CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
The advent of online taxi services has revolutionized the transportation industry globally, offering convenient, reliable, and cost-effective mobility solutions to consumers. In Nigeria, where urbanization and population growth have led to increased traffic congestion and challenges in public transportation, online taxi services have emerged as a promising alternative. This introduction aims to explore the landscape of online taxi services in Nigeria and assess the factors influencing customer satisfaction within this burgeoning sector. Oluwaseun, A., & Aluko, O. O. (2020).
The Nigerian market for online taxi services is characterized by the presence of both local startups and international players, such as Uber, Bolt (formerly Taxify), and Oride (operated by OPay). These platforms leverage mobile technology to connect passengers with drivers, offering a seamless booking experience and various vehicle options to cater to diverse needs. The convenience of hailing rides through smartphone applications has significantly transformed commuting habits in major cities like Lagos, Abuja, and Port Harcourt. Adigun, M. O., & Adedeji, A. (2019).
Customer satisfaction is paramount in the success of online taxi services, as it directly impacts user retention and brand reputation. Factors influencing customer satisfaction in this context encompass service reliability, affordability, safety, driver professionalism, and overall user experience. Understanding the dynamics of customer satisfaction is crucial for online taxi operators to refine their service offerings and maintain a competitive edge in the Nigerian market. Afolabi, M. O., Akingbade, W. A., & Olaniran, H. T. (2021).
This study seeks to investigate the relationship between online taxi services and customer satisfaction in Nigeria, drawing upon existing literature and empirical evidence. By analyzing user perceptions, preferences, and experiences, this research aims to identify key determinants of customer satisfaction and propose strategies for enhancing service quality and efficiency in the online taxi industry. Through a comprehensive examination of this dynamic relationship, policymakers, industry stakeholders, and service providers can gain valuable insights to optimize the delivery of online taxi services and foster a conducive environment for sustainable growth and customer satisfaction in Nigeria's transportation sector. Oladele, T. O., & Atteh, J. O. (2018).
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1.2 Statement of the Problem
The growth of online taxi services in Nigeria has brought about significant changes in urban mobility, offering convenience and accessibility to commuters. However, amidst the rapid expansion of this industry, there remains a pressing concern regarding customer satisfaction. Despite the convenience offered by online taxi platforms, there are recurring issues related to service reliability, safety, driver professionalism, and overall user experience. These challenges undermine the trust and confidence of consumers in the reliability and quality of online taxi services, ultimately affecting their satisfaction levels and long-term loyalty to the platforms. Oluwaseun, A., & Aluko, O. O. (2020).
Moreover, the Nigerian context presents unique socio-economic and infrastructural challenges that exacerbate the issues surrounding online taxi services. Factors such as traffic congestion, inadequate road infrastructure, security concerns, and fluctuations in fuel prices contribute to the complexity of providing satisfactory service experiences. Understanding the root causes of dissatisfaction among users of online taxi services in Nigeria is imperative for industry stakeholders, policymakers, and service providers to address these challenges effectively and enhance the overall quality and reliability of transportation solutions in the country. Adigun, M. O., & Adedeji, A. (2019).Top of Form
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1.3 Objectives of the Study
The main objective of the study is to examine Online Taxi services and Customer Satisfaction in Nigeria. Specific objectives of the study are:
- 1. To assess the key factors influencing customer satisfaction with online taxi services in Nigeria.
- 2. To evaluate the impact of online taxi services on customer loyalty and brand preference in the Nigerian market.
- To explore the challenges and opportunities for improving customer satisfaction in the Nigerian online taxi market.
1.4 Research Questions
To guide the study and achieve the objectives of the study, the following research questions were formulated:
- To what extent do service quality dimensions (e.g., convenience, affordability, driver professionalism, vehicle condition) impact customer satisfaction with online taxi services in Nigeria?
- How do customer experiences with online taxi services in Nigeria influence their loyalty towards specific brands (e.g., Bolt, Uber)?
- What are the most significant challenges faced by online taxi service providers in ensuring customer satisfaction in Nigeria (e.g., traffic congestion, driver behavior, regulatory issues)?
1.5 Research Hypothesis
The following research hypothesis was developed and tested for the study:
Ho: There is no statistical significant relationship between Online Taxi services and Customer Satisfaction in Nigeria.
1.6 Significance of the Study
The study is important for many reasons. The following are the major stakeholders this paper through its practical and theoretical implications and findings will be of great significance:
Firstly, the paper will benefit major stakeholders and policy makers in the Transport and Logistics sector. The various analysis, findings and discussions outlined in this paper will serve as a guide in enabling major positive changes in the industry and sub-sectors.
Secondly, the paper is also beneficial to the organizations used for the research. Since first hand data was gotten and analysed from the organization, they stand a chance to benefit directly from the findings of the study in respect to their various organizations. These findings will fast track growth and enable productivity in the organisations used as a case study.
Finally, the paper will serve as a guide to other researchers willing to research further into the subject matter. Through the conclusions, limitations and gaps identified in the subject matter, other student and independent researchers can have a well laid foundation to conduct further studies.
1.7 Scope of the Study
The study is delimited to Bolt. Findings and recommendations from the study reflects the views and opinions of respondents sampled in the area. It may not reflect the entire picture in the population.
1.8 Limitations of the Study
The major limitations of the research study are time, financial constraints and delays from respondents. The researcher had difficulties combining lectures with field work. Financial constraints in form of getting adequate funds and sponsors to print questionnaires, hold Focus group discussions and logistics was recorded. Finally, respondents were a bit reluctant in filling questionnaires and submitting them on time. This delayed the project work a bit.
1.9 Organization of the Study
The study is made up of five (5) Chapters. Chapter one of the study gives a general introduction to the subject matter, background to the problem as well as a detailed problem statement of the research. This chapter also sets the objectives of the paper in motion detailing out the significance and scope of the paper.
Chapter Two of the paper entails the review of related literature with regards to corporate governance and integrated reporting. This chapter outlines the conceptual reviews, theoretical reviews and empirical reviews of the study.
Chapter Three centers on the methodologies applied in the study. A more detailed explanation of the research design, population of the study, sample size and technique, data collection method and analysis is discussed in this chapter.
Chapter Four highlights data analysis and interpretation giving the readers a thorough room for the discussion of the practical and theoretical implications of data analyzed in the study.
Chapter Five outlines the findings, conclusions and recommendations of the study. Based on objectives set out, the researcher concludes the paper by answering all research questions set out in the study.
REFERENCES
Oluwaseun, A., & Aluko, O. O. (2020). Investigating the impact of service quality dimensions on customer satisfaction: A study of Bolt (Taxify) services in Lagos State, Nigeria. International Journal of Social Sciences and Humanities, 4(2), 124-139.
Adigun, M. O., & Adedeji, A. (2019). Determinants of customer satisfaction with online taxi-hailing services in Nigeria: A case study of Uber and Bolt. Journal of Internet Banking and Commerce, 24(3), 1-18.
Afolabi, M. O., Akingbade, W. A., & Olaniran, H. T. (2021). Evaluating the influence of service quality on customer satisfaction in the Nigerian e-hailing taxi industry: A PLS-SEM
