Uber and Traditional Taxi Companies: A Comparative Analysis of Business Models in the Sharing Economy

This case study examines the contrasting business models of Uber and traditional taxi companies within the sharing economy framework. By applying a modified version of Porter’s Five Forces model that incorporates the role of governmental interventions, the case highlights how digital platforms challenge established industries and reshape competitive dynamics. Uber’s platform-centric business model provides advantages in scalability, flexibility, and cost efficiency while enhancing customer convenience. However, it also faces challenges related to regulation, safety concerns, and user loyalty. Traditional taxi companies, although less flexible and often perceived as outdated, maintain competitiveness through regulatory protection, reliability, and customer trust. The analysis demonstrates how regulatory environments act as both barriers and enablers, significantly influencing market entry and competitive positioning. The findings underscore the strategic implications for both types of firms: traditional operators must innovate and adapt to technological disruption. At the same time, platform-based companies must balance growth with compliance and sustainability. This case study is designed for courses in strategic management, business models, and digital transformation, offering students practical insights into the evolving nature of competition and the interplay between innovation, regulation, and consumer behaviour.