MIS500 Foundations of Information Systems: Next Uber/Taxi Paradigm

This report delves into the evolving landscape of the taxi industry, particularly in light of disruptive forces like Uber, Lyft, and Ola. It explores the influence of rideshare technologies, focusing on how these companies have leveraged information systems to create new business models. The report examines different architectural software, including monolithic and microservice architectures, and the role of service mesh in enhancing performance. It then analyzes the 'next paradigm' for the taxi/rideshare industry, considering factors such as technological advancements, the integration of autonomous vehicles, and the strategic investments being made by companies like Uber and Lyft. The conclusion highlights the significant impact of rideshare firms on the traditional taxi industry and underscores the need for technological innovation and strategic adaptation to remain competitive. The report utilizes references to support the analysis.

Topic 2 There is little doubt that the taxi
industry has been greatly impacted by the
arrival of disruptive companies like Uber, Lyft
and Ola.

Table of Contents
Topic 2: Next Uber/Taxi Paradigm..................................................................................................1
Introduction......................................................................................................................................1
Influence of rideshare technologies on Taxi industry.................................................................1
Different Architectural software.................................................................................................1
Next Paradigm.............................................................................................................................2
Conclusion.......................................................................................................................................3
References........................................................................................................................................4

Topic 2: Next Uber/Taxi Paradigm
Introduction
Information system refers to incorporated set of components that involves gathering,
storage as well as processing of data for rendering knowledge, digital products and information.
Organisation depends upon information systems for carrying out as well as management of their
operations, interacting with stakeholders and compete within the market (Brandner and
Weinreich, 2019). For this, they make use of different paradigms that enables them to sustain
within the disruptive market. To understand this concept, rideshare industry is taken into
consideration, that matches up with the passengers with vehicle by the usage of mobile apps and
website. In this report, next paradigms of ridesharing company will be illustrated.
Influence of rideshare technologies on Taxi industry
The impact has been created on taxis due to ridesahre firms and for its minimisation The
New York Council has taken actions on February, 2020. It is recommended that taxis must opt
for surge pricing so that they can compete with firms like Uber and Lyft as various drivers have
faced huge financial debts due to the fall of industry. For dealing these losses the Taxi sector
have developed their application named “Curb Smartphone” that is identical to app of Lyft but it
enables clients to make payments in cash.
Different Architectural software
Firms such as Uber, Amazon and Lyft have deployed monolithic software architectural
structure to microservices by implementation of service mesh within their applications.
Microservice architecture denotes distinctive method that is used for developing software in
which emphasis is laid on building up single function module within the well-defined operations
and interfaces (Hein and et. al., 2019). When any kind of alterations are needed within any
section of the application then only that aspect will be modified as well as redeployed instead of
making modifications and redeployment of complete application. The microservice architecture
denotes an approach for developing large enterprise applications that comprises of different
small units referred to as service. Here, each service will be developed, deployed and tested
individually. Each service will have shared storage system or a database and they can be further
distributed into smaller chunks. Monolithic architecture implies unified traditional model that
is utilised for software designing in which all the aspects are composed in single piece. It
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comprises of single code base that comprises of heterogeneous modules that are further
segregated for technical or business features (Nomula, 2019). This comprises of single build
system that is liable for building entire application or dependencies. It comprises of deployable
or executable binary.
Microservice are standardised characteristics with respect to automated deployment,
business efficiency and decentralised distributed control of information. This renders high agility
as change within one aspect will not create an impact on other asset and they can be easily
deployed due to the isolation among services (Zhang, 2020). The service mesh refers to
infrastructure layers that is liable for handling inter-service interaction within the microservice
architecture. This is liable for minimisation of complexities that are related with microservice
architecture. The benefits furnished by this comprises of load balancing, authentication, routing
& traffic management, security, service discovery, fault injection and many more. For
implementation of service mesh proxy have to be deployed with service which is referred to as
sidecar pattern. For an example Lyft has opted for Envoy (proxy) for their cloud native
applications (Behind the Scenes of Lyft’s New Application Service Mesh, Envoy, 2020). This
implies that ridesharing companies can have enhanced benefits by integration of their
microservice architecture with service mesh like traffic management, their routing, etc.
Next Paradigm
The major challenge is anticipation of the future in precise manner with reference to the
next paradigm that will be opted by taxi or rideshare paradigm. This involves anticipating what
might be the new technologies and services that will be provided by them. But for this, it is
important that innovation studies are integrated with marketing in order to acknowledge
tendencies as well as necessities with respect to technological context that customers are looking
forward for. This is a critical aspect as this is liable for identifying what next is needed by
analysing the needs of their potential customers and the market. An example can be taken to
understand this aspect like the main competitor of Lyft is Uber. Lfyt has invested around $11.6
billion as a market capital and on the other hand Uber within the IPO (Initial public offering) has
given $49 billion (Uber and Lyft close at record lows as investor skepticism grows around recent
IPOs, 2020). Uber is making their investments within testing of drones through which they can
deliver food and go beyond air transport project. In addition to this, Lyft is still emphasising on
ridesharing services.
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The ambitious projects on which Uber is working are Uber Elevate and Uber Air needs
a mini air station or a platform called by the name Skyport for generation of new aircraft (Fast
forwarding to the future of on-demand, urban aviation, 2020). This illustrates they are looking
forward to have a bigger drone that will possess capacity for transporting one or more persons.
The project UberAir might take years until their operations starts as it will depend on new
architecture and structure which to be built as a new concept for air rideshare. In addition to this,
project also need to accomplish certain regulations from the government and artificial
intelligence will be utilised for driving autonomous air vehicles. In case if Lyft wants to be
within the market for next generation for rideshare then they need to make significant
investments within the autonomous car projects. Before the air rideshare transport will begin,
the world can see new generation of autonomous vehicle. Tesla is working with improvisation of
their autonomous car level 5 that will not have geofence (Tesla’s ‘Full Self-Driving’ feature may
get early-access release by the end of 2019, 2020). As a strategy, Lyft can have a partnership
with Tesla and must test autonomous cars within the ridesharing market. In parallel to this, they
can also develop long term projects for air rideshare market.
Conclusion
From above, it can be concluded that rideshare firms such as Uber, Lyft, etc. has created
a strong pessimistic impact on taxi industry. There has been lots of technological enhancements
that must be opted by this sector. Information system is one of the major driving force and fro
this reason Lyft has updated their architectural sofwtare for enhancement of their services even it
was a risk. The Uber is working on some ambitious projects and the next paradigm of the
rideshare industry will bring in disruption.
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References
Books & Journals
Brandner, K., & Weinreich, R. (2019, September). A recommender system for software
architecture decision making. In Proceedings of the 13th European Conference on
Software Architecture-Volume 2 (pp. 22-25).
Hein, A. & et. al. (2019). The emergence of native multi-sided platforms and their influence on
incumbents. Electronic Markets, 29(4), 631-647.
Nomula, A. (2019). Architectures v/s Microservices.
Zhang, W. (2020). Improving Microservice Reliability with Istio.
Online
Uber and Lyft close at record lows as investor skepticism grows around recent IPOs. 2020.
[Online]. Available through: <https://www.cnbc.com/2019/10/01/uber-closes-at-record-
low-worth-less-than-50-billion.html>.
Behind the Scenes of Lyft’s New Application Service Mesh, Envoy. 2020. [Online]. Available
through: <https://thenewstack.io/building-lyfts-new-application-service-mesh-envoy/>.
Tesla’s ‘Full Self-Driving’ feature may get early-access release by the end of 2019. 2020.
[Online]. Available through: <https://www.theverge.com/2019/10/23/20929529/tesla-
full-self-driving-release-2019-beta>.
Fast forwarding to the future of on-demand, urban aviation. 2020. [Online]. Available through:
<https://www.uber.com/in/en/elevate/uberair/>.
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