Ride-Sharing Markets Re-Equilibrate / Jonathan V. Hall, John J. Horton, Daniel T. Knoepfle.

Format:

Book

Author/Creator:

Hall, Jonathan V.

Contributor:

National Bureau of Economic Research.

Horton, John J.

Knoepfle, Daniel T.

Series:

Working Paper Series (National Bureau of Economic Research) no. w30883.

NBER working paper series no. w30883

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2023.

Summary:

Following Uber-initiated fare increases, drivers make more money per trip and, initially, more per hour-worked. Drivers begin to work more hours. However, this increase in hours-worked--combined with a reduction in demand from a higher fare--has a business stealing effect, with drivers spending a smaller fraction of working hours transporting passengers. This market adjustment brings the hourly earnings rate back to about the rate that prevailed before the fare increase, in roughly two months. Passengers are partially compensated for higher prices by shorter wait times, but during the period covered by our data, fare increases likely reduced passenger welfare.

Notes:

Print version record

February 2023.