Matthew Bezzina, co-founder of eCabs, has recently published an insightful article on EU-Startups, titled “The Innovator’s Dilemma: Legacy Taxi Operators vs. Uber.” In it, he explores the challenges faced by traditional taxi services in competing against tech giants like Uber. Bezzina, known for revolutionising Malta’s transport sector through eCabs, offers a unique perspective on how legacy businesses can thrive in a rapidly changing and increasingly competitive industry.

The last taxi roof lights are fading, and dispatch radios that once buzzed with activity are going silent. Across Europe and beyond, legacy taxi operators are facing a powerful rival: ride-hailing apps like Uber and Bolt are rapidly taking over markets, attracting both riders and drivers.

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Legacy taxi businesses aren’t facing an uncertain future—they face an inevitable one. Ride-hailing is here to stay. The real question as the industry continues to expand is not whether traditional taxi services will survive, but which will dominate: disruptors or legacy operators?

The risk of standing still

‎Fifteen years ago, eCabs began as a traditional taxi service, manually handling bookings and dispatching rides. I remember those days clearly—passengers lining up outside after a night out, while drivers waited for their names to be called.

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But from the start, we aimed to digitize our service, building our own platform from scratch. We faced the challenges of transitioning systems, applying patch after patch, and scrambling to stay online. All the while, we were competing with the region’s biggest ride-hailing service, Bolt.

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Disruption can arrive in small doses or overwhelming waves. In Malta, it was a flood. After Bolt, Uber arrived. Today, eCabs is the only locally grown ride-hailing company in its home market, and our platform powers other businesses in various regions. This success is rooted in our ongoing investment in digital solutions, from collaborating with global leaders like Google Maps to recruiting top talent from major ride-hailing tech firms.

Recognising the real challenge

‎The biggest threat to traditional taxi businesses today isn’t the innovation itself—it’s the urge to ignore it. The danger lies in hoping ride-hailing tech will simply disappear. It won’t. These giants are coming for the traditional taxi industry, and the answer is to adapt, not resist.

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Legacy operators need to become disruptors if they hope to survive. In 1997, Harvard Business School professor Clayton Christensen introduced the “Innovator’s Dilemma,” explaining how established companies often focus on improving existing products while overlooking disruptive innovations. These changes may initially target niche markets, but they have the potential to reshape entire industries.

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For traditional taxi services, the disruption came through ride-hailing apps. Ignoring them spells obsolescence. As Uber CEO Dara Khosrowshahi said years ago: “If you don’t disrupt yourself, someone else will.”

How to compete

‎Digital transformation is not a quick fix; it’s an ongoing process. What eCabs has developed isn’t just a basic patch for taxi companies adding a digital component. It’s the result of 15 years of experience—competing with global giants, managing fleets, launching data-driven marketing campaigns, and influencing policy.

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This isn’t a temporary solution for traditional taxi businesses; it’s a roadmap for operators looking to become regional leaders in mobility. Because the reality is, global ride-hailing platforms aren’t just after a share of the market—they want the whole thing.

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Editor’s note: Matthew Bezzina will be a key speaker at the upcoming Start-Up Festival in Malta, which brings together entrepreneurs, investors, and innovators to discuss disruptive business models and cutting-edge technologies. The event will also feature the “Dream Big Malta” panel, celebrating the achievements of Maltese individuals excelling in international business, professions, and sports.