Why is Uber a digital disruptor?

Uber's entrance broke the monopoly that taxi drivers had in each city, particularly in airports. Uber's unique innovation to create an app in which supply and demand of transportation services could be met through a digital platform embodies how a traditional industry can be disrupted from day to night.



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Research context. Our research context is digital ride-hailing platforms, specifically Uber and Lyft. Since driving for ride-hailing platforms represents one of the most common examples of platform-based work.

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GPS tracking: The app uses GPS tracking technologies to track the location of both riders and drivers, allowing for real-time location updates and precise navigation. Payment processing: The app uses secure payment processing technologies to allow riders to pay for rides using a stored credit card.

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Why did Uber fail in UK? The transport authority said one main issue was a flaw in Uber's system that let unauthorized drivers sneak onto it. The drivers sidestepped rules by colluding with authorized drivers to pick up riders under their account.

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These include both unethical business practices such as flouting local regulations and sabotaging competitors. It has also received criticism for its treatment of employees, facing claims of racial discrimination and sexual harassment in the workplace.

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But with Uber's rise, society began to see that we were able to slip into a stranger's car largely without being harmed. This opened the door to share more of our resources with others, from our fashion accessories with StyleLend, to bikes with Splinter, to food services with Feastly, and even our homes with Airbnb.

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By having a technology enabler that allowed it to strip out many of the costs of the taxi services, Uber has been able to improve rapidly, retain its low-cost value proposition, and introduce new services—such as UberPOOL—that further increase the utilization of its platform and thus its profitability.

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But Uber, true to its nature as a sustaining innovation, has focused on expanding its network and functionality in ways that make it better than traditional taxis. Apple, on the other hand, has followed a disruptive path by building its ecosystem of app developers so as to make the iPhone more like a personal computer.

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A successful example of disruptive radical innovation is Uber's ride-hailing app which changed how people get around cities by offering an easy-to-use platform for booking taxi rides with just one tap on their smartphone screens.

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Some threats to Uber as a company include: Competition from other ride-hailing services: Uber faces intense competition from other ride-hailing services, both domestically and internationally. This competition could lead to price wars, hurting the company's profitability and growth prospects.

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In order for this theory to have power and be used as an analytical and predictive model, it needs to be precisely defined. Christensen, for example, argued that Uber is not a disruptive innovator according to his definition. It fails to meet two requirements, in that it did not start in a low-end or new market.

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