Instructor: David Schuff, Section 003

Ride-Hailing Business Now Better Than Ever

Since Uber and Lyft have come into play, a lot of people have started utilizing these means of transportation rather than driving their own car. The automobile industry believes that personal car ownership will be plummeting in the upcoming years. Due to this belief, companies, like Sony, Bosch, and Avis, are partnering with automotive, ride-sharing companies. The percentage of personal use of cars has fallen below because it is more convenient now to use ride-sharing sources. Consumers are looking for a quick way to get from point A to point B. With parking as the biggest issue, they choose to not utilize their own vehicle, ultimately leading to the question of ownership of one. Uber, Lyft, and other means can be considered a disruptive innovation due to this. It has caused and will continue to cause a change in the automobile industry, as well as transportation industry. 

Source: https://www.wired.com/story/ride-hailing-business-uber-lyft-sony-bosch/

One Response to Ride-Hailing Business Now Better Than Ever

  • Hi Memoona! I think it’d be really interesting to apply an innovation analysis to these ride sharing applications. We touched on this a bit in class. The idea of requesting a ride from a stranger to get to a specific location is not exactly novel, considering the taxi business. However, these applications did change the nature of the service by using real-time information and location technology to provide users with an upfront cost of their trip, estimated time of arrival, driver information, etc. These changes to the nature of ride sharing may have encouraged people who previously did not use taxis due to variable costs or time restraints to begin ride sharing with these applications. Therefore, I would argue these applications are new-market innovations. People who would have previously used taxis also switched to using these ride-sharing apps due to the lower cost which also gives the apps characteristics of low-end innovation.

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