The Effect of Dockless Bike-Sharing on Public Transportation: An Empirical Study

Fujie Jin (), Yuan Cheng, Xitong Li () and Yu Jeffrey Hu
Additional contact information
Fujie Jin: Kelley School of Business, Indiana University
Yuan Cheng: Tsinghua University - School of Economics & Management
Xitong Li: HEC Paris - Information Systems and Operations Management
Yu Jeffrey Hu: Georgia Institute of Technology - Scheller College of Business

No 1312, HEC Research Papers Series from HEC Paris

Abstract: We examine the impact of a new mobile-based, dockless bike-sharing service on public transportation. In contrast to traditional rental bikes that are parked at fixed stations, the dockless bikes can be picked up and returned at literally anywhere. This dockless feature of the shared bikes likely provides a solution to the last mile problem, potentially making it a complement to public transportation. Assembling a unique panel data of shared-bike rides and subway traffic, we estimate the relationship between shared-bike ridership and public transportation. Our results show that increases in shared-bike rides lead to increases in subway traffic. This positive effect is stronger for peak hours during weekdays and non-peak hours during weekends. We argue this effect is most likely driven by shared bikes promoting public transportation use and substituting for private cars (substitution effect) and also stimulating new travel (stimulating effect). Overall, we find that dockless shared bikes, in contrast to most of the other sharing economy phenomenon, acts as a complement rather than a substitute for public transportation. In addition, increased use of dockless shared bikes has a positive societal impact, leading to less urban congestion and better environmental protection.

Keywords: bike-sharing; public transportation; complement; last mile problem (search for similar items in EconPapers)
JEL-codes: O30 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2018-10-19
Note: Available at SSRN: https://ssrn.com/abstract=3257617 or http://dx.doi.org/10.2139/ssrn.3257617
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:ebg:heccah:1312

DOI: 10.2139/ssrn.3257617

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