Which of the following is the most striking example of creating a new business model through digitization of a conventional industry? Whirlpool and White Goods Uber and Ride Handling Dabur and Fruit juices Maruti and Passenger cars
Question
Which of the following is the most striking example of creating a new business model through digitization of a conventional industry? Whirlpool and White Goods Uber and Ride Handling Dabur and Fruit juices Maruti and Passenger cars
Solution
The most striking example of creating a new business model through digitization of a conventional industry is Uber and Ride Handling.
Here's why:
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Traditional Model: Before Uber, the traditional taxi industry was the dominant player. People had to either hail a cab on the street or call a taxi company to book a ride. This model was often inconvenient and inefficient.
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Digitization: Uber revolutionized this industry by introducing a mobile app that connects drivers with riders. This app allows users to request a ride from any location at any time, track their driver's location, and pay for their ride electronically.
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New Business Model: Uber's business model is based on the sharing economy and on-demand service. They don't own any cars themselves; instead, they provide a platform for drivers to offer their services to riders. This model has significantly reduced costs and increased convenience for consumers.
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Impact: Uber's success has disrupted the traditional taxi industry and has led to the rise of numerous other ride-sharing apps. It has also sparked a broader shift towards on-demand services in various other industries.
Therefore, Uber's transformation of the ride-hailing industry through digitization is a striking example of creating a new business model.
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