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The Sharing Economy in South Africa's Tourism Industry: The Case of Uber E-Hailing Taxi Services

The Sharing Economy in South Africa's Tourism Industry: The Case of Uber E-Hailing Taxi Services
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Author(s): Unathi Sonwabile Henama (Tshwane University of Technology, South Africa)
Copyright: 2020
Pages: 15
Source title: Improving Business Performance Through Innovation in the Digital Economy
Source Author(s)/Editor(s): Ionica Oncioiu (Titu Maiorescu University, Romania)
DOI: 10.4018/978-1-7998-1005-6.ch001

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Abstract

Disruptive technology has created radical change in the tourism industry, just like the emergence of the Internet. The cost of doing business has decreased, leading to more competition for customers and lowering of the barriers of entry. Customers have been the biggest winners, as competition has transferred more power into the hands of cunsumers, creating a consumer culture. The sharing economy has developed as a result of the Internet where consumers have become active players in the provision of services in the sharing economy against established businesses. The sharing economy created by technology platforms make it possible for a reduction in the costs of doing business, by lowering the barriers of entry and causing disruption in markets with low competition. The technology platform provided by sharing economy companies matches those that want to offer services and those that seek services, and Uber (taxi services) and Airbnb (accommodation) are the leading pioneers.

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