Contestable Markets - What are Challenger Businesses?
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Last updated 9 Jan 2023
When analysing and discussing contestable markets, it is a good idea to have some examples of challenger businesses across a range of markets and industries. Not all challenger businesses are successful, many might fall by the wayside - but they can upset the status quo and challenge the market power of well-established suppliers.
Some examples of challenger businesses include:
- Airbnb: Airbnb challenged the traditional hotel industry by offering a platform for people to rent out their homes or apartments as short-term accommodations.
- Tesla: Tesla challenged the traditional automotive industry by producing electric cars and promoting sustainable transportation.
- Netflix: Netflix challenged the traditional cable TV model by offering a streaming service for movies and TV shows.
- Uber: Uber challenged the traditional taxi industry by offering a ride-hailing service that connects drivers and passengers through a smartphone app.
- Slack: Slack challenged the traditional email and communication tools by offering a messaging platform for teams and businesses.
- Spotify: Spotify challenged the traditional music industry by offering a streaming service for music.
Here are some examples of challenger businesses in the UK:
- Monzo: Monzo is a digital bank that offers mobile-based banking services and challenges traditional banks by offering a more convenient and user-friendly banking experience.
- Deliveroo: Deliveroo is a food delivery service that challenges traditional takeout and delivery options by offering a wider range of restaurants and faster delivery times.
- Starling Bank: Starling Bank is a digital bank that offers mobile banking services and challenges traditional banks by offering a more convenient and transparent banking experience.
- Ovo Energy: Ovo Energy is an energy company that challenges traditional energy providers by offering renewable energy options and a more personalized customer experience.
- Revolut: Revolut is a digital bank and financial services company that challenges traditional banks by offering a wider range of financial services and a more convenient banking experience.