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Has Uber Made It Easier to Get a Ride in the Rain?

Author

Listed:
  • Brodeur, Abel

    (University of Ottawa)

  • Nield, Kerry

    (Carleton University)

Abstract

In New York City (NYC), it has been a common complaint that it is difficult to find a taxi in the rain. Using all Uber rides in NYC from April to September 2014 and January to June 2015, we show that the number of Uber rides is significantly correlated with whether it rained. The number of Uber rides per hour is about 25 percent higher when it is raining, suggesting that surge pricing encourages an increase in supply. During the same time period, the number of taxi rides per hour increases by only 4 percent in rainy hours. We then show that the number of taxi rides per hour decreased by approximately 8 percent after Uber entered the New York market in May 2011, confirming that Uber is depressing taxi demand. Last, we test whether the total (Uber plus taxi) number of rides in rainy hours increased since May 2011. Our estimates suggest that the total number of rides increased by approximately 9 percent since Uber entered the market and that it is relatively easier to get a ride in rainy than in non-rainy hours in post-Uber years.

Suggested Citation

  • Brodeur, Abel & Nield, Kerry, 2016. "Has Uber Made It Easier to Get a Ride in the Rain?," IZA Discussion Papers 9986, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp9986
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    13. Ravula, Prashanth, 2022. "Monetary and hassle savings as strategic variables in the ride-sharing market," Research in Transportation Economics, Elsevier, vol. 94(C).
    14. 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.
    15. Guilherme Mendes Resende & Ricardo Carvalho de Andrade Lima, 2018. "Working Paper No. 001/2018 - Competition Effects of the Sharing Economy in Brazil: Has Uber's entry affected the cab-hailing app market from 2014 to 2016?," Documentos de Trabalho 2018011, Conselho Administrativo de Defesa Econômica (Cade), Departamento de Estudos Econômicos.
    16. Loa, Patrick & Ong, Felita & Hawkins, Jason & Nurul Habib, Khandker, 2023. "Unravelling the relationship between ride-sourcing services and conventional modes in the city of Toronto: A stated preference study," Transport Policy, Elsevier, vol. 141(C), pages 209-220.
    17. Xi, Chen & Xie, Wei & Chen, Xiaoguang & He, Pan, 2023. "Weather shocks and movie recreation demand in China," Energy Economics, Elsevier, vol. 127(PB).
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    20. Thomas J. Weinandy & Michael J. Ryan, 2021. "Flexible Ubers and Fixed Taxis: the Effect of Fuel Prices on Car Services," Journal of Industry, Competition and Trade, Springer, vol. 21(2), pages 139-168, June.

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    More about this item

    Keywords

    rain; Uber; taxi; dynamic pricing;
    All these keywords.

    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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