Uber vs. Taxi: A War of Innovative and Technological Standards

Running Head: UBER VS. TAXI: A WAR OF INNOVATIVE AND TECHNOLOGICAL STANDARDS
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Uber vs. Taxi: A War of Innovative and Technological Standards
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UBER VS. TAXI: A WAR OF INNOVATOVE AND TECHNOLOGICAL STANDARDS
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Table of contents
Abstract........................................................................................................................................................3
Introduction..................................................................................................................................................4
The Design Thinking Model Applied..........................................................................................................7
The Double-diamond Design Thinking Model........................................................................................7
Understanding the Problem.................................................................................................................8
Defining the Problem...........................................................................................................................8
Exploring the Potential Solutions........................................................................................................8
Creating the Solution...........................................................................................................................9
Sustainability of the Solution.......................................................................................................................9
Measuring the Effectiveness of the Suggested Solution............................................................................11
Scalability of the Proposed Platform.....................................................................................................11
The Impact of the Platform to the General Taxi Industry.....................................................................11
The Impact of the Proposed Model to the Industry Producers..............................................................11
Effects to the Community......................................................................................................................12
Potential Difficulties of the Proposed Platform.........................................................................................12
References..................................................................................................................................................14

UBER VS. TAXI: A WAR OF INNOVATOVE AND TECHNOLOGICAL STANDARDS
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Abstract
Ridesharing is an emergent form of point to point commutation. Businesses such as Uber,
13 cabs, and Lyft run their operations whereby drivers who offer their own vehicles are matched
with commuters who seeking to travel (Meleen & Frenken, 2015). The impacts of this disruptive
innovation are far reaching and thus the need to find the perfect balance for the functioning of
both the new and old model of business operations in the taxi industry (Bocker & Meelen, 2017).
Operations of the Uber online platform began officially in Australia in April 2014. Since
then, the company’s operations have expanded from Sydney and Melbourne, where they began,
to other cities such as Perth, Brisbane, Canberra and Gold Coast. The assessment of the impact
of this emergent and disruptive innovation is essential since the effects are far-reaching and
affect numerous key industry stakeholders (Deloitte Access Economics, 2016).

UBER VS. TAXI: A WAR OF INNOVATOVE AND TECHNOLOGICAL STANDARDS
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Introduction
The trends and patterns of consumerism habits and the offering of services have seen
enormous changes in the past few years. The development of emergent innovations in the
information and communication technology (ICT) sector has resulted in the materialization of
novel channels of product and service distribution on the basis of uninterrupted exchange of
information and data between systems and the users.
The heightened connectivity between users and information systems has led to an
increase in the potential of the industries with online platforms like previously observed in retail,
marketing and classified advertising like in Craigslist, and the Entertainment industry as in
services such as Netflix and Spotify. The innovative online platforms that has led to the
revolutionizing of various industries, not only decreases the cost of transactions but also
facilitates the transactions among the providers and consumers and simplifies the provision of
services by enabling peer-to-peer transactions. Notable examples of these individual, peer-to-
peer transactions include services provide by ride-sharing online platforms such as Uber and 13
cabs in Australia (Botsman & Rogers, 2010).
Online platforms streamline the exchange of products and service provision to any
interested individual without stringent restrictions. The ability of interested parties to freely offer
or receive services without constraints has led to a substantial impact on various economic
sectors (Hamari, Sjoklint, & Hukonnen, 2015), particularly where the cost of entry was formerly
restrictive. One of the most significantly impacted sectors is the highly restrictive and regulated