The ride-sourcing industry: status-quo and outlook

Abstract

Ride-sourcing, the use of private cars to provide on-demand mobility services, first appeared in San Francisco around the year 2010. Since then, transportation network companies (TNCs) who offer ride-sourcing services have expanded all around the world. By examining three case cities (San Francisco, Mexico City, Paris) we explain what facilitated this growth and how the regulation of TNCs differs. Subsequently, an economic analysis discusses the current expansionary strategy of TNCs and their future. We show that TNCs adapt their strategies to local contexts, with first priority to establish themselves in the market, if necessary, using gray regulatory areas, even if they face resistance from city authorities, taxi drivers and other groups, and despite being unprofitable. Our economic model explains this. We show that an unregulated ride-sourcing market leads to monopolistic situations once autonomous vehicles become available. We hence conclude that city authorities need to develop a regulatory framework to maximize social welfare.

Policymaking and Planning for On-Demand Ride-Hailing in Toronto and Vancouver: Explanatory Factors and Policy Implications

“…The nature of on-demand ride-hailing companies and services necessitate specific regulatory responses. Goletz and Bahamonde (2021) demonstrate that the business model for on-demand ride-hailing requires aggressive expansion to gain market share. This leads to the need for regulation to address transportation-related concerns, such as modal shifts away from sustainable and active modes, as well as broader concerns, such as targeting anti-monopolistic practices.…”

“…While some argue that on-demand ride-hailing will ultimately be regulated much like taxis (Mundy, 2018), others contend that additional research is required to support policy and planning for emerging transportation services, including on-demand ride-hailing (Habib & Lynn, 2020), suggesting that these services are conceptualized as an entirely new phenomenon. In this vein, some have identified on-demand ride-hailing as a precursor to other emerging urban transportation technologies, such as automated vehicles (Goletz & Bahamonde-Birke, 2021;Jin et al, 2018).…”

Cycloactivism in Mexico City

“…To achieve this aim, however, they first needed to promote 'data science' in government, or a standardised approach to handling information and its analyses. Major NGOs and international foundations sought to help the Mexico City government enter what was quickly becoming a dynamic field, where delivery and taxi transport companies were handling vast amounts of data on urban dwellers' habits and practices (Goletz and Bahamonde-Birke 2021). But the mass of new data produced by technology companies was at odds with a thorny culture of information handling by government authorities.…”

The evolution of sharing economy policies in Indonesia transportation sector from the perspective of Narrative Policy Framework

“…This pattern was implemented successfully by San Francisco, which online transportation companies in other cities then imitated. Subsequent research also discusses San Francisco, Mexico City, and Paris (Goletz and Bahamonde-Birke, 2021).…”