Bykea is an on-demand, on-payment motor bike service to facilitate people in intracity travel. Go to any metro/bus/Hiace/Suzuki stop, you will find a cluster of people looking for a ride. Soon after smartphone-enabled on-demand taxi service entered the market, in a similar fashion a new alternative in the form of bike-ride gave uni-commuters another choice to reach their destination. Two factors massively helped it to become a favorite mode of travelling. One of them was it cost 50 percent than its counter part taxi; providing a cost-effective solution to commuters’ movement woes. Secondly, a rampant population increase has multiplied traffic load on roads; resulting in long-cues of vehicles and traffic jams. A biker can easily seep through confined spaces and craft its way to the desired place. So, it is both money-saving and time-saving option for customers. Despite all this rosy situation, the company’s revenues are slashing. Astonishing, isn’t it? The reason behind this astonishment is people circumventing the Bykea application and directly approaching the captain of a bike. The trademark green helmet can make them spotted from a safe distance. This accessibility and visibility free customers from the cumbers of taking out an internet-connected smart phone, opening application, entering ride destination and then keep waiting for the bike to reach them. It also provides commuters the option to avail a negotiated price for the ride. Bike captain is happy as he does not need to pay a certain percentage of fare to the Bykea company out of every ride and customer is also a gainer as he has to pay less. Of course, it is a win-win situation for both bike captain and the rider but Bykea is the ultimate loser. Suppose, with a certain investment you are the new owner of Bykea. Since you have studied Entrepreneurship, what measures you will suggest to stop this trend to reverse revenue bleed and consolidate its financial position? 

Answer rating: 100% (QA)

The first solution to this problem is to ensure that the customer pays less by using the application ... View the full answer