EMGT 5130
New Business Development
Lokesh Reddy Patturu (2251906)
Week 1 IA 1
2. Uber Business Model Innovation: What makes Uber so disruptive?
Innovation: Invention that has produced economic values in the market through new
product or new processes, or new service or new ways of doing business
Uber is widely recognized as a disruptive innovation, as its business model has
undeniably caused a substantial transformation within the transportation sector.
i) Uber has completely changed how people use transportation services. Its easy-touse mobile app has changed the way people buy things by letting them easily request
rides, keep track of their drivers, and pay without cash.
ii) Uber's business plan depends a lot on new technologies. Several technological
advances, such as GPS navigation, cashless transactions, and a mobile app that links
riders with drivers in real time, have changed the traditional taxi business.
iii) Traditional cab services have been thrown off by Uber's entry into the market.
Because of this, there is now more competition, which often means lower prices and
more ease. To stay competitive, traditional cab services have had to change by adding
technology and making their services better.