Many people in large cities are starting to use Uber to find rides. The taxi industry in these cities is facing
A) the bargaining power of suppliers.
B) the bargaining power of customers.
C) rivalry among existing competitors.
D) the threat of substitutes.

Question

Quizplus · Accepted Answer

The rise of Uber is a clear example of the threat of substitutes to the taxi industry. Many customers who previously relied on taxis are now turning to Uber for their transportation needs. This puts pressure on taxis to either lower their prices or improve the quality of their service in order to remain competitive. The other options listed (A, B, and C) are not relevant to the situation at hand.

Many People in Large Cities Are Starting to Use Uber