Evaluating the impact of Uber on London's taxi service: A strategic review. (8th June 2018)

• Record Type: Journal Article
• Authors: Skok, Walter; Baker, Samantha
• Is Part Of: Knowledge and process management. Volume 25:Number 4(2018)
• Page Start: 232
• Page End: 246
• Publication Date: 2018-06-08
• Subjects: Organizational change -- Periodicals; Industrial management -- Periodicals; Corporate reorganizations -- Periodicals; Production management -- Periodicals; 658.406
• DOI: 10.1002/kpm.1575
• Languages: English
• ISSNs: 1092-4604

Abstract

Abstract : This paper considers how London's private hire vehicle (PHV) industry and the regulatory authority, Transport for London, can react to Uber's well‐funded, aggressive entry into the marketplace, outlines the new challenges they face, and describes the strategic directions that are available to the PHV industry for their survival. Using a narrative enquiry, the study explores the impact from the co‐evolution of 3 megatrends (information and communication technology advancement, paradigm change, and public preferences) to understand and interpret the methods being deployed to compete, issues faced by drivers, stakeholders' perceptions of regulations, and the options for the future direction of the industry. The research concludes that the impact has been profound, with themes emerging such as passenger safety, driver employment status, sustaining operators' service levels, and regulatory changes. Moreover, there is a premise that short‐term planning is dominant, which raises concerns regarding the move towards electric and autonomous vehicles. The research also recommends practical methods for small private hire operators to review their business models in the form of a roadmap. An app is also proposed in order to aid in implementing a stakeholder engagement strategy and to manage future regulatory requirements. Finally, suggestions are made for further research to identify the future direction of London's PHV industry, considering the Mayor of London's draft transport strategy, and to clarify drivers' employment status. The paper may be useful to taxi service operators and regulators in other international cities that are faced with the disruptive nature of smartphone technology to their traditional working practices. Abstract : Note: This paper was published in an issue of Knowledge and Process Management, inadvertently ahead of its critical review companion piece. This paper should be read in conjunction with the critical review (https://doi.org/10.1002/kpm.1573 ) which will be published in the first issue of 2019.