Economics at your fingertips  


Hung-Hao Chang ()

Journal of Competition Law and Economics, 2017, vol. 13, issue 3, 475-500

Abstract: The ridesharing economy has caught a great deal of attention from researchers and policymakers. However, due to the dearth of available data, not much empirical evidence has been provided. This article empirically assesses the economic impact of Uber service on taxi drivers’ business performance using a case study in Taiwan as an illustration. A difference-in-difference model is estimated using a population-based dataset of 29,434 taxi drivers. The results indicate that Uber reduced regular taxi drivers’ service revenue by approximately 12 percent in the initial year and 18 percent in the third year of entry of Uber. This result may suggest a substitution relationship between Uber service and taxi operation. Moreover, the negative impact of Uber is more pronounced among taxi motorcade members, which may indicate that Uber competes with taxi passengers who usually use an electronic device to call for ride service. By further looking at the capacity utilization and operating miles, it is evident that the negative impacts of Uber on taxi drivers’ service revenue are more likely associated with the reduction in operating miles of taxi drivers. To cope with competition from Uber, taxi drivers are more likely to have advertisements in or on the taxicab and to provide better ride service.

Date: 2017
References: Add references at CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link) (application/pdf)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

Journal of Competition Law and Economics is currently edited by Damien Geradin, J. Gregory Sidak

More articles in Journal of Competition Law and Economics from Oxford University Press
Bibliographic data for series maintained by Oxford University Press () and Christopher F. Baum ().

Page updated 2021-10-31
Handle: RePEc:oup:jcomle:v:13:y:2017:i:3:p:475-500.