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Uber versus Trains? Worldwide Evidence from Transit Expansions

Author

Listed:
  • Marco Gonzalez-Navarro

    (Department of Agricultural & Resource Economics, University of California Berkeley, 216 Giannini Hall, Berkeley, California, 94720, USA)

  • Jonathan D. Hall

    (Department of Economics and Munk School of Global Affairs and Public Policy, University of Toronto, 150 St. George Street, Toronto, Ontario M5S 3G7, Canada)

  • Harrison Wheeler

    (Department of Economics, University of California Berkeley, 530 Evans Hall #3880, Berkeley, California, 94720, USA)

  • Rik Williams

    (Uber Technologies, Inc., 1515 3rd St., San Francisco, California 94158, USA)

Abstract

There is a contentious debate on whether ride-hailing complements or substitutes public transportation. We address this question using novel data and an innovative identification strategy. Our identification strategy relies on exogenous variation in local transit availability caused by rail expansions. Using proprietary trip data from Uber for 35 countries, we use a dynamic difference-in-differences strategy to estimate how transit expansions affect local Uber ridership in 100 m distance bands centered on the new train station. Our estimates compare Uber ridership within a distance band before and after a train station opens relative to the next further out distance band. Total effects are obtained by aggregating relative effects at all further distance bands. We find that a new rail station opening increases Uber ridership within 100 m of the station by 60\%, and that this effect decays to zero for distances beyond 300 m. This sharp test implies Uber and rail transit are complements.

Suggested Citation

  • Marco Gonzalez-Navarro & Jonathan D. Hall & Harrison Wheeler & Rik Williams, 2021. "Uber versus Trains? Worldwide Evidence from Transit Expansions," Working Papers 21-11, NET Institute.
    • Handle: RePEc:net:wpaper:2111
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    More about this item

    Keywords

    Public transit; ride-hailing;

    JEL classification:

    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • L91 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Transportation: General

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