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The market impacts of sharing economy entrants: evidence from USA and China

Author

Listed:
  • Yue Guo

    (Hohai University
    King’s College London)

  • Fu Xin

    (Hohai University)

  • Xiaotong Li

    (University of Alabama in Huntsville)

Abstract

This paper studies the link between the diffusion of the sharing economy and traditional mature industries by empirically examining the economic impacts of sharing economy entrants. This study adds to the ongoing debate over whether and how ride-hailing platforms influence new car sales in USA and China. Our results suggest that the short-term impact of Didi Chuxing’s entry on new car sales is positive. Unlike the effect of Didi Chuxing on new car sales in China, Uber’s entry negatively influences new car sales in USA. The entry of Didi Chuxing is related to a 9.24% increase in new car sales in China and the entry of Uber is related to an 8.1% decrease in new car sales in USA. We further empirically confirm that the impact of ride-hailing companies is trivial in small cities.

Suggested Citation

  • Yue Guo & Fu Xin & Xiaotong Li, 2020. "The market impacts of sharing economy entrants: evidence from USA and China," Electronic Commerce Research, Springer, vol. 20(3), pages 629-649, September.
    • Handle: RePEc:spr:elcore:v:20:y:2020:i:3:d:10.1007_s10660-018-09328-1
    DOI: 10.1007/s10660-018-09328-1
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