A Comparison of strategy used in ride hailing services : case study Uber Dar es Salaam, Tanzania and Go-Jek Bandung, Indonesia

Abstract

Ride hailing service is a new terminology to most of people in both developed and developing countries, since it came into existence about a decade ago. Companies in this new field have used a number of strategies to help them established themselves and unlock potential groups of customers. The mix of strategies includes echnological Innovation (TI) which has been acknowledged as a Value Innovation strategy which has paved the way for many new business ventures to create a large market share within the present market while disrupting established players. A literature review of Rate of Adoption Theory, Technology Acceptance Model (TAM), Technology Organization Environment Framework (TOE), Technological Innovation theory and strategies has been a tool in creating a strong theoretical foundation for this study. Where Generic strategies and Intensive Growth strategy has been reviewed in light of Technological Innovation strategies. The study methodology used involves the quantitative approach which is descriptive in nature. The data results obtained from the primary source were utilized for statistical procedures. During the study the researcher was not able to get relevant information direct from the companies so other method needed to be used. The study concluded that the most effective strategies were a mix of cost leadership and product differentiation strategies along with technology, which made it a Technological Innovation strategy. The study recommends ride hailing services embrace the improvements of communication channels, the need for ongoing training of their contractors and staff, and the need to be aware of government rules and regulations.