Uber, a Disruptive Business Model of a Taxi Service
DOI:
https://doi.org/10.6977/IJoSI.201610_4(2).0003Abstract
Uber is an on-demand non-conventional taxi business since it owns no cabs and has no cab drivers as employees. Instead, it sends a driver to a user when they ping a mobile app. It is a technology company that matches consumers to car services in many cities around the globe and takes a slice of the fair for the service.
Uber started as a luxury black-car service in San Francisco in 2009 that went on to be valued at $17 billion by June 2014. It has disrupted the monopoly of taxi cab transportation and has reinvented the experience completely. Previously, there were several payment difficulties when you arrived at your destination. Uber has solved all these touch points, creating a “WoW” (enjoyable) experience by giving the customers “peace of mind” and sparking an avalanche of word of mouth and press.
Uber’s Business Model has come under attack from regulatory authorities in many Countries, from China to France. However, we see it as teething problems as on the S-curve, it is still at the birth stage and will have to solve the “ifs and buts” in the paradigm shifting innovation journey to reach its ideal.
Taking Customer Evolution Trend, Uber has positioned itself in the Experience Quadrant of the trend by reimagining the customer’s entire experience and making it seamless across all the touch points.
Keywords: 4 Pillars of Systematic Innovation, Business Model, Disruptive, S-Curves,
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