The transport industry is among the key pillars for global economies. The sector has seen serious growth and evolution with the development of numerous channels of transportation. Personal transportation is a customized taxi service dealing with individual customers. There has been the immense growth of rail, air, and sea transport both locally and globally . This has seen the emergence of dynamic approaches to transport like personal transportation to serve the dynamic customer needs.
This mode of transportation has had a significant impact on the social platform. It has facilitated movement of people from a place to another . The movement has led to the spread of cultures and social practices both locally and globally. Personal transportation has also facilitated social cohesion acting as a link between people with different social backgrounds and geographically separated. In the process, people from diverse social backgrounds have interacted and exchanged views. On the negative side, personal transportation has been associated with the increase of vices such as escort services. It has also caused massive abandonment of the public transport systems that are friendlier to the state and foster social interactions.
Economic front, the transport sector has led to the increases in the national and global incomes through the creation of thousands of jobs for transporters locally and globally. Further, it has enabled the movement of resources and production activities from one destination to another . The development of infrastructure on the global and local platform has been aided by the need for transport networks that are the operating ground for personal drivers
Uber exists in the highly competitive personal taxi market offering transport for private and corporate customers. The industry has minimal barriers to new entry with the main hurdle being government regulations, and the capital demands to venture in the industry. Competitors like LYFT and Professional Drivers Inc. offering substitute products exist though they function on a smaller scale. There is a prospect for competition increase as the industry continues to gain prominence. The suppliers and customers bargaining abilities have an effect on the business; this is for they both cut on the profits of the company. When the customers bargain, there is a drop in the amounts charged for transport while a supplier bargain means we either buy goods more expensive or on a credit basis. Given these factors; the personal transport market can be termed as reasonably competitive though it lacks as much investment attention as it deserves.
Several other personal transport players exist in the private transport industry both large and small-scale actors. The corporates have proven to be the biggest market for private transport services. However, individuals growing into another big market source as they outnumber the number of corporate officials requiring transport. The analysis below shows the competition dynamics of the transportation industry
Qualitative competitive analysis
The main competitors are other more established and bigger companies like LYFT that have specialized in the same transport section . This, nevertheless does not rule out the prospect of them venturing into our executive transport category in the future especially given the lucrative turns the segment is witnessing.