MIDNIGHT TAXI CHARGES ABUSE AT LCC TERMINAL, SEPANG
MOHD FADZALI BIN DAUD
A project report submitted in partial fulfillment of the
requirements for the award of the degree of
Master of Science (Transport Planning)
Faculty of Built Environment
Universiti Teknologi Malaysia
APRIL 2009
iii
To my loving wife, Siti Julila Binti Paimon and all my sons, Muhammad Ridwan Hakim
Bin Mohd Fadzali, Muhammad Zakwan Hafiz Bin Mohd Fadzali, Nur Batrisya Aliah
Binti Mohd Fadzali and Muhammad Hazwan Hazim Bin Mohd Fadzali. Thanks for being
the lovely people in my life. You give me the inspiration to complete this Master
program.
To my parents, please forgive me for not being able to spend more time with you and
thanks for your support.
To all my siblings, I love all of you.
iv
ACKNOWLEDGEMENT
I would like to express my deepest gratitude to Dr Muhammad Zaly Shah Bin
Muhammad Hussein for his guidance and contribution throughout the whole study and
for his moral support. It was a great experience to be supervised by him.
I also would like to thank to Mesra Indah Jaya Sdn Bhd Company, especially
Nor Hisam Bin Bajuri who helps a lot during the survey program. And also thank to all
my interviewees for sharing their thoughts and feelings with me sincerely.
To all my fellow friends who were with me all the time during the battle to
complete the thesis, thank you very much for your support, encouragement and
motivation.
v
ABSTRACT
Several countries in the world had implemented the surcharge rate during off peak
period to encourage the availability of taxi service. The encouragement by applying
surcharge was found necessary to ensure continuous taxi services during off peak period
which are currently least remunerative. However this incentive had been abused. A study
was done to investigate abusing on midnight taxi charges at LCC Terminal where it was
found that taxi driver exploiting midnight rate for their personal advantages. This creates
inconvenience scenario and unfairness treatment to midnight taxi users.
Immediate
improvement action needs to be done to certain area such as improving taxi queuing
operation, revising on the implementation of the midnight surcharge rate policy, services
and operations of midnight taxi. This will benefit midnight taxi users as well as to ensure
the smooth running of midnight taxi operations. Above all, response from taxi industry
participants itself is the key to gain public confident with the LCC Terminal taxi services.
vi
ABSTRAK
Di dalam dunia terdapat beberapa Negara melaksanakan kadar caj tambahan
untuk mengalakan bekalan teksi semasa bukan waktu puncak. Galakkan dengan
tambahan caj ini dirasakan perlu bagi memastikan perkhidmatan teksi yang berterusan
semasa bukan waktu puncak. Walaubagaimanapun insentif ini telah disalahguna. Satu
kajian telah dibuat bagi menyiasat penyelewengan terhadap caj teksi tengah malam di
Terminal Tambang Murah di mana pemandu teksi telah mengambil kesempatan untuk
kepentingan mereka. Ini menyebabkan keadaan yang tidak disenangi dan ketidak adilan
dalam melayani penguna teksi tengah malam. Langkah memperbaikinya perlu dilakukan
dengan segera ia adalah dengan memperbaiki aturan operasi teksi, mengkaji perlaksanaan
polisi perlaksanaan kadar caj tambahan tengh malam seterusnya memperbaiki operasi dan
perkhidmatan teksi tengah malam. Ini akan memberi kebaikan kepada penguna teksi
tengah malam dan pada masa yang sama melancarkan operasi teksi tengah malam dapat
dipastikan. Respon dari mereka yang terlibat di dalam industri teksi ini menjadi faktor
utama untuk memenangi kepercayaan orang ramai terhadap perkhidmatan teksii di
Terminal Tambang Murah.
vii
TABLE OF CONTENTS
CHAPTER
1
TITLE
PAGE
DECLARATION
ii
DEDICATION
iii
ACKNOWLEDGEMENT
iv
ABSTRACT
v
ABSTRAK
vi
TABLE OF CONTENTS
vii
LIST OF TABLES
xi
LIST OF FIGURES
xii
LIST OF ABBRIVIATIONS
xiv
LIST OF SYMBOLS
xv
LIST OF APPENDICES
xvi
INTRODUCTION
1
1.1
Introduction
1
1.2
Background of the Study
2
1.3
The LCC Terminal Taxi Services
2
1.3.1
The LCC Terminal Taxi Participants
4
1.3.2
The LCC Terminal Taxi Fare Structure
8
1.4
Problem Statement
9
1.5
Objectives of Study
10
1.6
Importance of Study
10
1.7
Method of Study
10
1.8
Limitation of the Study
10
viii
1.9
2
3
Expected Contribution
11
1.10 Summary
11
LITERATURE REVIEW
12
2.1
Introduction
12
2.2
Abuse in Taxi Industry
13
2.3
Additional Fare Charge and Implementation
14
2.4
Reason on Additional Fare Charge
15
2.5
Taxi Operation System
17
2.6
Driver, Skill and Stress
18
2.7
Complaints against Taxi Driver
21
2.8
Summary
24
RESEARCH METHODOLOGY
25
3.1
Introduction
25
3.2
Study Area
26
3.3
Survey Design
26
3.4
Survey Instrument
28
3.4.1
Survey Instrument for Midnight Taxi User
28
3.4.2
Survey Instrument for Taxi Network Operator
31
3.5
Sampling Design
31
3.5.1
32
Sampling Design for Midnight Taxi User
3.6
Determine Sample for Midnight Taxi User
33
3.7
Sample Selection for Midnight Taxi User
34
3.8
Conduct Actual Survey
37
3.8.1
Conduct Survey on Midnight Taxi User
38
3.8.2
Conduct Survey on Taxi Network Operator
39
3.9
Summary
40
ix
4
DATA FINDINGS AND ANALYSIS
41
4.1
Introduction
41
4.2
Result on Midnight Taxi User Survey
41
4.2.1
Demographic Features
42
4.2.2
Midnight Service Experience
47
4.2.3
Midnight Surcharge Experience
52
4.2.4
Overcharge Midnight Rate Case
57
4.3
Results on Taxi Network Operator Survey
62
4.3.1
Main Task and Responsibility
63
4.3.2
Pool Site Operation
64
4.3.3
The Formation and Decline of Midnight Taxi
4.3.4
4.4
64
Problem in Taxi Queuing Operations
65
Suggest for Improvement
4.4.1
4.4.2
5
and Midnight Passenger
66
Upgrade Taxi Queuing Operation Software
Application
66
Establish Punishment
66
4.5
Company Restriction
67
4.6
Summary
67
CONCLUSIONS AND RECOMMENDATIONS
68
5.1
Introduction
68
5.2
Summary on Findings
68
5.3
Revise Midnight Surcharge Rate Implementation
69
5.4
Improve Midnight Service Operation
69
5.4.1. Provide Information on Midnight Surcharge Rate
70
5.4.2
Establish Complaint Channel
70
5.4.3
Provide Authority to Taxi Network Operator
71
5.4.4
Upgrade Software Application
71
5.5
Conclusions
72
x
REFERENCES
Appendices A - E
73
76- 86
xi
LIST OF TABLES
TABLE NO.
TITLE
PAGE
1.1
Service Package Differentiate
1.2
List of taxi operators and number of permit obtained from CVLB 5
1.3
The highest of 10 passenger destinations for the LCC Terminal
taxis service
2.1
9
Summary of complaints registered with the Department of
Transport.
2.2
3
13
Assesses the extra cost for an 8 km fare at the relevant night
rate (versus the standard rate) and the proportion of the week
that the night rate is active.
15
3.1
Midnight passenger ridership
32
3.2
List of sample
36
4.1
Summary on highest response on user’s experience with
midnight service
4.2
4.3
52
Response from frequent user who doesn’t agree with
current surcharge
55
Response on driver demanding cash and respondent’s group
58
xii
LIST OF FIGURES
FIGURE NO.
TITLE
PAGE
1.1
LCC Terminal taxi industry’s participants
7
2.1
Diagram on taxi queuing process
18
2.2
Model of coping capacity among drivers
21
2.3
VLPS complaint handling process
23
3.1
MIJ coupon counter operation
27
3.2
MIJ pool site office
28
3.3
Diagram on survey respondent selection process
37
4.1
Response on gender factor
42
4.2
Response on nationality factor
43
4.3
Response on age
44
4.4
Response on highest versus lowest age group
45
4.5
Response on employment status factor
46
4.6
Response on user income level
47
4.7
Response on midnight service trips purpose
48
4.8
Response on trip to return home and employment status
49
4.9
Response on midnight taxi user travelling frequency
49
xiii
4.10
Response on 1 to 3 days a week user frequent travelling and
trip purpose.
50
4.11
Response on midnight taxi user waiting time
51
4.12
Response on whether user knows about midnight taxi or not.
53
4.13
Response on user group who doesn’t know about midnight
surcharge
4.14
54
Response on whether user agrees with current surcharge
rate or not.
55
4.15
Response on midnight rate suggestion
56
4.16
Response on driver demanding cash
57
4.17
Response on where user reports their complaint
59
4.18
Response on why respondent not reporting overcharge
midnight rate case.
60
4.19
User’s opinion with abuse on midnight charges by taxi driver.
61
4.20
Comparison on abusing midnight rate by taxi driver
62
4.21
The formation and decline of taxi and passenger before
midnight and after midnight.
65
xiv
LIST OF ABBREVIATIONS
CVLB
Commercial Vehicle Licensing Board
KLIA
Kuala Lumpur International Airport
LTA
Land Transport Authority
LCC Terminal
Low Cost Carrier Terminal
MIJ
Mesra Indah Jaya Sdn Bhd
VPLS
Vocational Licence Points System
xv
LIST OF SYMBOLS
Zα
−
-
Initial sample size
α
-
Statistical significance level
M
-
Mean survey response
d
-
Day to complete survey
K
-
Sampling Interval
N
-
Population
n
-
Sample size
e
-
Sampling error
n0
Z value at α signiicant level
xiv
LIST OF APPENDICES
APPENDIX
TITLE
PAGE
A
MIJ’s Passenger Complaint Report
73
B
Passenger Complaint thru Electronic Media
79
C
User Survey Question
81
D
MIJ Survey Question
84
E
Taxi Entry Record From
86
CHAPTER 1
INTRODUCTION
1.1
Introduction
The Low Cost Carrier Terminal (LCC Terminal) is specifically built to cater
to the ever growing passengers of the Low Cost Airlines, purposely the international
and domestic airline passengers. The air transport service is integrated with other
transport mode that such as bus and taxi service. The only 24 hours a day and 7 days
a week transport service at the terminal is the taxi service. Likes the other taxi
services, the terminal taxi also provide doo to door service to the passenger. This is
the key service characteristics that make the taxi service most popular than the other
service at the terminal.
In order to ensure reliability of LCC Terminal taxi service during peak off
time specifically midnight time, 50% midnight surcharge are currently being
imposed. The implementation started on October 2006 on the seventh month after the
commencement LCC Terminal taxi operation. This fare revision shows that the
government is concerned on improving the terminal taxi service by inducing more
drivers to work at midnight time.
However, some of drivers are taking advantages in a different way. They
abuse the scheme by overcharging passenger. Government was very concerned and
put an effort to tackle on raised overcharge issue as it was addressed by the Tourism
Minister, taxi drivers who are found to overcharge or mistreat their customers are the
new enemies and they are same as communist and should be shot. They would also
2
call for lesser, but equally harsh, forms of punishment, including jailing and a
lifetime suspension of the taxi licence (NST, 2002).
1.2
Background of the Study
This study focuses on the raising issue on abusing of midnight charges where
the taxi driver to overcharge from the perspective of its passenger who are midnight
taxi user. Passengers make use midnight taxi service to bring them to the terminal
where else they use midnight taxi service from terminal to their desired destination.
This study will cover midnight taxi passengers who use midnight taxi service from
terminal to their final destination. On the second part of the study, the researcher
will undergo taxi operation to find improvement area that need to be considered to
improve midnight taxi operation. In the taxi operation, the researcher will look at the
midnight taxi operation beginning with the taxi alighting process until taxi boarding
process.
In overall, this study is to find passenger point of view towards abuse
midnight taxi charges that is accused by the taxi driver at the same time the study is
also to find improvement measures on midnight taxi operation. In the next section
the LCC Terminal taxis will be overviewed in order to point where and when abuse
midnight charges occur.
1.3
The LCC Terminal Taxi Services
Under the Commercial Vehicle Licensing Board (CVLB) Act 1987 (Act
334) typical of taxi service is classified taxi into 5 types. The classification is based
on vehicle cylinder capacity (c.c) and passenger load capacity. The LCC Terminal
taxi is classified under Airport Taxi which is means a motor vehicle having a seating
capacity of not more than 7 persons used exclusively to carry passengers to and from
the airport in consideration of a payment and operated from a fixed base or in an
3
authorized area. At the LCC Terminal taxi is pooled at the pool operation site which
is approximately 200 meters from the terminal and taxi will dispatch their passenger
to an authorized zone according to purchased coupon.
Taxi operation is designed to cover both inbound and outbound trips. An
inbound trip is where passenger is dispatched to the LCC Terminal whereas an
outbound trip is dispatched passenger from the LCC Terminal to their desired
destination. An inbound service is sensibly by hailing taxi and the fare is charged
based on taximeter. At the moment, inbound service is available within Klang Valley
area.
In order to cater passenger’s demand at the terminal, there are three service
packages currently being offered. Those are Budget, Premier and Family packages.
Each service package makes a different in term of loading capacity, comfortably as
well fare charge. Table 1.1 is to show typical service package that is Budget,
Premier and Family package. As at December 2008, there are 688 taxis of Budget
package, 217 taxis of Premier package and 65 taxis of Family package. The type of
car models that currently available for budget package are Proton WIRA, Proton
ISWARA, Proton GEN2, Nissan Sentra and Renault Kanggoo. Proton PERDANA,
Nissan Cefiro and Serena, Mercedes Benz, Naza Citra, Hyundai Sonata and Elantra
are vehicle models that are available for Premier package. Then, NAZA Ria , KIA
Pregio, Stavic, Toyota Hiace and Nissan Urvan are vehicle models that are available
for Family package.
Table 1.1: Service Package Differentiate
Service Package
Passenger Capacity
Luggage Load Capacity
Budget
1 to 4
2 Medium and 1 Small
Premier
1 to 4
1 Big and 1 Medium
Family
1 to 9
4 Big and 2 Medium
(Source: Mesra Indah Jaya Sdn Bhd, 2008)
4
The passenger needs to purchase taxi coupon at the coupon counter operated
at the arrival hall of the LCC Terminal to engage with the taxi service. According to
Independent Pricing and Regulatory Tribunal (1999) in regulating the taxi industry, a
trade off must be made between prices, quality and waiting times, all of which relate
to the service received by the customer. At this counter, passenger will choose
service package. Upon choosing the package, the counter will produce two copies of
printed coupon which will be used by the passenger to claim the service at the taxi
pickup point.
Passenger then will have to proceed to the pickup point where the network
company provides marshal to assist passenger into queuing line. The marshals on
duty will hand over a coupon to the taxi driver according to the queue and write the
taxi’s number on the coupon. A portion of the coupon will be given to the passenger
for his/her reference.
1.3.1 The LCC Terminal Taxi Participants
There are four main participants in the LCC Terminal taxi industry that is
permit owner, taxi operator, taxi network and taxi driver. Figure 1.1 is to show the
LCC Terminal taxi industry’s participants. These alliances had been established to be
the fundamental of taxi operations.
i) Permit owners: all the permit owner is belongs to the 45 taxi operators. As
at July 2008 the total of 1,442 permits were issued by CVLB that comprises of
budget permit, premier permit and family permit is lodged to cater passenger
demand. The taxi operator leases their plates to taxi driver at the range of RM300 to
RM400 a month that is subject to the permit service categories. Whilst conditions
attach to all permits, permit holders are subject to few obligations under the CVLB.
ii) Taxi operator: These groups of taxi operators sell bundled services such
as car financing, insurance, repairs and car detailing to the drivers. They may also
manage permit, license plates, operate taxi businesses and provide network services.
5
Table 1.2 is to show the list of taxi operator and number of permit obtained based on
service package. All taxi companies must be authorized by the CVLB to provide
services and hence must meet operator’s standard performance standards.
Table 1.2 List of taxi operators and number of permit obtained from CVLB.
No.
Taxi Operators
Numbers of Permit Obtained from
CVLB Base on Service Package
Budget
Premier
Family
Total
1
ASANISA LIMOU SDN BHD
20
14
0
34
2
BUTIRAN RAYA SDN BHD
0
5
0
5
3
DAMAI OTOMOBIL SDN BHD
53
0
0
53
4
GEMILANG TRAVEL & TOURS SDN BHD
10
0
0
10
5
HANDAL SEPAKAT SDN BHD
31
0
0
31
6
IBEX CORPORATION AMALGAMATED SDN BHD
2
0
0
2
7
IKATAN PRESTIJ SDN BHD
0
0
7
7
8
INOVASI TIMUR SDN BHD
0
0
0
0
9
INSAN SEMARAK SDN BHD
9
0
0
9
10
KLASS SERVIS (M) SDN BHD
9
41
0
50
11
KOPERASI BERJASA NEGERI SEMBILAN
15
5
0
20
12
KOPERASI NESA PELBAGAI BERHAD
9
0
0
9
13
KOPERASI NIAGA GLOKAL (M) BHD
15
0
0
15
14
KOPERASI PEMANDU TAXI BERHAD (KOTAXI)
10
0
0
10
15
KOPERASI POLIS DI RAJA MALAYSIA
10
0
0
10
16
KOPERASI SERBAGUNA MALAYSIA BERHAD
5
0
5
10
17
LEDANG UNGGUL SDN BHD
42
0
0
42
18
MAHABBAH SDN BHD
0
40
0
40
19
MARLIS CORPORATION SDN BHD
7
0
0
7
20
MINANG JATI CORPORATION SDN BHD
5
0
0
5
21
NEWSTAR EXCELSIAR (M) SDN BHD
0
0
12
12
22
PERKHIDMATAN TEKSI GEMBIRA SDN BHD
58
0
0
58
23
PINTAR RINGKASAN SDN BHD
26
0
0
26
24
PROTONWIRA PLASMA SDN BHD
9
0
21
30
25
PUNCAK HOLDING SDN BHD
0
3
0
3
26
PUJANGGA MOTOR SDN BHD
43
0
0
43
27
RB PREMIER TAXI SDN BHD
0
0
0
0
28
RIA SETUJU SDN BHD
75
38
5
118
29
RICH BONUS SDN BHD
11
0
0
11
30
SMART EXPRESS SDN BHD
26
0
0
26
31
SUASANA EDARAN SDN BHD
0
0
0
0
32
TEKSI SEDUNIA SDN BHD
0
20
0
20
33
TERMINAL LIMO (TELLI - LCCT )
0
0
0
0
34
THOYEBAH MOTOR SDN BHD
0
8
0
8
35
TUNAS PUNCAK SDN BHD
1
0
15
16
36
UFUK TERBILANG SDN BHD
10
0
0
10
37
UNGGUN MAYANG SDN BHD
44
0
0
44
38
UFUK SEMARAK SDN BHD
47
0
0
47
6
39
KOPERASI PEMANDU KENDERAAN AWAM
MALAYSIA BHD (KOPANDU)
26
5
0
31
40
KOPERASI WANITA BERJAYA LENGGONG
BERHAD
0
0
0
0
41
KOPERASI JURUPANDU USAHAWAN LIMOSIN
AIRPORT KLIA BHD (KJPU)
5
35
0
40
42
KOPERASI ANGKATAN TENTERA MALAYSIA
BERHAD
10
0
0
10
43
DESTINATION TRANSPORT (M) SDN BHD
(PUNCAK HOLDING SDN BHD)
45
3
0
48
44
KOPERASI PEMUDA GEMILANG BAGON DATOH
BHD
KIV
0
0
0
45
KOPERASI PERMODALAN PEMUDA PERAK BHD
Total
KIV
0
0
0
688
217
65
970
(Source: Mesra Indah Jaya Sdn Bhd, 2008)
iii) Taxi networks: Mesra Indah Jaya Sdn Bhd (MIJ) Company provides pre
paid coupon system to the passenger. The company also responsible to manage
coupon claim and dispatching system directly to their members i.e. taxi operator and
driver. The company collects commission for each coupon sold to passengers. The
coupon commission collected depends on the zones where passengers are travelling
to.
The amount of commission received is also dependent upon the type of taxi,
whether budget services, premier services or family service.
Service is subject to performance standards (principally sales of passenger
coupon and driver coupon claim) imposed as conditions of their authorization by the
CVLB. The taxi network monitors their own performance against the standards and
report to the CVLB for every 3 month times. There are no penalties for failure to
meet these standards other than the threat of removal of authorization.
iv) Drivers: By law, LCC Terminal taxi drivers are regarded as independent
contractors rather than as employees of taxi operators. The drivers are called as
Taxi Entrepreneur. They drive their own vehicles through leasehold agreement and
contract their services to the operators. This bounded the driver with as such
Entrepreneur Scheme. Under this scheme driver has to pay a fixed amount of daily
rental to the taxi operator depending on the class of vehicles. One of the most
importance taxi driver requirements are to be licensed to Public Service Vehicle
7
(PSV) under the Road Transport Department (RTD). And the service provision is
under a series of rules by the CVLB that governing their behavior in taxis and at
rank. The regulations require drivers to:

keep records of shift details including times of meal breaks

ensure the taxi is clean and tidy at all times

not smoke in the taxi

not solicit for passengers

not cause danger to passengers or the public by inappropriately moving the taxi

wear the uniform of the appropriate network

comply with all reasonable requests from passengers

not leave the taxi without good reason

park the taxi at the first available space on the taxi rank

comply with any direction given by an authorized officer in respect of rank
management

comply with all reasonable requests of the network in relation to public
passenger services

not refuse a hiring, except in limited circumstances
Taxi Operators
Taxi Network
Permit Owners
Taxi Drivers
LCC Terminal
Taxi
Figure 1.1: LCC Terminal taxi industry’s participants.
8
1.3.2 The LCC Terminal Taxi Fare Structure
The LCC Terminal taxis implements prepaid coupon system where the fare
charges is based on authorized zone.
Fare charges and authorized zone
determination are subject to the CVLB and taxi network operator implements the
prepaid coupon system to the taxi drivers as well as to the taxi passenger.
For every purchased coupon, the fare is inclusive distance charges, toll
charges and coupon sales commissions. The distance rate charges is belongs to the
taxi driver where from this earnings the drivers need to bear their operating cost i.e.
vehicle rental and maintenance cost, insurance cost, fuel cost and lease of permit
charge. Because of the coupon charge includes toll charges, the taxi driver will pay
toll charge for their passenger. Then at the taxi network operator counter claim the
toll charge will be reimbursed to the driver. On the other side, taxi network operator
gains their income from the coupon sales commissions. The commission of coupon
sales was determined at 9% of the coupon rate.
For example, the fare charges to Subang Jaya is at RM52.50, the distance
charges is at RM44.36, toll charges is at RM3.75 and coupon sales commissions is at
RM4.39. Based on coupon counter sales report, most of the trip is made to the Klang
Valley area, Kuala Lumpur City centre and to the KLIA. Table 1.2 shows the
highest of 10 passenger’s destinations for the LCC Terminal taxis service.
The fare of midnight service is calculated at additional 50% of normal rate.
For example, normal fare charges to Subang Jaya trip is at RM52.50 and an
additional charge of RM26.25 is to be included in midnight fare. The new fare for
midnight service is at RM78.75, it shows additional increase in fare that is to bring
an incentive to the driver.
9
Table 1.3: The highest of 10 passenger destinations for the LCC Terminal taxis
service
No
Destination
Zone
Code
Distance
Charges
(RM)
Toll
Charge
(RM)
Coupon Sales
(RM)
Total Fare
Charges
(RM)
1
KLIA
201
29.30
Nil
2.90
32.20
2
USJ
401
44.73
3.15
4.42
52.30
3
Subang Jaya
402
44.36
3.75
4.39
52.50
4
Puchong/ Petaling Jaya/
Kelana Jaya
407
45.96
2.00
4.55
52.50
5
Damansara
501
52.87
2.70
5.23
60.80
6
Kuala Lumpur City
502
53.10
3.25
5.25
61.60
7
Serdang
504
52.87
3.00
5.23
61.10
8
Klang
505
52.69
3.20
5.21
61.10
9
Cheras
602
61.52
3.00
6.08
70.60
10
Ampang
603
61.29
3.25
6.06
70.60
(Source: Mesra Indah Jaya Sdn Bhd, 2008)
1.4
Problem Statement
There have been many complaints received by taxi network operator
regarding overcharges by taxi driver (refer to Appendix A).
Although, the
complaints received does not represent all the passenger using LCC Terminal taxi as
many complaints have also been channeled to agencies such as regulator, authority
etc. A part from those complaints has also been posted on the internet, printing
media etc (refer to Appendix B).
This issue has also to be addressed, the country image will be also effected
because LCC Terminal is gateway to Malaysia.
10
1.5
Objectives of Study
1. To investigate midnight overcharge case accused by taxi driver
2. To study how midnight taxi queuing operations can be improved.
1.6
Importance of The Study
It is vital to investigate midnight overcharge case accused by taxi driver to
determine when and where taxi drivers are found to overcharge their passengers.
The study on midnight taxi queuing operations resolves an understanding on
the
midnight taxi operation and through the proposed improvement it will resolve
abused midnight rate problem. Hence, it leads the midnight taxi service to be more
reliable.
1.7
Method of Study
In this study a probability sampling that is systematic sampling with random
starting point will be used in midnight passenger survey and census survey will be
applied in taxi network company survey. The detail of the method used will be
further detailed in Chapter 3.
1.8
Limitation of the Study
The scope of this study is limited to out bound midnight taxi service which is
operated at the LCC Terminal whereby the out bound operation is defined as
passenger movement starting from the taxi coupon counter where the passenger
engage the taxi service by buying coupon until they reach to their final destination.
11
1.9
Expected Contribution
Upon the completion, result on the survey can be set as point of reference to
improve midnight taxi service. The group i.e. terminal operator, taxi network taxi
operator and CVLB can use this paper as guide to further the study.
In addition the recommendation can be immediately implemented to
overcome overcharge case. Hence, the public confident towards the public
transportation can be maintained.
1.10
Summary
In summary, this chapter gives us the understanding of the LCC Terminal
taxi service in term of industry structure and its function. It is important to know
each function so that the improvement can be addressed correctly.
The issue here is that there are complaints which is addressed by midnight
taxi passenger.
But this passenger compliants are not representing the whole
midnight rate cases abuse at the terminal. This study is to get overall view from the
midnight taxi user on abusing midnight taxi charge. If the problem is not handled
accordingly it deteriorates public confident towards public transportation system.
CHAPTER 2
LITERATURE REVIEW
2.1
Introduction
Many passengers travel between LCC Terminal to connect with flights. A
taxi driver may have travelled to the airport without a paid fare or may have waited
for some time in the holding bay before obtaining a passenger. This caused fuel and
waiting cost to the driver especially during night time where normally it is low
passenger ridership. The taxi driver has to do more trip to cover their cost at the
same time they have to earn wages.
However, due to low passenger ridership,
drivers are only done limited of trip within long waiting time. In some situation,
they miss to obtain passenger as because they have to compete with the other
drivers. Although some incentive on midnight fare had been established, drivers
need to reserve their income because trip obtained is inconsistent and they have to
allocate their budget to travel to the airport even though without a paid fare.
This leads the problem of overcharging legal fare where passengers are
abused with the illegal fare charges by taxi driver. This practice is contrary to the
regulation that drivers must not to overcharge passengers.
But everyone who has taken a taxi may have a bad or numerous bad
experiences. The problem is that this does not stop people from taking taxis. It is not
like a restaurant that we choose not to frequent after we get food poisoning. We
might take note of the bad driver, even phone in a complaint and ride a little less
frequently, but there are no repercussion to the drivers (unless they've tarnished their
driving record) and there is no viable alternative for us as the passenger.
13
2.2
Abuse in Taxi Industry
Violent behavior at work is a source of occupational risk in the transport
sector that has attracted increasing attention over recent years. Every few days,
there is another transportation incident story on the news. It may be a sexual assault
in a taxi, drunken bus driver involved in fatal accident etc.
Transport services are prime sites for workplace violence, with taxi and bus
passengers often being the targets. The main reasons identified by respondents as the
triggers and causes of driver violence in transport sector were alcohols, drugs,
miscommunication with passenger, unsatisfied with fare negotiation (Essenberg
2003).
In the taxi industry usually provides a 24-hour-a-day, seven-day-a-week
service, with most drivers working 12-hour shifts. They have to compete with other
drivers to obtain passenger and this competition for fares can be fierce. Hence, a
study by
Independent Pricing and Regulatory Tribunal of New South Wales
(1999a) there were 276 overcharges complaint reported in 1996, 201 overcharges
complaint reported
in 1997 and 208 overcharges complaint reported in the
following years. Table 2.1 is to show summary of complaints registered with the
Department of Transport.
Table 2.1: Summary of complaints registered with the Department of Transport.
Category of complaint
1996
1997
1998
Assault, abuse and dangerous driving
1576
1246
1100
Trip refusals, no shows and lateness
771
762
714
Poor knowledge, dress and service standards
1175
583
704
Technical infringements
317
211
284
Overcharge, start/stop meter
276
208
201
Poor vehicle cleanliness and safety
177
148
190
Total
4292
3158
3193
.
(Source: Independent Pricing and Regulatory Tribunal of New South Wales, 1999)
14
2.3
Additional Fare Charge and Implementation
The current government policy is that the fares to be charged for limousine
taxi cab differed with four-cylinder or a six-cylinder engine licensed and authorized
to operate within the area other than the airport shall be at the rates specified between
12 midnight and 6.00 am an additional 50% of the rate specified hereto as stated in
Road Transport Rules (Compilation of 45 Rules). Rules – LN 175/1959.
A study from Baxter et al. (2004) found the implementation of surcharge at
the specific
a) New South Wales (NSW): uses a 20% premium on the distance rate from
10 pm to 6 am seven days a week.
b) Queensland: uses an after-hours flagfall, which applies to public holidays,
times outside 6 am – 8 pm weekdays and times outside 6 am – 1 pm
Saturdays. This after-hours flagfall is $1.20 higher than the standard
flagfall.
c) Victoria: late-night extra flagfall fee of $1.10 applies from midnight to 6
am. Current government policy is that a 20% higher tariff will apply
between 1 am and 6 am in the metropolitan taxi zone to help encourage
more taxis to work during the late night and early morning periods.
d) Western Australia (WA): Night and weekend extra, flagfall fee of $1.30
applies Monday to Friday, 6 pm to 6 am, Friday 6 pm to Monday 6 am,
and all public holidays.
e) In some jurisdictions (e.g. Sydney) where drivers generally make a fixed
payment per shift (pay-in) to the operator to procure the taxi, the drivers
retain 100% of the benefit of the night rate. In summary, table 2.3 below
is to show the surcharge rate for the listed urban.
15
Table 2.2: Assesses the extra cost for an 8 km fare at the relevant night rate (versus
the standard rate) and the proportion of the week that the night rate is active.
Jurisdiction
Approx. extra
cost for 8 km
fare
Part of week (without
public holidays) that
night rate operates
Australian Capital Territory (ACT)
12%
55%
NSW urban
16%
33%
Queanbeyan (NSW country)
16%
33%
Victoria (current)
10%
21%
Victoria (planned)
16%
25%
WA
10%
64%
Queensland
10%
46%
(Source: Baxter et al., 2004)
2.4
Reason on Additional Fare Charge
According to Widmann and Miller (2006) one proposed solution is the
concept of transit-taxi service ─ also referred to as late night or night owl service in
North America and Nachtbus in Germany ─ as a means to satisfy the need for
improvement in off-peak public transport service. Generally, transit-taxi service is
publicly available, uses existing transit stop/station infrastructure as “origins” and/or
“destinations, is offered when regular buses tend not to be operational, and allows for
a shared-ride experience. Vehicle types range from standard 40 foot buses to smaller
vans and taxis. Routing options include customary fixed route service and more
flexible options with route deviation.
Due to low ridership and high operational costs, transit agencies especially in
many medium-size cities have curtailed their after-dark and weekend services.
Consequently, riders needing to travel during these times can go to fewer places,
have to endure longer walking distances and waiting times, additional transfers, and
16
are exposed to greater personal inconvenience and potential safety risks. There is a
clear need for improvement in off-peak public transport service and this need calls
for technologically innovative and cost-effective solutions.
It is found that few cabbies work through the night because the overall level
of demand at these hours is very low – Washington has few night clubs or other
major resources of taxi demand after midnight. Post-midnight surcharge are, in fact,
included in the fare structures of several country (Kirby et al. 1974).
Midnight surcharge is treated as an incentive to the driver who put their time
to serve customer. According to Meyer and Miller (2001), some incentive has been
structured in order to disburse cost and encourage more drivers to work at night time.
Costs are incurred whenever a trip is made. This cost of travel is often defined and
perceived differently by user, stakeholders and system providers. For example if
asked, most travelers would identify just out-pocket cost associated with travel – fuel
cost, parking fees, tolls or fares. Some might consider the associated coat of vehicle
purchase, maintenance, and insurance. A boarder perspective on the cost of traveler,
however, would include many considerations.
In recent year, a great deal of attention has been paid to the “social cost” of
motor vehicle use. Social cost extend traditional travel cost to include the cost of
transportation services and goods that are not priced directly to the user but are
incorporated into the price non-transportation goods; public sector cost to build,
maintain, and operate the transportation system; and the non-monetary cost to the
society of transportation – related impact such as health effects of air and water
pollution (known as externalities), pain and suffering from accidents and travel time.
According to Independent Pricing and Regulatory Tribunal of New South
Wales (1999b) some overseas cities have introduced minimum charges or
surcharges for travel to or from their major airports to help overcome the short trip
refusal problem.
This approach gives drivers an incentive to accept short trips
commencing at airports by reducing the economic penalty associated with servicing
short trip passengers at the airport.
17
2.5
Taxi Operation System
The LCC Terminal taxi implements first come; first served (FCFS) queuing
discipline. The FCFS queue discipline specifies the order in which customers in the
queue are served (Hall 1991). Figure 2.1 is to show taxi queuing process.
Each airport taxi begins a trip by queuing at the Pool whilst waiting to enter
the Terminal. The pool is located less than one (1) Kilometre to the terminal pickup
point and can accommodate approximately 300 to 350 taxis at any one time. There
will be ten (10) and eight (8) rows of taxis under budget and premier package.
Prior to entering the LCC Terminal pickup point, each taxi would be given a
pre-numbered token. The pool site office is located at the entrance to precede the prenumbered registration. In-house computer software is designed to smooth the
registration process whilst to record on queuing track. The software module will
store the inflow information i.e. entering time and date, taxi number and service
package. When their numbers are called, the taxi proceeds to drive to the pickup
point. . Generally, five (5) to ten (10) taxis are called to the pickup point at any one
time. The average waiting time for each
taxi in the pool is between 5 and 30
minutes depending on whether it is at peak or off-peak hours.
18
Alighting at
Terminal
Entry Registration
Yes
Collects prenumbered token
Finish
Trip
No
Dispatch
Passenger
Line up in Queue
Boarding from
Terminal
Go to Pickup Point
Figure 2.1: Diagram on taxi queuing process
(Source: Mesra Indah Jaya Sdn Bhd, 2008)
2.6
Driver, Skill and Stress
According to Hanzlíková (2001) there are various sub-types of professional
drivers. Drivers in public transport, drivers of long-distance coaches, drivers of
trams and trains, taxi-drivers and truck drivers. To describe this group easily, we
can just say that driving the vehicle is their occupation; they are getting paid and
have to keep specific demands from the employer and whole society.
19
Work by Wa (2001) in Singapore, a taxi driver must have a vocational
licence to provide taxi services. To be qualified for a vocational licence, a person
must:
(a)
be a Singaporean citizen;
(b)
be between 30 and 70 years old;
(c)
have one year driving experience with clean record in certain offences;
(d)
attend an interview to demonstrate proficiency in English plus with
Mandarin or Malay, unless evidence of such proficiency can be produced;
(e)
attend a 99-hour course (which costs US$200) on vehicle, hygiene,
geography and regulations;
(f)
pass a written test (candidates may choose to take the test in English,
Chinese or Malay; passing rate averages 70%); and
(g)
attend a medical examination
According to Hanzlíková (2001a) among the most important skills and
requirements of professional drivers are
• Reaction time – the ability to quickly respond
• Far and near vision – the ability to see things close at hand (such as
signs) or at distance
• Operation and control – controlling operations of equipment or systems
• Equipment maintenance – performing routine maintenance and
determining when and what kind of maintenance is needed
• Psychological eligibility (low level of aggressiveness for instance)
Work by Hanzlíková (2001b) to driver stress play a key role in determining
the subjective and behavioral outcomes of driving. Those are factors participating on
emergence of stress:

Processing of big amount of information and signals within a very
short time segment – ordinarily for 8 hours per a day
•
Awareness that mistake or error are usually irreparable and can lead
to tragic consequences
•
Every-day conditions raising responsibility and possible risk: big amount
20
of passengers, high price of the vehicle and of the cargo or dangerous
character of the cargo (petrol, oil); material and moral responsibility
•
Working conditions: vibration, noise with high intensity and frequency,
irregular work schedules, long hours
•
Irregularity of work and leisure time; night and weekend shifts may not
coincide with those of their families. Irregularity of shifts can have negative
impacts on their family and personal life
•
External environmental factors, in particular extreme temperatures; buses
are heated and some air-conditioned, however drivers experience heat, cold,
rain or wind because they frequently must open the door (draught)

Monotony
•
Mental, sensorial and emotional load
•
Characteristic of traffic (high density, congestions)
•
The task is mentally demanding because it involves having to cope with
conflicting demands (the company and the public want the driver to
maintain good contact with passengers and to be service-oriented, for
example through the provision of information to passengers on
timetables, routes, stops etc. However the need to provide service to
individual passengers often conflicts with the requirement to keep to a
right schedule in dense traffic. A further demand, which may conflict
with the previous two, is the need to drive safely according to traffic
regulations and conditions)
•
Ergonomic problems: a driver´s cabin is subject to several constraints,
and the seat often lacks sufficient adjustability, other source of stress
is the fact of using different vehicles for different shifts (no familiarity)
•
Feelings of isolation
•
Work schedules that strain home life and interferes with sleep
All these components may lead to a state of fatigue, which is a key factor
causing traffic accident. These factors are participating in the coping capacity which
has influence on health, and all this is with connection of capability to cope with
these factors. Figure 2.2 is to show coping capacity model.
21
Figure 2.2: Model of coping capacity among drivers
(Source : Hanzlíková, 2001)
Night time driving is differed with day time driving. A study by Essenberg
(2003a) stated that because taxi drivers usually work 12-hour shifts, night
driving is inevitable. However, night driving involves disruption to the normal
body circadian rhythm and results in decreased concentration capacities at low
biological points, that is, between 2 a.m. and 4 a.m. Inevitably the ability to
perform complicated tasks, or recognize warning signs of impending violence, are
compromised at these low points of the circadian rhythm. Any relationship between
circadian rhythms and times of assaults is unknown.
2.7
Complaints against Taxi Driver
Work by Mundy (2007) taxi driver behavior has become a significant
problem in recent years. In an attempt to reduce rude behavior, short trip refusals,
long riding of airport passengers, and poor service, airport officials developed a taxi
starter system which is paid for by dispatch fees paid by the drivers and added to
the meter fare.
According to Wa (2001a) taxi drivers are the front line to contact passengers,
hence the quality of taxi services is mainly determined by the services provided from
taxi drivers. Since the 1990's, there is an increase of number of taxi complaints
received by the Government, mainly about the malpractice of taxi drivers. It can
reflect that the quality of the taxi service is rapidly decreasing. Over the years, the
22
majority of the complaints were about taximeter offences, taxi drivers' behavior and
the refusing of hiring. The Government's focus has been placed on law enforcement
actions against malpractice by taxi drivers. It is clear that there are discrepancies
between the public's expectation for taxi services and the existing level of services
provided. As taxis are an important public transport mode, there is an equivocal
demand from the community for improvement to the quality of taxi services
particularly to the quality of drivers.
The complex nature of the taxi industry may result in the lodgment of
complaints incorrectly, which means they are declined as misconceived. A
respondent who is responsible for discriminatory behavior may not be a simple
endeavor given the complex business structure of the taxi industry and the specific
role of the taxi regulator. In relation to the complaints process, there are barriers that
are inherent with the formal requirements of the complaints process and more
accessible complaint handling functions could be entertained.
According to Land Transport Authority (2003) Vocational Licence Points
System (VLPS) is the revised framework for investigation of complaints and
discipline of taxi drivers who breach the rules of conduct. The VLPS makes the
process of investigation and imposition of discipline more transparent to both
commuters and taxi drivers. Under the VLPS, taxi companies play a greater role
in the discipline of their drivers, to educate and encourage their drivers to provide
good customer service. Figure 2.3 is to show the complaint handling process.
23
Figure 2.3: VLPS complaint handling process.
(Source : LTA, 2003)
In some country the monetary penalty policy has being imposed and to some
extended the licence can be suspended. A study report by King County (2006), the
City sets out a specific monetary penalty schedule for violations. Each violation
results in penalty points attributed to the taxicab association. For example, a third
“Class B” violation (such as worn tires) would result in 10 penalty points assessed
24
against the association. As soon as the association accumulates more than five
penalty points per affiliated taxicab, on average, it must pay a penalty to the city of
$100 per affiliated taxicab; more than seven penalty points per affiliated taxicab, on
average, an additional penalty of $150 per affiliated taxicab; more than 10 penalty
points per taxicab, on average, an additional penalty of $250 per affiliated taxicab.
Associations, in addition to payment of penalty points, are jointly and severally liable
for each monetary penalty assessed against any for-hire driver or taxicab affiliated
with the association. Taxicab and for-hire vehicle owners are also jointly and
severally liable for each monetary penalty assessed against any for-hire driver who
commits a violation.
According to LTA (2003a) under the VLPS, the penalty for a scheduled
offence is a fine plus demerit points. A taxi driver, who accumulates between 6
and 20 demerit points over a 24-month period, is liable to have his taxi
driver’s vocational licence suspended. To encourage taxi drivers to improve, past
demerit points will be cleared from their records if they maintain a clean record for
24 months from the date of the last offence.
2.8
Summary
After reviewing several literatures, it gives understanding on the
implementation of additional fare charge in taxi service. There are no studies that
have been conducted on the abused midnight charges. This is important to the taxi
regulator to look into consideration in midnight taxi operation.
CHAPTER 3
RESEARCH METHODOLOGY
3.1
Introduction
In this chapter, the researcher describes the method of the study ranging from
the study design to data collection procedure. The scope and study’s objective is set
to be a guideline.
Since the study is to know about the passenger opinion on abusing midnight
rate charges accused by the driver, the analysis is based on the midnight taxi user.
The researcher is going to find midnight taxi passenger perception on abusing
midnight taxi charges. Thus, it will show us on how many are they found that taxi
drivers are to overcharge and how many are they found taxi driver are not to
overcharge. In this study, outbound midnight taxi passengers are passenger who
travels from the terminal to their desired destination. They will engage taxi service
from the taxi coupon counter at the terminal arrival hall. Hence, the researcher
identifies taxi coupon counter is the area to collect data on midnight taxi user.
In relation to this study, the researcher will review on the midnight taxi
operations. The taxi operation is identified from where the taxis start their operations
until the taxis dispatch their passenger. For the purpose of reviewing midnight taxi
operation, the researcher has set the time at 11.00pm until 12.00am where the taxis
start to queue in order to obtain midnight passengers.
26
Midnight taxi queuing operations is to review the success/failure in midnight
taxi operation to find the need for improvement to enhance midnight taxis operation.
3.2
Study Area
In this study, the researcher has identified the study area are the LCC
Terminal midnight taxi user and the midnight taxi queuing operations.
Since the taxi network operator that is Mesra Indah Jaya Sdn Bhd provides
the taxi coupon service to the passenger and taxi operation to the taxi operator the
researcher meets the company to find relevant data that will be used in this study.
Several meeting was set with the company. During the first meeting, the researcher
briefly explained the study requirement and study’s objective. The meeting was
attended by Nor Hisam bin
Bajuri who is the General Manager (GM) of the
company since the commencement of the LCC Terminal. The company is located at :
Lot No. 3, 1st Floor, Block D1-A,
Southern Common Amenities & Facilities (SCAF),
64000 KLIA Sepang. Selangor.
3.3
Survey Design
The researcher does user’s survey to collect data on midnight taxi user
opinion and taxi network survey to collect data on midnight taxi operation.
According to Mundy (2007a) sampling the user’s opinion in terms of the price,
service and vehicle appearance is helpful in gaining an understanding about how
they feel about the current taxi service, the individual, provider companies, and any
concerns they may have for the future of taxicab services within their community.
27
User’s survey will be performed at the taxi coupon counter where that taxi
passenger purchases their taxi coupon. This gives the highest chances to gather
survey respondent. Figure 3.1 is to show, the coupon counter located at the
terminal.
Survey on midnight taxi operation will be performed at the taxi holding bay
where it is located near the LCC Terminal. At the holding bay the taxis will be
pooled in the queuing lines. There are ready to pickup their passenger once the
officer announces to go to at rank.
The operation area is identified as a pool site and small office has been
designed to handle taxi operation. At the pool site office, taxi operations begin with
register their entry until waiting announcement to on board. Taxi alighting and
boarding process had been discussed in the earlier chapter. Figure 3.2 is to show
pool site office to handle the taxi operation.
Figure 3.1: MIJ coupon counter operation
(Source : Mesra Indah Jaya Sdn Bhd, 2008)
28
Figure 3.2: Pool site office to handle taxi operation
(Source : Mersa Indah Jaya Sdn Bhd, 2008)
3.4
Survey Instrument
Survey instrument is served as a survey tools to collect data that will be
used in this study. The researcher reviewed on various literatures to develop survey
instrument for this study.
3.4.1 Survey Instrument for Midnight Taxi User
The close-ended survey question is designed in two copies of paper. The
question will be distributed to the passenger at the coupon counter. Using this
approach, it will save passenger response time. There are 17 questions in total.
These questions are divided into two parts.
In
the
first
part,
the
respondent will be asked their experience in midnight taxi service. The researcher
divided this part into three sections, those are:
29
• Section A: Experience with midnight service operations
• Section B : Experience with midnight rate
• Section C : Experience with midnight rate adjustment
In Section A, respondent will be asked three questions. The first question,
respondents need to answer their traveling frequency on midnight service. The
answer is constructed in range of 1 to 3 days a week, 4 to 6 days a week, 7 days a
week and first time use. This question is to gather information on midnight service
usage frequency. For the next question the respondents have to response on their
waiting time, the range of timing is structured in the range of immediate pick
up, waiting from 15 minutes and below, 16 minutes to 30 minutes, finally 31
minutes and above. For this question the researcher is to know about midnight taxi
availability. For the next question in this section is to gather information on where
midnight traveler goes. The highest response on where user goes will be trip
generator for midnight service.
Section B is to gather respondents’ experience with the midnight rate charge.
Respondents will be asked whether they know about 50% midnight surcharge that is
included in their purchased coupon. The answer will be in “yes’ or “no” Following
that the respondents were asked on their opinion whether they agree with the rate.
The answer will also be in “yes’ or “no” Finally, in this section, researcher will ask
respondent to suggest new surcharge rate. Respondent who doesn’t not agree with
current will response to this question. They will be given choices in form of 10%
rate, 20% rate, 30% rate and 40% rate. In overall, this section is to evaluate user’s
perception with current surcharge rate that being imposed.
In Section C, the researcher designs the question to gather respondents’
experience with abuse on midnight rate case directly by taxi driver. There are six
questions in this section. The first question is to ask the respondent whether they
have an experience with the driver who is demanding cash although midnight rate is
already charged in the purchased coupon. The answer will be in form of “yes” or
“no”. This question is to determine the severity of the overcharge issue by the taxi
driver. For the next question, the respondents’ need to justify the reason on giving
30
cash to the driver. The selective answer is given, that is the respondent might feel
threaten, feel pity for the driver and the amount is not that much.
The question on respondent who found
taxi driver demanding cash is
continued. They will be asked whether they do complaint report on overcharge case
or not. Following this, is the question on where the respondents do their complaint
report. There are given selective answer, the first answer is “report to MIJ
Company”, second answer is “post to electronic media”, “write in printing media”
and “report to local authority”. On the other side, if the respondents’ answer that
they did not report the case, the respondents will give the reason for not reporting the
case. In this section the research wants to study on how the abused passenger treats
on overcharge case.
The last question is respondents will be asked on their opinion about abuse on
midnight surcharge. The answer is ranked at strongly agree, agree, strongly disagree,
disagree and finally neither agrees nor disagrees. The reason to this question is to
gather information on overall respondent’s opinion with midnight rate abusive.
The second part of the question was structured on passenger’s demographic
features. According to Widmann and Miller (2001a) there is a range of demographic
features important to any of the transit-taxi concepts. The most commonly discussed
and relevant features include: population density, age ranges and income levels.
Trip generators/attractors are also crucial in determining the transit-taxi ridership
demand.
In this study, user demographic profiles will be survey on respondents’
gender, nationality, age, employment status and income level to give an
understanding on the user’s profile.
Example of survey questionnaires is provided in Appendix C at the end of
this report.
31
3.4.2 Survey Instrument for Taxi Network Operator
An open-ended survey question will be used in taxi network operator survey.
The reason behind this strategy is that the researcher would like to be as flexible as
possible and change the questions. Interviews are conducted with the company. The
aim of this interview is to provide improvement in midnight taxi queuing operation.
A set of question is prepared and it is served as guidance during the interview
session. The scope of the question is focusing on the midnight taxi queuing
operational issue. Respondents from the taxi network operator will respond to this
question. They are the staffs who handle taxi operation. The scope of the question is
on where the taxi queuing operation begins until the taxi boarding. Respondents will
be asked on their personal information and current job function. They will be asked
on midnight taxi queuing operation procedure and how the process is done. To find
midnight taxi queuing operational issue, they will be asked on current failure in
operation system, how many of them (taxi drivers) who miss the queuing procedure
(jumping queue) and what is the current action that is being practiced to the driver
who caught in jumping queue. They are also being asked on what is the barrier to
improve their duty as well as to improve midnight taxi queuing operation. Finally,
all respondents will be asked on their opinion on how to improve midnight taxi
queuing operation.
Example of survey questionnaires is provided in Appendix D at the end of
this report.
3.5
Sampling Design
Midnight taxi ridership is useful information to determine the population of
the study. This population size will be used to determine the sample size
for
midnight taxi user.
For the taxi network operator survey, the researcher will do census survey
because the sample is not large. According to Easterby- Smith et al (2000), when the
32
population is not large, as the case of this research, it is customary to send the
questionnaires to all. This 100 per cent sample is known as census which is inclusion
of an entire population where the data are collected in relation to all the units in
population. The census will be conducted on 4 taxi network operator staffs to ensure
the study is more comprehensive that reveal the actual midnight taxi operational
problem and meaningful analysis can be derived.
3.5.1 Sampling Design for Midnight Taxi User
Population of the midnight taxi user is gathered from coupon sale report.
From the coupon sales report, sales on coupon are recorded in hourly basis. The
researcher develops midnight (12am to 6am) service to determine population size.
Due to unavailability of data, report on taxi passenger ridership for the month of June
2008 was collected.
Table 3.1 below is to show midnight passenger ridership.
From the table it is found that the study’s population was determined to be
2,939 midnight taxi passengers.
Table 3.1: Midnight passenger ridership
June 2008
Passenger Ridership from 12 am to 6 am
1st
2nd
3rd
4th
5th
6th
7th
8th
9th
77
131
44
68
49
90
182
126
189
10th
11th
12th
13th
14th
15th
78
93
52
72
71
92
16th
17th
188
116
33
18th
122
19th
20th
21st
22nd
23rd
24th
76
64
63
67
116
80
25th
26th
27th
28th
29th
30th
57
95
87
93
114
187
Total
2,939
(Source : Mersa Indah Jaya Sdn Bhd, 2008)
3.6
Determine Sample for Midnight Taxi User
In this study, the probability sampling was selected. This strategy will give an
equal chance to every individual in the population.
The researcher has conducted pilot survey to calculate the sample size as well
as to realign survey question. During the pilot survey 10 participants were randomly
chosen from the population and survey question were handed. This pilot survey was
performed as the actual survey. An observation was made to record time and any
deficiency. Finally, the pilot survey is served as the fine tune process to the actual
survey.
From the pilot survey, the highest variance was calculated to determine
sample size. Result from the pilot survey showed that 10% of respondent reported
overcharge midnight cases. The researcher had set 95% confidence level and 5% of
margin error. Equation (3.1) shows the dichotomous variables formula which is
applied to calculate the sampling size.
was determined to be 132 respondents.
From the formula, the sample size
34
From the pilot survey,
p(report) = 0.1
p(not report) = 0.9
Using the following steps and formula :
Step 1
Step 2
=
(
)
=
Z
N
3.7
= initial sample size
= Z value at α signiicant level
= sampling error
= actual size
= population size
Sample Selection for Midnight Taxi User
According to Ralph et al (1995) systematic samples with a random starting
point are often used in field experiments because systematic sampling ensures
coverage throughout a study area, and systematic samples may be preferable to
35
random samples for many sampling objectives. These samples are generally accepted
as equivalent to random samples when no pattern exists in the environment.
Noted by Walker et al (2001) systematic sampling involves collection of data
at predetermined, usually evenly spaced intervals. As a water sampling strategy, it
represents an affordable way of collecting information about a hydrologic system. It
is useful for evaluating long-term trends, provided that sample collection intervals
are sufficient to avoid bias.
The systematic random sampling with random starting point is used to select
respondent where there is no pattern exist in the usage of taxi service. Using the
systematic sampling approach the sampling interval must be defined in which it is to
find the next respondent that will be selected. The population and sample size is used
to calculate the sampling interval. Equation 3.3 is applied to find sampling interval.
From the calculation sampling interval was determined to be 22.265. Because of the
sampling interval is noninteger the starting point that is to select first respondent is
selected from the noninteger which is range from 0 to 22.265. The first respondent
is randomly selected from the prepared list of numbers. The pencil is thrown to
figure out the chosen number. From this random selection process, the noninteger
number was determined to 7.5.
Table 3.2 shows the list of selected sample based on systematic sampling
procedure. For each noninteger selected should be rounded up to the next integer.
K=N/n
Where ;
K = Sampling Interval
N = Population
n = Sample size
(3.3)
36
Due to counter operation, the company permitted the researcher to complete
the survey within a week. The researcher sets the survey in six days. Equation 3.4 is
applied to find target respondent in a day.
From the calculation means of survey
response is being the target respondents. Result shows that target respondent was at
22 respondents a day.
M=n/d
(3.4)
Where ;
M = Mean survey response
n = Sample size
d = day to complete survey
Table 3.2: List of sample
Number of Sample
Sampling Interval
kth Taxi User
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
7.50
29.77
52.03
74.30
96.56
118.83
141.09
163.36
185.62
207.89
230.15
252.42
274.68
296.95
319.21
341.48
363.74
386.01
408.27
430.54
452.80
475.07
8
30
52
74
97
119
141
163
186
208
230
252
275
297
319
341
364
386
408
431
453
475
(Source: Mesra Indah Jaya Sdn Bhd, 2008)
37
In the case of, neither respondent refuses nor disqualified the next respondent
automatically to participate in the survey. The process is repeating until the survey
finds the survey’s replacement. Then, the same interval is counted for the next
respondent. Figure 3.3 is to show the process to select survey respondent.
Same Interval
Respondent
Survey
NO
Replacement
YES
Done
Figure 3.3: Diagram on survey respondent selection process
3.8
Conduct Actual Survey
Finally, researcher will conduct survey on user and taxi network operator to
collect primary data that be used in this study. In this section researcher will explain
on how data collection and analysis will be done.
38
3.8.1 Conduct Survey on Midnight Taxi User
To conduct survey, survey committee had been set. This
committee
was
called as “midnight survey team” that includes:
• Coupon counter supervisor
• Coupon sale representatives
• Marshal - survey administrator
The committee leads by the company’s GM and he is also the chairman of the
committee. The selection of committee member is done within the company
internally. Then, the researcher is the committee advisor. From this committee,
survey can be performed effectively because every member in the committee has
performed their daily operation in providing coupon service to the passenger.
Technically, the company performs the survey according to the developed survey
program.
At start, “survey committee meeting” was handled by the chairman and
observed by the advisor. The meeting is to brief on the survey function and procedure
involved. The committee was told that the survey is to investigate abusing on
midnight rate by the taxi driver. The second agenda is to explain on survey
procedure. This procedure is to explain on respondent criteria and the respondent
selection process.
To select right respondent prerequisite questions will be asked.
Thus, coupon sales representative will ask the respondent whether the respondent has
experience using midnight taxi service or not. Then second question is to ensure the
respondent whether he/she is willing to participate in the survey program or not. The
reason behind, these questions is to ensure on the quality of survey response.
Finally, the meeting is closed on how to conduct the survey. The team has been
briefed to practice proper attitude, put a smile and always thanks to the participant.
At the end of the session the module is to explain on how to keep survey form in safe
and confidential.
During the survey, the researcher provided the team with “Respondent
Selection Form”.
This form is to record on respondent purchased coupon
39
identification number with the given numbered selected respondent. Using this form,
selected respondent is tracked.
The survey is performed in six days subjects to company’s permission. Each
day the 22 respondents are targeted to complete the question. During the morning
shift the counter supervisor will collect a set of 22 survey questions from the office
and pass it to the survey administrator. Coupon counter with the respondent survey
form will ensure the passenger’s order. When the coupon counter finds the
respondent, survey administrator will hand survey form to the respondent. The
question takes 10 minutes time to be completed. Survey administrator will assist and
collect the form after the respondent completes the question. . The administrator is
responsible to keep the survey form until each of 22 survey questions is completed.
The form will be passed to the next shift survey administrator. Then the process
survey is repeating until the number of target respondent is achieved.
Upon completion, the night supervisor will collect the survey document from
survey administrator. Then, he/she will bring the form to the operation office where
the form is placed safely. This process is repeated until the sixth day of the survey
program.
After the survey process is completed, the researcher will compile the survey
question and the next process is to analyze the data. Data coding will be applied to
each question. Then using software application, those are ‘Statistical Package for the
Social Science (SPSS)’ as well as Microsoft Excel and Microsoft Words researcher
will key in the data. Data will be interpreted to find the significant of the data that be
used in the study. Data findings and analysis will be explained in Chapter 4 .
3.8.2 Conduct Survey on Taxi Network Operator
The researcher goes to the operation office and pool site office to talk with
the respondent. Interview with the first respondent who is GM of the company has
been made after working hour. This is to free himself from his work. The interview is
done in three sessions; the first session is covered on the management roles from the
point of providing coupon service and managing taxi operation. The next session is
40
to cover complaint against taxi driver on abusing midnight rate charge, complaint
handling process, compliant analysis as well as action taken against the complaint
raised. The session is ended with how the company improves their midnight taxi
service.
Second survey respondent is three pool operation supervisors. The same
questions will be asked to all participants and will all be open ended in a day. The
researcher decided to cover three shift working time is because to gather more
opinion on improvement suggestion by different respondent. They are interviewed at
the pool site office. Interview is done in three sessions. In the first day, the interview
is done to the evening shift supervisor, followed by night shift supervisor and
morning shift supervisor. The question is based on taxi operation issue and
improvement suggestion.
The analysis of data collected from interviews will be done as the interviews
are conducted. Interview tapes will be listened to, transcribed and notes in forms of
memos generated for later coding and contextualization. Data from this interview
will be used in recommendation.
3.9
Summary
In overall of this chapter, the researcher conducts survey on 132 midnight
taxi users and 4 taxi network operator staffs. The systematic sampling with random
starting point is the method that is applied on 132 taxi users and census survey is
conducted to the taxi network operator.
Survey on midnight taxi passenger is to find user’s opinion with abuse on
midnight charge and the survey findings will be based on passengers’ justification
that will be explained in Chapter 4. The survey on taxi network operator is to find
the midnight taxi queuing operation improvement to enhance midnight taxi service
performance.
CHAPTER 4
DATA FINDINGS AND ANALYSIS
4.1
Introduction
In this chapter data collected from the survey will be analyzed. The survey was
done on midnight taxi passenger and taxi network operator. Data coding whilst the
interpretation from the practical application those are ‘Statistical Package for the Social
Science (SPSS)’ as well as Microsoft Excel and Microsoft Words will result useful
information. The analysis is divided into two parts. The first analysis is user survey
analysis and second part is MIJ Company survey analysis. The result will be presented
in form of chart, table and figure.
4.2
Results on Midnight Taxi User Survey
The analysis is started with passenger demographic features, midnight service
experience, midnight rate surcharge experience and overcharge midnight rate case. In
this survey, the objective is to investigate overcharge midnight rate case done by taxi
driver. Result from the findings will be analyzed to determine the objective of the study.
42
4.2.1 Demographic Features
Study on the gender, nationality, age, employment status and income level will
bring further understanding in term of midnight service user profile at the LCC
Terminal. In this study the interpretation of data will be related with demographic
features to develop understanding as well as to provide recommendation.
a)
Gender factor
The interpretation of data begins with the survey on respondents’ gender. From
132 respondents 72% or 95 respondents are male and 28% or 37 of them are female.
Figure 4.1 is to show survey findings on gender factor. It can be said that man travels
more than women at night. There are many aspects to be considered when travel at night
especially female traveler. Because night travelling has shorter time than day time travel,
increase in fare and safety aspect, that is why women traveler is preferred to travel
during day time.
Female
28%
Male
72%
Figure 4.1: Response on gender factor
(Source: Survey question)
43
b)
Nationality Factor
From the survey it was found that from the total of 132 respondents, 117
respondents is Malaysian. Then, 15 respondents or 11% of them is foreigner. Figure 4.2
is to show survey’s result on nationality factor. Although there is small foreign
participant, this group brings useful information. They are unfamiliar with local deal, use
different currency, different language. This nationality factor will be analyzed with other
data to find relevancy of data.
Foreigner
11%
Malaysian
89%
Figure 4.2: Response on nationality factor
(Source: Survey question)
c)
Age Factor
The analysis of age factor is to define on what is the age range that is contributed
to midnight service travelling pattern. From the data it was found that the highest
response is 39% or 52 respondents who are in the age range of 31 to 40 years old.
Following that is 32% or 42 respondents who are in the age range of 41 to 50 years old.
Out of 132 respondents, 28 or 21% of them is in the age range of 20 to 30 years old and
8% or 10 respondents are in the range of 51 years old and above. Figure 4.3 is to show
44
response on age factor. From this result it can be explained that user in the range 31 to
40 years old travels more than the other age range group.
39%
32%
21%
8%
20 to 30
31 to 40
41 to 50
51& above
Figure 4.3: Response on age
(Source: Survey question)
As for the age distribution, result was classified into two groups, ranging from
highest of two and lowest of two. It was found that 71% or 95 respondents are in the
range of 31 to 50 years old.
The lowest of two, is a group in the range of 20 to 31 years
old and above 51years old that is 29%. Figure 4.4 is to show highest age range group
versus lowest age range group. From the findings, it shows that majority midnight
traveler is user in the age range of 31 to 50 years old. In this age range people are
actively performed their activity. It may for the purpose of personal interest and/or
employment function.
45
20 to 30
and
Above 51
(29%)
31 to 50
(71%)
Figure 4.4: Response on highest versus lowest age group
(Source: Survey question)
d)
Employment Factor
From Figure 4.5 below, it was clearly found that out of 132 respondents 64% or
84 of them is a full time employment. Following by 19 % or 25 respondents who
responded as part time employee, 9% or 12 of them was retired and 6% or 8 of them was
a student. The lowest result is 2% or 3 respondents with unemployment status. From
the results it shows that most of midnight user with full time employment status uses
midnight service as compare with other types of employment. In this study employment
status give significant information, due to employment activity full time employment
make use midnight service as compared with other group of employment.
46
70%
64%
60%
50%
40%
30%
19%
20%
9%
10%
6%
2%
0%
Full time
Partime
Retired
Student
Unemployed
Figure 4.5: Response on employment status factor
(Source: Survey question)
e)
Income Level Factor
From Figure 4.6, it was found that the highest income level is in income the
range of RM3,001 to RM4,000 that is 45% or 59 respondents out of 132 respondents.
On the other side, the lowest response on income level is in the income range of
RM5,001 and above that is 7% or 9 respondents. For the second highest of income level
response is in the income range of RM4,000 to RM5,000 that is 32% or 42 respondents
and finally the third highest of income level is in the income range of RM3,000 and less
that is 17% or 22 of them. Income level is a factor that determine user travelling mode.
In this study, although income factor affect user travelling mode, but it is showed
highest income is not represented the highest midnight service usage. It is because the
LCC Terminal provides affordable rate charges where people with an average income
level is afford to make use midnight service.
47
7%
More than RM5,001
32%
RM4,001 - RM5,000
RM3,001 - RM4,000
Less than RM3,000
45%
17%
Figure 4.6: Response on user income level
(Source: Survey question)
4.2.2 Midnight Service Experience
Trip purpose is useful information in managing traveling demand. The trip
purpose for nighttime taxi service at the specific location like university area will
determine the successful of the service (Widmann and Miller, 2006c).
From the survey, 65% or 86 of 132 respondents respond on use midnight taxi to
return home than for any other purpose. The second highest response is 17% or 22
respondents who use midnight service to go to hotel. Following that is respondents who
use midnight service for their business trip purpose that is 11% or 15 respondents and
the lowest response rate is other trips purpose that is 7% or 9 respondents. Figure 4.7 is
to show response on trip purpose.
In majority, most of the midnight taxi user use midnight service to return home.
With that it can be said that return home is the trip generator for midnight taxi service at
the LCC Terminal.
48
Others
Business Trip
7%
11%
17%
Go to hotel
65%
Return home
Figure 4.7: Response on midnight service trips purpose
(Source: Survey question)
Trip purpose data will be combined with employment status to give more
understanding on each factor relatively. The highest response rate will be analyzed to
show the significant of data. The analysis of data shows that 65% or 86 riders who use
midnight service to return home is 55 or 63% from full time employees, 22% or 19 are
part time employees, 10% or nine from retired, 2 % or two is a student and 1% or one
unemployed. Figure 4.8 is to show combination of both data that is trip to return home
and employment status. Most of the full time employment use midnight taxi service to
return home because they travel outstation by flight and they have to extend their time to
finish the task.
Furthermore, to park vehicle at the terminal and drive to return home is much
costly and fatigue. They don’t bothered about the fare charge because of some company
provides travelling allowance and pay their travelling bill. For this reason this group has
high demand on midnight service.
49
10%
2%
1%
Full time
Partime
22%
64%
Unemployed
Retired
Student
Figure 4.8: Response on trip to return home and employment status
(Source: Survey question)
From the survey, 52% or 68 respondents respond on 1 to 3 days a week
travelling frequency. Following that response on first time experience was at 31% or 41
respondents. Then the third highest response was on 4 to 6 days a week that is 14% or 18
respondents. Finally, response was on 7 days a week that is 4% or 5 respondents.
Figure 4.9 is to show response on midnight taxi user travelling frequency. It can be
concluded that most of midnight taxi rider use midnight service for 1 to 3 days a week.
14%
4%
31%
52%
Just my first
time
1 to 3 days per
week
4 to 6 days a
week
7 days a week
Figure 4.9: Response on midnight taxi user travelling frequency
(Source: Survey question)
50
Data on highest response on how many time midnight user frequently travel will
be combined with trip purpose to find information on where this group use midnight
taxi, is it goes to hotel, return home business trip or others. Result shows that out of 68
respondents who travel at 1 to 3 days a week 52 or 76 % of them use to return home, 18
% or 12 respondents use to go to hotel, 4% or three respondents use for business trip
purpose and 1 % or one respondent uses for other trip purpose. Figure 4.10 is to show 1
to 3 days a week user frequent travelling and trip purpose. From the data it tells us that
user frequently make uses midnight service to return home. In this study this group of
user brings useful information since they have a lot of experience with midnight taxi
service.
4% 1%
18%
Return Home
Go to hotel
Business trip
Others
76%
Figure 4.10 : Response on 1 to 3 days a week user frequent travelling and trip purpose.
(Source : Survey question)
It is important to study waiting time in taxi service is to measure service
performance. For the other reason, passenger’s service dependency will be concerned
on waiting time. The higher waiting times that rider takes, the higher traveling time
he/she spends.
51
According to the data a total of 84 respondents or 64 % of them found that
waiting time of midnight taxi is below than 15 minutes. Then 15% or 20 respondents
found that taxi came immediately, 14% or 19 of them found that they were waiting for
16 to 30 minutes and the rest of 6% or 8 of respondents were waiting the taxi for more
than 30 minutes. Figure 4.11 is to show waiting time for the midnight taxi service. From
the result it can be said that most of the time midnight taxi service waiting time is
acceptable when the highest rate of response was waiting below 15 minutes and this 15
minutes is waiting limit that is set by taxi regulator.
64%
15%
14%
6%
A taxi came
immediately 15 minutes
and below
16 - 30
minutes
30 minutes
and above
Figure 4.11: Response on midnight taxi user waiting time
(Source: Survey question)
In overall, survey on midnight service at the LCC Terminal experiences high
demand in traveling to return home. User make uses this service in 1 to 3 days a week.
This purpose of trip and passengers ridership determines travelling demand for the LCC
Terminal midnight service. It is also can be said service is reliable when waiting is not
over the waiting limit. The waiting time is at reasonable time that is below than 15
minutes. In summary, the highest response rate is tabulated on Table 4.1.
52
Table 4.1: Summary on highest response on user’s experience with midnight service
No
Service
Experience
Highest Response
Response from
respondents
Percentage
1
Purpose of Trip
Return home
86 out of 132
65%
2
Usage Frequency
1 to 3 days a week
68 out of 132
51%
3
Waiting Time
Waiting at 15 minutes and below
84 out of 132
64%
(Source : Survey question)
4.2.3
Midnight Surcharge Experience
In some area, night time transport service is limited at certain period, this is
caused by low ridership and high operation cost. In managing travel demand, operator
needs to adjust their operation in order to gain profit. This adjustment strategy can be
reducing trip frequency, route diversion, and adjust vehicle.
In the other side, this
adjustment affected passengers traveling time, low trip frequency cause passenger to
wait longer time. Route diversion changes passenger traveling mode.
To ensure service reliability, regulator implements 50% midnight surcharge.
This strategy is said to smoothen midnight taxi operation, but there is an operation issue
that need to be identified. In this study, survey on whether users know about midnight
surcharges is to find information on midnight surcharge implementation. In addition,
although the printed coupon has included surcharge rate it is not indicated midnight
surcharge rate. The sum of service charge amount is printed in total and it is not
detailing service charge. It is showed that 88 respondents or 67% of them know about
50% midnight rate surcharge, the rest of 33% or 44 respondents did not know about
surcharge rate that being imposed. Figure 4.12 is to show response on whether user
knows about midnight taxi or not.
53
No
33%
Yes
67%
Figure 4.12: Response on whether user knows about midnight taxi or not.
(Source: Survey question)
The analysis on user who didn’t know about surcharge implementation is to find
from which group they are. From 44 users who didn’t know about midnight surcharge,
70% or 31 respondents are first time user, 10 respondents are foreign user and two from
retired user and one is a student. Figure 4.13 is to show user group who doesn’t know
about midnight surcharge
From this data, it tells us that there is lack implementation of midnight service
where some of user group didn’t know about midnight rate charges. The researcher
found that it is an area that needs to be improved.
.
.
54
5% 2%
23%
Foreign User
70%
First Timer
Retired
Student
Figure 4.13: Response on user group who doesn’t know about midnight surcharge
(Source: Survey question)
Survey on price is to find out on how user’s feeling with the rate charge. To
some extent, price determination will also rely on user’s response. In this study survey
on price is not to determine on the fare that suppose to be charged. Survey result is to
gather passenger opinion with current midnight rate charges.
From the survey 81% respondent responds not agree with current rate. This
percentage represents a total of 87 users out of 107 users. The rest of 19% or 25
respondents consider that current rate is at reasonable charges. Figure 4.14 is to show
response on whether user agrees with current surcharge rate or not.
More than half respondent responses not agree with current rate charge. In can
be concluded that majority of the user is not agreed with current rate that being imposed.
The researcher combines the data with data on midnight user travelling frequency
because as the group is travelling more the more experience they have with the rate. It is
found that from 107 who didn’t agree with current surcharge, majority is 7 days a week
and 4 to 6 days a week frequent user who 100% were not agreed with the rate.
Following that is 1 to 3 days a week frequent user, 76% not agreed with the rate. Then,
78% is first time user. Table 4.2 is to show frequent user who didn’t agree with current
55
surcharge. Users who travel in high frequency spend their money for travelling
expenses; fare charges are fixed cost for them. From this information, it gives the
researcher improvement area to be included in the recommendation.
YES
19%
NO
81%
Figure 4.14: Response on whether user agrees with current surcharge rate or not.
(Source: Survey question)
Table 4.2: Response from frequent user who doesn’t agree with current surcharge
Respondent
Not Agree
%
Just my first time
41
32
78%
1 to 3 days a week
68
52
76%
4 to 6 days a week
18
18
100%
7 days a week
5
5
100%
User Frequency
(Source: Survey question)
56
Respondent who was not agreed with current rate will respond to this question.
In this survey question, user is requested to suggest new rate. Rate is structured in form
of:
A. 10%
B. 20%
C. 30%
D. 40%
Out of 107 respondents 45% or 48 respondents were agreed to pay 10% for
midnight surcharge and the second highest is 31% or 33 respondents who were agreed to
pay 30% for additional midnight rate. Then 19% or 25 respondents were agreed to pay
20% and 5% or 7 respondents were agreed to pay 40 %. Figure 4.15 is to show response
on midnight rate suggestion. It can be said that midnight taxi user ask for fare charges
reduction.
45%
45%
40%
31%
35%
30%
19%
25%
20%
15%
5%
10%
5%
0%
10 Percent
20 Percent
30 Percent
40 Percent
Figure 4.15: Response on midnight rate suggestion
(Source: Survey question)
57
4.2.4 Overcharge Midnight Rate Case
Survey question on respondent experience with taxi driver demanding cash is to
gather information on overcharge case.
Due to taxi operation procedure, driver is
strictly prohibited collecting cash for any reason. In the case of surcharge, purchased
coupon had already included the rate. From the survey it was found that 26% or 34
respondents had experience with driver demand cash. 74% or 98 of them hadn’t
experience with taxi driver demanding cash. Figure 4.16 is to show response on driver
demanding cash.
Yes
26%
No
74%
Figure 4.16: Response on driver demanding cash
(Source: Survey question)
In the case of driver demanding cash the researcher has furthered on data
interpretation to determine which group of user contributes to this result. From table
below it is found that the highest user’s response on driver demanding cash is first time
user who responds at 53 % or 18 of them. The second highest is full time employment
users, they are 10 of them who responds to this question. The third highest response is
users who go to hotel, they are 4 of them who respond to this question. Another two
respondents are user from income above RM5, 000.
58
From the table also it can be explained that the highest group that had experience
with driver demanding cash is first time user that is 44%. Then the second highest is
33% that is user who rides midnight taxi to go to hotel. The third highest is 22 %, they
are user who earn more than RM5,000 a month. Finally is the group of full time worker
that is 18% of them. Table 4.3 is to show summary response on driver demanding cash
and respondent’s group.
It can be concluded that first time user is the majority who experience with driver
demanding cash. From this information it can be said because of the group less
experience in term of midnight service operation. They tend to be cheated by the driver.
Furthermore inexperience with surcharge implementation also is caused to overcharge
case.
Table 4.3 : Response on driver demanding cash and respondent’s group
Response On
Driver Collecting
Cash
Total Respondent
From Each Group
% Response On
Driver Collecting
Cash
% Response
On Total
Group User
First time user
18
41
53%
44%
Full time employment
10
55
29%
18%
Go to hotel
4
12
12%
33%
Income above RM5K
2
9
6%
22%
Total Respondents
34
117
100%
118%
User Group
(Source: Survey question)
Users who had experience with taxi driver demanding cash and reported their
case will respond to this question. The answer will be at four complaint channels:
A. Taxi network (MIJ Company)
B. Local authority
59
C. Printing Media (magazine, newspaper etc)
D. Electronic Media (electronic blog, radio, television etc)
Out of 132 respondents, 26% or 34 respondents who have experience with
overcharge case, 40% or 10 of them reported their case to MIJ Company. 28% of them
or 7 respondents posted their case to electronic media. 20% or 5 of respondents report
their case to local authority and 12% or 3 of respondents report their case to printing
media. Figure 4.17 is to show response on where user reports their complaint.
40%
35%
30%
25%
40%
20%
15%
10%
5%
28%
20%
12%
0%
Coupon
Company (MIJ) Local Authority
Printing Media
Electronic Media
Figure 4.17: Response on where user reports their complaint
(Source: Survey question)
User who not report on overcharge case will respond to this question. 98
respondents were answered this question. They were asked the reason for not reporting
overcharge case. The researcher provides the reason as:
60
a) Feel threatened
b) I don’t know how
c) Don’t bother
d) Not Applicable
From the survey it was found that 46 respondents or 47 % of them who were not
reported overcharge case because of they don’t know how to report the case. 35% or 35
respondents feel threatened to report the case. 12% don’t bother about the case. 6% rated
at not applicable. Figure 4.18 is to show response on why respondent not reporting
overcharge midnight rate case. Because of majority of respondent didn’t know how to
complaint, it is a need to provide them with a complaint channel. So that, they can do
their complaint through the right channel. The establishment of complaint medium is
not to say in high cost moreover proper complaint handing provide the cheapest useful
information to study midnight taxi service performance.
12%
6%
35%
47%
Feel threatened
I don’t know how
Don’t bother
Not Applicable
Figure 4.18: Response on why respondent not reporting overcharge midnight rate case.
(Source : Survey question)
61
Passenger’s opinion will be asked whether they agree or not with abuse on
midnight charges by taxi driver. The answer has been structured as follows:
1.
Strongly agree
2.
Agree
3.
Neither agrees nor disagrees
4.
Disagree
5.
Strongly disagree
It was found that the highest user opinion rated at “disagree” that is 39% or 52
respondents. The second highest user’s opinion rated on “neither agrees nor disagrees”
that is 29 % or 38 respondents. Following that is 19 % or 25 of respondents who rated on
“agree”. Then, 8% or 10 of them rated on “strongly disagree” and 5 % or 7 respondents
rated on “strongly agree”. Figure 4.19 is to show response on user’s opinion with
midnight rate abuse by taxi driver.
40%
35%
30%
25%
39%
20%
29%
15%
19%
10%
5%
8%
5%
0%
Strongly
agree
Agree
Neither
agrees nor
disagrees
Disagree
Strongly
disagree
Figure 4.19: User’s opinion with abuse on midnight charges by taxi driver.
(Source: Survey question)
62
From the data it can be said that that 47% or out of 132 users 62 of them
disagreed that taxi driver is abusing midnight rate. In contrast 24 % or 32 of them gave
agreed that taxi driver is abusing midnight rate. The rest of 29% were neither agreed nor
disagreed. Figure 4.20 is to conclude respondents’ opinion with driver abusing midnight
rate and driver not abusing midnight rate. Although majority of respondents’ opinion
result that driver is not abusing midnight rate, researcher found that abuse on passenger
fare charges wreck taxi system
29%
47%
Driver abusing
midnight rate
Driver not abusing
midnight rate
24%
Neiher agrees nor
disagress
Figure 4.20: Comparison on abusing midnight rate by taxi driver
(Source: Survey question)
4.3
Results on Taxi Network Operator Survey
The analysis on taxi network operator survey begins with brief information on
what is the main company function at the LCC Terminal.
63
4.3.1
Main Task and Responsibility
The MIJ Company is appointed by CVLB to operate pre paid coupon system at
the LCC Terminal. Fare charges have been set by the regulator based on zone. At the
moment, three counters had been set up at the terminal. The company works together
with taxi operator to manage their supply. This taxi operator has been permitted by the
CVLB. The concession has been awarded based on company performance. Service
report will be submitted to regulator for every three month. The report will include
coupon sale report, update vehicle number on the road, passenger volume and
highlighted issue e.g. passenger compliant, driver performance and other operation
issue.
The company main task is to provide coupon system effectively. In general, the
company must meet passenger demand in the other word supply and demand must be at
the equilibrium point. Thus the company has to optimize their resources to cope with the
terminal operation. The allocation of staff, tools and equipment and also the effective
system need to be updated.
To meet the equilibrium point in supply chain, another task is performed. The
company monitors taxi operation. This taxi operation system is monitored through the
taxi operation procedure that was developed by the company. Through this procedure
taxi must follow the queuing process, begin with entry registration, waiting in queue and
boarding to pick up point.
Another company main task is to perform taxi driver coupon claim. To perform
this function the company set up counter claim at the operation office and it operates
from 9 a.m. to 5 p.m. 7 days a week.
The company has no right to punish malpractice taxi driver. Driver performance
is currently monitored by taxi operator. In the case of passenger complaint against
malpractice driver who are to overcharge, the company will only attend the compliant
when the passenger put in write up. At the moment the, for every compliant received,
64
report will be submitted to the regulator and passenger compliant will be attached. This
report will also be forwarded to the taxi operator. There is no feedback for every
complaint report whether from regulator or taxi operator. For this reason, the company
doesn’t study passenger complaint case. No analysis is done.
4.3.2
Pool Site Operation
At the pool site, there are three supervisors work at shift time. They rotate their
shift time for every three days. Start at morning shift, evening shift and night shift. The
main function is to monitor taxi queuing operation. This is done by registering taxi
entry. Taxi number will be keyed into the software application and data will be stored
into the server that been placed at the operation office.
When the staff at terminal requests the numbers of taxi that is needed at the time,
the supervisor will announce the taxi to go to terminal. The announcement is made
through public address (PA) system.
At the end of their working shift, the Supervisor will produce taxi registration
report. The report will include total registered taxi number according to service
packages, shortage in taxi supply and jumping in taxi queuing operation.
4.3.3
The Formation and Decline of Midnight Taxi and Midnight Passenger
Report on 13th January 2009 shows imbalance in supply and demand of the
midnight taxi operation. According to the report, before midnight the taxi supply was in
shortage that is from 10pm until before midnight. Then at 12am which is midnight time
the taxi supply exceed than the demand where it was 81 taxis and 57 passengers. This is
showed that more taxi driver try to obtain midnight passenger after midnight time as
compared with before midnight time. In addition, the reliability of midnight taxi service
is good in performance when there is number of taxis to support passenger demand.
But, in the other way round, midnight taxi drivers have to compete with other drivers in
the situation where the passenger ridership is very low. This will lead problem in
65
midnight taxi queuing operations. Figure 4.21 shows the formation and decline of taxi
and passenger before midnight and after midnight.
Passenger
Passenger / Taxi
120
Taxi
114
109
100
Linear (Passenger )
96
80
79
76
64
60
Linear (Taxi)
81
66
65
57
40
38
28
27
20
2
0
0
10.00
1
11.00
2
12.00
3
1.00
4
2.00
5
0
3.00
6
0
4.00
7
0
5.00
8
1
6.00
9
Time10
Figure 4.21: The formation and decline of taxi and passenger before midnight and after
midnight.
4.3.4 Problem in Taxi Queuing Operations
It is found that 15 to 20 midnight taxi drivers adjust their queuing operation by
jumping the queuing line. This happens when there is high midnight passenger volume
where the taxi driver was being informed by someone on the arriving flight. The
malpractice drivers will register their entry and straight a way waiting at the front
queuing lines. The company had already forwarded report on malpractice in queuing
taxi operation to the regulator and attached their report to the taxi operator.
66
4.4
Suggest for Improvement
From the interview, there are two areas improvement concerned. The first
proposal is upgrading software application which can be done within the company. In
contrast, improvement also can be made outside the organization concerned. They found
that the LCC Terminal taxi needs punishment system.
4.4.1
Upgrade Taxi Queuing Operation Software Application
The software application provides information on time, day and service package.
Information that is provided by the software is total taxi registration at time. Although
the software application assists supervisor job function in taxi registration, the
supervisor can’t retrieve data on registered taxi in hourly basis. The application will
record on taxi entry and store it into the server.
The researcher found that this software needs to be upgraded. Reporting module
shall be included. This reporting module is useful information in monitoring taxi supply
and it shall be synchronized with coupon sales application. This will be more efficient
when the coupon counter can also monitor taxi supply. In the other way, reporting
module is also useful information in taxi supply projection. From reported data, the
company can manage their supply according to the projection. The researcher will use
this data to provide recommendation in the next chapter.
4.4.2
Establish Punishment
The company suggested that regulator need to develop punishment system. The
system could be in the form of monetary system. The monetary punishment system will
be forced by the regulator and the taxi network operator will be the medium to
implement the system.
67
4.5
Company Restriction
The main restriction that the company faces is the company has no right to take
action against any disciplinary case done by taxi driver. This is because the regulator
has resolved that taxi driver performance will be monitored by the taxi operator. As the
company runs their sales operation, they have to make sure adequacy of supply plus the
right quality of supply. This issue had already been addressed by the company to the
regulator and it is found that there is no such policy or any act to proceed with their right
to take action against malpractice driver. The main reason is that the taxi network
operator is not the vehicles owner so they don’t have right to control on vehicle and the
driver.
4.6
Summary
According to survey finding and analysis it is found that abuse on midnight
charge taxi driver is happened. The results show that 26% or 34 respondents had
experienced with driver collecting cash. Among them, they are first time midnight user,
full time employment, user who go to hotel and employee who earn more than
RM5,000. Then it is also found that 24 % or 32 of user agreed that taxi driver is
adjusting midnight rate.
It is also found that jumping queue happened where the taxi driver strive to
obtain midnight taxi passenger in low passenger ridership situation. This leads problem
in taxi queuing operation.
In this study it is strongly recommend that improvement shall be done
immediately. Base on the survey, the researcher provide recommendation to improve
midnight service. The recommendations are divided into three area :
68
1. Revise surcharge policy

Special rate for high frequent user
2. Improve midnight service operation

Service transparency

Establish complaint channel

Provide authority to taxi network operator
3. Improve taxi queuing operation

Update software application system
In the next chapter the researcher will details on recommendation and finally the
researcher will conclude the study’s report.
CHAPTER 5
RECOMMENDATIONS AND CONCLUSIONS
5.1
Introduction
In this chapter, data findings as well as analysis from the previous chapter will
bring recommendation to this study. From the previous chapter it is revealed that abuse
on midnight rate charges is done by taxi driver. Second objective of this study is to
improve midnight taxi queuing operation.
5.2
Summary on Findings
From the investigation, it is found that 26% of 132 users experience with driver
collecting cash which is strictly prohibited to the LCC Terminal taxi driver. It can tell us
that this malpractice driver is abusing midnight passenger. Although complaints had
been raised to the taxi network operator, the company can’t take action because they has
no right to do so. Since the MIJ Company operates coupon system to the passenger they
are dealing with taxi supply. The right to take action against malpractice driver needs to
be considered. It is because right and authority is served as tools by the company to
monitor driver performance.
There was taxi jumping queue on midnight taxi operation. From the study,
malpractice drivers adjust their queuing line to obtain midnight passenger. There are 15
69
to 20 of them who were reported in jumping queue. Although the report was submitted,
there is no action being taken to the drivers. .
5.3
Revise Midnight Surcharge Rate Implementation
The first improvement strategy is to revise midnight surcharge rate
implementation. At the moment 50% midnight surcharge service has been imposed to all
midnight travelers without any discount scheme. Suppose coupon system will identify
passenger who travel at high frequent and discounted midnight rate will be given.
Regulator has to put their study on discount rate determination. Details on discounted
scheme will be applied to right user accordingly.
This implementation will bring benefit to the public and encourage them to make
use public transport as their priority. Although, result from survey found that majority
not agreed with current rate, researcher finds that to reduce midnight surcharge to all
user is inflexible because it will affect midnight taxi operation. In other word, this
strategy is to slowdown the impact whilst wining public user interest.
5.4
Improve Midnight Service Operation
The researcher found that midnight service operation can be improved by
providing midnight surcharge implementation information, establish complaint channel
and gain authority from regulatory.
70
5.4.1. Provide Midnight Surcharge Rate Information
From this study it is found that not all users aware on the implementation of
midnight surcharge. The taxi network operator has to provide information on midnight
surcharge implementation. The information will details on what time the charges will be
imposed, what is the normal rare as compared with midnight rate etc. The company can
provide this information at the coupon counter.
The counter coupon shall inform
midnight traveler on surcharge rate. Because the rate is calculated based on zone basis
further explanation is sometimes needed.
In addition, midnight surcharge information can be channeled throughout the
printed coupon. At the moment, the amount of service charges is not defined midnight
surcharges. First time midnight user, foreign traveler doesn’t know what and how much
that he/she pays for midnight service unless he/she has been informed by coupon sales
representative. It is strongly recommended that the company provides information
regarding midnight rate implementation immediately.
5.4.2
Establish Complaint Channel
From the study, because of majority of respondents report their complaint to taxi
network operator, it is recommended that the company need to establish compliant
handling process. Through effective procedure, compliant channeling, receiving and
handling process can be practiced. Complaint file shall be measured to improve service
performance. It is useful information and cost effective to the company to provide
information on level of service.
In this study complaint channel can be established at the counter coupon
helpdesk and front liner will attend passenger complaint. Complaint Form that detailing
on complainant identity and complaint case information will be recorded. Then, for a
short run, feedback to complainant is to be conferred accordingly whilst all the data in
the complaint report is analyzed to carry useful information for the purpose of
improvement plan.
71
5.4.3
Provide Authority to Taxi Network Operator
Taxi network operator is responsible to ensure level of service quality. They
have to ensure that supply will always meet demand. Obviously, taxi supply must cope
with passenger demand to ensure reliability of LCC Terminal taxi service. However, it is
high restriction to perform their activity without right and authority from the regulator.
In fact, this is basic requirement for the company to control taxi operation.
Because of the company provide passenger coupon system at the same time
driver claim system, it is a way how that regulator can make use the company to take
action against malpractice driver as well as to make preventive action to improve driver
performance. Drivers who caught with abused midnight rate will be called at the coupon
claim counter. They will be consulted in accordance with reported case. It is effective
controlling system where the company will work together with CVLB to put high
standard of service to the passenger.
5.4.4
Upgrade Software Application
Development of computer software application is high in cost. Today to succeed
in business, technological aspect must be included in their plan. Although the company
provides in-house software application, it needs to be updated to costume with current
function such as taxi registration report, taxi supply projection etc.
At the moment, the company will manually key in the taxi number and the
system will store taxi entering information. It is to propose that automate registering
process is done in taxi operations, taxi will be banned when there is curious entering e.g.
repeated in entering queue at indefinite time. The registration system will block on
malpractice taxi driver queuing operation. In the case of special arrangement likes the
driver has to perform government event, an authorized approval needs to be verified to
unblock the system. This registration system integrates with coupon claim system where
prior to make coupon claim report on taxi registration is to be verified.
72
In the future, the company has always to update their software application
system so that taxi operation is smoothly monitored and controlled. It is also
recommended that the participant in taxi industry to study on current computerized
system that being implemented in other country to give exposure with the effective
computerized system in taxi industry.
5.5
Conclusions
In this study, the researcher proposes on service improvement that can be done
immediately with minimum investment requirement. Participant from taxi industry i.e.
driver, taxi operator, taxi network and regulator have to pool their effort to enhance LCC
Terminal midnight taxi service performance. In addition, they have to work with
relevant agency whether from government agency and/or private agency to put high
standard in taxi service system.
73
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APPENDIX - A
76
77
78
79
APPENDIX - B
80
81
APPENDIX - C
MIDNIGHT TAXI SURVEY
LCC Terminal, Sepang.
We appreciate your cooperation to give us feedback to the questions below. We will use the
information you provide to improve our night time taxi service at LCC Terminal Sepang. Please
return your questionnaire to the survey administrator when you are done. Thank you.
YOUR ANSWER IS STRICTLY CONFIDENTIAL
Please tick () or fill in the answer from the options given.
PART I : YOUR PERSONAL EXPERIENCE
SECTION A: Your Personal Experience with MIDNIGHT TAXI SERVICE
Q1. How often do you use midnight Taxi at LCC Terminal Sepang?



Just my first time
4
to 6 days a week

1 to 3 days per week

7 days a week

Q2.Roughly, how long did you have to wait?
 A taxi
16
came immediately
- 30 minutes

15 minutes and below
 30

minutes and above
Q3. What was the purpose of this trip?

Return
home
Go
Other : _______________________
to hotel
Business
Trip
82
SECTION B: Your Personal Experience with MIDNIGHT RATE
Q4. Did you notice that there is 50% additional fare charge for midnight taxi service?
Yes
No
Q5. Did you agree with the rate (50%) that being imposed?
Yes,
it is moderate.
No,
is too high, (please proceed to Q5a)
Q5a. If your answer to Q5 is No, how much more did you agree to pay the driver?


10%

20%

30%

40%
SECTION C: Your Personal Experience with MIDNIGHT TAXI DRIVER

Q6. Have you experience taxi driver demanding cash although you have your purchased coupon?

Yes
(please proceed to Q6a,6b)
No
Q6a. If your answer to Q6 is Yes, why did you agree to pay the driver?


Feel threatened

Feel pity for the driver



The amount asked is not much
Not
Applicable
Q6b. Have you complaint on the overcharge midnight rate case?
 Yes
(please proceed to Q6c)

No (please proceed to Q6d)

Q6c. If your answer to Q6b is Yes, Where did you raise your complaint?

 Coupon Company (MIJ)

Printing Media e.g. newspaper, magazine


etc.
Local Authority
Electronic Media e.g.
Q6d. If your answer to Q6b is No, Why don’t you do that?


Feel threatened
I don’t
know how

Don’t bother
Not Applicable
blogs, forum etc 
83
Q7. In overall, did you agree that abusing midnight rate is happened among the taxi driver?

 Strongly agree
 Agree
 Neither
agrees nor disagrees
 Disagree
 Strongly disagree
PART II :YOUR PERSONAL DETAIL
Q8. What is your gender?
Male
Female
Q9. What is your age?
20
to 30
41 to 50
31
to 40
50 and above
Q10. What is your nationality?
Malaysian

Foreigners
Q11. What is your current employment status?

Employed
full time
 Retired
Q12. What is your monthly income?

More
than RM5,001
RM4, 001 - RM5,000
RM3, 001 - RM4,000
Less than RM3,000
 Employed
Student
part time
 Unemployed
APPENDIX - D
84
First Respondent: General Manager
1. What is your company main task in serving passenger with coupon system?
2. How you monitor your service performance?
3. How you attend your passenger complaint?
4. Is that any procedure regarding compliant handling process?
5. Did you study your passenger’s compliant?
6. How many passenger complaints against taxi driver in the case of abusing midnight
rate?
7. In your opinion, why is it happened?
8. What is your action to the driver who abuses midnight surcharge?
9. What is your current strategy to overcome midnight overcharge case?
10. What is your restriction to implement your strategy?
11. What is your suggestion to improve midnight service?
85
Second Respondent: 3 Pool Site Supervisors
1. What is your main job function?
2. What is your taxi queuing process?
3. How is your taxi registration process done?
4. What is your tools/equipment to carry out your taxi registration process?
5. Do you find your tools/equipment assist your job?
6. Is that any malpractice in taxi queue operation?
7. How many are they go against taxi operation procedure?
8. What will you do if the taxi driver refuses to follow queuing procedure?
9. In your opinion, what can be done to improve taxi queuing operation?
APPENDIX - E
86