Competetive strategy in disrupted taxi markets : an exploratory case study into New York city
Year: 2019
Type: dissertation
Abstract: Strategy has been all but regulated out of the taxi industry for the better part of the last century.\nWhile such far-reaching entry, pricing and quality regulation may have produced favourably\nuncompetitive and profitable markets for taxi firms in the past, today, they constrain the\ncompetitive response of traditional taxis to fast growing rideshare platforms. In a first step\ntowards motivating compelling taxi strategy, this thesis aims to understand how the growth of\nrideshare platforms effects competition in established taxi markets. Nine years of taxi trip data\nand three years of rideshare trip data are retrieved from the New York City Taxi and Limousine\nCommission and employed using a log-log random effects regression model to estimate the\nelasticity of traditional taxis demand with respect to Uber. Demand elasticity estimates are\nreported at the market level, as well as across spatiotemporal axes. The findings from this\nanalysis suggest that the value proposition of traditional taxis is strongest in densely populated\nurban areas, but not immune to erosion. The findings also suggested that without competitive\nresponse from traditional taxis, the rideshare substitution effects grows over time.
Author: Sheeler, Cameron P.
Language: English
Subfield: Transportation
Field: Social Sciences
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W6980649916