This study traces the growth and evolution of cab aggregator services (also called as ride sourcing) across the world and describes the challenges and opportunities resulting due to this disruptive innovation. The goal is to show that there is a greater need for involvement of local governments and city planners to institutionalize policies and procedures to improve regulatory compliance of the taxi aggregators. The adverse environmental impacts of the growth of mobile-enabled navigation notwithstanding one has to appreciate the fact that digital matching of supply and demand has resulted in better capacity utilization for the drivers and better prices for consumers. It is therefore imperative to understand the preferences of consumers in opting for a ride sourcing service. This will help local governments to understand the impact of the shortcomings in the public transportation model. An empirical study has been conducted to identify the factors that affect consumer preferences to opt for a ride sourcing service. Using multiple regressions a model has been presented to explain the same. This research highlights the importance of public private participation in enhancing the effectiveness of the app-based transportation model and indicates the possible future trajectory for the transportation network companies to sustain in the long run.
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