Franklin Pierce University Uber-like Taxi Service

Rebecca Whalen, Julia Barsalou, Hamish Cadigan, Adam Ebodi, Cory Cataldo, Erin Smith

Introduction

• Franklin Pierce University is a small, private, liberal arts university founded in 1962, and is located in Rindge, New Hampshire.

• There are roughly 1,501 undergraduate students enrolled in the university and the average class size is 17 students.

Definitions

• Uber: Uber is a smartphone based app that connects drivers that are partnered with Uber with riders in cities in which Uber operates. When a nearby driver accepts the request of the rider, the app displays an estimated time of arrival at the pickup location. When you arrive at your destination, a fare is charged to the payment method connected to your Uber account.

Purpose of the Project

• The purpose of this study is to determine if the results could be used to implement an on campus taxi service replicating Uber.

Problem Statement

• Research is necessary to determine if a student taxi service replicating Uber would be profitable and beneficial to Franklin Pierce students.

Research Objectives

• Review the literature related to Uber and taxi services.

• Determine if students would use this service.

• Determine for what reason student’s would use this service.

• Determine what online taxi type vendor’s students prefer.

• Determine distance preferences.

• Determine if group ride’s are beneficial.

• Determine if Franklin Pierce driver’s would prefer to pick up FPU students.

• Determine what hours of operation are most popular.

• Determine the demographic profiles of students willing to use the service.

Literature Review

• Safety1

• Takes less than 4 minutes to sign up to be an Uber driver.

• To drive a yellow taxi cab in New Hampshire, a completed application given by the Office of the City Clerk is needed.

• Uber is working on creating a profile on the app to tell if a passenger is in danger.

Literature Review (cont.)

• On college campuses: University of Tennessee2

• Implemented a prepaid taxi card for students.

• Used to promote safety

• Non-reloadable card

• If used for anything else, it will be declined.

Literature Review (cont.)

• Study done by the National Highway Traffic-Safety Administration3

• Motor vehicle crashes are the leading cause of death for young adults aged 16-24

• Average age of 20 years old: drove above the legal limit of .08

• Drunk Driving: Study done by Alcohol and Drug Abuse Daily3

• At age 19, 17% of students drove while intoxicated.• 42% drove after drinking any alcohol.

• 38% rode with an intoxicated driver.

Methodology• Problem Identification

• The need for research concerning the use of an Uber by Franklin Pierce University students arose from the lack of walking distance destinations near campus.

• Development of Survey• Identified the purpose and objectives for the research.

• Survey targeted both students with and without a car on campus.

• Professor Little reviewed and approved on October 10th, 2016.

• Questionnaire sent to Professor Welsh on October 31st, 2016.

• Questionnaire approved by Professor Welsh on November 6th, 2016.

• Questions utilized face and content validity through expert review.

Methodology (cont.)

• Definition of Population• Entire student body of Franklin Pierce University: 1,501 students at the time of data

collection.

• Sample Size• 160 Franklin Pierce University students.

• 40 from each class.

• 20 males and 20 females from each class.

Methodology (cont.)

• Data Collection Method

• Used a non-probability convenience sampling method.

• Data collection started on November 7th, 2016.

• Handed out surveys in cafeteria, dorm rooms, library, classrooms and sports team study halls.

Methodology (cont.)• Assumptions

• Assumed all questions were answered:• Honestly

• Accurately

• In a timely manner

• Limitations• Small sample size

• Time constraints

• Better probability sampling

64%

36%

Do you have a car on campus?

Yes

No

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

NOT LIKELY LESS LIKELY NEUTRAL LIKELY VERY LIKELY

21.88%

17.50%

27.50%

18.75%

14.38%

How likely are you to use a taxi service if it was available on campus?

7%

34%

33%

26%

What is the most important reason you would use this service?

Going Home

Grocery Shopping/ Walmart

Keene/ Boarding Cities

Other:

89%

4%7%

What type of taxi service would you prefer on campus?

APP based

Non APP based

Not interested in a taxi service

36%

45%

19%

If you were to become a student driver, how far would you be willing to drive?

0-10 Miles

10-20 Miles

25+ Miles

94%

6%

Would you be willing to participate in group rides?

Yes

No

4%4%

5%

15%

28%

27%

17%

What days of the week would you most likely use this service?

Monday

Tuesday

Wednesday

Thursday

Friday

Saturday

Sunday

Freshman32%

Sophmore16%

Junior23%

Senior29%

What's your class standing?

Freshman

Sophmore

Junior

Senior

44%

52%

4%

What is your gender?

Female

Male

Don't Identitfy

0

10

20

30

40

50

60

70

80

Female Male

Cross-tab: Gender/Would you participate in group rides?

Yes No

0

5

10

15

20

25

30

35

40

Freshman Sophmoore Junior Senior

Cross-tab: Class standing/do you have a car on campus?

Yes No

Discussion

• 36% of students do not own a vehicle on campus.• One out of every three people on this campus do not have a car.

• Open market for students to use the service.

• 28% neutral.• Data supported the claim that there is minimal knowledge on how to use an app-based taxi

service.

• University of Tennessee demand started low but increased with time, supporting the data that people will use the service.

Discussion (cont.)

• Harvard Technology emphasized that the simplicity of registering for Uber should not under estimate the safety of the company.

• Both females and males would be comfortable with group rides.

• Our data reflected what Harvard Technology stated.

• 67/70 females

• 79/84 males

Discussion (cont.)

• NHTSA stated that over half of students have driven over the legal limit of .08.

• Data corresponded with our literature, which means Uber on campus would greatly decrease drunk driving.

• Friday and Saturdays are most beneficial for our service.

Discussion (cont.)

• Data supported the NHTSA stating that Friday and Saturdays are the best days to run the service.

• 44% stated between the hours of 6pm-12am.

• Data also corresponded with our literature that students would greatly benefit from late night, weekend rides.

Conclusion

• Research Objective #1: Review the literature related to Uber and taxi services.

• Completed in our literary review.

• Compared the results to the research in order to determine if a taxi services like Uber is beneficial to our campus.

Conclusion (cont.)

• Research Objective #2: Determine if students would use the service.

• Over 27% of students were neutral about using a taxi service on campus.

Conclusion (cont.)

• Research Objective #3: Determine for what reason students would use the service.

• Majority of students would use this service to go grocery shopping or to Walmart.

• 25 respondents checked off the ‘other’ box and wrote in “when intoxicated”.

Conclusion (cont.)

• Research Objective #4: Determine what online taxi type vendor’s students prefer.

• 89% of respondents would prefer an app-based taxi service.

• Concluded that Uber would be beneficial, since it is app-based.

Conclusion (cont.)

• Research Objective #5: Determine distance preferences.

• 45% of respondents said they would be willing to drive 10-20 miles.

• 36% 0-10 miles.

Conclusion (cont.)

• Research Objective #6: Determine if group rides would be beneficial.

• 94% of respondents said yes.

• Cross-tab concluded that both genders would be equally willing to participate.

Conclusion (cont.)

• Research Objective #7: Determine if Franklin Pierce student drivers would prefer to only pick up Franklin Pierce students.

• Respondents are willing to pick up only Franklin Pierce students.

• Majority are indifferent about picking up people in bordering towns.

Conclusion (cont.)

• Research Objective #8: Determine hours of operation.

• 44% said 6pm-12am.

• 28% said Friday nights.

• 27% said Saturday nights.

Conclusion (cont.)

• Research Objective #9: Determine demographic profile of students that are willing to use the service.• Asked both class standing and gender.

• 52% males, 44% females

• 32% freshman

• 16% sophomores

• 23% juniors

• 29% seniors

Recommendations

• Having a car on campus does not influence the use for the service.

• Market to both students with and without vehicles on campus.

• Uber could double their customer base.

• Implement group rides.

• 61% of respondents were indifferent about picking up non-FPU students.

Recommendations (cont.)

• Implement distance limits.• Demand for driving 25+ miles was extremely low.

• Limit the day of operation.• Fridays and Saturdays.

• Further research to find out what students are really using the service for.• This will help to gear marketing efforts.

• Students may not have felt comfortable revealing personal information.

References1. Uber Driving and Customer safety . (2016, January). Retrieved from Uber: https://www.uber.com

2. Hernandez, W. (2009). Startup Promotes Campus Safety With Prepaid Taxi Card. ATM and Debit News, 7.

3. Beck, K. H., Kasperski, S. J., Caldeira, K. M., Vincent, K. B., O’Grady, K. E., & Arria, A. M. (2010). Trends in alcohol-related traffic risk behaviors among college students. Alcoholism: Clinical and Experimental Research. doi: 10.1111/j.1530- 0277.2010.01232.x

4. Charisse, J., @charissejones, & USA, T. (2016). Uber, Lyft more popular with biz travelers. USA Today.

5. Edelman, B. G., & Geradin, D. (2016).Efficiencies and regulatory shortcut. How should we regulate companies like Air BnB and Uber. .Stanford Technology Law Review, 19(2), 293-328. Safer, J. (2015). Taxicab Regulations. rookline: Town of Brookline Transportation Board.

6. McGarvey, R. (2015). The Downside of Driving for Uber. Retrieved October 04, 2016, from https://www.thestreet.com/story/13295719/1/the-downside-of-driving-for-uber.html

7. Quick Facts - Franklin Pierce University. (n.d.). Retrieved October 04, 2016, from http://www.franklinpierce.edu/about/facts.htm

8. Rogers, B. (2015). The Social Costs of Uber. Chicago, Illinois, United States of America: The University of Chicago Law Review.

9. Taxi Licencse. (2016, 1 10). Retrieved 10 1, 2016, from The City of Manchester, NH Official Website: https://www.manchesternh.gov/Departments/City-Clerk/Licenses-and-Permits/Taxi-License

10. Uber Driver Pros & Cons. (n.d.). Retrieved October 04, 2016, from http://uberpeople.net/pages/prosandcons/

11. Usdan, S., Moore, C., & Schumacher, J. (2005). Drinking Locations Prior to Impared Driving Among College Students: Implications for Prevention. Journal of American College Health, 69.