NEXTBUS : A SUPERB CUSTOMER SERVICE

The Problem
Buses in certain parts of San Francisco have difficulty keeping up with the posted schedule, especially in rush hours. Generally, buses are schedule to arrive every 20 minutes, but, at times, passengers may have to wait 30 to 40 minutes. The scheduled times become meaningless.

The Solution
San Francisco bus riders carrying an Internet-enabled wireless device such as a cell phone or Palm (or other) PDA can quickly find out when a bus will actually arrive at a particular bus stop. They can find not only the scheduled arrival time, but also the actual one. The system tracks public transportation buses in real time. Knowing where each bus is and factoring in traffic patterns and weather reports, NextBus (nextbus.com) calculates the estimated arrival time of the bus to each bus stop on the route. The arrival times are also displayed on the Internet and on a screen are also displayed on the Internet and on a screen at each bus stop.
The NextBus system is used successfully in several other cities around the United States, in Finland, and in several other countries. It is an example of location-based e-commerce, which is a major part of mobile commerce.
Exhibit 8.1 (page 334) shows how the NextBus system works. The core of the NextBus system is the GPS satellite that let the NextBus information center know where a bus is. Based on a bus’s location, the scheduled arrival time at each stop can be calculated. Users can access the information from their cell phones or PCs, anytime, anywhere.
Currently, NextBus is an ad-free customer services, but in the near future advertising may be added. As the system knows exactly where you are when you request information and how much time you have until your next bus, it may send you to the nearest Starbucks for a cup of coffee, giving you an electronic $1 discount coupon.

The Results
Passengers in San Francisco are happy with the system; worries about missing the bus are diminished. Passengers may even discover they have time for a cup of coffee before the bus arrives! In rural areas in Finland, where buses are infrequent and it is very Cold in winter, passengers can stay in a warm coffee- house not far from the bus stop rather than waiting in the cold for a bus that may be an hour late. Also, using the system, a bus company can do better scheduling, arrange for extra buses when needed, and improve its operations.

What We Can Learn...
This opening vignette demonstrates an application of one of the most talked-about areas of EC, mobile commerce. Its most significant feature is that the service is provided to the customer wherever they are located. This capability, which is not available in regular EC, may change many things in our lives. The technological basis of mobile commerce, its major applications, and its limitations are the subject of this chapter.

Sources: Compiled from Itsa.org/ITSNEWS.NSF, August 10, 2001, P. Murphy, September 7, 1999, and nextbus.com.