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- Mar 2019
Ridesharing platforms canhave several economic benefits.7These platformsincrease the transportation options available to consumers and businessesand are therefore likely to significantly increase consumer welfare. Lyft andUbergivethe consumer multiple different types of rides to choose from.For example, riderscantypicallyrequest a normal car and ride from a partner driver, carpooling at a cheaper price,a ride in a large car,ora luxury car.8These ridesharing platforms may alsoencourage higher utilization of the existing vehicle stock. One study,performed in five cities, found that Uber drivers had higher capacity utilization rates than taxis, likely due to Uber’s more efficient ordering and pricing methods, its larger scale, as well as inefficiencies of taxi regulation (Cramer and Krueger, 2016).Some cities have allocateddedicated parking spots throughout the city to such ridesharing under the assumption that they may generate social benefits (Shaheen, 2010).
Advantages for ride sharing platforms for the economy with case studies and primary research.