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The effects of ride-hailing companies on the taxicab industry in Las Vegas, Nevada

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  • Contreras, Seth D.
  • Paz, Alexander

Abstract

Ride-hailing, or ride-sourcing, companies continue to penetrate the growing market of transportation-for-hire services in major metropolitan cities all across the globe, both revolutionizing travel and redefining the concept of the taxicab experience. Since the fall of 2015, Las Vegas, Nevada, was added to the ever-growing list of metropolises with such ride-hailing companies (RHCs). For cities whose economies are built predominately on the foundations of tourism, questions inevitably have been raised regarding the effects that RHCs have on their respective transportation system operators, in particular, the taxicab industry. In Las Vegas, services such as Uber (Uber Technologies Inc.) and Lyft (Lyft.com) compete directly with the taxicab industry for riders within the resort corridor and across the valley. In this study, a multinomial linear regression analysis used a multi-modal, time-series travel dataset to estimate the effects of RHCs on taxicab ridership. After controlling for a number of explanatory variables, including the total number of monthly visitors, transit ridership, ride-hailing trip counts to/from the airport and several other socioeconomic indicators, the results showed that RHCs do in fact have a negative, and significant, effect on taxicab ridership. A perhaps more profound and counterintuitive finding however was that transit ridership along the resort corridor actually complements (rather than competes with) taxi ridership; this could have significant implications moving forward.

Suggested Citation

  • Contreras, Seth D. & Paz, Alexander, 2018. "The effects of ride-hailing companies on the taxicab industry in Las Vegas, Nevada," Transportation Research Part A: Policy and Practice, Elsevier, vol. 115(C), pages 63-70.
    • Handle: RePEc:eee:transa:v:115:y:2018:i:c:p:63-70
    DOI: 10.1016/j.tra.2017.11.008
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    10. Nguyen-Phuoc, Duy Q. & Zhou, Meng & Hong Chua, Ming & Romano Alho, André & Oh, Simon & Seshadri, Ravi & Le, Diem-Trinh, 2023. "Examining the effects of Automated Mobility-on-Demand services on public transport systems using an agent-based simulation approach," Transportation Research Part A: Policy and Practice, Elsevier, vol. 169(C).
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    13. Xiong, Ziyue & Jian Li, & Wu, Hangbin, 2021. "Understanding operation patterns of urban online ride-hailing services: A case study of Xiamen," Transport Policy, Elsevier, vol. 101(C), pages 100-118.
    14. Eva Malichová & Ghadir Pourhashem & Tatiana Kováčiková & Martin Hudák, 2020. "Users’ Perception of Value of Travel Time and Value of Ridesharing Impacts on Europeans’ Ridesharing Participation Intention: A Case Study Based on MoTiV European-Wide Mobility and Behavioral Pattern ," Sustainability, MDPI, vol. 12(10), pages 1-19, May.
    15. Nguyen-Phuoc, Duy Quy & Vo, Nguyen S. & Su, Diep Ngoc & Nguyen, Vinh Hoang & Oviedo-Trespalacios, Oscar, 2021. "What makes passengers continue using and talking positively about ride-hailing services? The role of the booking app and post-booking service quality," Transportation Research Part A: Policy and Practice, Elsevier, vol. 150(C), pages 367-384.
    16. Alejandro Tirachini, 2020. "Ride-hailing, travel behaviour and sustainable mobility: an international review," Transportation, Springer, vol. 47(4), pages 2011-2047, August.
    17. Nguyen-Phuoc, Duy Quy & Su, Diep Ngoc & Nguyen, Minh Hieu & Vo, Nguyen S. & Oviedo-Trespalacios, Oscar, 2022. "Factors influencing intention to use on-demand shared ride-hailing services in Vietnam: risk, cost or sustainability?," Journal of Transport Geography, Elsevier, vol. 99(C).
    18. Zhang, Zhaolin & Zhai, Guocong & Xie, Kun & Xiao, Feng, 2022. "Exploring the nonlinear effects of ridesharing on public transit usage: A case study of San Diego," Journal of Transport Geography, Elsevier, vol. 104(C).
    19. Young, Mischa & Farber, Steven, 2019. "The Who, Why, and When of Uber and other Ride-hailing Trips: An Examination of a Large Sample Household Travel Survey," OSF Preprints x7ryj, Center for Open Science.
    20. Butler, Luke & Yigitcanlar, Tan & Paz, Alexander & Areed, Wala, 2022. "How can smart mobility bridge the first/last mile gap? Empirical evidence on public attitudes from Australia," Journal of Transport Geography, Elsevier, vol. 104(C).
    21. Aguilera-García, Álvaro & Gomez, Juan & Velázquez, Guillermo & Vassallo, Jose Manuel, 2022. "Ridesourcing vs. traditional taxi services: Understanding users’ choices and preferences in Spain," Transportation Research Part A: Policy and Practice, Elsevier, vol. 155(C), pages 161-178.
    22. Lu Ling & Xinwu Qian & Satish V. Ukkusuri, 2023. "Impact of Transportation Network Companies on Labor Supply and Wages for Taxi Drivers," Papers 2307.13620, arXiv.org.
    23. Hamid Mostofi & Houshmand Masoumi & Hans-Liudger Dienel, 2020. "The Relationship between Regular Use of Ridesourcing and Frequency of Public Transport Use in the MENA Region (Tehran and Cairo)," Sustainability, MDPI, vol. 12(19), pages 1-19, October.
    24. Atour Taghipour & Mohammad Ramezani & Moein Khazaei & Vahid Roohparvar & Erfan Hassannayebi, 2023. "Smart Transportation Behavior through the COVID-19 Pandemic: A Ride-Hailing System in Iran," Sustainability, MDPI, vol. 15(5), pages 1-23, February.

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