The disruptive effect of ridesourcing services on for-hire vehicle drivers’ income and employment

Sicheng Wang and Michael Smart

Transport Policy, 2020, vol. 89, issue C, 13-23

Abstract: Ridesourcing services provided by Transportation Network Companies (TNCs) such as Uber and Lyft are spreading across the United States and are thriving. As a result of TNCs' expansion, there has been concern that ridesourcing is disrupting the traditional for-hire vehicle market, and those drivers are suffering. Based on 12-year Integrated Public Use Microdata Series (IPUMS) datasets from 2005 to 2016, we investigate how the income, worker classification, and employment status of for-hire vehicle drivers in the United States had changed after Uber entered their local markets. We find that with the entry of Uber, the hourly wage income of for-hire drivers had decreased, the percentage of self-employed drivers had increased, and the likelihood of being employed had increased in “Uber-adopted” metropolitan areas. The results confirm the disruptive effect of ridesourcing services on the for-hire vehicle industry and its labor force in the United States. The analysis for the five largest metropolitan areas provides more detailed evidence of the effect of ridesourcing.

Keywords: Ridesourcing; For-hire vehicle; Driver labor market; Income; Employment; Transportation Network Company (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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DOI: 10.1016/j.tranpol.2020.01.016

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