Was Uber a Disruptive Technology?
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Uber is considered a disruptive technology because it started as a low-cost black car service but was able to improve its quality over time by allowing any driver to sign up through the UberX platform, which decreased costs and wait times for riders. This helped Uber disrupt the traditional taxi market, leading services like Yellow Cab to file for bankruptcy. Similarly, Netflix started as an online movie rental service and was initially not seen as a threat to Blockbuster, but by improving its streaming quality and expanding its library, Netflix was able to beat Blockbuster and end up completely shutting down the video rental market. Both companies exemplify how disruptive innovations can start from a low-quality foothold and improve over time to disrupt an existing
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Uber disrupted both the black car service and taxi industries by offering on-demand transportation via smartphone at lower prices. It created a new market by making black car rides more affordable for those who could not previously pay high costs. Uber's use of new technology, like GPS and app-based booking and payments, provided a more pleasant experience than traditional taxis. This allowed Uber to gain market share and revenue at the expense of taxis and black car services. Overall, Uber is considered a disruptive innovation as it created new ways for people to get from place to place using emerging technologies that incumbents did not adopt.
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The document summarizes key learnings from the success of Netflix. It discusses how Netflix transitioned from DVD rentals to online streaming and original content production through first principle thinking. It highlights how Netflix builds talent density and promotes radical candor through open feedback. The summary emphasizes that Netflix empowers employees through decentralized decision making and prioritizes innovation for the long term through personalization and data-driven recommendations.
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Netflix introduced a monthly subscription model in 1999 and dropped single rentals in 2000. This established their business model of unlimited rentals without due dates or late fees. In 2000, when Netflix had 300,000 subscribers relying on mail delivery, Blockbuster offered $50 million to acquire them but Netflix declined. Netflix has since grown to be a major media streaming service with over 150 million subscribers globally generating $15 billion annually in revenue.
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Was Uber a Disruptive Technology?
- 1. WAS UBER A DISRUPTIVE TECHNOLOGY? LEE FERGUSON
- 2. HISTORY OF UBER • In 2008, Travis Kalanick and Garret Camp came up with the idea of an app to get a taxi. • Started as a black limousine car service.
- 3. HISTORY OF UBER CONTINUED • Uber is currently in 58 countries as well as 633 cities and worth over $60 billion. • Uber’s goal is to help the economies of cities, give easy transportation options, and make streets safer.
- 4. MARKET IMPACTED BY UBER • Black limousine car service. • Yellow Cab, largest taxi service in San Francisco. • Uber is a main source of Yellow Cab’s financial issues. • Yellow Cab filed for bankruptcy protection.
- 5. MARKET IMPACTED BY UBER CONTINUED • The taxi service had to be “hailed” by customers. • NYC medallion taxi’s have been just as impacted.
- 6. UBER’S TECHNOLOGY AND IMPACT • App used to call/reserve a cab at the press of a button. • GPS service locates your exact location. • Allows the consumer to see exactly where his/her Uber is and it’s ETA.
- 7. UBER’S TECHNOLOGY AND IMPACT CONTINUED • Taxi service is merely hailed at to get a ride. • Rental costs for taxi’s and their equipment hasn’t changed though their profits have severely dropped due to Uber.
- 8. IS UBER A DISRUPTIVE TECHNOLOGY? • In my opinion, Uber is a disruptive technology. • Uber started from a low market foothold as a black limo service. • UberX allowed anyone who had a car to be a driver. • No special certificate needed. • At the start, UberX wasn’t cheaper or faster than a taxi because driver’s were low and they didn’t need extensive knowledge of the city.
- 9. IS UBER A DISRUPTIVE TECHNOLOGY? CONTINUED • As UberX’s driver’s grew, fare cost dropped and arrival times decreased due to the growing network. • “UberX started from a low- market foothold and moved upstream to disrupt the taxi market. Only once UberX improved in quality did it catch on with mainstream consumers.” (TechCrunch,
- 10. NETFLIX AND REED HASTINGS
- 11. NETFLIX AND IT’S HISTORY • 1997 – First started. • Co-founded by Reed Hastings and Marc Randolph for online movie rentals. • 1998 – First DVD rental and site launches. • 1999 – Releases monthly payment for unlimited DVD rentals. • 2000 – Member ratings and recommendation system created.
- 12. NETFLIX AND IT’S HISTORY CONTINUED • 2002 – Initial public offering made. • 2005 – Members rise to 4.2 million. • 2007 – Streaming introduced. • 2008-2009 – Netflix partners with gaming consoles, smart TV’s and other devices to offer built in streaming app. • 2010-Present – Netflix launches on mobile devices(iPad, iPhone, etc.) and goes international.
- 13. REED HASTINGS AND CREATING NETFLIX • October 8, 1960 – Reed Hastings was born. • Attended Bowdoin College. • Earned a bachelor’s degree in Mathematics. • Joined Peace Corps after college to teach math in Swaziland. • Two years later, returned to the U.S. to get his master’s degree in Artificial Intelligence from Stanford.
- 14. REED HASTINGS AND CREATING NETFLIX CONTINUED • 1991 – Founded Pure Software. • A debugging tool for engineers. • Went public in 1995 then was acquired by Rational Software. • Received $750 million after the deal. • 1997 – Co-founded Netflix with Marc Randolph.
- 15. NETFLIX’S IMPACT ON THE MARKET • First, Netflix’s was not engaging to consumer’s who wanted the instant gratification that Blockbuster offered. • Consumers found Blockbuster inconvenient because too much time was spent there, and they had to drive back within 24 hours. • Netflix also became more enticing as quality increased. • Netflix bypassed the entry barrier by using online sales and mail distribution system.
- 16. NETFLIX’S IMPACT ON THE MARKET CONTINUED • 2010 – Netflix forces Blockbuster into bankruptcy. • 2011 – Netflix had over 200 job openings at the headquarters vs Hulu’s 61 openings at all it’s locations. • Netflix sought the 5-10 year end game of a streaming and cloud base platform.
- 17. WHY NETFLIX IS A DISRUPTIVE TECHNOLOGY AND A SUCCESSFUL ONE • Started to seek a particular group of consumers. • Netflix was not seen as much of a threat at first. • After increasing it’s quality, Netflix started beating it’s competitor (Blockbuster). • Netflix completely shutdown an entire market. • Netflix has been leading the movie/tv show streaming industry ever since.
- 18. DID NETFLIX LEAD TO ANY FUTURE INNOVATIONS? • Yes, Netflix lead to future innovations. • Movie and TV show streaming is replacing linear TV. • Netflix is continuously getting more innovative with it’s streaming and cloud platform. • Recently released “Download and Go” so you can watch your favorite shows anywhere.
- 19. WORKS CITED • https://techcrunch.com/2016/02/27/why-clayton-christensen-is- wrong-about-uber-and-disruptive-innovation/ • https://media.netflix.com/en/about-netflix • http://www.businessinsider.com/reed-hastings-netflix-bio-2015- 8/#ironically-hastings-offered-to-sell-forty-nine-percent-of- netflix-to-blockbuster-in-2000-to-act-as-an-online-arm-for-the- video-rental-giant-blockbuster-turned-them-down-and-hastings- returned-home-to-promote-netflix-as-the-rental-underdog-7