The Taxi Wars and KITT Pvt. Ltd.

By 2016, the Indian taxi market was beginning to move from the unorganized sector to the organized sector, as evidenced by the emergence of radio cab services (cab operators that hired salaried drivers and used call centres for bookings) and cab aggregators (e.g., Uber and Ola Cabs). Initially, the market had only a few players, but the competition turned fierce after the entry of Ola Cabs and Uber led to major disruptions. None of the aggregators had yet achieved a positive bottom line, but industry reports and a speculated compound annual growth rate of 25–30 per cent suggested a bright future for the industry, provided the stakeholders could strategically tap into the opportunities. <br><br>A small taxi firm, Kanika International Tour and Travel Pvt. Ltd. (KITT), needed to come to terms with its falling market share, difficulties in retaining drivers, and decreasing profitability. In light of the intensifying competition, should KITT and other independent players hold on to their business, or should they join the aggregators?

This case can be used by business students or working managers in courses at the undergraduate and graduate levels on strategic management, innovation management, new business model management, and management in emerging markets. After completion of the case, students will be able to understand<br><ul><li>the theory and importance of two-sided or multi-sided markets in business model innovations;</li><li>the dynamics of stakeholder management in two-sided or multi-sided markets;</li><li>the impact of government regulations on cab aggregators;</li><li>platform strategies at different stages of customer life; and</li><li>the development of a strategic business model for long-term survival in a multi-platform environment.</li></ul>

• taxi cab aggregator, platform, taxi cab operators, two-sided market, game theory