Transportation industry to compete with ride-sharing

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Two entrepreneurs decide they would like to form a small company in the transportation industry to compete with ride-sharing and taxis by creating a hybrid of the best features of these two types of transportation.They propose to use their own unique application (somewhat similar to Uber and Lyft), but partner with a car rental company (i.e., Enterprise, Avis, Budget, etc.) to use cars not rented or lease cars at a lower rate. Additionally they will hire contract employees (similarly to Uber and Lyft) with more stringent criteria that is more similar to taxis for greater passenger safety. These two new owners/entrepreneurs believe that this will offer customers what they want: ease to access a ride by using an application and greater customer safety.

Will this proposal form a distinctive company or a company that is more operationally effective?Explain.

Reference no: EM132397112

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