Disruption is a buzzword that is being thrown around the tech industry like branded pens at a business convention. However, it is the exact word that describes rapid change and revolution of a market that has grown stagnant and frustrating for consumers. The most prominent examples are of course peer-driven taxi services (Uber, Lyft) overhauling an outdated, abrasive taxi service or music streaming services eliminating the need to pay $1.25 to rent a song from iTunes (I say rent because you don’t own it).

Both these cases are disruptions that change the market for the better. Increasing the efficiency of civic transportation in anyway helps economic growth. It promotes people to move more and for further distances, which deposits more of their disposable income into the economy. Cheaper, faster, and better transportation will lower cost of business (faster/cheaper commutes). Not to mention, it increases carpooling and lowers the number of cars in the market aiding congestion and CO2 emissions. Streaming services like Pandora and Spotify make it easier for people to discover new music. In addition Spotify’s freemium business model discourages music pirating.

However, even though most market disruptions are better for the market and the overall economy in the long run, it is not to say it is completely blood-free. In every change, from great or small, there is always someone who loses their job or suffers a decrease in pay. The taxi service was waiting for change, but with its eventual collapse, taxi drivers who switch over will move into a new system that does not provide union safety nets or a healthcare plan. Additionally, the current oversaturation of drivers has made it hard for taxi drivers to sustain a consistent paycheck. Most of these issues should resolve themselves, but for the time being they are still a population that is getting lost in the transition. And it is the responsibility of those leaders of change in the tech industry to be conscious of who is getting left behind and how to best help them become part of your movement.

Previous Index Next