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

Author

Listed:
  • Mishal Ahmed

    (School of Economics, Georgia Institute of Technology, 221 Bobby Dodd Way, Atlanta, GA 30313, USA)

  • Erik Johnson

    (University of Alabama, Culverhouse College of Business, Department of Economics, Finance and Legal Studies, Tuscaloosa, AL 35487, USA)

  • Byung-Cheol Kim

    (University of Alabama, Culverhouse College of Business, Department of Economics, Finance and Legal Studies, Tuscaloosa, AL 35487, USA)

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.

Suggested Citation

  • Mishal Ahmed & Erik Johnson & Byung-Cheol Kim, 2018. "The Impact of Uber and Lyft on Taxi Service Quality: Evidence from New York City," Working Papers 18-16, NET Institute.
    • Handle: RePEc:net:wpaper:1816
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    File URL: http://www.netinst.org/Kim_18-16.pdf
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    References listed on IDEAS

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    1. Timothy J. Bartik, 1991. "Who Benefits from State and Local Economic Development Policies?," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number wbsle.
    2. Astrid A. Dick, 2007. "Market Size, Service Quality, and Competition in Banking," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 39(1), pages 49-81, February.
    3. Hall, Jonathan D. & Palsson, Craig & Price, Joseph, 2018. "Is Uber a substitute or complement for public transit?," Journal of Urban Economics, Elsevier, vol. 108(C), pages 36-50.
    4. Michael Mazzeo, 2003. "Competition and Service Quality in the U.S. Airline Industry," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 22(4), pages 275-296, June.
    5. Jonathan V. Hall & Alan B. Krueger, 2018. "An Analysis of the Labor Market for Uber’s Driver-Partners in the United States," ILR Review, Cornell University, ILR School, vol. 71(3), pages 705-732, May.
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    Cited by:

    1. Xiao Lin & Zhengfeng Huang & Yun Ye & Jingxin Dong & Hongxiang Feng & Pengjun Zheng, 2023. "Effects of Aging on Taxi Service Performance: A Comparative Study Based on Different Age Groups," Sustainability, MDPI, vol. 15(22), pages 1-20, November.

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    More about this item

    Keywords

    ride-sharing applications; taxi; competition; service quality;
    All these keywords.

    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • L91 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Transportation: General
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R4 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics

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