They recognized that the local licensing laws were causing horrible market distortions or outright market dysfunctions. The salient points are the market dysfunctions. Where is the market failing and causing misery? What businesses/organizations have captive customer bases, really don't care about bad user experiences, and have outdated equipment?
20th century cabs were miserable, and even faced with competition, taxis are slow to adapt, have outdated technology, and persist in poor user experiences.
most small businesses do it they pay fines and penalties of 100% or more. They were able to play politics and won, congrats to them. didn't work so well for theranos, lending club, zenefits.
You seem to think being disruptive means it has to be always super successful and always ethical. Being disruptive has nothing to do with how successful they are. There are tons of disruptive approaches that failed. Also being disruptive has nothing to do with whether they're ethical or not. Maybe you have your own little definition, but that's not the definition the rest of the world uses.
Exactly, that's why the incumbents couldn't replicate them, because they had to stay legal. Let's not go into whether this is ethical or not. I'm simply pointing out what disruptive means.
usually the definition is around some technology coming out that the incumbents were so heavily invested in earlier technology that they couldn't embrace the new technology until it was too late. It's not that taxis companies couldn't have developed tech, it's because they followed the law which caused them not to be able compete. so, unless you call "law" a technology I don't include it in my definition. And since most of the other on demand companies are failing it leads me to believe it's not about technology or even strategy(unless you call breaking the law a strategy). Is my way the only way to look at it obviously not. Just like facebook didn't disrupt anything. they just executed better.
What you described is a "symptom", not a "definition". However let's say that you're correct and think for a second. Where do you pull out this notion that something has to be a technology to be disruptive? Here's the real definition of disruptive: http://www.merriam-webster.com/dictionary/disrupt There were many cases in history where people came up with disruptive invention, philosophy, business model, or any idea. Anything is disruptive if it renders the previous approach obsolete. Napster was disruptive, but both illegal and a failure. Based on your definition Napster is not at all disruptive. What else would you call it then? Being disruptive is not just about a small number of successful case studies mentioned in Christensen books.
They recognized that the local licensing laws were causing horrible market distortions or outright market dysfunctions. The salient points are the market dysfunctions. Where is the market failing and causing misery? What businesses/organizations have captive customer bases, really don't care about bad user experiences, and have outdated equipment?
20th century cabs were miserable, and even faced with competition, taxis are slow to adapt, have outdated technology, and persist in poor user experiences.