Preserving the Transportation Market Share

It’s fascinating to watch an entire industry undergo a rapid series of changes as it seeks to cope with the presence of a competitor that nobody could have predicted the success of. Uber, Lyft and those ride sharing services sharing similar methods of reaching their customers have forced their way into the transportation market riding the wave of apps that the average, every day individual uses as easily as they make a phone call. This has left the Taxi companies and even the limousine industry (companies like scrambling to protect their precious niche. Limousines have fared far better than the Taxi industry thanks to the model of their own business. The Medallion system used by local governments to enforce the number of Taxis on the road is one that has long created a false scarcity and value that was far more inflated than it should have ever been allowed to become.

It’s that regulatory Medallion system that has currently held back the industry from remaining competitive against these new cars on the road whose drivers have the flexibility and freedom of being independent contractors for their chosen companies. Limousine companies are much the same; their drivers are paid professionals offering a unique service when compared within the context of a Taxi and Uber ride share. These companies are going to have to create applications on the same level as Uber’s; a simple GUI and ease of access that informs the user everything they need to know about their ride. It’s this simplicity that we yearn for in American culture and it’s reflected beautifully within their app. Without the medallion system holding them back the Limousine industry is in a strong position to capture a portion of the market from them while preserving the market which they already hold. It’s going to be an interesting few years for the market.