Competing for the Curb: A Study of the Impact of Ride-Hailing Companies on Traditional Taxi Services
Abstract
In the bustling streets of Sweden, the emergence of Transportation Network Companies (TNCs) has shaken up the taxi industry, leaving incumbents grappling with the need to adapt their business models. While previous research has explored this phenomenon in other parts of the world, little is known about its impact in Sweden. Previous studies have moreover predominantly examined the perspective of TNCs, whereas this research paper sets out to fill the knowledge gap by delving into the perspectives of the incumbents themselves. Based on the novelty and currently evolving phenomenon that TNCs represent, the empirical data in this research stems from qualitative data gathered from six respondents representing five incumbent firms in major Swedish cities. The Business Model Canvas (BMC) served as a framework to analyze and identify the affected components of the incumbents' business models. The research findings show that the taxi industry has undergone major shifts, affecting different aspects of the incumbents' business models. Whereas the emergence of TNCs have caused major shifts in customer behaviors and preferences, primarily driven by their superiority in technology. The study further examines the influence of the Internet of Things (IoT) and regulatory changes on incumbents. Whereas IoT offers incumbents new avenues for communication, incremental improvements, and cost reduction. Regulatory shifts, including the deregulation of the taxi market and the need for appropriate regulations governing TNC operations, have also significantly shaped the industry landscape. The empirical data in correlation with relevant literature has based on the findings in this research identified 11 areas of opportunities and challenges potentially illustrating valuable information for incumbents to incorporate in their desire of adjusting their business models to current market dynamics. This research identifies a significant industry transformation driven by TNCs and advanced technology, with caution needed in interpreting findings due to ongoing transitions and limited TNC participation. Larger-scale research is necessary to gain a comprehensive understanding of the industry landscape and incumbents' relationship with TNCs.
Degree
Master 2-years
Collections
View/ Open
Date
2023-07-19Author
Johansson, Hampus
Leijen, Sebastian
Keywords
Transportation Network Companies (TNC)
Internet of Things (IoT)
Business Model Canvas (BMC)
Business Model Innovation (BMI)
Transformation
Series/Report no.
Master Degree Project 2023:151
Language
eng