Metro Bus Service (Lahore) Gajjumata to Shahdara

The Lahore Metro bus is rapid service operating in Lahore Punjab, Pakistan. Lahore Metro
bus service is integrated with Lahore Transport Company's local bus service to operate as
one urban transport system, providing seamless transit service across Lahore District with
connections to neighboring suburban communities. The Lahore Metro bus was designed to
be opened in stages, with the first stage opening on 11 February 2013 stretching
from Gajumata to Shahadra. The 27 km stretch was opened during a ceremony by previous
Punjab Chief Minister Shahbaz Sharif along with Deputy Prime Minister of Turkey Bekir
Bozdag.

Vision (PMA)

To provide state of the art mass transit system for all. Providing safe, efficient and
comfortable urban transportation system.

Mission (GAP)

Provide a reliable and comfortable public transport service which people can look to as a
viable and convenient transport alternative to the other services on same route.

Market Analysis

Market size

Daily 180K to 220K Passengers travel in Lahore Metro bus service from Gajjumata to
Shahdara, during peak hour 10K passengers avail this facility, peak hours timing are 7:00 to
10:00 and 16:00 to 20:00.

Competitive scenario

Metro bus service is operating under perfect competition, as Speedo, local transport like
Mazda, LTC with 300 buses, out of 62443 Rickshaw and Qin Qi registered in Lahore around
20000 are on same metro route, Local route charges are Rs.60/per passenger whereas
metro bus service only charge Rs.20/per passenger.
Route

Metro has its own route from Gajjumata to Shahdara. Total distance of route is 28.7Km
single side and has 27 stops. Waiting time on each stop is maximum 1 minute. Daily timing
of Metro bus is 6am to 10pm. 63 minutes traveling time from Gajjumata to Shahdara.

Trends

Expected passengers will increase by 222% in 2020. It is an attraction for tourists and a safe
or timely ride for students and office going people. Recorded 24% increase in usage of
public transport from nearby areas and 8% increase for city as whole. People who have
preferred metro bus over other services are bus/van 37.6%, rickshaw 15.73%, car 4.44%,
motorcycle 9.72%, bicycle 0.31%, and walk 0.7%.

Segmentation

Demographic

On basis of gender 69.63% travelers are male and 30.37% are female. This study was
conducted with a sample size of 697 people.

Occupation

On basis of profession 26.8% are worker/employees, 42.57% are domestic travelers,

students are 10.37%, people who go for shopping are 1.26%, people who travel to attend
legal affairs 1%, and others 18%.

Income

47.80% travelers have income range between Rs. 10K to 20K so; they are saving 74% of their
traveling expanses. 25% travelers have income range between Rs. 20K to 40K.

Geographic

Basic plan was to make state of the art rapid transit service, which links all the feeder routes
to centralized bus service that cover the whole city. So, within Lahore, Ferozepur road was
selected which is mainly connected with all the link roads that leads to inside areas. The
residents of developed housing authorities were not the primary focus.
Behavior

Private to public transport shift or people who have preferred metro bus over other services
are bus/van 37.6%, rickshaw 15.73%, car 4.44%, motorcycle 9.72%, bicycle 0.31%, and walk
0.7%. Reach to destination well in time tends to happy and loyal passengers.

Zone of tolerance

Decreases, due to the seamless services tolerance level of people has decreased. People are
looking forward for more efficient service throughout the province.

Psychographic

People with income group of 10K to 20K have a particular psyche, for them an air
conditioned, comfortable, low cost, traffic free and timely available transport is more
appealing and interesting. Even though they are overcrowded, people prefer to travel
because of timely availability and low fare.

Customer Perceived Benefits (GAP)

1. Affordable
2. Ambiance
3. E-Ticketing
4. Controlled temperature
5. Timely
6. Announcements
7. Parking & ride facility
8. Security
9. Self-route
10. Eco friendly

Analyzing possibilities for differentiation (GAP)

1. Ambiance includes trained employees in clean uniform, always ready to help and guide.
2. E-Ticketing
3. Controlled temperature
4. Parking & ride facility
5. Security
6. Self-route
7. Eco friendly
8. Command and control center

Internal Analysis

Resources available

Metro bus service is currently operating with 66 buses. It has its own self-route where no
other vehicle can enter. Metro bus has installed elevators on 9 different stations. Power
generators on every stop have also installed to make operations seamless. The project cost
was 29.65 billion rupees. It has been causing approximately Rs.5 million daily loss to the
government in the form of subsidy.

Constraints

Limited seats is one of the main issue because during peak hours overcrowding of
passengers make it near to impossible for many passengers to get seat throughout their
route.

Reputation

Metro bus is popular due to its seamless transit services. Gallop survey shows that 87%
passengers agreed that bus arrive on time. Temperature control system fails during peak
days of summer but in regular days it works. Maximum speed is 45km/per hour whereas
operational speed is 26km/per hour. Arrival time of metro bus is 2.25 to 3 min. Capacity of
120 to 140 passengers at a time. Separate entrance and seats for male/female. Reserve
seats for disable people.

Values (GAP)

Deliver a service of excellence that exceeds the needs and expectation of our customers.
Strive to become a market leader in the transportation industry of which others aspire to
follow.
Competitive analysis

Strengths

 Rs.20 fair from each passenger of each side

 E-ticketing
 Own Route
 Park & Ride
 RFID Cards
 Controlled Temperature
 6 meters longer than ordinary buses
 Bus locator at depot
 Only 11 controlled traffic signals on route
 Priority to Metro Bus through on route through command and control center.

Weaknesses

 Earn 917M, subsidy 4.2B, Rs.40 subsidy on each ticket of Rs.20

 Overcrowding
 Hard to get seat
 LTC Green Card for student fare Rs.10
 Seniors citizens avoid to travel due to stairs
 Pocket pickers in metro

Current Positioning (GAP)

We provide modern, comfortable, economical and rapid transport system for all walks of
life, to save their precious time.

Slogan (GAP)

Changing the way, you ride.

Operation model

The PMA has outsourced all its operational and maintenance serves to tap the private
sector efficiency. The PMA mainly focuses on planning, contracting of services and oversight
of contracts/operations.

Consumer Behavior

Passengers desire to obtain maximum gain by spending a minimum amount acts as the core
of this model. It includes three effects

Income effect

People who earns between 10K to 20K travel more in metro bus, so they can save money
and will have more money to spend.

Substitution effect

Because the substitutes are available but not at a cheaper cost as compare to fare of metro
bus service, the product is preferred or utilized by people.

Price Effect

Because the price of the service is less, consumers tend to travel more instead of going for
other alternatives.

Marketing Stimuli

Product

State of the art buses with the length of 6 meters longer than ordinary buses. It has
capability to take 180-220 passengers at a time, with temperature-controlled facility. It also
has LED’s, speakers and special seats for special persons.

Price

With subsidize fare policy, government allows each individual to avail Rs.40 subsidy by
paying only Rs.20 for the whole route.
Place

The overall Metro buses route cover dozens of residential and commercials localities along
the city’s main artery. Ferozepur road linking together Litton road, Jainmandir, MAO college,
Lower mall, Civil secretariat, Aiwan e Adal, district road, Shrine of Hazrat Data GanjBaksh,
Ravi road and Shahdara town.

Promotion

Campaigns were held above and below the line. Whereas promotional videos were
broadcasted on TV, accomplished with newspaper ad or banners. Other than that due to the
election era this campaign was highly used as a political success to ensure public about
infrastructural development.

Non Marketing Stimuli

Economic Factors

Pakistan’s average per capita income is $5830 but 47% of Metro bus travelers have monthly
income of 10K to 20K, which make it difficult for people to have a state-of-the-art ride. After
inauguration of metro people were able to enjoy such bus rides in inexpensive cost.

Political Factors

Due to personal involvement of previous chief minister of Punjab Mr.Shahbaz Sharif, all the
development funds of Punjab were brought to construct Lahore metro bus before 2013
elections. That also increases the cost of project not only that the low fare strategy were
implemented to gain their political agenda which makes Metro bus a white elephant for
economy.

Environmental Factors

Metro bus service has decreased the other HTV local transport on same route by well 75%.
Due to which air and noise pollution has also reduced.
Possible Actions

Firstly, in response to pre-action passenger leave home and reach at metro station, to get a
ride. There from he chooses either to use elevators or stairs. Once passengers get into the
station of metro bus, first thing to do is buying a ticket which can be done manually or by e-
ticketing. After getting token or metro bus card, passenger went through the barriers by
scanning the token (RFID). Waiting time could be from 1 to 3 minutes after getting inside
the lobby. When bus arrives, passenger gets in the bus but in case of rush hours passenger
may have to struggle a bit to avail his standing place by holding the hook. On reaching his
desired station passenger repeats the whole process again.

Possible Reaction

 If the elevator is out of order, passenger will use stairs as a reaction or second option.
 If senior citizen had to go through stairs, he may prefer to go on local transport.
 In case of accident passenger had to go on local transport.
 In case of any public protest passenger will use alternative public transport.
 In case of electricity shortage, paper tickets will be used to accommodate passengers
who will delay the process.

REGULATORY BODY

 The Punjab Mass transit Authority Act, 2012

 Punjab Mass transit Authority Rules, 2013
 The Punjab Mass transit Authority Act 2015
 The Punjab Mass transit Authority Ordinance 2015
References

http://gallup.com.pk/who-benefits-from-bus-rapid-transit-evidence-from-the-metro-bus-
system-mbs-in-lahore-gallup-pakistan-assisted-in-conducting-the-household-and-
commuter-survey/ 28-3-2019 11:05:45 am

https://pma.punjab.gov.pk/ 28-3-2019 11:00:35 am

https://en.wikipedia.org/wiki/Transport_in_Lahore 10:44:05 am 29-03-2019

https://www.cia.gov/library/publications/the-world-factbook/geos/pk.html 29-3-2019
11:40:33 am

https://www.pakistantoday.com.pk/2018/03/01/what-is-the-havoc-on-pakistani-roads-all-
about/ 31-3-2019 08:41:24am

https://tribune.com.pk/story/780840/metro-bus-service-punjab-pays-rs5m-per-day-as-subsidy/
31-3-2019 11:13:15am

https://www.geo.tv/latest/211086-decided-to-investigate-cost-of-metro-projects-information-
minister 31-3-2019 11:16:42am

https://nation.com.pk/19-Oct-2018/punjab-govt-ends-subsidy-on-metro-bus-fares 31-3-2019
11:21:10am

https://pma.punjab.gov.pk/system/files/ordinance.pdf#overlay-context=actord 31-3-2019
14:12:03pm