Transport network companies (TNCs) such as Uber and Lyft is an emerging mode of transport. They use an online-enabled platform to connect passengers with drivers and provide on-demand ride services. Despite the increasing popularity of TNCs in cities worldwide, its role in the urban transport system is still under debate.
In this study, we use the heterogeneity in the entry time of TNCs in US MSAs as an identification strategy to assessing the net effect of TNCs on urban mobility as measured by car ownership, public transportation (PT) ridership and road congestion levels within a difference-in-differences modelling framework.
We find that TNCs can reduce the car ownership in PT-friendly MSAs by 0.3-1.1%, and this effect increases with the level of PT-friendliness, time, and number of TNC operators in the market. However, its impact on other MSAs are insignificant. On average, the entry of TNCs reduces PT ridership by 5.2%, and the magnitude of this effect decreases with the level of PT-friendliness. The PT ridership drops significantly in the first two years after the TNC entry and recovered slightly thereafter. In terms of road congestion, TNCs can increase Travel Time Index (TTI) but their effect on Congested Hours (CH) is insignificant. The entry of the second TNC operator leads to higher congestion level.
Our findings contribute to a better understanding of role that TNCs play in cities and provide useful insights for policy design in achieving sustainable transportation.