EconPapers    
Economics at your fingertips  
 

The ride-sourcing industry: status-quo and outlook

Mirko Goletz and Francisco J. Bahamonde-Birke

Transportation Planning and Technology, 2021, vol. 44, issue 6, 561-576

Abstract: Ride-sourcing, the use of private cars to provide on-demand mobility services, first appeared in San Francisco around the year 2010. Since then, transportation network companies (TNCs) who offer ride-sourcing services have expanded all around the world. By examining three case cities (San Francisco, Mexico City, Paris) we explain what facilitated this growth and how the regulation of TNCs differs. Subsequently, an economic analysis discusses the current expansionary strategy of TNCs and their future. We show that TNCs adapt their strategies to local contexts, with first priority to establish themselves in the market, if necessary, using gray regulatory areas, even if they face resistance from city authorities, taxi drivers and other groups, and despite being unprofitable. Our economic model explains this. We show that an unregulated ride-sourcing market leads to monopolistic situations once autonomous vehicles become available. We hence conclude that city authorities need to develop a regulatory framework to maximize social welfare.

Date: 2021
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://hdl.handle.net/10.1080/03081060.2021.1943128 (text/html)
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: https://EconPapers.repec.org/RePEc:taf:transp:v:44:y:2021:i:6:p:561-576

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/GTPT20

DOI: 10.1080/03081060.2021.1943128

Access Statistics for this article

Transportation Planning and Technology is currently edited by Dr. David Gillingwater

More articles in Transportation Planning and Technology from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().

 
Page updated 2025-03-20
Handle: RePEc:taf:transp:v:44:y:2021:i:6:p:561-576