Is Uber Helping or Hurting Mass Transit? An Empirical Investigation

32 Pages Posted: 13 Nov 2018

See all articles by Yang Pan

Yang Pan

University of Maryland

Liangfei Qiu

University of Florida - Warrington College of Business Administration

Multiple version iconThere are 2 versions of this paper

Date Written: October 1, 2018

Abstract

Sharing economy reshapes the distribution of unused or underutilized asset through digital platforms to individuals who are willing to pay for the services. The new economy model has introduced dramatic impact on the traditional industries by matching the demand and supply in real time. In this paper, we examine how the entry of Uber, a ride-sharing services digital platform, influences the demand of public transportation. Significant debate has surrounded whether the new ride-sharing model siphoned riders from public transit, or made transit feasible for more riders. However, limited empirical research has been done to uncover whether Uber is helping or hurting public transportation systems. Leveraging a natural experiment setting, the entry of Uber, with a difference-in-differences approach, we find a significant drop in the number of passenger trips with bus. Further, our results suggest that the effect of Uber is not uniform – the reduction in bus passenger trips is mitigated when the proportion of old age people in a local urban area is large; the decrease is amplified when the populations of disable people, including with language difficulty, and self-employed people are large. However, the moderating effect of poverty is mixed. We discuss the implications for research and practice.

Keywords: Uber, digital platform, sharing economy, ride-sharing services, public transportation, difference-in-differences, natural experiment

Suggested Citation

Pan, Yang and Qiu, Liangfei, Is Uber Helping or Hurting Mass Transit? An Empirical Investigation (October 1, 2018). NET Institute Working Paper No. 18-11. Available at SSRN: https://ssrn.com/abstract=3267059 or http://dx.doi.org/10.2139/ssrn.3267059

Yang Pan (Contact Author)

University of Maryland ( email )

Business Education Complex
2208
Baton Rouge, LA 70803
United States

Liangfei Qiu

University of Florida - Warrington College of Business Administration ( email )

Gainesville, FL 32611
United States

HOME PAGE: http://sites.google.com/site/qiuliangfei/

Register to save articles to
your library

Register

Paper statistics

Downloads
68
rank
329,896
Abstract Views
239
PlumX Metrics