One of the things drilled into my head as a college student in the economics department was the concept of the “cost-benefit analysis.” Simply put, this concept asks whether something is worth the price you pay for it. And when the answer is “no” — meaning price exceeds value — industries become ripe for disruption. The real estate industry is ripe for disruption. The sharing economy is a great example of disruption. Taxi cab services, for example, became so mediocre in their offerings, the value no longer met the price. Whether it be due to dirty cabins, high costs or lack of availability — whatever the reason — the taxi industry did not evolve to keep price and value in line. Enter Uber. With optimized matching of passengers and drivers, peer reviews and scalable management software, Uber has managed to disrupt an industry resting on its laurels. The result is upward pressure on taxi cab and Uber services, and downward pressure on ride price. The cost-benefit is back…
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