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Ride-Hailing Services in Germany: Potential Impacts on Public Transport, Motorized Traffic, and Social Welfare

Author

Listed:
  • David Ennnen

    (Institute of Transport Economics, Muenster)

  • Thorsten Heilker

Abstract

In the policy debate on ride-hailing services such as Uber, the impacts on traffic, emissions, and public transport are hotly discussed. The regulatory framework in Germany has so far prevented a widespread entry of ride-hailing providers. In this paper, we use a mode choice model and trip data to determine the likely impacts of ride-hailing services for a representative region in Germany. We find that the significantly lower fares compared to taxis lead to strong substitution of public transport, cycling, and walking. As a consequence, motorized traffic increases, despite the pooling of individual rides by ride-hailing providers. However, the total impact on mode choice and traffic remains modest, and a widespread displacement of public transport is not to be expected. The final welfare analysis shows that the emergence of ride-hailing services is beneficial for society as a whole. In particular, the benefits from lower fares exceed the external costs arising from additional motorized traffic.

Suggested Citation

  • David Ennnen & Thorsten Heilker, 2020. "Ride-Hailing Services in Germany: Potential Impacts on Public Transport, Motorized Traffic, and Social Welfare," Working Papers 29, Institute of Transport Economics, University of Muenster.
    • Handle: RePEc:mut:wpaper:29
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    References listed on IDEAS

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    Cited by:

    1. Zwick, Felix & Axhausen, Kay W., 2022. "Ride-pooling demand prediction: A spatiotemporal assessment in Germany," Journal of Transport Geography, Elsevier, vol. 100(C).

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    More about this item

    Keywords

    Ride-hailing; Transportation Network Company; TNC; Taxi; Regulation; Germany;
    All these keywords.

    JEL classification:

    • L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation
    • L98 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Government Policy

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