City Taxi was established in 1982. The co-op is managed by three – members board of managers, elected by general assembly and is led by the president. The activities are controlled by three member supervisory board, which is besides elected by the general Assembly. As a consequence of uninterrupted development the company now has 825 bomber contractors and the co-op are more than 400. City Taxi was the first company to present vehicle services in UAE.

Cab drivers at City Taxi ‘s are independent concern operators who drive riders from topographic point to topographic point for fees. 30 % of per twenty-four hours aggregation is for the cab drivers & A ; 70 % is for the cab company. They are non direct employees alternatively they pay City Taxi fees to cover services such as despatch & A ; sometimes rental fee for auto. Working independently means cab drivers get every bit much as out of the concern as they put in. They can work every bit many hours they want but must cover their ain operating cost. Owing to its effectual ordinance and sufficient staff, City Taxi arrives at the relevant reference fast & A ; accurately. When looking for a occupation, a individual looks for long term calling development, positive environment & A ; enhances professional experience with a good salary bundle. City Taxi does supply all this to their employees.

New cab drivers are accepted on the footing of a waiting list system. In each instance, the company selects the drivers who have employed by a Taxi Company for at least two old ages, posses at least basic degree foreign linguistic communication accomplishments and have successfully passed an test in metropolis orientation. A farther demand is that their history and personal informations should be provided for confirmation.

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In the undermentioned pages, we will be presenting City Taxi ‘s new policies and how it has been making job to the Taxi drivers every bit good as analysis advantage & A ; disadvantage of this policy to the Taxi Company every bit good as the Taxi drivers. At the concluding phase of the study we will be supplying some suggestions in the signifier of programs that can be good and would delight everyone associating to the administration.


In 2010 Fuel monetary values went really high in United Arab Emirates. This affected normal occupants every bit good as many administrations in UAE. This fuel monetary values affected Taxi companies & A ; Taxi drivers who earn their life through this medium. City Taxi every bit good as the other companies were unable to get by with the recent hiking in fuel monetary values. City Taxi appoints drivers for supplying auto services. The Cab drivers are given a day-to-day mark & A ; out of this day-to-day aggregation 30 % is the committee for the Taxi drivers. The fuel for the services every bit good as autos & A ; its care is provided by the Taxi Company. The addition in fuel monetary values in UAE imbalanced the whole system of Taxi companies. City Taxi every bit good as other Taxi companies requested Sharjah Transport Corporation to increase the Taxi menus as the Cab companies are enduring loses & A ; could non run into their demands [[ 1 ]] .

To neutralize this issue the Sharjah Transport Corporation increased the Taxi menus. After the addition in fare Passengers were unhappy as the Taxi menu was increased to Dhs.1 for every 650 metres & A ; the lower limit menu was Dhs.10 [[ 2 ]] . They besides announced that extra new services will be introduced for better service & A ; good insurance policies will besides be introduced which will assist riders every bit good as drivers. The hiking discouraged people further from utilizing cab for short distances as they have to pay a lower limit of Dhs.10 for the trip. The occupants expressed discontent over the addition in minimal cab menu as it increased the overall outgo of common public per month. This encouraged many of them to utilize public conveyance which adversely affected the cab company as they started losing possible riders. The possible riders preferred other agencies of cheaper transit system. The Taxi ‘s have to invariably travel to acquire riders from different countries but due to the hiking in menus people are non interesting in utilizing cab. This leads to diminish in figure of possible riders. This started impacting Taxi Company every bit good as the drivers. To acquire riders drivers need to maintain on traveling which once more resulted in wastage of fuel. Taxi ‘s traveling around the metropoliss without riders once more affected the Taxi Company. These besides affected the cab drivers as they could non run into their day-to-day marks & A ; this resulted in low rewards. So some cab drivers started exchanging off metres & A ; started supplying cab services for low menus. This allowed net incomes for cab drivers but heavy lose for cab companies.

The chief ground to increase the menu was to counterbalance for the company ‘s lose, due to increase in fuel monetary value but this adversely affected the cab company every bit good the cab drivers. Later City Taxi Company with the permission of Sharjah Transport Corporation announced a new policy that they will subtract 0.52 fils against every kilometre without riders apart from their day-to-day Targets. The Cab drivers were unhappy with this policy & A ; many of the Taxi drivers preferred to go forth the company & A ; many went on work stoppage. Due to this new policy a driver who was gaining an mean monthly wage of Dhs.2700 ended up acquiring Dhs.1000 which is non adequate to last in UAE market where the cost of life is really high[ 3 ].

Cab drivers spend all clip behind the wheel and they have to get by with hapless conditions & A ; bad drive conditions. They besides have to cover with hard riders. The state of affairs of Taxi drivers are truly hapless as they have to work for long hours to accomplish their marks, they do n’t acquire interruptions on public vacations like other employees, inspite of long hours of work the rewards are low & A ; the cost of life is high.

Mrs. Ashraf is one of the Directors that work at City Taxi. He says that due to the execution of new policy many of the Taxi drivers have resigned & amp ; many of them are on work stoppage. Taxi drivers associated with the Taxi Company are down & A ; the environment has become dull & A ; demotivating. He besides said that it will take a batch of clip for all the drivers to acquire usage to this new policy as their working hours have increased but these long hours are non assisting them to gain a proper income.


To analyse this job, we need to analyze the new policy implemented by City Taxi. We need to analyze the advantages & A ; disadvantages of this policy and necessitate to foster analyze whether this policy will be effectual & A ; will it accomplish the marks set. A comparative survey demands to be done to understand the jobs & A ; issues faced by the Taxi Drivers as this policy affects them the most.

The new policy introduced will hold its ain effects. Let ‘s analyse its advantages & A ; disadvantages and the most of import 1 ‘s are as follows:


Improved quality of service:

As earlier reference Cab companies have already said that the monetary value hiking in menu was to supply improved quality of services for the riders. To supply good service & A ; they have introduced some particular services every bit good. These services are as follows

The taxis can be booked at any clip of the twenty-four hours or dark. This will assist the riders to avoid waiting for the Taxi ‘s.

New Taxis will be introduced to run into the demands at peak clip.

For handicapped riders particular service will be provided. Companies will be presenting modified vehicle ‘s fitted with inclines & A ; high ceiling, leting wheelchairs to be locked. This will do life much favorable for handicapped riders.

Stress free environment & A ; safe drive will be assured by the company.

Prompt preparation Sessionss will be provided that will make an easy communicating environment for the riders.

Cab will be assured with a clean environment & A ; will be driven by skilled professionals.

As the company is be aftering is provide better service this will let them to retain the possible riders.

Better Insurance system:

Depending upon the policy the benefits will differ:

Protection against the liabilities: This policy is designed to offer vehicle operators and proprietors protection against liabilities ensuing from accidents

Protection against inadvertent loses: This policy protects against incidental losingss ensuing from events such as larceny of vehicle or fire amendss etc.

Comprehensive protection: This policy protects against amendss ensuing from Vandalism & A ; environmental factors.

Policy for the Taxi drivers: This policy will assist them to cover physical hurt or even loss of life.

This insurance policy will assist riders every bit good as Taxi drivers.

Wastage of fuel can be avoided:

As the cab drivers have to pay extra sum per kilometre without riders they would seek their degree best to halt running the cab without the riders which will ensue in salvaging fuel.

Net income for Taxi Company:

The new policy will profit the company more as if the drivers are traveling about without riders the company will profit due to 0.52 fils tax write-off per kilometre. If the drivers have got possible riders it will still profit as the lower limit menu has changed & amp ; 70 % of the day-to-day aggregation is for the company.


No possible clients:

Due to recession in UAE cost of life has increased but people in UAE did non acquire extra salary benefits. To last here they are seeking their degree best to cut short their extra outgo. The addition in menu cost & A ; minimal charges decidedly have encouraged them & A ; this will cut down the figure of possible riders. They will prefer less comfy transit manners like coachs & A ; metros as the menu for them is much cheaper than the Taxi systems.

De – motive:

Change in cost of cab menus & A ; extra tax write-off per kilometre might truly demotivate the drivers. The drivers have to work for long hours to run into their day-to-day marks with low pay degree. This will decidedly de – actuate the drivers to work candidly.

Motivate to choose for another occupation:

As this new policy affects Taxi drivers the most they would prefer looking for other occupation options that can supply them better basic incomes. They will decidedly look out for occupations like schools coach drivers, private drivers at place or drivers at companies which will supply a better salary bundle & A ; improved life.

Insecure Drive:

To cut down the figure of working hours or to run into their day-to-day marks the cab drivers may travel around metropoliss at really high velocity. This leads to unsafe driving & A ; more alterations of accidents. This affects the riders as they will be unsatisfied with the service as there will be a hazard in utilizing Taxi ‘s.

Drivers may rip off:

The cab drivers may rip off the Taxi Company by supplying portion taxi system. They may pick 2 riders at one clip & A ; supply them decrease in metre menu. This will profit Taxi drivers & A ; riders but non the company. They may non utilize metres ( exchange off metres ) & A ; will give riders sit & A ; will bear down the riders less than the existent menu which will be the rider less than the existent menus. Decidedly the riders will hold to this state of affairs. The drivers may turn on the metres at the start of the trip & A ; so cover it at some point of the trip & A ; may feign to accidently close the metre such that they can do up their ain menus to the riders.

Poor service:

Cab drivers will non prefer riders who want to go long distance. If they opt for such riders they will hold to go for long hours. If they choose riders who want to go short distance this will profit them as the minimal charge is Dh.10. This will be more good to run into their day-to-day Targets. This will take to hapless service as the riders will hold to wait long hours to acquire a cab.

By carefully analysing this policy we come to a decision that it has got more restrictions & A ; this affects the cab drivers than the company. We need to analyse this job farther besides depending simply on advantages & A ; disadvantages. We need to analyse the reactions of Taxi Company & A ; Taxi drivers to this policy.

The Taxi Company will be pleased with the policy as this will heighten the company ‘s image of supplying better quality services & A ; at the same clip they get the needed benefits but the drivers will non be pleased with this new policy as it affects their working hours & A ; their monthly income. The Taxi Company will welcome this policy & A ; on the other manus clients & A ; drivers may experience cheated this will demotivate them.

In decision this policy has proved to accomplish the marks of the Taxi Company but non to the Taxi drivers & A ; their household as this policy is non supplying the drivers what they deserve though the company has offered better insurance system this will assist them to better their monthly incomes. Therefore we come to a decision that the policy has good facets but demands to be somewhat improvised to get the better of the negative facet of the policy.


Implementing this policy was detering the Taxi drivers to work as drivers for their life. This will ensue in high degree of employee turnover as they are non motivated to work in this company. The Cab companies function due to the Taxi drivers & A ; if the drivers are non interested in keeping this as their profession so it would be hard for the Taxi Company to run their concern.

To avoid this state of affairs we came up with some solutions & A ; once more each solution will be analyzed based on advantages & A ; disadvantages for the Taxi drivers every bit good as the Taxi Company. Each Plan needs to be analyzed decently & amp ; the impact of each program has to be studied.


Plan A:

Harmonizing to this Plan the cab drivers will be given 70 % & A ; the Taxi Company will be given 30 % of the day-to-day aggregation. The Taxi menu can besides be reduced to Dhs.8. But the tax write-off of 0.52 fils against every kilometre without riders will be valid but fuel for the Taxi should be added by the Taxi drivers itself and the insurance Policies should be provided by the Taxi Company. This policy should decidedly sort-out the issues that Taxi drivers faced. The cab drivers pay for their visas & A ; certain rental fees to the company. This program will convey good income options for the drivers which can be used for their disbursals. But this Plan may non fulfill the Taxi Company as they would be acquiring merely 30 % of the day-to-day aggregation which would non be plenty for their disbursals to run the company. The Company provides the cab drivers with the vehicles so they will hold to supply the riders & A ; Taxi drivers with the insurance policy. As the vehicles are invariably being used they will necessitate care & A ; fix which is to be provided by the Taxi Company. The 30 % aggregation will non function the intent of the Taxi Company.

This Plan will let the Taxi drivers to get the better of their issues. The decrease in cab menu will promote riders to utilize Taxi.

The predicted result of the execution this new policy is as follows.


Taxi Company:

Taxi Company will non hold to pay for the Fuel as the fuel will be added by the Taxi drivers. The fuel charges keep on altering but these alterations will non impact the Taxi Company.

Cab Drivers

Cab Drivers will be acquiring 70 % of their day-to-day aggregation which gives a good income option for them.

Cab drivers will be acquiring insurance policy which will be an advantage for them incase of accidents or medical issues etc.

Cab drivers will merely necessitate less figure of hours to accomplish their day-to-day marks.

Advantages for Taxi Company & A ; Taxi driver

Cab Companies every bit good Taxi drivers will derive net income as the Taxi drivers will hold possible riders.

Fare decrease will promote people to utilize comfy manners of transit like Taxi ‘s instead than utilizing cheaper transit systems.


Taxi Company ‘s:

The company will merely be acquiring 30 % of the day-to-day aggregation which will do it hard to pull off their disbursals.

The company will besides hold to supply the Taxi drivers & A ; Passengers with insurance that will be another disbursal for the company.

Cab Drivers

Cab drivers may non be happy with the 0.52 fils tax write-off as they have to maintain on traveling to acquire riders.

They may besides be non happy as they have to pay for the fuel which can be expensive as the fuel charges keeps on increasing.

Disadvantages for Taxi Company every bit good as Taxi drivers:

Dhs.8 as minimal menu may non be acceptable to many riders with low income.

As there are many other manners of transit available for long & A ; short distance cheaper than Taxi riders will be choosing for such manners of transit.

Plan B:

Harmonizing to this Plan the cab drivers will be given 40 % & A ; the Taxi Company will be given 60 % of the day-to-day aggregation. The Taxi menu can besides be reduced to Dhs.6. The tax write-off of 0.52 fils against every kilometre without riders will be valid. The fuel will be provided by the cab company but the disbursals for the visa & A ; other paper fees will be shared by the Taxi company & A ; cab drivers. The company will besides hold to supply some insurance policies to the drivers. This program can better the economic conditions of both Taxi Company every bit good as Taxi drivers. There are many benefits for the Taxi drivers harmonizing to this policy as they will acquire 45 % of day-to-day aggregation, will acquire insurance policies, the company will besides be sharing the cost of visa, 0.52 fils tax write-off system is non more valid etc. This will assist the cab drivers to better their life state of affairs.

The cab company may non be really happy with this policy which gives them merely 60 % of the day-to-day aggregation which is less than the current per centum. But with this policy the company can pull off their disbursals.

Before the execution of this Policy both sides need to be analyzed. We need to analyze the intent & A ; benefit of this policy. This predicted result of execution of this program:


Taxi Company:

The company will be acquiring 60 % of the day-to-day aggregation every bit good as the sum received by the tax write-off of 0.52 fils per kilometre.

Cab drivers:

The Taxi drivers will be having 40 % of their day-to-day aggregation which will assist them to run into their disbursals.

Another benefit is that the company will be sharing the visa cost with the cab drivers.

Policies will assist drivers in instance of accidents & A ; other issues.

Fuel cost will be provided by the cab company.

Advantages for Taxi Company & A ; Taxi driver

As the minimal charge is decreased people may prefer utilizing comfy conveyance service so this decidedly will assist company & A ; drivers to gain net income.


Taxi Company

Taxi Company will hold to pay for the fuel charge that keeps on altering.

They will hold to portion the visa cost of the cab drivers which can be rather expensive for them.

The day-to-day aggregation per centum harmonizing to this policy is less which can impact the company ‘s net income.

Cab drivers

Drivers may non be satisfied by the 0.52 fils tax write-off system.

Disadvantages for Taxi Company every bit good as Taxi drivers:

Some category of Passengers will still experience that the minimal charge introduced is high & As ; may prefer cheaper manners.

Plan C:

In Plan C we approach the job from different angle. The current policy should be revoked. In add-on to that a few minor things can be changed. Let the minimal charge for menu be set to the old charge. Let the 0.52 fils be still imposed. The company can raise the committee of the Taxi drivers from 30 % to 35 % . This will better the economic status of the Taxi Company every bit good as the cab drivers. More possible rider will be taking cab as a medium for going.

The predicted result of the execution of this policy:


Taxi Company:

Taxi Company will be satisfied as they will gain net income as cab drivers could run into their day-to-day marks due to decrease in menu.

If the Taxi is running without riders it will still gain the Taxi Company due to 0.52 fils decrease system.

Cab drivers will see non to blow fuel ( will non go without riders ) as it will take to decrease from their pocket.

Very less opportunities of drivers to rip off

Cab drivers:

Cab drivers will be satisfied as they will hold possible clients.

Cab drivers can easy happen riders as they will be traveling.

Cab drivers will be motivated as they are provided with better economic conditions.


Taxi Company:

Taxi Company may non be satisfied as they have to raise the cab drivers Pay every bit good as cut down the lower limit Taxi Fare.

Cab Drivers:

Cab drivers may non be satisfied with 0.52 fils tax write-off.

Personal Position:

If I was in a state of affairs that I had the ultimate power & A ; control over the state of affairs so I would hold revised the execution of tax write-off of 0.52 fils. I need to analyze the chief connotation of the execution of this policy. Necessitate to understand the necessity to implement this policy. If this policy is non introduced so is the Taxi company enduring loses. Are the Taxi drivers fighting for populating due to this policy?

After analysing the full solutions provided, the best option is to choose for Plan B or Plan C as it will cut down the issues of drivers every bit good as the Cab Companies. This Plan can accomplish the ends intended without demotivating the work force.

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