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Angkas Operations Management SEO

This document is a Kaizen paper presented to the Faculty of the College of Business and Accountancy at National University by a group of students. It discusses Angkas, a motorcycle ride-hailing company in the Philippines. It provides background on Angkas, describes their marketing strategies and popularity. However, it also notes that Angkas still experiences problems like booking and cancellation issues that cause customer complaints. The paper aims to improve the Angkas booking process by only allowing cancellation if the rider has not yet reached the passenger and removing the cancellation option once a trip is accepted. This aims to address safety and customer service issues raised by complaints.

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Marielle Jimenez
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0% found this document useful (0 votes)
203 views36 pages

Angkas Operations Management SEO

This document is a Kaizen paper presented to the Faculty of the College of Business and Accountancy at National University by a group of students. It discusses Angkas, a motorcycle ride-hailing company in the Philippines. It provides background on Angkas, describes their marketing strategies and popularity. However, it also notes that Angkas still experiences problems like booking and cancellation issues that cause customer complaints. The paper aims to improve the Angkas booking process by only allowing cancellation if the rider has not yet reached the passenger and removing the cancellation option once a trip is accepted. This aims to address safety and customer service issues raised by complaints.

Uploaded by

Marielle Jimenez
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 36

NATIONAL UNIVERSITY

ANGKAS
MASTERMINDS

A Kaizen Paper presented to the


Faculty of College of Business and Accountancy
National University
551 M. F. Jhocson Street, Sampaloc, 1008 Manila

In Partial Fulfillment of the Final Requirements for the course


Operations Management and Total Quality Management

Presented by:
Del Rosario, GuiaResdes
Dela Cruz, Jan Angelo
Dimalaluan, Joleanne Felice
Lazaro, Jiroh
Villere, Ravelyn

Presented to:
Mr. Dan Jeward C. Rubis, MBA

Term 1
Academic Year 2022-2023

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I. Introduction

Angkas was founded by Angeline Tham and George Royeca in 2016. However,
during that time, Ms. Tham owned 99%of Angkas via its corporate entity, the
DBDOYC Inc., which made it a Singaporean company and resulted in issues with
the Philippine law. The Foreign Investment Act of 1991 (R.A. 7042) states that at
least 60% of the business should be owned by a Filipino citizen, while the rest can
be owned by the foreign investor. This led Angkas to change its ownership structure
in 2020, with George Royeca as the current CEO and Chief Transport Advocate,
with him emerging with a 60% stake. Currently, Angkas is a Filipino-owned
company that was made possible due to the two founders’ experience in heavy
traffics in the Philippines. During the six years of business in the Philippines, Angkas
has successfully spearheaded an effort to change the government regulators'
unfavorable perception of motorbikes as a mode of public transportation and set the
course for restrictions on motorcycle taxis. Angkas continues to advocate for the
safety and regulation of motorcycle taxis which contributes positively to the daily
lives of millions of Filipino commuters.

Figure 1Angkas’ Logo as of Dec. 2022

Through ride-hailing, deliveries, or purchases, the motorbike hailing platform


Angkas lets Filipinos navigate the country's crowded streets and save valuable
time.  It is one of the most reputable transportation companies in the Philippines.
They have justifiably won a place in Filipinos' hearts from customer service to riding
pleasure. Even their Social Media engagement increases everyday as they post and
interact in a friendly manner using memes and Filipino teenage humor. Here are
some examples for Angkas’ social media promotion and marketing strategies:

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Figure 2Angkas’ social media promotions.

Additionally, Angkas ensures customer health safety and follows COVID-19


protocols as they provide complimentary face masks and hair nets that passengers
may use or take home. Moreover, Angkas offers cheaper rates than other companies
such as Grab and Uber since Angkas charges a starting fee of Php 50.00 for the first
two kilometers and an additional Php 10.00 for every kilometer added. Angkas
covers Metro Manila and Metro Cebu which are two of the largest urban areas in the
Philippines. In addition to being a speedier method to go about the city, Angkas goes
above and beyond to keep its passengers secure. 

Even with Angkas’ popularity and great marketing, there are still customer complaints
that need to be resolved in order to result in greater service. Angkas still experiences
cancellation and booking problems which can damage major operations and most
importantly, the company’s reputation. (See Passenger Complaints for sources).
These problems can be solved by analyzing and dissecting them one-by-one for
each process involved.

PASSENGER COMPLAINTS

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Angkas has been doing its best to accommodate the Filipino commuters.
Despite their effort to help solve the traffic crisis in the Philippines, several problems
such as customer complaints still arise. Passengers have been expressing their
complaints mostly on Angkas’ official Facebook page through their posts. There are
also complaints found on Angkas’ official Twitter and Tiktok pages.

2 Weeks Ago
Sender: Aiza C. Loquire (Facebook)
Booking Problem
It's been a week, always busy & riders keep on saying they can pick you up
for any reason, then just found out that they will not pick it up once you're using a
voucher. How disappointing. I've been always an Angkas user not until lately.

Sender: Yizi Yun (Facebook)

Bad Drivers plus ang hirapmakapag book lalona kung may code. Ang
susungit ng drivers tas di naglilinis ng helmet.

3 Months Ago
Sender: KhimParagile (Facebook)
Cancellation Problem
Pag silanagcancel di makikitasa history, my iba kina cancel nilayung booking
ng customer taposbiglangpupuntahan ang customer at aalukin. customer hotline
nilawalangkwenta. mgamanyakisyungibang rider, my madaling way na mag rorooute
pa ng malayo. bobo pa ata customer. nakamapnmnyung ride. tamanaangkas rider.

3 Months Ago
Sender: Jared Andrew Fetiza (Facebook)
Booking Problem
Taas ng pamasahemasyadonggahaman di nakatuladdati. Gumayanarinsa
grab car pero ang riders kung di malayo ang book ang aarte.

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20 Hour Ago
Sender: Red Chulipa (Facebook)
Booking Problem
Halos 1 hour booking walapadin. Not recommended.

3 Weeks Ago
Sender: TruTo (Facebook)
Booking Problem
Daming Driver nagalit pa at hindialam if saan ang Pinpoint Pick Up Point
samantalangsila ang Driver. Dapatalamnilamagbasa ng Mapa kasi kaya
ngasilaAngkas Driver eh. Anotawagsa Map kung di nyoalamsundin.
Tpospagnakabook ka naman Choosy ibang Drivers. Cancel nilaagad. MagWait ka
ulit ng 2-3hrs bagomakabook gang sa malate kana kakahintay.

4 Months Ago
Sender: Wilfred BaladjayMaayo (Facebook)
Booking Problem
Orasnaakongnabookwalanaacceptperonungmgababaengkakabook lang,
nakakasakayagad. Then 5x cancelled. Apat dun malayo raw. Isa satapatnakinancel
pa.

Last Saturday
Sender: Chino Tan (Facebook)
Booking Problem
Bwisitnakakapanggigil mega
mukhangperanagmamadaliyungtaomahigitisangorasnaako nag
aantaywalaparinnagpipick up sana lang talagamagkaroon lang ng apps
nahindinamimili ng pasaherodahilsainyodalawangbesesnaakonalatesatrabaho kaya
nga nag aangkas kasi nagmamadaligrabiperwisyo kayo salipunanhindinghindinaako
mag aangkaskahit kailan sinusumpa ko yan.

11-14-22

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Sender: Dior Veneracion (Tiktok)


Cancellation Problem
ANGKAS RIDERS issue: pagsinabi ng rider nai cancel, huwagnahuwagniyoi cancel,
siladapat mag click ng cancellation, hindi ang pasahero. Kasepagnagkaproblemanga
naman sadaan, sa passenger mapuntayung burden!

Figure 3Tiktok Video of Dior

12-17-22
Sender: @earlalats (Twitter)
Cancellation Problem
Hi @angkas nearly in every single one of my bookings, a driver requests to
cancel the booking. This time, the driver even had the gall to pretend he arrived at
the pick-up point. Please fix your system.

Figure 4Earlalats” Screenshot

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II. Statement of Purpose


In recent years, Metro Manila's traffic demand has been approximately 12.8
million trips. While 69% of that amount is generated via using public transportation,
such as jeepneys, buses, the LRT, and the MRT, a far smaller fraction is made by
driving or riding private automobiles (Cesar G.B. Miguel, 2019).  The traffic that
Metro Manila is facing is incredibly inconvenient for everyone who lives there. The
amount of time spent on the road takes too much time that might be spent on more
important things. In the middle of this situation, Filipinos attempted to find alternate
means to alleviate traffic congestion in the city by adopting number coding, having
programs like Grab, Joyride, Moveit and raising the tax price for buying cars.
Therefore, Angkas is extremely effective for commuters since it is a faster method to
travel throughout the city. Given that Angkas is such a huge help to the traffic that
every Filipino faces, we must prioritize this and continue to enhance the service that
the company can provide to Angkas passengers.

Continuous improvement fosters both process and product improvement.


Companies that constantly seek methods to improve their operations will inevitably
boost the value of their goods and services (Skhmot, 2017). This improvement
focuses on improving the Angkas booking process by programmatically accepting
trips when the rider is near the passenger, and there will be no cancellation option
once it is accepted, as it puts the passengers in potential danger whenever the
riders request that the trip be canceled, and there will be no record or history in the
app, which has resulted in many customer complaints and negative reviews.
However, the improved booking procedure that will be provided will result in a
greater rate of customer satisfaction and a stronger company image.

In response to the concerns regarding negative reviews, the paper aims to do


the following: 

 To ensure the passenger's safety;


 To enhance Angkas bookings and cancellations; and
 To guarantee the passenger togets a smooth ride and a quick drop-off.

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III. Improvement Scope


Ride-hailing applications have significantly altered how individuals commute on
a daily basis. In an urban hub like Metro Manila, where every day commuting is a
nightmare, locally formed Angkas has made a significant effect by getting people
from point A to point B faster. Angkas intends to give its customers with safe,
dependable, and cheap motorbike transportation. However, there are still problems
encountered by some of the commuters when it comes to booking. The fishbone
above aims to enhance the chosen reasons in order to help them to achieve the
company's vision and goal. As a result, we will make attempts to design appropriate
solutions for this scope. The research will address the company’s passenger
complaints, and any advice offered will only apply implicitly to this process, they are
not designed to address any other procedural issues the company may be
experiencing.

Figure 5Angkas’ Fishbone Diagram

Angkas still has the opportunity to improve and develop their system app to make
it more efficient for commuters. The fishbone diagram shows the Support, Personnel,

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Methods, Application and unexpected circumstances such as Environmental factors.


These four were combined as the main causes of Angkas cancellation history, hard
time booking, and fake bookings. By simply updating their terms and condition in
using it, rules and regulations so that they know what their sanction for those riders
who will be will pick a passenger, contracting additional payment during rush hour,
and for the riders who will cancel the booking of the passenger. Angkas shall
establish a timely customer service and accurate feedback system for passengers
who have concerns, as well as ideas on how to enhance service quality and avoid
such problems. For commuters and passengers, this will suit their demands and
encourage continuous usage of angkas services if they are able to address the
passengers’ complaints about using their app.In support system, Angkas has
insufficient efforts on how they respond to the customer the reason why customers
cancelling their bookings. Both customer and rider have problem in Personnel, they
both taking advantage of the cancellation of booking during a time of need. However,
in Angkas app there is many flaws that the customers force to choose to book in
another ride-hailing app or cancel their booking. in order for them to fix their apps
they should find a solution so that they could match the demands of each consumer
who trusted their company, which might lead to a poor reputation if avoided. For
Unexpected Circumstances may occur anytime and there’s no way to avoid this kind
of event because everyone’s safety is the priority.

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IV. Plan of Action


To comprehensively see the difference between the old and the new suggested
processes made by Masterminds, the table below shows the summarized
comparison of the two:

OLD PROCESS NEW PROCESS

 Registration does not require  To prevent false bookings,


identity verification. verification of identity has been
implemented.

 No biometrics.  Using biometrics to improve


registration security.
 The application doesn't offer  With real-time assistance to
real-time support. easily reach customer service of
Angkas and solve customer
complaints right away.
 No other FAQ section.  For new users to quickly
familiarize themselves with the
app, other FAQs feature has
been included.

 Ineffective terms and  Regarding ride cancellation,


conditions. passengers' terms and
conditions have been revised.

 More specific and precise pin


 Not precisely placed pins. placements to guarantee that
the riders will reach the desired
location.

 Who cancels the rides will be


 No riders' cancellations are revealed by history.
displayed in the history app.
 To minimize having to wait a
 Poor booking procedure. long time for a rider, the new
booking process will be
automatically accepted by the
closest rider.

 No chat feature in the app with  For simpler communication


the rider. with your rider, there will be a
chat box in the app.

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As seen in the table above, the new processes are suggested to counter the
negative factors mentioned in the Fishbone Diagram. This will help Angkas to extend
their service in a more positive light and system.

Here is the suggested course of action for enhancing the operation in Angkas,
which is based on the improvement scope stated above. This study is aimed in
helping Angkas develop a better system that would help them fulfill their objectives
and desired outcomes.

The current Angkas registration for passenger is shown below.

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Figure 6 Current Registration process of Angkas

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The new proposed registration process for Angkas is presented in this


section.Customers, riders, and the company will indeed benefit from this improved
registration process. This will also minimize the number of fake bookings.

The improved process for registering for the Angkas application is shown below.

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Figure 7 Improved Registration process of Angkas

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Figure 8 Current and


New Process Proposal
for Support System

There will be new features introduced to Angkas'

With a more efficient registration process, the company will be able


to reduce fake bookings and provide more secure transportation. Especially
now that it is a must to verify the identification as well as that we are now
providing a real-time GPS location tracker link that will be given to the
contacts you listed during registration, which will ensure the safety of the
passenger.

customer support system. First, passengers can use real-time assistance to


immediately contact the app for faster customer service since it is much more difficult
to contact them by phone number regarding any complaints. Second, other FAQs will

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be added as well to help the new Angkas user get a better understanding of the
application and become more acquainted with it. Lastly, the terms and conditions are
posted so that it can reviewed, read how their service operates, understand the legal
rights when using the app, etc. Lastly, the terms and conditions will be updated with
regard to the rider's cancellation of rides in order to help the passengers understand
their rights as consumers and make them feel more secured and covered knowing
that this kind of behavior is strongly discouraged in the Angkas application.

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Figure 9 Current and


New Process Proposal
for Maps

The pinned location will be more accurate and precise, ensuring that the
riders arrive at the exact area that the passenger booked. Additionally, this will make
the arrival earlier than usual and assure that there is no confusion about the location.
Since the proposed new process shows a better view and more routes, it will be
easier for both the rider and the customer to track each other that will help in building
more trust and assurance.

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Figure 10 Current
and New Process
Proposal for History

The current history record of Angkas doesn’t show which transaction was
cancelled. Hence, the new process for Angkas’ history record will show the
transactions cancelled. Moreover, it will inform both the rider and the customer who
cancelled the transaction and will require a reason for cancellation. This new process
can help Angkas in tracking customers who often cancel, a.k.a bogus bookers, and
give them warning or penalty points that when accumulated, can result in deletion of
account. Also, with the help of the proposed new process in Customer Registration
(see pages 7 to 9), bogus bookers won’t be able to create a new account.

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Figure 11 Current
and New Process
Proposal for Chat
and Accepting
Books

The new booking process proposes an additional feature that will bebeneficial
for both parties. The current process only shows two options: “Accept” and “Decline”.
In the new process, a reason for cancellation will be required and will ask which party
wishes to cancel the transaction. Also, the booking will automatically be given to the
nearest rider instead of informing other riders of it. If the rider declines, he can state

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the reason and only then will it be given to the next nearest rider. With this newly
proposed booking process, the rider’s application will be less chaotic or messy and
easier to configure. It will also help the customer save time in booking a ride.

Additionally, there will be an option to talk with your rider in a real time chat
box to connect immediately upon rider's acceptance of booking. This will help resolve
the poor communication problem in the Methods section of the Fishbone diagram, as
it is more efficient and less time-consuming in contacting both parties and complete
the transaction more easily.

STAGE ACTIVITY PERSON – TIME


IN - FRA
CHARGE ME
 RESEARCH AND  The Researcher WEE
OBSERVATION management s and K1

and Managemen
t
researchers

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are now
investigating
potential
issues and
the reasons
behind
difficult
booking,
bogus
bookings,
and
cancellation
histories.
 The
management
will also
examine the
procedure as
it is and begin
to envision
where
improvement
s could be
made.
 FORMULATING  Researchers Researcher WEE
IDEA and s and K2

management Managemen
t
will now
begin
developing
plans and
solutions for

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the problems.
 At this point,
management
will begin to
inform
customers to
a new system
procedure for
user and
driver
security.
 REVISION  All solutions Researcher WEE
and ideas s, K3

must be Managemen
t and IT
double-
Specialist
checked and
approved by
all high-
ranking
Angkas staff
during the
revision
stage.
 The IT expert
will then
begin
updating the
system and
stop the
current
procedure.
 Additionally,
the IT
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specialist will
instruct users
and drivers
on how to
utilize the
new app
system.
 IMPLEMENTATIO  The new IT Specialist WEE
N system will K4

be
implemented
here by an IT
specialist and
made
available
where
Angkas are
use.
 Additionally,
users and
riders will
update their
apps on the
Google Play
Store or any
other
available App
Store.
 Finally, users
and riders will
update their
profiles
because of
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the new
process.
 FEEDBACK  If there is a Social WEE
problem with Media K5

the new Manager or


Marketing
procedure,
Manager
the Social
Media
Engager will
address the
passengers'
worries.
 Additionally,
Social Media
Engager will
let the riders
and
passengers
know that the
new system
is for their
own safety
and fastest
ride.
 Furthermore,
Angkas
accepts
comments
regarding
new process
utilization.

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V. Desired Outcomes

Improving customer satisfaction, enhancing the overall process, and creating a


better work environment for Angkas are the main goals of Masterminds in proposing
the said changes. It is expected that the implementation of the new processes will
lead to positive and lasting results that will significantly add value and recognition to
the entire company. Safety, greater service quality, better employee management,
and more company revenues are some of the major factors Angkas should look
forward into applying the new processes. By incorporating new yet simple
approaches in Angkas’ processes, its impact on the country’s transportation system

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will surely grow over time. In addition to that, it is expected that Angkas will receive
greater Application downloads and Social Media engagements due to the positive
feedbacks and reviews brought upon the implementation of this Kaizen paper.

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The desired outcomes presented in the figure above relates to the problems
mentioned in the Fishbone Diagram. As Angkas slowly implements the new
processes, it will also reflect the results expected above. Here are the desired
outcomes per aspect in the Fishbone Diagram:

 Support System: Improve customer service and quality service, build a solid
reputation, and acquire new customers while retaining loyal ones.
 Personnel: Increase safety, positive rider behaviour, and increased revenues.
 Methods: Fair booking, prevent ride cancellations, and easily identify
scammers.
 Application System: Easy booking, increase customer satisfaction, faster
trips, prevent bad reviews, and more efficient application.
 Unexpected Circumstances (Environment): Increase safety, prevent bad
reviews, and readiness in emergency response plans.

VI. Plan of Viability

The objective of this improvement paper is to improve the Angkas booking


process and address cancellation concerns, as well as to assure the safety of the
passenger, a smooth trip, and a quick drop-off. Given the numerous customer
complaints the Angkas are receiving on social media platforms, this is really crucial
for the company. To prevent false bookings, the researchers suggested (1) improving
the registration process. (2) Improve the system that provides immediate customer
service. (3) Improve the maps so that location pins are more precise for faster arrival.
(4) Improve the history section of the app for a better record of transactions. (5)
Improve the chat and booking process for better communication between both
parties and to avoid long waiting times for bookings. With the new procedures that
the researchers proposed, the company will definitely become better and more
customer-focused, which will lead to many positive reviews.

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(a) Registration

Registration process can detect fraud and strengthen your program's


security (Nash, 2020). Registration is really crucial for an application, this
helps to know the customers and provide accurate information. Without
registration you cannot identify who the users are and this can be a problem
for the application as well. Hence, registration process must be done in a way
that it will help the company to easily identify the scammers. The researchers
proposed to strengthen the registration process by having to verify the identity
of every users of the app so that fraud or false bookings in the application will
be prevented. Identity verification demonstrates that the individual is who they
say they are and guarantees that there is a real person behind the transaction
(Johnson, 2020).

(b) Customer service

Customers prefer real-time customer support. Providing it is a good


approach to win their loyalty to your company. According to Salesforce
research, 78% of customers will buy from a brand again, even if there is a
problem, if the customer service is good (Phillips, 2021). One of the top things
that customers look for in a business is customer care. It shows how the
company interacts with customers. The researchers proposed having real-
time assistance to give immediate support to the customers who have
concerns about the said application. Leaving a positive impression would
immensely gratify these customers, and a quick solution to their complaints
would encourage them to keep coming back.

(c) Maps

A seamless and effective user experience on the Uber platform


depends on the vehicle locations being accurate. Inaccurate pickup and drop-
off locations may lead to poor estimated times of arrival (Shekhar &
Sankaravadivel, 2019). The accuracy of maps and pin locations has to be
improved. It will enable passengers to make accurate bookings, and riders
will arrive on time at the specified location. Also, it will deliver better
understanding between the passenger and rider. As a result, the predicted
arrival time will not be affected, and the passengers will reach their
destination on time.

(d) History of transactions

Establishing a history or track record of every transaction is one


method to make the community safer and increase consumer trust in the
company. Account histories serve a number of purposes for customers, in
addition to being an important asset for credit card companies. They keep an
eye on their accounts to look for any potential fraud, notably identity theft.
Their automated technologies identify transactions that are unusual in terms
of their value or the location of the transaction. (Kagan 2022) Simply updating
the transaction history can keep your customers relaxed on the road because

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their friends and family can track and locate them. Additionally, keeping a
watch on the driver and passenger will be advantageous to the business.

(e) Chat feature and booking procedure

Every aspect of a business that involves engagement with customers


requires communication. A strong communication feature is necessary for
staying in touch with people and successfully sharing information (Tomych,
2022). When customers are on site or application, it is important that booking
and chat procedure be as simple and quick as possible. The researchers
proposed to have a chat box with the rider to have the ability to eliminate
misconceptions and for easier communication. Furthermore, the researchers
proposed ways to improve the booking process. So the passengers can avoid
long periods of waiting, which would lead to a better user experience. Better
user experiences are directly produced by quick, efficient services. Therefore,
the company's credibility grows on its own (Jaiswal, 2021). A successful and
dependable booking procedure will help the application maintain the system
running smoothly and without interruptions.

References

 Angkas Official Webpage. About Angkas, Founding Team. Retrieved


December 13, 2022, from https://angkas.com/about/

 Angkas Official Facebook Page. (2022, December 10) Social Media poster:
“Ang Idolo ng Kalsada”. Retrieved December 13, 2022 from
https://www.facebook.com/AngkasPH/photos/a.1815372628733154/344570
2345700166/

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 Angkas Official Facebook Page. (2022, November 24). Voucher code


promotion: “Dinosaur Game”. Retrieved December 13, 2022 from
https://www.facebook.com/AngkasPH/videos/1297581227730818

 Angkas Review for Cancellation of Booking. (2022). Facebook. Retrieved


December 14, 2022 from https://m.facebook.com/pg/AngkasPH/reviews/

 Cesar G.B. Miguel. (2019, November 9). Traffic congestion in the


Philippines: Causes, Effects, & Possible Solutions. Philkotse.com; Philkotse.
Retrieved December 13, 2022, from https://philkotse.com/safe-driving/a-
primer-to-traffic-congestion-in-the-philippines-5797#:~:text=Become
%20familiar%20with%20the%20causes%2C%20effects%2C%20and
%20possible

 CNN Philippines (2020, January 8) “A Filipino Now Owns Angkas Amid


LTFRB Blacklist.” Retrieved December 14, 2022 from
https://www.cnnphilippines.com/news/2020/1/8/Angkas-ownership-change-
TWG.html?fbclid=IwAR1_lptvWH4JDLd-
3lu9N0xEBNBZxOLVbWeE2YCduGoltoEHDf3ml292po8

 Eru (2022, December 5). [Angkas Review for Cancellation of Booking].


Twitter. Retrieved December 14, 2022 from
https://twitter.com/earlalats/status/1603927693015539712?
t=fxmN8Prv2Mj52OgCdwFsVA&s=19
 Jaiswal, N. (2021, May 27). 10 Benefits of Booking System for a Travel
Agency. Retrieved February 13, 2023, from
https://wptravelengine.com/benefits-of-online-booking-system/#:~:text=One
%20of%20the%20major%20highlights%20of%20an%20online,credibility
%20of%20your%20business%20increases%20on%20its%20own

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necessary? Retrieved February 13, 2023, from
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