Abstract

Set in August 2011, Meru Cabs ¾ A Spectacular Growth Story is a case that documents the design and positioning of a service business in India, where the service industry is the fastest growing and most competitive sector. It tracks how strategies, processes and technologies are integrated to reduce cost and offer world-class service. Specifically, it traces the factors that have contributed to making Meru Cabs (Meru) the largest taxi operator in India and third largest in the world. Success in the four major cities of India has given senior management the confidence to consider rollouts in other cities in India and abroad. However, the immediate focus is on improving service and reducing the cancellation rate in the cities where Meru currently operates. The case describes the design and implementation of the service from the twin perspectives of efficient service operation and customer orientation, and raises questions related to the expansion of the service to other Indian and global cities. It also takes into account such factors as cab reengineering, driver selection, cab assignment, cab maintenance and fleet maintenance for the proposed service improvement and extension. 

Learning Objectivves

The case can be used to explore how, in the service sector, costs are reduced, while simultaneously, technological investments are increased, which results in providing state-of-the-art service to customers. The case can be used effectively for MBA, EMBA or executive audiences in courses on operations management and strategy. The specific topics that can be addressed using this case include, service strategy, design of services, scalability of services and service operations.