in Toronto. Any increase in pricing of radio service would lead to high attrition among the drivers and poor service quality in terms of timely service as drivers would start picking up fares. Hence Beck taxi should maintain status quo with respect to pricing radio fee. It should generate revenues through advertising inside and on the cab, by attracting more drivers, vehicle fleet owners and license plate holders by providing them incentives and by creating strong differentiating points by investing in technology and marketing activities.
Situational Analysis

Toronto’s Cab Industry has a supply overhang; also, there is not much differentiation between the 35 brokerages operating in Toronto in terms of the service provided hence cab service is highly commoditized. Toronto is a phone order market where speed of response is the index of customer service. Beck Taxi is the market leader, managing a number of plates and providing radio despatch service to vehicles. Its objective is to maximise its revenue and market share.

Beck Taxi has not increased its radio fees since 1989 hence there is huge potential to increase its revenue by increasing the radio fee or implementing two part tariff where the driver is charged a fixed fee and a usage fee based on the number of radio despatches. But any increase in radio service pricing policy would lead

Increase in market share can be best accomplished by accumulating a larger fleet of cars, by attracting and retaining more drivers thereby building a pool of core drivers and by attracting plate holders. These can be accomplished by providing appropriate incentives. 2. Problem:
Beck Taxi is already a market leader in the Cab Industry and it wants to