"Disrupt is perhaps the most misused term in entrepreneurship.
Successful new companies can indeed disrupt an industry. Amazon
disrupted book retailing. Its ascent caused the failure of the incumbent
Two conditions are required for disruption.
First, a substantial fraction of the market must prefer the product or service of the new company.
Second, the incumbents must be unable to respond and replicate. When
those conditions are met, a new entrant can gain sufficient market share
that existing firms fade into irrelevance.
But disruption is rare, and it’s not required for entrepreneurial success."
On the other hand...
"Cabbies in Montreal and Toronto want their cities to put the brakes on
Uber, the popular car service app that taxi firms say is disrupting the
The online car-hailing service allows users to summon a ride simply
by pushing a button on their smartphones. Uber has been a hit among
clients in about 70 major cities worldwide since its 2012 launch, but
the taxi industries in the only two Canadian cities with functioning
Uber programs worry the app is driving business away.
Uber prices vary city to city, and users have in the past complained
about price hikes at times of peak demand such as rush hour or during
severe weather. The app introduced a "surge drop" feature earlier this
year that lets users know when rides will get cheaper.
Unlike taxi or limo companies, Uber Technologies Inc. isn't licensed
as a private car hire business and reasons it doesn't need the same kind
of authorization, because it's a tech company rather than a dispatcher.
But that doesn't sit right with Canadian transportation regulators and taxi companies."
Cabbies have to go through training, and pay an annual license fee. Uber drivers don't. This is not fair. So in this case, the innovation is disrupting the city's desire to make sure paid drivers are well-trained and safe. Uber only goes by a system whereby riders can rate their driver. So while the innovation is no doubt great for users, it is devastating to taxi driver's livelihood.
A solution would be for the taxi companies to adopt the innovation, but I'm not sure how easy that would be. Another solution would be for the city to treat Uber drivers the same as taxi drivers, making the same requirements for both. As can be seen, the word "disruptive" certainly applies in this case.