Current their household vehicles. From an environmental benefits point

Current Trend and the Impact of
Ride-Sharing Services:

Ride-Sharing services have significantly grown since the introduction of
Uber, in 2009. To date, Ride-sharing has attracted over 2 million members in
North America and close to 5 million globally. Currently, more than half of
American adults have heard of ridesharing apps like Uber and Lyft, with 15% using
the services.

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Ridesharing services have some economic benefits. These services increase
the transportation options available to people and businesses and therefore they
are likely to significantly increase consumer welfare. In addition, ridesharing
could contribute to important externalities, such as congestion and emissions.
The impact on overall pollution is an empirical question because there are two
countervailing factors. The first one is that lowering the cost of
transportation is likely to increase vehicle miles travelled, which would
increase emissions. However, encouraging higher capacity utilization rates
could reduce emissions per vehicle mile travelled by an individual. Initial
survey results suggest that overall greenhouse gas emissions could decline, but
much more research is needed on actual consumer behavior to develop conclusive

Traffic congestion occurs when the demand for space is greater than the
available road capacity. Slower speeds, longer trip times, and increased
vehicular queues are all characteristics of traffic congestion. A significant
portion of traffic in big cities, is causes by drivers searching for parking.
Ridesharing gets rid of the need for parking spots because people who use
ridesharing instead of driving no longer need to search for these spots, and
that could reduce congestion.

From a different prospective, when we studied the relationship between
ride-sharing services use and number of personal vehicles reduction, we found a
strong relationship between increasing ride-sharing use and increasing rates of
vehicle reduction, 9% of ride-sharing services users indicated that they had got
rid of one or more personal vehicles in their household. So, the more
frequently users use ride-sharing services, the more likely they were to have
reduced their household vehicles. From an environmental benefits point of view,
the reduction of vehicle ownership reduces total vehicle miles traveled (VMT),
but it is currently unclear if the net vehicle miles traveled (VMT) adjustment
due to the introduction of ride-sharing services has gone up or down.


Rider-Sharing Services vs. Regular
Taxi Services and Public Transit:

Ride-sharing services entry into the market has gradually reduced demand
for traditional taxis. The number of trips by taxis in New York fell by 8%
between 2012 and 2014, and the drop was even more severe in San Francisco,
where use of taxis declined by 65%. A study, performed in five major big cities,
found that Uber drivers had higher capacity utilization rates than regular
taxis, and this most likely due to Uber’s more efficient ordering and pricing
methods, its larger scale, as well as inefficiencies of regular taxi regulation.
Beyond Lower fares, ride-sharing services has several advantages over regular
taxis services. Instead of waiting or calling a taxi service, passengers can
request a car through one of the ride-sharing services platforms and watch the
car’s progress towards their location. In addition, because payment transactions
are performed electronically, passengers can travel without cash or cards. In
addition to all that, users can check the profile of the driver before
selecting them and give their own opinion rating after the ride. This makes
them feel safer than entering the car of a completely unknown driver. That is
why ride-sharing services entry has made things more difficult for taxi drivers.

 Recent research study also found
that travel demand growth has shifted away from public transit services towards
ride-sharing services, we found that shared mobility likely attracts Americans
in major cities away from bus services and light rail (6% and 3% net reduction
in use, respectively), and may serve as a complementary mode for commuter rail
(3% net increase in use). While many suggest that ride-sharing can be
complementary to public transit, current evidence suggests that ride-sharing is
taking more people away from public transit in cities rather than adding


Ride-Sharing Services User Base
and Where They Are Most Common:

The users of ride-sharing services tend to be younger, more educated, and
have higher incomes than the rest of the population. More than (36%) of those
between 18 and 29 years of age use ride-sharing services, while only 4% of those
65 and older do. The use of ride-sharing service among the college educated is
double (26%) the use among those without a college degree (13%); and the use
rate is even higher with those who have advanced degrees than those with a
bachelor’s degree. Similarly, people with an annual household income of $35,000
or less had an adoption rate of 15%, as compared with 33% of those earning
$150,000 or more. Ride-Sharing are primarily available in urban areas, where
higher population number enables higher frequency of use and utilization rates
of vehicles. That is why one-in-five urban Americans (21%) have used ride-sharing
services, as have 15% of those living in suburban areas, but on the other hand,
just 3% of rural residents have used these services and more than half (54%)
have never heard of ride-sharing applications. The following chart gives us
detailed information regarding the use of ride-sharing services in both urban
and rural areas according to age, education, and income.


The providers of Ride-Sharing services:

use of ridesharing platforms is growing rapidly.  Since its market launch, Uber has attracted
dramatically increased the number of new “driver partners” for the basic
ridesharing service, from fewer than 1,000 
in  January  2013 
to  almost  40,000 
new  drivers  starting 
in  December  2014. According to a study that was conducted
by Uber in 20 cities in the USA, drivers’ major reason for working with Uber is
because it allows them more freedom and independence. 9 out of 10 drivers said
that being their boss and having the ability to choose their own schedule was
main reason why they wanted to drive for the company. Eighty-five percent of the
drivers also said a major reason they work with Uber is to have a greater
work-life balance. Drivers are mainly males, (7 out of 10) are working to
support either a child or a parent living at home. In other words, Uber has
become a much needed source of income for a lot of Americans. Those who have
never worked as a professional driver before make $19 an hour on average, while
drivers who used to drive black cars professional are taking home $27 per hour
on average.