Taxi Drivers Hit On Strike Business Essay

City Taxi was set up in 1982. The cooperative is monitored by three - users plank of directors, elected by general assembly and it is led by the chairman. The actions are controlled by three member supervisory mother board, which is also elected by the overall Assembly. As a result of continuous development the business now has 825 sub contractors and the cooperative are usually more than 400. City Taxi cab was the first company to add vehicle services in UAE.

Taxi individuals at City Taxi's are self-employed business providers who drive travellers from spot to place for fees. 30% of each day collection is for the taxi individuals & 70% is made for the taxi company. They are not immediate employees instead they pay City Taxi cab fees to cover services such as dispatch & sometimes rental fee for car. Working separately means taxi motorists get around from the business as they put in. They can work as many hours they need but must cover their own operating cost. Due to its effective legislation and sufficient staff, City Taxi arrives at the relevant address fast & accurately. When buying job, a person looks for long term career development, positive environment & enhances professional experience with a good salary package deal. City Taxi does indeed provide all this with their employees.

New taxi drivers are accepted based on a waiting list system. In each case, the company selects the drivers who have employed by a Taxi cab Company for at least 2 yrs, posses at least basic level foreign language skills and have successfully exceeded an exam in city orientation. An additional requirement is the fact their history and personal data should be provided for confirmation.

In the next pages, we will be bringing out City Taxi's new guidelines and how it's been creating problem to the Taxi cab drivers as well as examination advantage & disadvantage of this plan to the Taxi cab Company as well as the Taxi cab drivers. At the ultimate stage of the statement we will be providing some suggestions by means of plans that may be beneficial and would please everyone associated with the company.


In 2010 Fuel prices went high in United Arab Emirates. This affected normal residents as well as much organisations in UAE. This fuel costs affected Taxi companies & Taxi individuals who earn their living through this medium. City Taxi cab as well as the other companies were unable to cope with the recent hike in fuel costs. City Taxi appoints individuals for providing car services. The Taxi drivers receive a daily focus on & out of the daily collection 30% is the payment for the Taxi cab drivers. The fuel for the services as well as vehicles & its maintenance is provided by the Taxi Company. The upsurge in fuel prices in UAE imbalanced the complete system of Taxi cab companies. City Taxi cab and also other Taxi companies wanted Sharjah Transport Company to increase the Taxi cab fares as the Taxi cab companies are suffering loses & cannot meet their needs [ ].

To neutralize this problem the Sharjah Transport Company increased the Taxi fares. Following the upsurge in fare Individuals were disappointed as the Taxi cab fare was increased to Dhs. 1 for each 650 meters & the least fare was Dhs. 10 [ ]. They also announced that additional new services will be introduced for better service & good plans will also be introduced which can only help individuals as well as motorists. The hike discouraged people further from using taxi for short distances as they have to pay a minimum of Dhs. 10 for the trip. The residents indicated discontent within the increase in lowest taxi cab fare as it increased the overall costs of common general public per month. This encouraged many of them to use public carry which adversely damaged the taxi cab company as they began losing potential passengers. The potential travellers preferred other means of cheaper travel system. The Taxi's have to constantly move to get people from different areas but due to the hike in fares people aren't interesting in using taxi. This leads to decrease in range of potential travellers. This started impacting on Taxi cab Company as well as the individuals. To get people motorists need to keep on moving which again resulted in wastage of petrol. Taxi's moving around the cities without individuals again afflicted the Taxi Company. These also damaged the taxi individuals as they could not meet their daily goals & this resulted in low wages. So some taxi drivers started switching off meters & started out providing taxi services for low fares. This allowed revenue for taxi individuals but heavy lose for taxi companies.

The major reason to improve the fare was to compensate for the company's lose, scheduled to increase in gasoline price but this adversely afflicted the taxi company as well the taxi individuals. Later City Taxi Company with the agreement of Sharjah Carry Corporation announced a fresh policy that they will deduct 0. 52 fils against every kilometer without people apart from their daily Focuses on. The Taxi individuals were unhappy with this policy & many of the Taxi drivers preferred to leave the business & many went on strike. For this reason new plan a driver who was simply earning the average regular salary of Dhs. 2700 finished up getting Dhs. 1000 which is not enough to survive in UAE market where the expense of living is high.

Taxi drivers spend all time behind the wheel plus they have to cope with poor weather & bad driving conditions. They also have to deal with difficult passengers. The situation of Taxi individuals are really pathetic as they have to work for extended hours to achieve their targets, they don't get breaks on general public holiday seasons like other employees, despite long hours of work the salary are low & the price tag on living is high.

Mrs. Ashraf is one of the Professionals that just work at City Taxi cab. He says that because of the implementation of new plan many of the Taxi drivers have resigned & many of them are on reach. Taxi drivers from the Taxi Company are depressed & the environment has become flat & demotivating. He also said that it will require lots of time for all the motorists to get use to this new insurance plan as their working hours have increased but these extended hours are not aiding those to earn a proper income.


To analyze this issue, we have to examine the new insurance plan applied by City Taxi. We have to study advantages & disadvantages of this insurance policy and need to help expand evaluate whether this insurance policy will succeed & will it achieve the focuses on place. A comparative research needs to be done to understand the problems & issues encountered by the Taxi Motorists as this policy influences them the most.

The new coverage presented will have its effects. Let's evaluate its advantages & cons and the most important one's are as follows:


Improved quality of service:

As earlier mention Taxi companies have already said that the purchase price hike in fare was to provide upgraded quality of services for the individuals. To supply good service & they have got presented some special services as well. These services are as follows

The taxis can be booked anytime of your day or nights. This will help the individuals to avoid waiting for the Taxi's.

New Taxis will be released to meet the demands at peak time.

For disabled travellers special service will be provided. Companies will be producing modified vehicle's fitted with ramps & high roof, allowing wheelchairs to be locked. This can make life much advantageous for disabled individuals.

Stress free environment & safe traveling will be assured by the business.

Prompt training sessions will be provided that will create a fairly easy communication environment for the individuals.

Taxi will rest assured with a clean environment & will be powered by skilled professionals.

As the business is planning is provide better service this allows them to wthhold the potential travellers.

Better Insurance system:

Depending after the policy the benefits will vary:

Protection resistant to the liabilities: This coverage is designed to offer vehicle operators and owners safeguard against liabilities resulting from accidents

Protection against accidental loses: This policy defends against incidental losses resulting from situations such as fraud of vehicle or fire damage etc.

Comprehensive security: This insurance policy protects against damages caused by Vandalism & environmental factors.

Policy for the Taxi cab motorists: This plan will help these to cover physical accident or even lack of life.

This insurance policy will help passengers as well as Taxi cab drivers.

Wastage of fuel can be averted:

As the taxi cab drivers need to pay additional amount per kilometer without individuals they would try their level better to stop jogging the taxi with no passengers that will result in keeping fuel.

Profit for Taxi cab Company:

The new insurance policy will benefit the company more as though the individuals are moving around without passengers the business will benefit anticipated to 0. 52 fils deduction per kilometer. In case the drivers have got potential passengers it will still benefit as the minimum fare has modified & 70% of the daily collection is good for the business.


No customers:

Due to recession in UAE cost of living has increased but people in UAE didn't get additional salary benefits. To survive here they try their level best to cut short their additional costs. The increase in fare cost & minimum amount charges definitely have encouraged them & this will certainly reduce the number of potential passengers. They'll prefer less comfortable travelling modes like buses & metros as the fare on their behalf is a lot cheaper than the Taxi systems.

De - determination:

Change in cost of taxi cab fares & additional deduction per kilometer might really demotivate the drivers. The drivers have to help extended hours to meet their daily focuses on with low income level. This can definitely de - encourage the drivers to work truthfully.

Motivate to select for another job:

As this new coverage affects Taxi motorists the most they might like looking for other job options that can offer them better basic incomes. They'll definitely consider jobs like classes bus individuals, private drivers at home or drivers at companies that will provide a much better salary program & increased living.

Unsafe Driving:

To reduce the range of working hours or even to meet their daily targets the taxi drivers may maneuver around cities at high speed. This contributes to unsafe travelling & more changes of damages. This affects the travellers as they will be unsatisfied with the service as you will see a risk in using Taxi's.

Drivers may cheat:

The taxi motorists may cheat the Taxi cab Company by providing share taxi cab system. They could pick 2 passengers at onetime & provide them reduction in meter fare. This can benefit Taxi motorists & passengers but not the company. They may not use meters (pull the plug on meters) & will give passengers ride & will charge the passengers significantly less than the actual fare that will cost the traveler less than the real fares. Definitely the travellers will agree to this situation. The drivers risk turning on the meters in the beginning of the trip & then cover it sooner or later of the trip & may pretend to accidently shut the meter in a way that they can constitute their own fares to the people.

Poor service:

Taxi drivers won't prefer passengers who wish to travel long distance. If they select for such passengers they will have to visit for long hours. If indeed they choose passengers who want to travel brief distance this will profit them as the lowest demand is Dh. 10. This will be more beneficial to meet their daily Goals. This will lead to poor service as the passengers must wait extended hours to obtain a taxi.

By carefully analyzing this plan we come to a summary that it's got more limitations & this impacts the taxi drivers than the company. We have to analyze this problem further besides depending simply on advantages & cons. We need to analyze the reactions of Taxi Company & Taxi drivers to the policy.

The Taxi cab Company will be happy with the coverage as this will enhance the company's image of providing better quality services & at the same time they get the required benefits however the drivers will not be pleased with this new insurance policy as it affects their working time & their regular monthly income. The Taxi cab Company will welcome this policy & on the other hands customers & drivers may feel cheated this will demotivate them.

In realization this policy has proved to achieve the targets of the Taxi cab Company but not to the Taxi cab individuals & their family as this coverage is not providing the drivers what they are worthy of though the company has offered better insurance system this can help them to improve their monthly incomes. Therefore we come to a bottom line that the plan has good aspects but needs to be slightly improvised to get over the negative facet of the coverage.


Implementing this insurance policy was discouraging the Taxi drivers to are drivers for his or her living. This can result in advanced of employee turnover as they are not determined to work in the corporation. The Taxi cab companies function due to the Taxi drivers & if the drivers are not thinking about retaining this as their job then it would be problematic for the Taxi Company to perform their business.

To avoid this example we came up with some solutions & again each solution will be analyzed predicated on advantages & down sides for the Taxi cab individuals as well as the Taxi cab Company. Each Plan must be analyzed properly & the impact of every plan should be studied.



According to the Plan the taxi drivers will be given 70% & the Taxi cab Company will be given 30% of the daily collection. The Taxi fare can also be reduced to Dhs. 8. However the deduction of 0. 52 fils against every kilometer without passengers will be valid but gasoline for the Taxi cab should be added by the Taxi drivers itself and the plans should be provided by the Taxi cab Company. This insurance plan should definitely sort-out the problems that Taxi motorists faced. The taxi drivers pay for their visas & certain rental fees to the company. This plan provides good income options for the drivers which is often used for his or her expenses. But this Plan may not meet the Taxi cab Company as they might be getting only 30% of the daily collection which wouldn't normally be enough because of their expenses to perform the company. THE BUSINESS provides the taxi cab individuals with the vehicles so they have to provide the passengers & Taxi individuals with the insurance coverage. As the vehicles are constantly being utilized they'll require maintenance & repair which is usually to be provided by the Taxi cab Company. The 30% collection will not serve the goal of the Taxi cab Company.

This Plan allows the Taxi motorists to overcome their issues. The reduction in taxi fare will encourage people to use Taxi.

The predicted outcome of the implementation this new plan is as follows.


Taxi Company:

Taxi Company won't have to cover the Gas as the gas will be added by the Taxi drivers. The fuel charges keep on changing but these changes won't affect the Taxi Company.

Taxi Drivers

Taxi Individuals will be getting 70% of these daily collection gives a good income option for them.

Taxi motorists will be getting insurance policy which will be an advantage for the coffee lover incase of mishaps or medical issues etc.

Taxi drivers is only going to require less volume of hours to accomplish their daily goals.

Advantages for Taxi Company & Taxi cab driver

Taxi Companies as well Taxi cab motorists will gain income as the Taxi drivers will have potential individuals.

Fare reduction will encourage visitors to use comfortable modes of travelling like Taxi's rather than using cheaper transport systems.


Taxi Company's:

The company will only be getting 30% of the daily collection which can make it difficult to control their expenses.

The company will also need to provide the Taxi cab drivers & Individuals with insurance which will be another expenditure for the business.

Taxi Drivers

Taxi drivers might not exactly enjoy a the 0. 52 fils deduction as they have to keep on moving to get individuals.

They may also be not happy as they have to pay for the fuel that can be expensive as the gasoline charges keeps on increasing.

Disadvantages for Taxi cab Company as well as Taxi cab drivers:

Dhs. 8 as minimum amount fare might not be acceptable to many people with low income.

As there are many other modes of travel available for long & short distance cheaper than Taxi cab travellers will be deciding on such settings of travel.


According to this Plan the taxi cab drivers will be given 40% & the Taxi Company will get 60% of the daily collection. The Taxi fare can even be reduced to Dhs. 6. The deduction of 0. 52 fils against every kilometer without passengers will be valid. The fuel will be provided by the taxi cab company however the expenditures for the visa & other newspaper fees will be shared by the Taxi company & taxi drivers. The company will also have to provide some plans to the individuals. This plan can increase the economical conditions of both Taxi Company as well as Taxi cab drivers. You will discover many benefits for the Taxi cab drivers according to the policy as they will get 45% of daily collection, will get insurance policies, the business may also be sharing the cost of visa, 0. 52 fils deduction system is not more valid etc. This will help the taxi drivers to improve their living situation.

The taxi cab company might not exactly be happy with this coverage gives them only 60% of the daily collection which is significantly less than the current ratio. But with this coverage the company can deal with their expenditures.

Before the execution of this Policy both sides need to be analyzed. We have to analyse the purpose & benefit of this coverage. This predicted result of implementation of the plan:


Taxi Company:

The company will be getting 60% of the daily collection as well as the total amount received by the deduction of 0. 52 fils per kilometer.

Taxi motorists:

The Taxi individuals will be getting 40% of the daily collection which can only help those to meet their expenditures.

Another benefit is the fact that the business will be showing the visa cost with the taxi drivers.

Policies can help drivers in case of incidents & other issues.

Fuel cost will be provided by the taxi company.

Advantages for Taxi cab Company & Taxi driver

As the least fee is reduced people may prefer using comfortable transport service so this definitely will help company & drivers to earn earnings.


Taxi Company

Taxi Company will have to purchase the fuel charge that helps to keep on changing.

They will have to discuss the visa cost of the taxi drivers that can be quite expensive for the coffee lover.

The daily collection ratio according to the policy is less which can affect the company's earnings.

Taxi drivers

Drivers might not exactly be satisfied by the 0. 52 fils deduction system.

Disadvantages for Taxi cab Company as well as Taxi drivers:

Some class of People will still feel that the minimum fee presented is high & may like cheaper settings.


In Plan C we tackle the situation from different position. The current plan should be revoked. Moreover a few small things can be altered. Let the minimum amount demand for fare be set to the previous charge. Allow 0. 52 fils be still imposed. The company can boost the payment of the Taxi motorists from 30% to 35%. This can improve the financial condition of the Taxi Company as well as the taxi motorists. More potential traveler will be choosing taxi cab as a medium for visiting.

The predicted final result of the implementation of this plan:


Taxi Company:

Taxi Company will be satisfied as they'll earn revenue as taxi motorists could meet their daily focuses on due to decrease in fare.

If the Taxi is jogging without passengers it'll still return the Taxi cab Company anticipated to 0. 52 fils lowering system.

Taxi individuals will consider not to waste fuel (won't travel without people) as it'll lead to lowering from their pocket.

Very less likelihood of individuals to cheat

Taxi drivers:

Taxi drivers will be satisfied as they have prospects.

Taxi drivers can certainly find passengers as they'll be moving.

Taxi individuals will be determined because they are provided with better economical conditions.


Taxi Company:

Taxi Company might not be satisfied as they have to raise the taxi drivers Pay as well as decrease the minimum Taxi Fare.

Taxi Drivers:

Taxi drivers may well not be happy with 0. 52 fils deduction.


If I got in times that I acquired the ultimate vitality & control over the situation then I would have revised the implementation of deduction of 0. 52 fils. I need to analyse the key intension of the execution of this coverage. Have to understand the need to put into action this coverage. If this plan is not created then is the Taxi company enduring loses. Will be the Taxi drivers attempting for living due to this policy?

After analyzing the entire solutions provided, the best option is to choose for Plan B or Plan C as it'll decrease the issues of individuals as well as the Taxi cab Companies. THIS COURSE OF ACTION can achieve the goals intended without demotivating the workforce.

. .

Also We Can Offer!

Other services that we offer

If you don’t see the necessary subject, paper type, or topic in our list of available services and examples, don’t worry! We have a number of other academic disciplines to suit the needs of anyone who visits this website looking for help.

How to ...

We made your life easier with putting together a big number of articles and guidelines on how to plan and write different types of assignments (Essay, Research Paper, Dissertation etc)