Abstract
This paper compares the utilization rates of UberX and taxi drivers, as measured by the fraction of time or distance traveled that a driver has a rider in the vehicle. The main conclusion is that, in most cities with data available, UberX drivers spend a significantly higher fraction of their time, and drive a substantially higher share of miles, with a passenger in their car than do taxi drivers. Four factors likely contribute to the higher capacity utilization rate of UberX drivers: 1) Uber’s more efficient driver-passenger matching technology; 2) the larger scale of Uber than taxi companies; 3) inefficient taxi regulations; and 4) Uber’s flexible labor supply model and surge pricing more closely match supply with demand throughout the day.
Team
Economics and Market Design
Authors
Judd Cramer, Alan B. Krueger
