Ride Sharing Case Study
Current Trend and the Impact of Ride-Sharing Services:
Ride-Sharing services have significantly grown since the introduction of Uber, in 2009. To date, Ride-sharing has attracted over 2 million members in North America and close to 5 million globally. Currently, more than half of American adults have heard of ridesharing apps like Uber and Lyft, with 15% using the services.
Ridesharing services have some economic benefits. These services increase the transportation options available to people and businesses and therefore they are likely to significantly increase consumer welfare. In addition, ridesharing could contribute to important externalities, such as congestion and emissions. The impact on overall pollution is an empirical question because there are two countervailing factors. The first …show more content…
The number of trips by taxis in New York fell by 8% between 2012 and 2014, and the drop was even more severe in San Francisco, where use of taxis declined by 65%. A study, performed in five cities, found that Uber drivers had higher capacity utilization rates than taxis, likely due to Uber’s more efficient ordering and pricing methods, its larger scale, as well as inefficiencies of taxi regulation. Beyond Lower fares, ride-sharing services has several advantages over regular taxis services. Instead of waiting or calling a taxi service, passengers can request a car through one of the ride-sharing services platforms and watch the car’s progress towards their location. In addition, because payment transactions are performed electronically, passengers can travel without cash or cards. In addition to all that, users can check the profile of the driver before selecting them and give their own opinion rating after the ride. This makes them feel safer than entering the car of a completely unknown driver. That is why ride-sharing services entry has made things more difficult for taxi
Ride-Sharing services have significantly grown since the introduction of Uber, in 2009. To date, Ride-sharing has attracted over 2 million members in North America and close to 5 million globally. Currently, more than half of American adults have heard of ridesharing apps like Uber and Lyft, with 15% using the services.
Ridesharing services have some economic benefits. These services increase the transportation options available to people and businesses and therefore they are likely to significantly increase consumer welfare. In addition, ridesharing could contribute to important externalities, such as congestion and emissions. The impact on overall pollution is an empirical question because there are two countervailing factors. The first …show more content…
The number of trips by taxis in New York fell by 8% between 2012 and 2014, and the drop was even more severe in San Francisco, where use of taxis declined by 65%. A study, performed in five cities, found that Uber drivers had higher capacity utilization rates than taxis, likely due to Uber’s more efficient ordering and pricing methods, its larger scale, as well as inefficiencies of taxi regulation. Beyond Lower fares, ride-sharing services has several advantages over regular taxis services. Instead of waiting or calling a taxi service, passengers can request a car through one of the ride-sharing services platforms and watch the car’s progress towards their location. In addition, because payment transactions are performed electronically, passengers can travel without cash or cards. In addition to all that, users can check the profile of the driver before selecting them and give their own opinion rating after the ride. This makes them feel safer than entering the car of a completely unknown driver. That is why ride-sharing services entry has made things more difficult for taxi