Consolidated challenge to social demand for resilient platforms : Lessons from Uber's global expansion

Abstract

Many in the industry see the ride-sharing company Uber as the significant advancement through information and communication technology (ICT) particularly of the digital service platform and sharing economy. Uber has been exploring the new frontier of the ICT-driven disruptive business model (IDBM) and succeeded in its global expansion to over 479 cities in more than 75 countries worldwide in June of 2016.

Such rapid expansion provides constructive insights regarding the significance of IDBM, not only in transportation but also in almost all other business fields. While at the same time Uber's legal battles in some cities around the world raise a serious question regarding the rationale of IDBM.

In light of such a question, this paper examined the institutional sources contrasting success and failure in Uber's global expansion.

By the comparative empirical analysis, it was identified that the contrast could be attributed to a bi-polarization nature of ICT-driven logistic growth, and the success can be attributed to a co-evolutionary acclimatization that harnesses the vigor of counterparts.

This analysis suggests the significance of IDBM with a consolidated challenge to social demand (CCSD); it demonstrated that a co-evolutionary acclimatization played a transformative role in this accomplishment.