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The Demand for Mobility: Evidence from an Experiment with Uber Riders

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  • Christensen, Peter

    (University of Illinois)

  • Osman, Adam

    (University of Illinois at Urbana-Champaign)

Abstract

Changes in transport costs can affect mobility in ways that differ across the population, affecting the impacts of transport policies. We randomly assign large price reductions on Uber in Egypt over a 3-month period and collect comprehensive data on participant mobility using Google Timeline. A 50% price reduction quadruples Uber usage and induces a 42% increase in total travel. Effects and welfare gains are larger for women, who are less mobile at baseline and perceive public transit as unsafe. The price elasticity of private vehicle kilometers traveled (-1.28) implies that mobility and external costs increase substantially when ride-hailing prices fall.

Suggested Citation

  • Christensen, Peter & Osman, Adam, 2021. "The Demand for Mobility: Evidence from an Experiment with Uber Riders," IZA Discussion Papers 14179, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp14179
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    Cited by:

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    2. Christensen, Peter & Osman, Adam & Stocker, Abigail, 2024. "Weathering the ride: Experimental evidence on transport pricing, climate extremes, and future travel demand," Journal of Environmental Economics and Management, Elsevier, vol. 125(C).
    3. Feld, Brian & Nagy, AbdelRahman & Osman, Adam, 2022. "What do jobseekers want? Comparing methods to estimate reservation wages and the value of job attributes," Journal of Development Economics, Elsevier, vol. 159(C).
    4. Li, Shanjun & Wang, Binglin & Zhou, Hui, 2024. "Decarbonizing passenger transportation in developing countries: Lessons and perspectives1," Regional Science and Urban Economics, Elsevier, vol. 107(C).
    5. Osman, Adam & Speer, Jamin D., 2023. "Stigma and Take-up of Labor Market Assistance: Evidence from Two Field Experiments," IZA Discussion Papers 16599, Institute of Labor Economics (IZA).
    6. Jack Fisher, 2024. "Monopsony Power in the Gig Economy," CESifo Working Paper Series 11444, CESifo.

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    More about this item

    Keywords

    mobility on demand; ride-hailing; travel safety; travel demand;
    All these keywords.

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy

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