Critical Moment for Taxi Sector: What Should Be Done by Traditional Taxi Sector After the TNC Disruption?

Abstract

The biggest change in urban mobility during recent years is introduction of TNCs (Transport Network Companies) like Uber and of course the most important impact of TNC disruption happened on traditional taxi services. It is a hot topic of discussion in many countries that how the current taxi industry should respond to TNC disruption. This paper will present the current situation regarding impact of TNCs on Taxis with examples from various countries. Reaction of traditional taxi sector will be analyzed and categorized within this paper as well. Main aim is to help better understanding of different reactions, their categorization and as well potential outcomes for traditional taxi sector to be sustainable in competitive business environment and take role as part of sustainable urban mobility puzzle. There are variety of responses already given by traditional taxi industry to the TNC disruption including ‘Ignoring’, ‘Resisting’ ‘Competition’ and ‘Collaborate’ with the new actors. Different options will be evaluated and discussed in this paper and recommendations will be presented to Traditional Taxi Sector.