Hammad Ahmed
Case Western Reserve University - Weatherhead School of Management
Chris Laszlo
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In a city which cherishes its old world European charm while incorporating the modern advances of North American cities, Montreal is the perfect epicenter for Teo, an all-electric taxi company. With its easy-to-use mobile application, this company has improved the way Montrealers and tourists alike move around the city.
TaxelCo has taken the basic taxi-sharing service provided by companies such as Uber and Lyft in cities across the country and has made the adjustments to suit the needs and demands of everyone in Montreal. Using an all-electric fleet of vehicles, they are bringing "green" to Montreal. By purchasing only the latest electric vehicles and outfitting them with the latest technology for sustainability and going "green," TaxelCo, through their Teo brand, has found a niche that seems to be benefiting everyone. More so, by hiring more women as drivers for their company, they are slowly reducing the gender gap that can be seen in the industry worldwide.
By using a similar platform as many of its competitors in different cities, Teo utilizes their easy-to-use mobile application to provide their customers the highest level of service. However, unlike other companies, Teo hires and screens each and every employee. By having the drivers wear uniforms, greet the passengers by opening their doors, and providing services such as complimentary Wi-Fi in the company-owned cars, all while keeping fares at a comparable rate to UberX, they have found a niche to really succeed into the modern century.
The inspiration for Teo came from analyzing how to satisfy an overwhelming demand within the laws and regulations due to “red tape” of the local government. With Quebec’s stringent laws on taxi permits, the ability for companies such as Uber and Lyft to succeed was very difficult. "We saw an opportunity and a unique business model because of the lack in technology and progress that companies like Uber were showing in the Montreal area," said Mr. Vachon, the Director of Communications and Marketing. With a niche that needed to be filled in a cosmopolitan city like Montreal, TaxelCo had to be creative in the way it launched its newest platform called Teo.
By legally renting taxi permits from their owners and using them for their own vehicles, Teo was able to avoid the struggles and immense costs of purchasing permits. "The taxi permit is attached to a car, therefore, due to the permit cost of $150K to $200K, you can be the owner of the permit and rent it out to drivers," said Mr. Vachon. Teo takes advantage of this by owning all the vehicles while still being legally licensed under provincial laws. Thus, Teo maximizes its profits and eases demand by providing an “on-demand” service using an app similar to other ride-sharing services. By outfitting vehicles with the latest technology in regards to fuel efficiency and customer comfort such as complimentary in-vehicle Wi-Fi, Teo has gained immense success in the Montreal area.
Teo’s impact is very far reaching and is making strides in various ways. From improving the quality of life for hundreds of drivers and their respective families who are supported by the TaxelCo company to narrowing the gender gap between men and women as drivers, Teo is making strides towards fulfilling some of the UN’s Sustainable Development Goals (SDG). More so, by updating infrastructure by putting in modern and sleek all-electric vehicles, they are helping old cities rich in history like Montreal move into the modern century. By making an economic and environmental impact, TaxelCo through the means of Teo has made an immense impact that can be reproduced in cities across the globe.
By branching out and having Teo, TaxelCo has seen a drastic increase in demand with its new service. They were able to recoup their initial investment within the first quarter, and have been running healthy profit margins since its inception. After multiple rounds of funding, they have increased their fleet by five times and are acquiring new vehicles in their fleet almost on a monthly basis. Teo Taxi has 70,000 registered users and with its already massive success expects to cross the 100,000-user mark by the end of the 2017 year.
With this company, commonly referred to as Teo, they have revolutionized transportation within the city of Montreal by providing a very high-quality service while also supporting their employees, the infrastructure in the city, but most importantly the environment. With an estimated 1,000 electric Teo vehicles roaming the street by 2017, Teo is bringing significant promise to the transportation sector of the city. More so, with electric vehicles producing 25% less emissions into the environment on average when compared to your standard taxi cab, they are making "being green" cool again. Using an app similar to Uber, people can call an electric cab to pick them up and take them to their destinations. However, unlike other car-sharing services where the drivers could be anyone, all Teo drivers are employees with TaxelCo and are salaried with benefits. This has provided stability and peace of mind to drivers because they are not concerned about making a fair income, but also the passengers, because they know that all drivers have been background checked and are professional drivers. More so, Taxel Co. has hired a fair share of women drivers to reduce the gender gap in the transportation industry. By hiring nearly double the amount of female drivers when compared to the standard taxi service, Taxel Co. is making the initiative to give everyone a fair chance.
In addition to the drivers and service, Teo is updating the city of Montreal’s transportation system by taking inefficient and lower-quality vehicles and replacing them with the latest model electric cars. Naturally, by updating the city’s transportation system, Montreal is moving into the modern century with an updated fleet of vehicles for passengers. With that being said, this new all-electric fleet of vehicles has helped in the Quebec government’s initiative to go green and in reducing waste. With these fuel-efficient vehicles taking nearly half the amount of fuel when compared to your average standard taxi cab, they will make a massive difference in reducing the levels of ozone emissions that have been hurting the environment.
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Jean Vachon, Director of Communications & Marketing