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

41 Pages Posted: 13 Nov 2018

See all articles by Mishal Ahmed

Mishal Ahmed

Georgia Institute of Technology

Erik Barry Johnson

University of Alabama - Department of Economics, Finance and Legal Studies

Byung-Cheol Kim

University of Alabama

Date Written: October 1, 2018

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

JEL Classification: D01, L91, O18, R4

Suggested Citation

Ahmed, Mishal and Johnson, Erik Barry and Kim, Byung-Cheol, The Impact of Uber and Lyft on Taxi Service Quality: Evidence from New York City (October 1, 2018). NET Institute Working Paper No. 18-16. Available at SSRN: https://ssrn.com/abstract=3267082 or http://dx.doi.org/10.2139/ssrn.3267082

Mishal Ahmed

Georgia Institute of Technology ( email )

217 Habersham
Atlanta, GA 30332
United States
4047405690 (Phone)

HOME PAGE: http://https://www.sites.google.com/site/mishalecon/

Erik Barry Johnson

University of Alabama - Department of Economics, Finance and Legal Studies ( email )

P.O. Box 870244
Tuscaloosa, AL 35487
United States
(720)234-7675 (Phone)

HOME PAGE: http://https://github.com/erikbjohn

Byung-Cheol Kim (Contact Author)

University of Alabama ( email )

Culverhouse College of Business
Tuscaloosa, AL 35487-0223
United States
7708462727 (Phone)
7708462727 (Fax)

HOME PAGE: http://https://sites.google.com/site/byungcheolkim76/

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