IDEAS home Printed from https://ideas.repec.org/p/mut/wpaper/29.html
   My bibliography  Save this paper

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
    as

    Download full text from publisher

    File URL: https://www.wiwi.uni-muenster.de/ivm/sites/ivm/files/documents/forschung/diskussionspapiere/workingpaper29.pdf
    File Function: First version, 2020
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Itf, 2016. "Shared Mobility: Innovation for Liveable Cities," International Transport Forum Policy Papers 21, OECD Publishing.
    2. Judd Cramer & Alan B. Krueger, 2016. "Disruptive Change in the Taxi Business: The Case of Uber," American Economic Review, American Economic Association, vol. 106(5), pages 177-182, May.
    3. Itf, 2017. "Shared Mobility Simulations for Helsinki," International Transport Forum Policy Papers 39, OECD Publishing.
    4. repec:cdl:itsdav:qt82w2z91j is not listed on IDEAS
    5. repec:cdl:itsdav:qt1kq5d07p is not listed on IDEAS
    6. Cardell, N. Scott, 1997. "Variance Components Structures for the Extreme-Value and Logistic Distributions with Application to Models of Heterogeneity," Econometric Theory, Cambridge University Press, vol. 13(2), pages 185-213, April.
    7. Wardman, Mark & Chintakayala, V. Phani K. & de Jong, Gerard, 2016. "Values of travel time in Europe: Review and meta-analysis," Transportation Research Part A: Policy and Practice, Elsevier, vol. 94(C), pages 93-111.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    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).
    2. Anzenhofer, Fabian & Schmidbaur, Simon & Klein, Robert & Steinhardt, Claudius, 2025. "The potential of governmental regulation on shared mobility-on-demand systems," Transportation Research Part A: Policy and Practice, Elsevier, vol. 192(C).

    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. Lazarus, Jessica R. & Caicedo, Juan D. & Bayen, Alexandre M. & Shaheen, Susan A., 2021. "To Pool or Not to Pool? Understanding opportunities, challenges, and equity considerations to expanding the market for pooling," Transportation Research Part A: Policy and Practice, Elsevier, vol. 148(C), pages 199-222.
    2. repec:cdl:itsrrp:qt44q6n0mm is not listed on IDEAS
    3. María J. Alonso-González & Oded Cats & Niels van Oort & Sascha Hoogendoorn-Lanser & Serge Hoogendoorn, 2021. "What are the determinants of the willingness to share rides in pooled on-demand services?," Transportation, Springer, vol. 48(4), pages 1733-1765, August.
    4. María J. Alonso-González & Oded Cats & Niels van Oort & Sascha Hoogendoorn-Lanser & Serge Hoogendoorn, 0. "What are the determinants of the willingness to share rides in pooled on-demand services?," Transportation, Springer, vol. 0, pages 1-33.
    5. repec:cdl:ucsdec:qt3xp2110t is not listed on IDEAS
    6. Wang, Wei & Miao, Wei & Liu, Yongdong & Deng, Yiting & Cao, Yunfei, 2022. "The impact of COVID-19 on the ride-sharing industry and its recovery: Causal evidence from China," Transportation Research Part A: Policy and Practice, Elsevier, vol. 155(C), pages 128-141.
    7. Tarduno, Matthew, 2021. "The congestion costs of Uber and Lyft," Journal of Urban Economics, Elsevier, vol. 122(C).
    8. Xu, Zhengtian & Yin, Yafeng & Zha, Liteng, 2017. "Optimal parking provision for ride-sourcing services," Transportation Research Part B: Methodological, Elsevier, vol. 105(C), pages 559-578.
    9. Simone Bertoli & Hillel Rapoport, 2015. "Heaven's Swing Door: Endogenous Skills, Migration Networks, and the Effectiveness of Quality-Selective Immigration Policies," Scandinavian Journal of Economics, Wiley Blackwell, vol. 117(2), pages 565-591, April.
    10. Ivaldi, Marc & Lörincz, Szabolcs, 2005. "A Full Equilibrium Relevant Market Test: Application to Computer Servers," CEPR Discussion Papers 4917, C.E.P.R. Discussion Papers.
    11. Vu, Khuong & Rohman, Ibrahim Kholilul & Bohlin, Erik, 2024. "Promoting the adoption of digital technology: Strategic policy insights from a network effects model," Telecommunications Policy, Elsevier, vol. 48(10).
    12. Adam Millard-Ball & Liwei Liu & Whitney Hansen & Drew Cooper & Joe Castiglione, 2023. "Where ridehail drivers go between trips," Transportation, Springer, vol. 50(5), pages 1959-1981, October.
    13. David P. Ashmore & Roselle Thoreau & Corina Kwami & Nicola Christie & Nicholas A. Tyler, 2020. "Using thematic analysis to explore symbolism in transport choice across national cultures," Transportation, Springer, vol. 47(2), pages 607-640, April.
    14. 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.
    15. Steven Berry & Alon Eizenberg & Joel Waldfogel, 2016. "Optimal product variety in radio markets," RAND Journal of Economics, RAND Corporation, vol. 47(3), pages 463-497, August.
    16. Kräussl, Roman & Kräussl, Zsofia & Pollet, Joshua & Rinne, Kalle, 2024. "The performance of marketplace lenders," Journal of Banking & Finance, Elsevier, vol. 162(C).
    17. Anthony Dukes & Lin Liu, 2016. "Online Shopping Intermediaries: The Strategic Design of Search Environments," Management Science, INFORMS, vol. 62(4), pages 1064-1077, April.
    18. Huo, Jinghai & Dua, Rubal & Bansal, Prateek, 2024. "Inverse product differentiation logit model: Holy grail or not?," Energy Economics, Elsevier, vol. 131(C).
    19. Yue Guo & Fu Xin & Xiaotong Li, 2020. "The market impacts of sharing economy entrants: evidence from USA and China," Electronic Commerce Research, Springer, vol. 20(3), pages 629-649, September.
    20. Sanko, Nobuhiro, 2020. "Activity-end access/egress modal choices between stations and campuses located on a hillside," Research in Transportation Economics, Elsevier, vol. 83(C).
    21. Agam Gupta & Biswatosh Saha & Parthasarathi Banerjee, 2018. "Pricing decisions of car aggregation platforms in sharing economy: a developing economy perspective," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 17(5), pages 341-355, October.
    22. Philip A. Haile & Ali Hortaçsu & Grigory Kosenok, 2008. "On the Empirical Content of Quantal Response Equilibrium," American Economic Review, American Economic Association, vol. 98(1), pages 180-200, March.

    More about this item

    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

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:mut:wpaper:29. 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: Birgit Rueschenschmidt (email available below). General contact details of provider: https://edirc.repec.org/data/ilmuede.html .

    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.