XYZ is a private firm in US and due to remarkable growth in the cab industry in last few years and multiple key players in the market, it is planning for an investment in cab industry.
•Objective: Summarize your analysis and recommendations and identify which company is performing better and is a better investment opportunity for XYZ. •Data Available: +Multiple datasets for two companies have been provided. +Each data set provides different aspects of the customer’s profile: 1.Cab Data: Includes details of transaction for the two cab companies. 2.Transaction ID: Mapping table that contains transaction to customer mapping and payment mode. 3.Customer ID: Mapping table that contains a unique identifier which links the customer’s demographic details. 4.City: Contains list of US cities, their population and number of cab users. Dataset 1. 4 datasets with 19 unique features (5 derived). 2. Time period for data: 31/01/2016 to 31/12/2018. 3. Total data points: 359,393. Approach •The datasets were all combined to create one master dataset. •5 features were derived from the datasets available: 1.Month and Year: these were derived from the date_of_travel feature. 2.Profit: this is the difference between price charged and cost_of_trip features 3.Age_range: the ages of the customers were allocated to different bins. 4.Percentage_users: this is a ratio in percentile of the users in each city to the population of that city. •Exploratory Data Analysis approach utilized to draw insights from the data. The analysis has been divided into 5 parts: ➢ Data Exploration. ➢ EDA ➢ Finding the most profitable Cab company. ➢ Hypothesis Testing. ➢ Recommendations for investment
#Assumptions
As we see yellow cab is much popular company in larger population , which may be inferred as a potential indicator of future market growth mixing with total user increase in each year. So it can be said that yellow cab has a bigger potential market comparing to pink cab.
Yellow cab’s average profit per KM is almost three times the average profit per KM of the Pink cab. yellow cab is mostly liked company in larger population of male and female , Profit is also on increment each year in yellow cab comparing pink. In general, the Payment_Mode is card. 3 years data shows that the most profitable company was the Yellow Cab compared to the Pink Cab. The average profit contributed by people with different incomes taking cabs is nearly the same, But the average profit of Yellow Cab is much larger than that of Pink Cab. According to the detailed analysis, XYZ firm should invest in Yellow Cab. Given the losses, XYZ firm should invest more to Yellow Cab in the New York. Pink cab is still in transition of joining the market, as we can see smaller market share in comparison to Yellow Cab even the regular increase in total users each year. This idea can also be supported by pink cab’s lower profit per KM, to serve as an incentive for future market disruption.