The innovator’s dilemma: Legacy taxi operators vs Uber
The last of the taxi roof lights are flickering out, and their once-buzzing dispatchers’ radios are falling silent. Across Europe and beyond, long-standing legacy taxi operations face a formidable challenger: ride-hailing applications like Bolt and Uber are sweeping through every market, in every jurisdiction, gobbling up riders and drivers alike.
Contrary to what you might read elsewhere, legacy taxi businesses do not face an uncertain future. They face a clear and inevitable reality: ride-hailing is here to stay. The critical question as the rides industry continues to grow year-on-year is not if traditional taxi businesses will survive but who will take the largest slice of the pie: disruptors or traditional operators?
The dangers of complacency
Fifteen years ago, eCabs was born as a traditional dial-a-cab business. Like most legacy taxi businesses, we manually registered bookings and dispatched rides from our bookings office. I remember those days—passengers queuing outside our dispatch centre after a night out, drivers waiting idly for their turn to be called on the tannoy.
However, we founded eCabs with the intent to digitize our rides service. We built our own digital platform, on bare metal infrastructure, with all the complications that come with it. We’ve experienced the tricky transition from one system to another—patches upon patches, and late-night scrambling to get back online. All the while, we were competing against the largest ride-hailing platform in the region, Bolt.
Over the years, I’ve learned that disruption can come in pitter-patter, showers, or torrential downpours. In Malta, it was a deluge. After Bolt, came Uber. Today, eCabs is the only locally grown ride-hailing operation in its home market, with other businesses in different jurisdictions running on our platform. This success stems from our continuous investment in our digital offering, from partnering with global leaders like the Google Maps Mobility Platform to headhunting talent from leading ride-hailing tech players.
Facing the real threat
What we’ve learned is that the greatest threat traditional taxi businesses face today isn’t innovation and disruption; it’s the temptation to ignore transformative change. The danger is in burying heads in the sand, hoping ride-hailing tech will simply go away. Take it from me—it won’t. These giants are coming for the traditional taxi businesses, and the answer isn’t in ignoring the change but embracing it.
Legacy operators must become disruptors themselves if they want to survive. Harvard Business School professor Clayton Christensen introduced the concept of the Innovator’s Dilemma in 1997, explaining how established companies often focus on sustaining innovations—incremental improvements to existing products—at the expense of recognizing disruptive innovations on the horizon. These major changes may initially serve niche markets, but they have the power to redefine entire industries.
For legacy taxi businesses, the disruption came in the form of ride-hailing apps. Ignoring these innovations is a recipe for obsolescence. As Uber’s own CEO Dara Khosrowshahi said nearly seven years ago: “If you don’t disrupt yourself, someone else will.”
How to fight back
Digital transformation isn’t a button you press; it’s a process. What eCabs has developed isn’t just a white-label patch for legacy businesses trying to add a digital component to their service. We’ve packed 15 years of hands-on industry expertise into a platform built from real-world experience—competing against global ride-hailing giants, managing fleets, developing data-driven rider marketing campaigns, and educating policymakers.
This isn’t a first aid kit for traditional businesses; it’s a journey for operators who want to become regional leaders in mobility. Because make no mistake, global ride-hailing platforms aren’t coming for a piece of the pie—they want the entire thing.
By Matthew Bezzina, eCabs Technologies CEO
Matthew Bezzina will be a key speaker at the upcoming Start-Up Festival in Malta. The festival brings together entrepreneurs, investors, and enthusiasts to explore cutting-edge technologies, disruptive business models, and groundbreaking solutions. A highlight is the “Dream Big Malta” panel, celebrating the achievements of individuals from Malta excelling in international business, professions, or sports.
