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Racial discrimination in transportation network companies

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Listed:
  • Ge, Yanbo
  • Knittel, Christopher R.
  • MacKenzie, Don
  • Zoepf, Stephen

Abstract

In a randomized audit study, we sent passengers in Boston, MA on nearly 1000 rides on controlled routes using the Uber and Lyft smartphone apps, recording key performance metrics. Passengers randomly selected between accounts that used African American-sounding and white-sounding names. We find that the probability an Uber driver accepts a ride, sees the name, and then cancels doubles when passengers used the account attached to the African American-sounding name. In contrast, Lyft drivers observe the name before accepting a ride and, as expected, we find no effect of name on cancellations. We do not, however, find that the increase in cancellations leads to measurably longer wait times for Uber.

Suggested Citation

  • Ge, Yanbo & Knittel, Christopher R. & MacKenzie, Don & Zoepf, Stephen, 2020. "Racial discrimination in transportation network companies," Journal of Public Economics, Elsevier, vol. 190(C).
    • Handle: RePEc:eee:pubeco:v:190:y:2020:i:c:s0047272720300694
    DOI: 10.1016/j.jpubeco.2020.104205
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    References listed on IDEAS

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    8. Benjamin Edelman & Micahel Luca, 2014. "Digital Discrimination: The Case of Airbnb.com," Harvard Business School Working Papers 14-054, Harvard Business School.
    9. Yanbo Ge & Christopher R. Knittel & Don MacKenzie & Stephen Zoepf, 2016. "Racial and Gender Discrimination in Transportation Network Companies," NBER Working Papers 22776, National Bureau of Economic Research, Inc.
    10. Peter Cohen & Robert Hahn & Jonathan Hall & Steven Levitt & Robert Metcalfe, 2016. "Using Big Data to Estimate Consumer Surplus: The Case of Uber," NBER Working Papers 22627, National Bureau of Economic Research, Inc.
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    Cited by:

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    3. Chen, Long & Huang, Jiahui & Jing, Peng & Wang, Bichen & Yu, Xiaozhou & Zha, Ye & Jiang, Chengxi, 2023. "Changing or unchanging Chinese attitudes toward ride-hailing? A social media analytics perspective from 2018 to 2021," Transportation Research Part A: Policy and Practice, Elsevier, vol. 178(C).
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    5. Agrawal, David R. & Zhao, Weihua, 2023. "Taxing Uber," Journal of Public Economics, Elsevier, vol. 221(C).
    6. Robert Dur & Carlos Gomez-Gonzalez & Cornel Nesseler, 2022. "How to reduce discrimination? Evidence from a field experiment in amateur soccer," Tinbergen Institute Discussion Papers 22-005/VII, Tinbergen Institute.
    7. Olga Abramova, 2022. "No matter what the name, we’re all the same? Examining ethnic online discrimination in ridesharing marketplaces," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(3), pages 1419-1446, September.
    8. Panjwani, Aniket & Xiong, Heyu, 2023. "The causes and consequences of medical crowdfunding," Journal of Economic Behavior & Organization, Elsevier, vol. 205(C), pages 648-667.
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    10. Doerrenberg, Philipp & Duncan, Denvil & Li, Danyang, 2024. "The (in)visible hand: Do workers discriminate against employers?," Journal of Public Economics, Elsevier, vol. 231(C).
    11. Shaw, Caroline & Tiatia-Seath, Jemaima, 2022. "Travel inequities experienced by Pacific peoples in Aotearoa/New Zealand," Journal of Transport Geography, Elsevier, vol. 99(C).

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    More about this item

    Keywords

    Discrimination; Audit study; Field experiment; Transportation network company; Peer economy; Sharing economy;
    All these keywords.

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • L90 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - General
    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General

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