Practical Management Science
Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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Question No. 2: Case Study Changes in the technological environment have created amazing opportunities for new business models while at the same time threatening traditional ones. For example, Airbnb has shaken up the hospitality industry by allowing people to rent out spare rooms or their entire homes to strangers. The Uber and Lyft ride sharing businesses allow consumers to find a ride from people looking to earn extra money with their vehicles. And with Uber you don't have to worry about having enough cash or giving your credit card to the driver payments and tips are all done through the Uber app. Traditional hotel and cab companies are crying foul, claiming that these businesses are not playing by the same regulatory rules to which they are subject. Others are concerned about safety amid reports of riders allegedly being attacked, kidnappings, and driver accidents, questioning the thoroughness of background checks of the 160,000-plus Uber drivers around the world. Some countries, states, and cities in the United States have banned Uber because of these issues. Discussion Questions: 1. Describe how Uber's business model works and the role technology has played in its success. 2. What are the arguments for banning these types of businesses? 3. What are the arguments for defending these types of businesses?
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Transcribed Image Text:Question No. 2: Case Study Changes in the technological environment have created amazing opportunities for new business models while at the same time threatening traditional ones. For example, Airbnb has shaken up the hospitality industry by allowing people to rent out spare rooms or their entire homes to strangers. The Uber and Lyft ride sharing businesses allow consumers to find a ride from people looking to earn extra money with their vehicles. And with Uber you don't have to worry about having enough cash or giving your credit card to the driver payments and tips are all done through the Uber app. Traditional hotel and cab companies are crying foul, claiming that these businesses are not playing by the same regulatory rules to which they are subject. Others are concerned about safety amid reports of riders allegedly being attacked, kidnappings, and driver accidents, questioning the thoroughness of background checks of the 160,000-plus Uber drivers around the world. Some countries, states, and cities in the United States have banned Uber because of these issues. Discussion Questions: 1. Describe how Uber's business model works and the role technology has played in its success. 2. What are the arguments for banning these types of businesses? 3. What are the arguments for defending these types of businesses?
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