Perspectives from ISB

An article on Meru Cabs, one of the largest radio taxi service companies in India, seeking to improve its profitability. Some of the challenges Meru faces in this regard are the relatively large fraction of empty cab movements and the low utilization of its cabs. Optimizing the deployment of cabs is an interesting OM research question. The article also mentions Meru getting into the car rental business with the aim of improving profitability. While Meru had the first-mover advantage in the radio taxi business, there are many established players in the car rental business. So, its not immediately clear whether it will improve Meru’s profitability.