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The Impact of Uber and Lyft on Taxi Service Quality: Evidence from New York City

Mishal Ahmed (), Erik Johnson () and Byung-Cheol Kim ()
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Erik Johnson: University of Alabama, Culverhouse College of Business, Department of Economics, Finance and Legal Studies, Tuscaloosa, AL 35487, USA

No 18-16, Working Papers from NET Institute

Abstract: Using detailed trip-level taxi and for-hire-vehicle data and new incident-level complaints data, we study how the entry of Uber and Lyft has affected the quality of taxi services in New York City. In a panel setting with 263 NYC taxi-zones over the time period from 2014 to 2017, we find that increased competition measured by the number of daily Uber/Lyft trips in a given taxi-zone has led to more complaints regarding a variety of service quality dimensions such as unsafe driving, rude behavior and fare refusal. Our results are robust to accounting for potential simultaneity in the determination of complaints and Uber and Lyft penetration.

Keywords: ride-sharing applications; taxi; competition; service quality (search for similar items in EconPapers)
JEL-codes: D01 L91 O18 R4 (search for similar items in EconPapers)
Pages: 42 pages
Date: 2018-09
New Economics Papers: this item is included in nep-pay, nep-reg, nep-tre and nep-ure
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