DM Caselet: Taxi Comfort and Safety in Yashmund

XAT 2016 · DM · Medium · Decision Making

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Passage / data set

The City of Yashmund is served by licensed taxis operating on officially sanctioned metered rates and driven by licensed drivers who do not own the taxis but pay a monthly rent to the taxi-owners. Shailesh Nair, the mayor of Yashmund, perceived that most of these taxis do not offer sufficient comfort and safety to passengers.

Question 1 of 2

The Mayor wants the owners and drivers to care about comfort.

Which of the following decisions, IF TAKEN, is MOST LIKELY to increase the comfort levels of passengers?

  1. A.

    The mayor issues a guideline that taxis will be randomly inspected by the police for the comfort level.

  2. B.

    The mayor ensures banks grant drivers loans to own cars. Owner driven cars generally offer greater comfort.

  3. C.

    The mayor introduces licensing of air-conditioned taxis which can charge increased rates to the rich customers.

  4. D.

    The mayor introduces a feedback system that records passenger satisfaction with comfort levels; this will affect renewal of annual taxi license

  5. E.

    The mayor permits doubling metered rates which will ensure enhanced income for owners to invest in greater comfort.

Question 2 of 2

The mayor wants to involve the car owners in finding a solution to the problem of comfort and safety. He is concerned that the customers may not be willing to pay more for safety.

Which of the options below is MOST LIKELY to convince the owners?

  1. A.

    The taxi owners who clear comfort-inspection can charge higher rentals from the drivers and drivers with impeccable safety record can charge the same from customers

  2. B.

    The taxis that clear comfort-inspection can charge 25% above the metered rates; studies have shown that customers are willing to pay around 18% extra for comfort.

  3. C.

    If a taxis owner has a consistent record of comfort and safety the government will subsidize a second loan.

  4. D.

    Taxis can charge 25% more if they clear comfort-inspection. However, owners of the taxis found compromising on safety will be jailed.

  5. E.

    Taxis that pass comfort-inspection test can charge 25% more. Should they violate any traffic rule this privilege would be withdrawn.

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