35.8k
Times solved
Intermediate
Difficulty
Rating

Problem Definition

Dubai Airport has decided to counter the chaos in the airport taxi service by commencing a bidding process to assign airport taxi services to 3 operators only. After years of cheating passengers, black-market drivers and unlicensed cabs, the airport has had enough of the problems and is now taking action.

They are retracting all existing permits and are issuing 2,100 new permits to the three largest operators in the country.

Our client is a local Big-three taxi operator with a 3,000 car fleet, but he is not servicing the airport yet. He has a spare capacity of 500 taxis and he is considering applying for 500 new permits, but he doesn’t know if he will get a positive return on his investment.

He asked us to help him determine if he should pursue applying for the permits or not.

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35.8k
Times solved
Intermediate
Difficulty
Do you have questions on this case? Ask our community!

Exhibits