Present-day society has become extremely technologically advanced, and economic sectors with on-demand technologies are continuing to evolve at a rapid pace. Specifically, on-demand refers to services with digital platforms that give you instant access to the services they provide. While these technological advances are often seen as beneficial and representative of how far we may advance in the 21st century, many businesses have been negatively affected by unforeseen issues.
Forced to accommodate to this new-age development in consumer technology, many businesses have struggled and some have even filed for bankruptcy. The most disrupted industries are typically impacted by two main factors: low barriers to sector entry, and large business models which do not lend themselves easily to organizational adaptations. A low sector-entry barrier yields more trend-savvy competition, as the traditional taxi industry has seen with Uber and Lyft. The large-scale companies of the taxi industry do not have the liquidity to accommodate the technologies Uber and Lyft are implementing into their companies.
However, such technological advancements do not come without negative aspects. Just as larger companies cannot afford to put the latest technology in their fleet of cabs, smaller companies are extremely dependent on employees who sign up via their app, and thus cannot afford extremely thorough background checks. There have been shocking instances across the country of drivers who managed to sign up for and be employed by Uber despite being convicted sex offenders, having extensive violent criminal records, or not having a legal driver’s license. This type of drawback is enough to prevent a portion of public consumers from switching over until Uber and Lyft have resolved this issue. Although technology brings many benefits to both employees and businesses, companies must be aware of the side effects of advancements in technology before going forward.