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

32 Pages Posted: 19 Oct 2018 Last revised: 30 Oct 2018

See all articles by Fujie Jin

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

Date Written: September 30, 2018

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

Suggested Citation

Jin, Fujie and Cheng, Yuan and Li, Xitong and Hu, Yu Jeffrey, The Effect of Dockless Bike-Sharing on Public Transportation: An Empirical Study (September 30, 2018). HEC Paris Research Paper No. MOSI-2018-1312; Kelley School of Business Research Paper No. 18-81; Georgia Tech Scheller College of Business Research Paper No. 18-40. Available at SSRN: https://ssrn.com/abstract=3257617 or http://dx.doi.org/10.2139/ssrn.3257617

Fujie Jin (Contact Author)

Kelley School of Business, Indiana University ( email )

Business 670
1309 E. Tenth Street
Bloomington, IN 47401
United States
812-855-0943 (Phone)

HOME PAGE: http://https://kelley.iu.edu/facultyglobal/directory/FacultyProfile.cfm?netID=jinf

Yuan Cheng

Tsinghua University - School of Economics & Management ( email )

Beijing, 100084
China

Xitong Li

HEC Paris - Information Systems and Operations Management ( email )

1 rue de la Liberation
Jouy-en-Josas Cedex, 78351
France

Yu Jeffrey Hu

Georgia Institute of Technology - Scheller College of Business ( email )

800 West Peachtree St.
Atlanta, GA 30308
United States

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