Disruptive companies enter markets to challenge and often replace industry incumbents. While they offer great scale and opportunities, they might highlight a risk to established public services if not executed properly.
Take, for example, Uber.
The gig giant’s offer was appealing to both its drivers and customers. Customers could order a taxi which cost less than most alternatives and arrived quicker. Drivers could work on a self-employed basis from anywhere, whenever they liked and use their own car.
Uber’s business model was based on recruiting many drivers to meet increased demand, at no additional cost to the company. The company started off in San Francisco and after gaining popularity and investor backing, expanded globally.
Although a success story, Uber has faced many regulatory hurdles around the world. The company has also been criticised by the taxi industry and endured backlash from both its drivers and consumers.