Social and Behavioral Sciences Commons^™

The Impact Of Ride-Hail Surge Factors On Taxi Bookings, Sumit Agarwal, Ben Charoenwong, Shih-Fen Cheng, Jussi Keppo

Research Collection School Of Computing and Information Systems

We study the role of ride-hailing surge factors on the allocative efficiency of taxis by combining a reduced-form estimation with structural analyses using machine-learning-based demand predictions. Where other research study the effect of entry on incumbent taxis, we use higher frequency granular data to study how location-time-specific surge factors affect taxi bookings to bound the effect of customer decisions while accounting for various confounding variables. We find that even in a unique market like Singapore, where incumbent taxi companies have app-based booking systems similar to those from ride-hailing companies like Uber, the estimated upper bound on the cross-platform substitution between …