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Information System Assignment: Impact Of Technology Within Cab Industry


Prepare a report on information system assignment emphasizing the impact of information system and new business models within cab industry.


According to the readings of Endraria (2019) taken herein information system assignment, the information systems are considered to be socio-technical and formal systems of organisation that are designed for collecting; storing; processing as well as distributing the information. As per the socio-technical perspective, the information systems are known to be composed of four types of components such as structure; task; technology and people. Hence, the present study emphasizes the cab industry to highlight the companies like Ola; Uber harnessing the power of information system along with creating the new models of business.

The Uber and Ola services were known to become popular soon within the customers of most metropolitan cities. However, the actual revolution came in the year of 2010 while the services based on app started with its operation which has also been followed by the Uber in the year of 2013. As stated by Özturan, Mutlutürk, Çeken & Sar? (2019), this made the markets to be competitive along with the demands of the customers. In recent days, the companies have been found to make use of different strategies for attracting the new base of customers along with retaining the old ones. The two of the largest players that are Ola and Uber have been expected to bank on the rentals and bike taxis; corporate tie-ups; autos along with the collaborations of public transport for shoring up with the ride numbers (Ola Rideshare Australia). However, this has also become a backdrop for the riders who have been looking for cheaper as well as quicker options of travel.

Change within the cab industry through technology and new business models
Based on the views of Toch, Lerner, Ben-Zion & Ben-Gal (2019), each and every generation has been considered to undergo a technological revolution where the elegant and newer solutions are found to make some routine ways for performing tasks in a completely obsolete as well as an irrelevant way to some of the extent. According to the World Economic Forum (WEF), the first industrial revolution has used water as well as steam power for merchandising the production. This is the third used information technology and electronics for automating the production. Recently, the fourth industrial revolution has been to build on the third (Shrivastava, 2019). This has been predicted to disrupt business models along with decentralising the economies for moving through the value-based system for enabling access.

Getting rides through the Ola and Uber has been simple and adding to that fact, at times, there seem to be the things out of the control of these cabs such as poor infrastructure of city transportation; uncooperative drivers; traffic jams; and similar others (Hennart, 2019). Besides all these setbacks, these cabs have been found to change their ways. The cab industry has been found to store its data along with being leveraged for predicting the demand and supply along with fixation of the fares. These cabs also look for the way transportation can be handled over the cities as well as trying for better adjusting with the bottlenecks along with other common issues. The cabs are also known to gather the data for its drivers and collect the non-identifiable information regarding their location and vehicle (Khan, 2020). They also tend to monitor their acceleration and speed along with checking whether they are working for any competing organisation or not. Uber is known to have solid logistics along with the network of transportation within the place. Thus, this made sense for entering the transportation services sector.

As evidenced by Choi and Ozkan (2019), the cab industry came into existence with the utilisation of its real data when no other industry was aware of it and this made them lead a competitive advantage, which can also bring another paradigm within this industry. Nevertheless, this has resulted in lowering the demand for the taxi industry. Being aware of the implementation of some of the new technologies within this industry, the Uber-ed examples can be referred to as the neglecting of the innovations within the taxi industry such as mobile; real-time data and cloud computing as well ( 2017). After this, the industry can also consider the use of flip cameras within the cabs for overseeing the safety of the customers in future. This can also be shared within the clouds, which can also become another social trend along with providing free wi-fi to the customers; this can allow the customers to quickly share their content over the media platforms ( 2020). Hence, this feature can help in maintaining the safety of the customers in future which can eventually attract more and more customers. Hence, this can be the next paradigm of the cab industry allowing a digital disruption.

Previously, most of the cab companies chosen not to go within this innovation, however, Ola; Uber and other companies performed along with making the traditional companies of cab and taxi go almost obsolete (Uber Australia. 2020). Uber has been the first app for its kind towards the market, it was known to deals with the other apps such as OpenTable who were found to offer the feature of “Ride There with Uber” for the reservations within the restaurants. Thus, it has been an essential example of the reason why companies might go for innovation at an early time for staying relevant within the market. Knowledge about shifting of the market cannot be that easy to know (Seattle Business Magazine 2014). Nevertheless, the anticipation of the market transition can be with the customers by acquiring the things that are needed by the customers along with the innovations that can be considered by them. In recent days, keeping up with the market pace is not that enough, rather, there seems to be a huge advantage for being with the market competition with some of the convenient and new tools (Brennan, 2019). Hence, for staying ahead, the companies need to be aware of the advancement in the technologies in the respective industry along with aligning the ideas and interests of the customers.

To conclude, the present study has highlighted the aspect of information systems and its concepts as well as advanced technologies within the context of the contemporary businesses as well as organisations. Insights were provided about the cab industry emphasizing the next paradigm of them along with creating new models of business. As per the recommendations, Uber can make use of advanced technological systems to constantly monitor its segments and the overall industry within every three months. This can help them to identify the backlogs and process accordingly.

Brennan, N. M. (2019). Corporate governance implications of disruptive technology: An overview.

Choi, J. J., & Ozkan, B. (2019). Innovation and Disruption: Industry Practices and Conceptual Bases. Disruptive Innovation in Business and Finance in the Digital World (International Finance Review, Vol. 20), Emerald Publishing Limited, 3-13.

Digital platform more than taxi service: Uber as app economy paradigm?. (2020). Retrieved 13 March 2020, from

Earn Money by Driving or Get a Ride Now | Uber Australia. (2020). Retrieved 13 March 2020, from

Endraria, E. (2019). Quality of Accounting Information Systems for Facing Industrial Revolution Is Influenced by Business Process and Organizational Commitment. Canadian Social Science, 15(6), 23-30.

Hennart, J. F. (2019). Digitalized service multinationals and international business theory. Information system assignment Journal of International Business Studies, 50(8), 1388-1400.

Khan, R. (2020). Uber - A Paradigm Shifting Unicorn: Do The Rules Not Apply?. Forbes. Retrieved 13 March 2020, from

Ola Rideshare Australia | Sydney, Perth & Melbourne Ride Sharing. (2020). Retrieved 13 March 2020, from

Özturan, M., Mutlutürk, M., Çeken, B., & Sar?, B. (2019). Evaluating the information systems integration maturity level of travel agencies. Information Technology & Tourism, 21(2), 237-257.

Shrivastava, A. (2019). Ola and Uber look beyond cab hailing to drive growth. The Economic Times. Retrieved 13 March 2020, from

Taxis vs. Uber: A Perfect Example of Resistance to Change. (2014). Seattle Business Magazine. Retrieved 13 March 2020, from

Toch, E., Lerner, B., Ben-Zion, E., & Ben-Gal, I. (2019). Analyzing large-scale human mobility data: a survey of machine learning methods and applications. Knowledge and Information Systems, 58(3), 501-523.

Uber and the remaking of the carpool paradigm — (2017). Retrieved 13 March 2020, from


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