The Advent of the E-Hailing Taxi System and its Implication to Pricing and Accessibility: The Case of Dar Es Salaam

Abstract

This study aimed at investigating the advent of the e-hailing taxi system and its implication on pricing and accessibility. The study used a qualitative research method and employed a case study because of its flexibility in data collection and it does not demand comparison. The study was conducted from the selected representative sample of e-hailing taxi users. The study was conducted in Dar es Salaam city. The study uses purposive sampling, semi-structured questionnaires were used to collect data. These data were analysed using the Statistical Package for Social Sciences (SPSS) version 25. Alley (2016) in his study of the Impacts of Uber Technologies in the New York City Transportation Industry stated that Uber’s arrival has helped to increase access to affordable transportation options for people living a considerable distance from public transportation options, as Harding, Kandlikar and Gulati (2016) indicated that taxi app would improve private car use and the pricing is very competitive than a traditional taxi on the same journey. In this study it was found that the e-hailing taxi service was affordable compared to the traditional taxi service, the e-hailing taxi pricing mechanism, the ability of the application to show the price estimation before to call the taxi, the payment method, the waiting charge is better compared to traditional taxi services. Based on the previous study by Ngo (2015), Uber provides better services than taxi services with a faster time, reduced cost of money, cost of waiting, it is convenient and they are more concerned with handicapped passengers. Uber service is always on demand for its availability and accessibility because technological advancement makes it possible. The findings indicate that the e-hailing taxi system is constrained with failure to show the actual price during the journey, the price surge during peak hours. Also, the finding indicates the constraint of unequal affordability of the e-hailing taxi services for people with low income that cannot afford a smartphone, not educated to use the application. It was suggested from this study that e-hailing taxi services need to be improved and enhanced to include features like showing actual price during trips to avoid high actual price change from initial price, to introduce the optimization mechanism of price calculation during traffic. Also, the e-hailing taxi providers suggested introducing the ride-sharing service, to improve customer support, and to expand their services countrywide.