Friday, June 2, 2017

Disruptive Technology and Competition

So often we hear about disruptive technology.  Generally, it has a harsh impact to established businesses.  An example is Uber Technologies, Inc.  Uber and Lyft transformed the way people travel for short distances.  In major metropolitan areas Uber is seriously undercutting taxis.  In rural areas it is the defacto taxi service.  Lyft is coming on strong. 
The following article is from Bloomberg BusinessWeek. The author looks at the impact of Uber on Washington DC.  Instead of complaining or trying to stop Uber, government officials chose a different strategy. They are determining how to adapt similar technology and evaluating how it can improve overall service.  Note the active role taken by the local government officials.  One unanswered question is can a government sponsored program continually compete and improve on technology when compared to the private sector.  This will be worth watching in the short and long term. 
Link to article:  https://www.bloomberg.com/news/articles/2017-05-17/square-will-replace-meters-in-washington-taxis

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