Estimating the Impact of Ride-Hailing App Company Entry on Public Transportation Use in Major US Urban Areas

Erik Nelson and Sadowsky Nicole ()
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Sadowsky Nicole: Department of Economics, Bowdoin College, 9700 College Station, Brunswick, ME 04011-8497, USA

The B.E. Journal of Economic Analysis & Policy, 2019, vol. 19, issue 1, 21

Abstract: Since 2011, the private ride-hailing (RH) app companies Uber and Lyft have expanded into more and more US urban areas. We use a dynamic entry event study to examine the impact of Uber and Lyft’s entry on public transportation (PT) use in the United States’ largest urban areas. In most cases, entry into urban areas was staggered: Uber entered first, followed several months later by Lyft. We generally find that PT use increased in the representative urban area, all else equal, immediately following first RH app company entry. However, this spike in PT use largely disappeared following the entry of the second RH app company. Slightly different RH app company–PT use relationships emerge when we estimate the PT use model over various subsets of urban areas and PT modes.

Keywords: public transportation; ride-hailing app companies; Uber; Lyft; first-mile problem; last-mile problem; regression discontinuity; differentiated oligopoly competition; dynamic entry event study (search for similar items in EconPapers)
JEL-codes: C21 D22 D43 H41 R40 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (6)

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DOI: 10.1515/bejeap-2018-0151

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