Uber vs Didi
1. How attractive was the taxi industry before Uber and other ride-hailing players entered the market? (Hint: Use Porter’s five force model to answer this question)
Requirements: 1.5 page
Answer preview
In the early 17th century, the taxi industry started when the horse-drawn Hackney services began in London. Currently, urbanization and increased people’s movement widened the taxi services. Facts from the U.S. Bureau of Labor Statistics reveal that in 2014, the U.S. had 239,900 taxicab drivers, which had increased by 6,000 from 2012 (Wu, 2017). There has been significant competition due to the introduction of ride-hailing players such as Uber. Before Uber, the taxi industry was unattractive, but the government regulations enabled the providers to offer cab services with less competition.
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