Disruptive Innovation: Why Uber Is Not Disruptive But Netflix Is

Disruptive innovation theory by Clay Christensen states that every established company will eventually be overtaken by a newcomer. But disruptive technology is often underestimated by larger industry players. Disruptive businesses start small from the bottom and move upmarket by improving quality over time. Netflix is an example of a disruptive business that begins by targeting low-end markets and moves upmarket by adding mainstream features. Meanwhile, industry giants focus on incremental innovation, overcomplicating products and ignoring customers who just want a simple low-cost alternative. Uber, on the other hand, does not fit the criteria for a disruptive business, as it does not create an entirely new market or start with a low-quality product.