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Estimating the Impact of Ride-Hailing App Company Entry on Public Transportation Use in Major US Urban Areas

Author

Listed:
  • Nelson Erik
  • Sadowsky Nicole

    (Department of Economics, Bowdoin College, 9700 College Station, Brunswick, ME 04011-8497, USA)

Abstract

Since 2011, the private ride-hailing (RH) app companies Uber and Lyft have expanded into more and more US urban areas. We use a dynamic entry event study to examine the impact of Uber and Lyft’s entry on public transportation (PT) use in the United States’ largest urban areas. In most cases, entry into urban areas was staggered: Uber entered first, followed several months later by Lyft. We generally find that PT use increased in the representative urban area, all else equal, immediately following first RH app company entry. However, this spike in PT use largely disappeared following the entry of the second RH app company. Slightly different RH app company–PT use relationships emerge when we estimate the PT use model over various subsets of urban areas and PT modes.

Suggested Citation

  • Nelson Erik & Sadowsky Nicole, 2019. "Estimating the Impact of Ride-Hailing App Company Entry on Public Transportation Use in Major US Urban Areas," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 19(1), pages 1-21, January.
    • Handle: RePEc:bpj:bejeap:v:19:y:2019:i:1:p:21:n:11
    DOI: 10.1515/bejeap-2018-0151
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    References listed on IDEAS

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    Cited by:

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    3. Leon Moskatel & David Slusky, 2019. "Did UberX reduce ambulance volume?," Health Economics, John Wiley & Sons, Ltd., vol. 28(7), pages 817-829, July.
    4. Diep Ngoc Su & Duy Quy Nguyen-Phuoc & Lester W. Johnson, 2021. "Effects of perceived safety, involvement and perceived service quality on loyalty intention among ride-sourcing passengers," Transportation, Springer, vol. 48(1), pages 369-393, February.
    5. Rick Grahn & Sean Qian & H. Scott Matthews & Chris Hendrickson, 2021. "Are travelers substituting between transportation network companies (TNC) and public buses? A case study in Pittsburgh," Transportation, Springer, vol. 48(2), pages 977-1005, April.

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    More about this item

    Keywords

    public transportation; ride-hailing app companies; Uber; Lyft; first-mile problem; last-mile problem; regression discontinuity; differentiated oligopoly competition; dynamic entry event study;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General

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