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The Demand for Mobility: Evidence from an Experiment with Uber Riders

Author

Listed:
  • Peter Christensen
  • Gustavo Nino
  • Adam Osman

Abstract

Optimal transportation policies depend on demand elasticities that interact across modes and vary across the population, but understanding how and why these elasticities vary has been an empirical challenge. Using an experiment with Uber in Egypt, we randomly assign large price discounts for transport services over a 3-month period to examine: (1) the demand for ride-hailing services, (2) the demand for total mobility (km/week), and (3) its contributions to external costs (e.g. congestion). A 50% discount more than quadruples Uber usage and induces an increase of nearly 49% in total mobility. These effects are stronger for women, who are less mobile at baseline and perceive public transit as unsafe. Technology-induced reductions in the price of ride-hailing services could generate substantial benefits to users (6.1% of GDP) that would be accompanied by considerable increases in external costs (0.7% of GDP), with benefits accruing to the most affluent and costs being borne by the entire population.

Suggested Citation

  • Peter Christensen & Gustavo Nino & Adam Osman, 2023. "The Demand for Mobility: Evidence from an Experiment with Uber Riders," NBER Working Papers 31330, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:31330
    Note: EEE
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    Cited by:

    1. Adam Osman & Jamin D. Speer, 2024. "Stigma and take‐up of labour market assistance: Evidence from two field experiments," Economica, London School of Economics and Political Science, vol. 91(361), pages 123-141, January.
    2. Christensen, Peter & Osman, Adam & Stocker, Abigail, 2024. "Weathering the ride: Experimental evidence on transport pricing, climate extremes, and future travel demand," Journal of Environmental Economics and Management, Elsevier, vol. 125(C).
    3. Feld, Brian & Nagy, AbdelRahman & Osman, Adam, 2022. "What do jobseekers want? Comparing methods to estimate reservation wages and the value of job attributes," Journal of Development Economics, Elsevier, vol. 159(C).
    4. Li, Shanjun & Wang, Binglin & Zhou, Hui, 2024. "Decarbonizing passenger transportation in developing countries: Lessons and perspectives1," Regional Science and Urban Economics, Elsevier, vol. 107(C).
    5. Osman, Adam & Speer, Jamin D., 2023. "Stigma and Take-up of Labor Market Assistance: Evidence from Two Field Experiments," IZA Discussion Papers 16599, Institute of Labor Economics (IZA).
    6. Jack Fisher, 2024. "Monopsony Power in the Gig Economy," CESifo Working Paper Series 11444, CESifo.
    7. Maria Vagliasindi & Nisan Gorgulu, 2025. "Disentangling the Key Economic Channels through Which Infrastructure Affects Jobs," Policy Research Working Paper Series 11096, The World Bank.
    8. Elnadi, Moustafa & Troise, Ciro & Jones, Paul & Gheith, Mohamed Hani, 2024. "Exploring post-usage behaviour in app-based ride-sourcing services: Evidence from Egypt," Technological Forecasting and Social Change, Elsevier, vol. 207(C).

    More about this item

    JEL classification:

    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • R4 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics

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