WHAT IT MEANS
he rapid rise of Uber and Airbnb, which have threatened the survival of traditional businesses, have attracted regulatory scrutiny everywhere in the world where their businesses are flourishing.
Uber and Airbnb have disrupted the traditional taxi and hotel industries. And their potential for greater growth is still high.
Microsoft SA enterprise & partners group lead Angela Gahagan says Uber exploits the prevalent technology of the day — smartphones and apps — to deliver a seamless experience for people who need transport. Uber uses a mobile application to link drivers and customers. San Francisco-based Airbnb is an online based business which connects home owners with people who want to rent homes — for days or weeks at a time.
Global research firm Gartner says the world economy has become ripe for digital disrupters, of which Uber and Airbnb are good examples..
Gartner explains that since such businesses exhibit “network effects — that is, their value increases with each new participant — they tend to form natural monopolies, but are challenged by very complex