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Jakarta Post

Agus Subroto : Meets challenges of managing cab company in tourist area

Metered taxis are available at all tourist areas in Bali

Burhanuddin Abe (The Jakarta Post)
Jakarta
Wed, July 7, 2010 Published on Jul. 7, 2010 Published on 2010-07-07T10:35:25+07:00

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M

etered taxis are available at all tourist areas in Bali. When you commence your journey make sure the meter is on. We recommend blue taxis…

This tip in a travel brochure refers to Blue Bird taxis. In New York, most people are familiar with the Yellow Cab taxi company, and here in Jakarta and other major Indonesian cities, including Denpasar, people usually identify reliable taxis with the color blue.

The reputation of Blue Bird as a reliable and trustworthy taxi company has indeed been tested by time. The blue color of its taxis has been the brand image of Blue Bird, which was established in 1972.

Unsurprisingly, a number of its competitors have tried to cash in on the company’s reputation by painting their taxis the exact same color, while others use a similar color.

“It is the foreign tourists who have better purchasing power, but they cannot become loyal customers
because they come and go, ”

Business competition is natural and unavoidable, but what creates a sense of helplessness for Agus Subroto, general manager of the Blue Bird Group for Bali and Lombok, is blatantly unhealthy competition.

In Bali, where Blue Bird has been present since the early 1990s, the company’s operation has been objected to by the Association of Bali Tourism Services, which has been pushing for the revocation of Blue Bird’s operation permit.

According to Agus, revoking the permit would be counterproductive to the tourist industry because Blue Bird has become a transportation icon in Bali not only among residents but also foreign tourists due to its reliable service. There is also no valid reason to take Blue Birds off Bali’s roads because according to Udayana University research, Bali, which has a population of 2.5 million, needs 3,500 taxis. “Currently, no more than 2,450 taxis are available,” he said.

Agus, who was born in Jakarta in 1967, said that initially Blue Bird was “invited” by the Bali administration and a few public figures. That Bali has developed rapidly and its popularity as a tourist destination increases by the year also mean the island needs a professional taxi company.

Some time ago the Blue Bird Group realized the potential the island offered in the transportation business, which is why it started operating there in 1994 through its subsidiary PT Praja Bali Transportasi. Starting with 80 taxis, the company now operates 750 cabs all over the island. Its taxi pools are in Jimbaran and Sesetan. Besides metered taxis, the Blue Bird Group also rents out other vehicles. The Golden Bird division has limousines and cars, namely two Mercedes-Benz S-Class, three Mercedes-Benz ML 350, six Mercedes-Benz, 11 Toyota Camry, 17 Toyota Alphard, 25 KIA Travello and more than 50 Toyota Innova, while the Big Bird division has seven Bravo buses.  

Agus said that although the company has been successful in Jakarta, it has not found it easy to conquer Bali. In Jakarta, the company has many loyal domestic customers, but in Bali it is difficult to depend solely on local residents. “It is the foreign tourists who have better purchasing power, but they cannot become loyal customers because they come and go,” he explained.

Therefore, the Blue Bird Group in Bali collaborates with a number of star-rated hotels, leading travel agents and a few established companies in Denpasar that require cars for their staff. This is similar to long-term car rental.

Some of the hotels that cooperate with Blue Bird are The Aryaduta, Bali Hyatt, Bvlgari, Discovery Kartika Plaza, Hard Rock and Banyan Tree. Other venues also use Blue Bird taxis, such as Musro Discotheque, Tiara Department Store, Seminyak Square and so forth.

Its well-known brand and reputation indeed help a lot in marketing, and as the market leader, Blue Bird has positioned itself as a solid brand. Undeniably, other taxi operators see this as a serious threat to their business.

The Blue Bird logo is “Service full of greetings, smiles and friendliness”. What is equally important is passengers’ trust in the drivers, who are known for their kindness and honesty.

“If you leave anything behind, a laptop for example, you can be rest assured that you won’t lose it,” said Agus, who started working for Blue Bird in Jakarta in 1988. Two important locations have been entrusted to him: Bali with 750 cabs and Lombok with 200 cabs plus 5,000 employees.

The success of Blue Bird is also due to its sophisticated technology. Blue Bird, which was the first Indonesian taxi company to use meters and radio communication, first installed GPS devices in its cabs five years ago.

Besides tracking the position of the cars, GPS is also used to communicate with the Blue Bird Call Center. Different from the conventional radio communication equipment used in other taxis, GPS technology makes it easy for the operator to locate each taxi, making the service faster for passengers ordering cabs by phone.

“Another plus point of the GPS is that passengers aren’t disturbed by the sound of the radio when orders come in for the driver,” he said.

Agus added that Blue Bird’s strategy in adopting new technology was effective in attracting more customers and increasing brand awareness. It also created a perception that Blue Bird is the pioneer and market leader in the taxi business.

As the market leader it is not easy to maintain the reputation of the “Reliable transportation partner”. To maintain brand loyalty, Blue Bird applies quality control in all divisions, from technical support to customer service.

“We created Blue Bird as a safe, comfortable, convenient transportation mode that is personalized,” said Agus, who studied at Moestopo University’s School of Social and Political Sciences but did not graduate.

 

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