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Regulation of taxis and the rise of ridesharing

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  • Cetin, Tamer
  • Deakin, Elizabeth
Abstract
This paper examines the experience with economic regulation of traditional taxicab markets and the effects of newly emerging dynamic rideshare services on the taxicab industry. The paper provides a brief history of the regulation of taxicabs and the development of ridesharing services in cities world-wide. The aim is to show the pros and cons of taxicab regulation and explain why ridesharing services have gained a strong foothold in many markets. Even though economic regulation of taxicab markets has long been questioned, and some cities deregulated their taxi services over the past several decades, most cities have continued to regulate market entry and fares, citing environmental concerns and consumer protection as justifications. The recent development of dynamic ridesharing services, which match drivers with riders using cell phone technology to handle matches and payments, is posing a major challenge to the traditional taxi markets. While some cities have chosen to ban the new services, many others have allowed the rideshare services to compete with taxis, but with far fewer regulatory constraints. This in turn has led to new policy issues: not only whether taxis and ridesharing services should be regulated differently, but more broadly, what regulations are appropriate given the new technologies that are being employed by both traditional taxis and the new services.

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  • Cetin, Tamer & Deakin, Elizabeth, 2019. "Regulation of taxis and the rise of ridesharing," Transport Policy, Elsevier, vol. 76(C), pages 149-158.
    • Handle: RePEc:eee:trapol:v:76:y:2019:i:c:p:149-158
    DOI: 10.1016/j.tranpol.2017.09.002
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    Cited by:

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    6. Yiyuan Ma & Ke Chen & Youzhi Xiao & Rong Fan, 2022. "Does Online Ride-Hailing Service Improve the Efficiency of Taxi Market? Evidence from Shanghai," Sustainability, MDPI, vol. 14(14), pages 1-16, July.
    7. Soltanzadeh, Javad & Blind, Knut & Elyasi, Mehdi, 2023. "Exploring how regulators face platform business issues in the lifecycle stages: Evidence of iranian ride-hailing platform business," Telecommunications Policy, Elsevier, vol. 47(7).
    8. Yang, Jie & Zhao, Daozhi & Wang, Zeyu & Xu, Chunqiu, 2022. "Impact of regulation on on-demand ride-sharing service: Profit-based target vs demand-based target," Research in Transportation Economics, Elsevier, vol. 92(C).
    9. Jie Yang & Zeyu Wang & Chunming Xu & Di Wang, 2024. "The Competition Between Taxi Services and On-Demand Ride-Sharing Services: A Service Quality Perspective," Sustainability, MDPI, vol. 16(22), pages 1-25, November.
    10. Zou, Zhenpeng & Cirillo, Cinzia, 2021. "Does ridesourcing impact driving decisions: A survey weighted regression analysis," Transportation Research Part A: Policy and Practice, Elsevier, vol. 146(C), pages 1-12.
    11. Winter, Konstanze & Cats, Oded & Martens, Karel & van Arem, Bart, 2021. "Parking space for shared automated vehicles: How less can be more," Transportation Research Part A: Policy and Practice, Elsevier, vol. 143(C), pages 61-77.
    12. Lehe, Lewis & Pandey, Ayush, 2022. "Taxi service with heterogeneous drivers and a competitive medallion market," Journal of Urban Economics, Elsevier, vol. 131(C).
    13. Li, Baicheng & Szeto, W.Y., 2021. "Modeling and analyzing a taxi market with a monopsony taxi owner and multiple rentee-drivers," Transportation Research Part B: Methodological, Elsevier, vol. 143(C), pages 1-22.
    14. Xiong, Ziyue & Jian Li, & Wu, Hangbin, 2021. "Understanding operation patterns of urban online ride-hailing services: A case study of Xiamen," Transport Policy, Elsevier, vol. 101(C), pages 100-118.
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    16. Anne Brown & Whitney LaValle, 2021. "Hailing a change: comparing taxi and ridehail service quality in Los Angeles," Transportation, Springer, vol. 48(2), pages 1007-1031, April.

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