IDEAS home Printed from https://ideas.repec.org/a/eee/transa/v178y2023ics0965856423003002.html
   My bibliography  Save this article

The impacts of ridesourcing services on the taxi market: Empirical evidence from England and Wales

Author

Listed:
  • Bilgin, Pinar
  • Mattioli, Giulio
  • Morgan, Malcolm
  • Wadud, Zia

Abstract

Ridesourcing services have emerged as a major competitor and potential substitute for traditional taxi services. However, research investigating the effects of ridesourcing on the taxi market remains limited, with a focus on specific geographies. This empirical study aims to fill this research gap by examining the impacts of ridesourcing on the taxi market in England and Wales. Using biennial Taxi and Private Hire Vehicle (PHV) Statistics data from the Department for Transport spanning 2005 to 2019, we investigate the impacts of ridesourcing on the number of Hackney Carriages (HCs) and PHVs, as well as the employment patterns in the taxi sector. Our findings indicate a gradual decline in the number of HCs following the introduction of ridesourcing. In contrast, the number of PHVs, which are restricted to pre-bookings, gradually increased. However, we observed no statistically significant change in the number of taxi drivers on average. Notably, our analysis reveals heterogeneous effects across different areas, including rural, urban, and metropolitan districts. Furthermore, we explore the role of regulatory environments in the evolution of ridesourcing and traditional taxi services. Our study highlights that regulation change allowing PHVs to operate across borders may lead to a dramatic increase in the number of PHVs and taxi drivers in specific local authorities. Our research has important implications for policymakers and transportation authorities, particularly in terms of maintaining a competitive taxi market. Furthermore, our findings can inform authorities when planning environmentally sustainable mobility services through the implementation of appropriate regulatory frameworks.

Suggested Citation

  • Bilgin, Pinar & Mattioli, Giulio & Morgan, Malcolm & Wadud, Zia, 2023. "The impacts of ridesourcing services on the taxi market: Empirical evidence from England and Wales," Transportation Research Part A: Policy and Practice, Elsevier, vol. 178(C).
    • Handle: RePEc:eee:transa:v:178:y:2023:i:c:s0965856423003002
    DOI: 10.1016/j.tra.2023.103880
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0965856423003002
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.tra.2023.103880?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. John C. Driscoll & Aart C. Kraay, 1998. "Consistent Covariance Matrix Estimation With Spatially Dependent Panel Data," The Review of Economics and Statistics, MIT Press, vol. 80(4), pages 549-560, November.
    2. Daniel Hoechle, 2007. "Robust standard errors for panel regressions with cross-sectional dependence," Stata Journal, StataCorp LP, vol. 7(3), pages 281-312, September.
    3. Berger, Thor & Chen, Chinchih & Frey, Carl Benedikt, 2018. "Drivers of disruption? Estimating the Uber effect," European Economic Review, Elsevier, vol. 110(C), pages 197-210.
    4. Cetin, Tamer & Deakin, Elizabeth, 2019. "Regulation of taxis and the rise of ridesharing," Transport Policy, Elsevier, vol. 76(C), pages 149-158.
    5. Rayle, Lisa & Dai, Danielle & Chan, Nelson & Cervero, Robert & Shaheen, Susan PhD, 2016. "Just A Better Taxi? A Survey-Based Comparison of Taxis, Transit, and Ridesourcing Services in San Francisco," Institute of Transportation Studies, Research Reports, Working Papers, Proceedings qt60v8r346, Institute of Transportation Studies, UC Berkeley.
    6. Daniel Oviedo & Isabel Granada & Daniel Perez-Jaramillo, 2020. "Ridesourcing and Travel Demand: Potential Effects of Transportation Network Companies in Bogotá," Sustainability, MDPI, vol. 12(5), pages 1-16, February.
    7. Jie Bao & Zongbo Wang & Zhao Yang & Xiaoxuan Shan, 2023. "Exploring spatiotemporal patterns and influencing factors of ridesourcing and traditional taxi usage using geographically and temporally weighted regression method," Transportation Planning and Technology, Taylor & Francis Journals, vol. 46(3), pages 263-285, April.
    8. Kirk, David S. & Cavalli, Nicolo & Brazil, Noli, 2020. "The implications of ridehailing for risky driving and road accident injuries and fatalities," Social Science & Medicine, Elsevier, vol. 250(C).
    9. 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.
    10. Wenbo Zhang & Tho V. Le & Satish V. Ukkusuri & Ruimin Li, 2020. "Influencing factors and heterogeneity in ridership of traditional and app-based taxi systems," Transportation, Springer, vol. 47(2), pages 971-996, April.
    11. Harding, Simon & Kandlikar, Milind & Gulati, Sumeet, 2016. "Taxi apps, regulation, and the market for taxi journeys," Transportation Research Part A: Policy and Practice, Elsevier, vol. 88(C), pages 15-25.
    12. Tang, Jinjun & Gao, Fan & Han, Chunyang & Cen, Xuekai & Li, Zhitao, 2021. "Uncovering the spatially heterogeneous effects of shared mobility on public transit and taxi," Journal of Transport Geography, Elsevier, vol. 95(C).
    13. Anne Brown & Whitney LaValle, 2021. "Hailing a change: comparing taxi and ridehail service quality in Los Angeles," Transportation, Springer, vol. 48(2), pages 1007-1031, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ong, Felita & Loa, Patrick & Nurul Habib, Khandker, 2024. "Ride-sourcing demand in Metro Vancouver: Looking through the lens of disability," Transportation Research Part A: Policy and Practice, Elsevier, vol. 181(C).
    2. Namgung, Hyewon & Fujiwara, Akimasa & Yamamoto, Jenny & Zhang, Junyi, 2023. "Small and medium-sized taxi firm operators' stated choices of future business models: A case study in Japan based on hybrid choice model with panel effects," Research in Transportation Economics, Elsevier, vol. 101(C).
    3. 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.
    4. Alfred Garloff & Carsten Pohl & Norbert Schanne, 2013. "Do small labor market entry cohorts reduce unemployment?," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 29(15), pages 379-406.
    5. Ayhan, Fatih & Elal, Onuray, 2023. "The IMPACTS of technological change on employment: Evidence from OECD countries with panel data analysis," Technological Forecasting and Social Change, Elsevier, vol. 190(C).
    6. Chimere O. Iheonu, 2019. "Governance and Domestic Investment in Africa," Working Papers 19/001, European Xtramile Centre of African Studies (EXCAS).
    7. Shi, Ruoding & Isengildina Massa, Olga, 2018. "Double-Edged Sword: Liquidity Implications of Futures Hedging," 2018 Annual Meeting, August 5-7, Washington, D.C. 274106, Agricultural and Applied Economics Association.
    8. Raffaella Santolini, 2017. "Electoral Rules And Public Spending Composition: The Case Of Italian Regions," Contemporary Economic Policy, Western Economic Association International, vol. 35(3), pages 551-577, July.
    9. Ding, Mingfa, 2014. "Political Connections and Stock Liquidity: Political Network, Hierarchy and Intervention," Knut Wicksell Working Paper Series 2014/7, Lund University, Knut Wicksell Centre for Financial Studies.
    10. Skare, Marinko & Gavurova, Beata & Sinkovic, Dean, 2023. "Regional aspects of financial development and renewable energy: A cross-sectional study in 214 countries," Economic Analysis and Policy, Elsevier, vol. 78(C), pages 1142-1157.
    11. Bertoli, Simone & Fernández-Huertas Moraga, Jesús, 2013. "Multilateral resistance to migration," Journal of Development Economics, Elsevier, vol. 102(C), pages 79-100.
    12. Indra de Soysa, 2022. "Economic freedom vs. egalitarianism: An empirical test of weak & strong sustainability, 1970–2017," Kyklos, Wiley Blackwell, vol. 75(2), pages 236-268, May.
    13. Wataru Miyamoto & Thuy Lan Nguyen & Dmitriy Sergeyev, 2018. "Government Spending Multipliers under the Zero Lower Bound: Evidence from Japan," American Economic Journal: Macroeconomics, American Economic Association, vol. 10(3), pages 247-277, July.
    14. Liu, Lily Y. & Patton, Andrew J. & Sheppard, Kevin, 2015. "Does anything beat 5-minute RV? A comparison of realized measures across multiple asset classes," Journal of Econometrics, Elsevier, vol. 187(1), pages 293-311.
    15. Wadud, Zia, 2020. "The effects of e-ridehailing on motorcycle ownership in an emerging-country megacity," Transportation Research Part A: Policy and Practice, Elsevier, vol. 137(C), pages 301-312.
    16. Alessandro Federici & Pierluigi Montalbano, 2012. "Macroeconomic volatility, consumption behaviour and welfare: A cross-country analysis," Working Paper Series 3612, Department of Economics, University of Sussex Business School.
    17. Aynur Pala, 2014. "The Effect of Valuation Ratios, Gold Price, and Petroleum Price on Equity Returns: A Comparison of Static Panel and Quantile Regressions," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 4(1), pages 80-89, January.
    18. Dilla, Diana, 2017. "Staatsverschuldung und Verschuldungsmentalität [Public Debt and Debt Mentality]," MPRA Paper 79432, University Library of Munich, Germany.
    19. Kai Daniel Schmid & Michael Schmidt, 2012. "EMU and the Renaissance of Sovereign Credit Risk Perception," IAW Discussion Papers 87, Institut für Angewandte Wirtschaftsforschung (IAW).
    20. Gnangnon Sèna Kimm, 2017. "Empirical Evidence on the Impact of Multilateral Trade Liberalization on Domestic Trade Policy," Global Economy Journal, De Gruyter, vol. 17(3), pages 1-14, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:transa:v:178:y:2023:i:c:s0965856423003002. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/547/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.