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How Uber destroyed the NYC cab market – New Disruptive Innovation is here

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How Uber destroyed the NYC cab market. More Disruptive Innovation is Coming.

The rise of ride-hailing companies like Uber has had a significant impact on the taxi industry, particularly in New York City. The introduction of Uber’s app-based platform in 2011 greatly increased the convenience of hailing a ride for many people, which in turn led to a decline in demand for traditional taxi services. This has caused significant financial hardship for many taxi drivers and owners, as well as for the broader industry as a whole.

The traditional medallion-based taxi industry in New York City was heavily regulated and controlled by a small number of players, who had invested heavily in medallions, which are required to operate a taxi in the city. When Uber and other ride-hailing services arrived, they were not subject to the same regulations and thus were able to offer lower fares, which made them more attractive to many riders.

As a result, the value of medallions declined and many drivers found themselves unable to make a living or pay back the loans they took out to purchase their medallions. According to some reports, the number of taxi trips in New York City fell by more than 50% between 2013 and 2018, and the value of medallions dropped by as much as 90%.

It’s important to notice that the impact of Uber on the taxi industry is a complex issue and there are different ways to look at it. Uber and other ride-hailing services have brought convenience and innovation to the transportation industry and expanded options for riders, also they’ve opened opportunities for many drivers to earn money. However, the introduction of these services also has had negative consequences for the traditional taxi industry, particularly in cities where it was heavily regulated and controlled by a small number of players.

Innovation Quotes

  • “The reason why it is so difficult for existing firms to capitalize on disruptive innovations is that their processes and their business model that make them good at the existing business actually make them bad at competing for the disruption.” ~ Clayton Christensen
  • “Imagination is everything. It is the preview of life’s coming attractions.” ~ Albert Einstein.
  • “The secret of change is to focus all of your energy, not on fighting the old, but on building the new.”  ~ Socrates.
  • “You never change things by fighting the existing reality. To change something, build a new model that makes the existing model obsolete.”  ~ Buckminster Fuller.
  • “Smart companies fail because they do everything right. They cater to high-profit-margin customers and ignore the low end of the market, where disruptive innovations emerge from.” ~ Clayton Christensen
  • “Without change there is no innovation, creativity, or incentive for improvement. Those who initiate change will have a better opportunity to manage the change that is inevitable.” ~ William Pollard.
  • “I have more respect for the fellow with a single idea who gets there than for the fellow with a thousand ideas who does nothing.” ~ Thomas Edison.

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