Project 2 - Supply and Demand Gap Analysis

Aim

To find gaps between how many taxis are needed and how many are available, so the company can improve service using Power Bi.

Introduction

Balancing taxi availability with customer demand is crucial. By analyzing data, we can make better decisions to ensure enough taxis are available when needed.

Problem Statement

There’s often a mismatch between the number of taxis available and the number of customers needing rides, causing either too few taxis or too many.

Methodology

Data Collection:

· Get the data from Kaggle (Taxi drip data).

Data Cleaning:

o Fix any errors or missing information in the data.

Data Analysis:

o Use Power BI to explore and visualize the data.

Gap Identification:

o Find where demand exceeds supply and vice versa.

Insights Generation:

o Create useful insights based on the gaps found.

Analysis

Import Data:

· Load the data into Power

Data Cleaning:

· Correct and clean the data.

Data Visualization:

· Make bar charts and line charts to show supply and demand patterns.

Trend Analysis:

· Look at changes over time (daily duration, monthly).

Gap Analysis:

· Compare supply and demand to find mismatches.

Insights:

Trip Duration Trends:

· Average trip durations varied significantly across different months, with noticeable peaks during holiday seasons.

Fare Amount Distribution:

· The majority of fares fell within a specific range, but there were notable outliers indicating longer trips or additional fees.

Passenger Count Variability:

· Passenger counts showed distinct patterns, with higher numbers during weekends and special events.

Recommendations

Dynamic Pricing Strategy:

· Implement dynamic pricing models during peak hours to better manage demand and optimize revenue.

Targeted Marketing:

· Focus marketing efforts in high-demand areas identified through geographic analysis to attract more customers.

Service Improvements:

· Consider increasing the number of taxis available during peak times to reduce wait times and improve customer satisfaction.

Driven Decision Making:

· Regularly analyze trip data to adapt strategies based on emerging trends and patterns.

Conclusion:

· The analysis of the Yellow Taxi Trip Data from 2017 highlights a clear supply-demand gap in the New York City taxi service, particularly during peak hours.

· By addressing these gaps through strategic recommendations, the taxi service can enhance operational efficiency, improve passenger satisfaction, and increase overall revenue.