How Transportation network companies (TNC) disrupt existing mobility systems

How Transportation network companies (TNC) disrupt existing mobility systems


It is interesting to see how many well-established brands and companies have surrendered innovation and disruption. Markets now move at the speed of technology and the pace of change is accelerating. Time for a new paradigm?

These days, we may be witnessing the “end of nation”. This may be counter-intuitive, especially at a time when politicians around the world are riding up to the highest offices with nationalist programs. From the Turkey to Poland to the Philippines, governments are at work, which place greater emphasis on the wellbeing of their own nation. At the same time, they are also crushing their political institutions in the name of democracy.

The Internet has teared down the boundaries. Today, like-minded people have opportunities for self-organization that go beyond all dimensions previously thought possible. If workers – whether left or right – want to mobilize against globalization today, they can network in the largest de facto state. Via Facebook, they can contact up to 2 billion like-minded comrades-in-arms and organize the resistance against the elite. In addition, the Internet has also produced companies such as Google, Airbnb and Uber. They have teared down state-regulation, and today operate according to their own rules on a global scale. Citizens get used to self-organisation. Sharing private things and make money became lucrative and Sharing Economy is on everyone’s lips. Also known as Collaborative Consumption or Collaborative Economy.

Examples for professional Sharing-policies are known for a long time from agriculture. The recent increase in interest in this concept can be attributed in particular to the increased use of social networks and electronic marketplaces, as well as the proliferation of mobile access devices and electronic services.


One popular example is carpooling. By having more people using one vehicle, carpooling reduces each person’s travel costs such as fuel costs and tolls, and the stress of driving. Carpooling is also a more environmentally friendly and sustainable way to travel as sharing journeys reduces air pollution, carbon emissions, traffic congestion on the roads, and the need for parking spaces.

Carpooling is commonly implemented for commuting but is increasingly popular for longer one-off journeys, with the formality and regularity of arrangements varying between schemes and journeys. Arrangements for carpooling can be made through many different mediums including public websites, social media, acting as marketplaces, employer websites, smartphone applications, carpooling agencies and pick-up points.

Recently, however, the Internet has facilitated growth for carpooling and the commute share mode has. The popularity of the Internet and mobile phones has greatly helped carpooling to expand, enabling people to offer and find rides thanks to easy-to-use and reliable online transport marketplaces.

Concurrent to this personal car-sharing phenomena transportation network companies (TNC or also cold mobility service providers, MSP) entered the market. Best known are Uber and Lyft. They make also part of the sharing economy. These platforms have sometimes been called “ridesharing”, but transportation experts prefer the term “ridesourcing” to clarify that drivers do not share a destination with their passengers. These companies provoked oppositions from traditional taxicab operators kindled discourse about legality and lawful.

Taxi industry groups have argued that TNCs are illegal taxicab operations which dilapidate their business. Several communities, governments, and organizations have established rules and regulations that specifically govern TNCs and, in some jurisdictions, TNCs are completely illegal to operate.

As of November 2015, Uber was involved in at least 173 lawsuits. In Switzerland Geneva baned Uber for the moment by legislation.

For riders compared to taxicabs, TNCs offer advantages of price since taxicab rates are often set by local jurisdictions, request service via mobile app or website, Track the location of the driver and know exactly when the car will arrive and monitored service. For drivers TNCs provide flexible and independent jobs.

These disruptive brands as Uber and Lyft tend to grow and change the consumer behaviour. Often these enterprises operate unseen until it is too late for the competition to react to their ascendency. They often shape the culture itself. Disruptive brands understand trends before all others. Many of these brands understand the shift of economy and have designed their business model accordingly.

The WORLDWEBFORUM 2018 is proud to welcome David Le, Managing Counsel, Corporate & Commercial at Lyft, the pioneering peer-to-peer ridesharing startup, as keynote speaker. David led two separate rounds of funding for Lyft, raising nearly $2 billion in new capital from investors including Carl Icahn, Alibaba, Tencent, Rakuten, Prince Alwaleed of Saudi Arabia, Janus, Fortress and a investment from General Motors, while also helping to launch commercial partnerships with Hertz, Walmart, Southwest Airlines and Justin Bieber. Before joining Lyft, David Le served as Senior Counsel, M&A/Commercial at Electronic Arts where he handled mergers, acquisitions, other strategic transactions worldwide and various commercial deals with Intel, HP, Apple and Amazon.

Lyft was founded in June 2012 to reconnect people and communities through better transportation. It is the fastest growing rideshare company in the U.S and is available in more than 300 cities. The company was valued at US$7.5 billion as of April 2017. The investment of  $1B in Lyft from Alphabet, the parent company of Google, recently caused a sensation, because the company has been an important investor from Uber for many years. Now the company challenges Uber, who is in tough race to go public first with Lyft. The enterprise collaborates with General Motors and they are testing self-driving-cars. In September 2017, Lyft also announced a partnership with Ford Motor to develop and test autonomous vehicles. Maybe Lyft will soon take root in Europe?


Interested about more informations about “End of Nation” and the visionary strategist David Le?
Visit the WOLRDWEBFORUM on January 18th and 19th in Zurich!