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Service Quality on Online Platforms: Empirical Evidence about Driving Quality at Uber

Author

Listed:
  • Susan Athey
  • Juan Camilo Castillo
  • Bharat Chandar

Abstract

Online marketplaces have adopted new quality control mechanisms that can accommodate a flexible pool of providers. In the context of ride-hailing, we measure the effectiveness of these mechanisms, which include ratings, incentives, and behavioral nudges. Using telemetry data as an objective measure of quality, we find that drivers not only respond to user preferences but also improve their behavior after receiving warnings about their low ratings. Furthermore, we use data from a randomized experiment to show that informing drivers about their past behavior improves quality, especially for low-performing drivers. Lastly, we find that UberX drivers exhibit behavior comparable to that of UberTaxi drivers, suggesting that Uber’s new quality control mechanisms successfully maintain a high level of service quality.

Suggested Citation

  • Susan Athey & Juan Camilo Castillo & Bharat Chandar, 2024. "Service Quality on Online Platforms: Empirical Evidence about Driving Quality at Uber," NBER Working Papers 33087, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:33087
    Note: IO
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    More about this item

    JEL classification:

    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • J48 - Labor and Demographic Economics - - Particular Labor Markets - - - Particular Labor Markets; Public Policy
    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
    • L91 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Transportation: General
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

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