Franchising in Frontier Markets: What's Working, What's Not, and Why

employment Program for Organized Transport) is now the largest taxi operator in the capital city of India’s “Silicon Valley,” having grown organically from 18 cars in 1999 to the more than 300 operating today, 24/7. SPOT was started to promote employment, enable asset ownership, and build credit history among low-income households. Unlike other taxi operators in the city, SPOT’s fleet is driven by owners, who operate franchise businesses linked by a common brand, a computerized radio dispatch system, and standards for service, processes, and values. Typical of franchise businesses the world over, SPOT combines the management and financial strengths of an established corporate entity with the entrepreneurial vigor and aligned incentives that come with business ownership. SPOT drivers purchase the cars on installment over a threeto four-year period, with vehicle leases arranged on favorable terms by the franchisor. In addition to arranging financing, SPOT offers an established network of pooled customer demand, fleet-management services, and a dispatch center that channels customer