MalaysiaGIS.com

Source: New Straits Times

Charlie Chin, project manager of Cabcharge (M) Sdn Bhd, is confident that the recently-launched service, aimed to create a new breed of information technology (IT)-savvy taxi drivers, will succeed where other global positioning satellite (GPS)-based services have failed.

Myriad of Problems
Cabcharge, a taxi dispatch operator moving into central monitoring, had to swallow a bitter pill back in 1999, when it saw about 90 per cent of its RM1 million investment in GPS equipment wasted.

The GPS system, called Raywood Automatic GPS Taxi Dispatch System, was installed in about 100 taxis, but it only worked for about six months.

According to Chin, the downfall of the project, which utilised GPS to track the location of taxis, was due to undisplined drivers and lack of co-operation.

The company dealt with individual drivers instead of taxi companies, which made it difficult to sort out disciplinary problems such as unauthorised dismantling of equipment.

Chin adds that drivers had language proficiency and reading problems, and also they claimed they did not want to use the system as it was not safe to read and drive.

The failure of the project, coupled with the similar fate met by the GPS-equipped KLIA limousines may have put an end to any other efforts, but the parties involved in the Smart Taxipreneur project think they have figured out a way to make the project succeed.

Learning from mistakes
Smart Taxipreneur currently involves 100 taxis and the project can sustain up to 500 taxis.

The investment in each taxi is about RM12,500, and the return on investment (ROI) is estimated to be achieved over a year.

Chin says the investment in this project is less than their previous GPS system.

The project is championed by the Entrepreneur Development Ministry through a collaboration with the private sector, and the project is receiving a research and development (R&D) grant from the Science, Technology and Environment Ministry for research in multiple input.

The pilot project will run for a year, after which investors will take over the project. "We are smarter this time," says Chin wryly, "as we will not be dealing directly with individual drivers, but the taxi companies instead."

One of the taxi companies participating is Koperasi Enviro Bhd (KEB). The Smart Taxipreneur project is made more comprehensive as it is designed around smart taxi equipment, Smart Taxipreneur training and accreditation, and smart information services.

Each smart taxi has a GPS receiver and Web info kiosk linked to a smartcard terminal, and the drivers have to go through a training programme which teaches basic IT skills, effective communication skills, use of equipment and services, plus taxi business management.

Currently, drivers have a voice channel with the mobile display terminals (MDTs), which they can explore after going through the training and are more comfortable with the terminals.

The smart information services component includes a GPS despatch management system and an information management system with a help desk.

Another improvement in the system is that the software integration and customisation was undertaken by local company Tetra Communications, with GPS technology from Australia and the United States.

For the project to work, the taxi drivers have to see the benefits of participation, and there are some elaborate plans to ensure the drivers are rewarded for their efforts.

The pilot project will operate in the shopping and commercial hubs in Kuala Lumpur, and will have advertising avenues to generate extra income for the drivers. Promotional campaigns, one-to-one video advertising, sponsored channels, point-of-sales and interactive classifieds will all be featured in the Web info kiosk, which customers can access via a touch-screen panel.

Based on the advertising revenue collected, each driver stands to gain at least an additional RM100. The calculation is based on a token sum of RM5,000 from an individual advertiser, with space for 20 advertisements.

According to Chin, drivers’ attitude towards technology has changed and they are now comfortable with IT and excited about this project.

Feedback from tourists has been good as the info kiosk terminals are interactive, and display information of interest to them. Currently, a Kuala Lumpur city guide, Tourism Malaysia channel, Events 2004 and information on the Smart Taxipreneur project are available.

There is pride of ownership, Chin adds, as the drivers have even spent their own money buying additional hardware such as keyboards and mice.

Advertising
Cabcharge does not own any taxis, but has a call centre in Setapak which drivers can liaise with. Chin says Cabcharge is committed to the smart taxi model.

He adds the company wants to bring proven GPS technology to the project through its understanding of taxi requirements and the challenges involved.

The project hopes to pass about 70 per cent of the profits to the taxi companies to improve the quality of life of taxi drivers. It hopes to achieve this by showing advertisers how viable this mode of advertising is.

According to the project’s calculation, each smart taxipreneur will encounter about 30 passengers a day for an average 15 minutes. That time frame enables each of the 20 advertisements to appear three times. If a driver works eight to 12 hours, seven days a week, about 900 passengers can be served by each taxi a month. The 100 taxis thus service 90,000 passengers monthly, a number that is proving attractive to advertisers.

Smart Taxipreneur’s advertising avenues are already garnering interest among advertisers and the number is growing. It is a good sign as the project’s success and sustainability hinges on its ability to attract advertisers. The interactive component of these avenues make it attractive, Chin says.