International Journal of Management and Commerce Innovations ISSN 2348-7585 (Online) Vol. 7, Issue 2, pp: (299-303), Month: October 2019 - March 2020, Available at: www.researchpublish.com
A STUDY ON IMPACT OF TRANSPORTATION NETWORK COMPANIES ON BUYING BEHAVIOR OF MILLENIALS TOWARDS AUTOMOBILE SECTOR 1
Philip Sam Tharakan, 2Ardra C Michael
1
Asst. Professor, Rajagiri College of Management and Applied Sciences, Rajagiri Valley, Ernakulam,Kerala
2
Asst. Professor Rajagiri College of Management and Applied Sciences, Rajagiri Valley, Ernakulam,Kerala
Abstract: The Indian automotive industry is going through one of its worst slowdowns of the last two decades with inventory pile up, job losses and companies failing to generate interest amongst buyers despite offering discounts and updating their current offerings with updates. Recently, Finance Minister Nirmala Sitharaman on the topic of the slowdown in the industry mentioned that there has been a change in the mindset of people as millennials don’t’ want to commit towards the EMI of an automobile and instead prefer using cab services like Ola or Uber. The study aims to analyses whether the rise on TNCs has influenced the millennials residing in Ernakulam to prefer online cabs rather than owning a private vehicle. The paper also discusses the insight of the consumers about transportation network companies. An attempt has been made to look into the fact that to what extent the young force depends upon the online cab services like Uber and Ola and whether such dependence has caused a downfall in the automobile sector in Kochi. Keywords: Indian automotive industry, worst slowdowns, transportation network companies.
1. INTRODUCTION A transportation network company (TNC), sometimes known as a mobility service provider (MSP) is a company that connects passengers with vehicles, via websites and mobile apps. TNCs for automobiles are commonly referred to as ridehailing services. The Virginia Department of Motor Vehicles defines a TNC as a company that "provides prearranged rides for compensation using a digital platform that connects passengers with drivers using a personal vehicle. TNCs allow prospective passengers to download an application to their smartphone, from which they can then view and select from nearby available drivers and request the ride or their choice. Once a passenger virtually ‘hails’ a ride, their GPS location is sent to the driver, who can then easily proceed to pick their new customer. The smartphone apps also allow passengers to track the location of their rides, manages payments, and invites and stores reviews of both drivers and customers. There are several TNCs currently operating in India. They vary in price, style of vehicle, and the amenities offered. One of the most ubiquitous TNCs is Uber and ola , that offers a variety of ride options to the customers. In recent years, TNCs have exploded in popularity, starting first in urban areas where residents, visitors, and tourists view them as an attractive alternative to traditional taxis and public transportation, either of which may be less reliable, less efficient, less private, or less fun. STATEMENT OF THE PROBLEM Finance Minister Nirmala Sitharaman kicked up a storm with her statement that the millennial mindset of using services such as Uber and Ola instead of purchasing vehicles had contributed to the auto sector slowdown. The lack of adequate infrastructure services in crowded cities has led to heavy traffic congestion, a lack of parking slot availability, poor quality
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