Abstract
ITS is not free of cost. It often requires initial capital investment plus further maintenance and operation cost. From the aspect of business sustainability, this paper reviews the financial feasibility and revenue from investing a taxi fleet with GPS-based dispatching service which is an ITS deployment for CVO. Financial and operation data from current practicing operators are collected and a consumer survey is conducted to unveil both the supply and demand condition. After different scenarios of financial options analyzed, it reveals that a subsidy from government to share the initial capital investment will provide a better chance to sustain such a kind of ITS deployment. In addition, a fleet with at least 400 taxis also renders a better opportunity to have an early break even time and help both operator and taxi drivers to sooner recover their investment.
