Researchers Di Xu, Ganxiang Huang, and Wei Zhang from the School of Management, Xiamen University, China, and Wangtu Xu from the School of Architecture and Civil Engineering, Xiamen University, published an article in Emerald in April 2023, discussing the impact of ridesharing on public transit. This study presents an updated analysis on this topic, highlighting key findings relevant to urban mobility and transit planning.
As one of the most widely adopted sharing economy models, IT-enabled ridesharing platforms like Uber and Didi Chuxing are transforming the transportation industry. Unlike traditional taxis, ridesharing platforms significantly reduce information asymmetry and improve the efficiency of driver-passenger matching, providing faster, cheaper, and more accessible rides through mobile apps. Consequently, ridesharing adoption has surged.
Public transit agencies in the U.S. and Germany have started to partner with ridesharing services to enhance urban mobility. Key strategies include offering discounts and subsidies to encourage seamless connections between ridesharing and transit systems, aiming to increase public transit ridership, service quality, and accessibility—especially for low-income, elderly, disabled, and rural populations.
However, the research warns that improperly managed partnerships could inadvertently cause competition between ridesharing and transit services, underscoring the importance of identifying complementary effects between these services to ensure effective collaboration.
Hypothesis Development:
The complementarity hypothesis in transportation suggests that two modes are complementary when the presence of one enhances the use of the other. Ridesharing has the potential to address the last-mile problem in public transit, enabling efficient transfer from subway stations to homes or offices through enhanced driver-passenger matching and real-time data, reducing wait times and increasing market transparency. On average, ridesharing trips cost 40% less than traditional taxis, making it a cost-effective alternative for last-mile connections.
Complementary Effect Heterogeneity:
The study finds that ridesharing’s complementary effect on public transit varies by distance. For instance, subway riders tend to favor city buses over ridesharing as the connection distance grows due to fare differences. Conversely, for short connections (below 2 km), walking or bike-sharing often takes precedence over ridesharing due to flag-fall prices. The complementary effect’s strength, therefore, shows an inverted U-shaped relationship with connection distance, peaking at intermediate distances and diminishing for very short or long distances.
Further, the complementary effect of ridesharing is stronger in low-accessibility areas where traditional transit services are sparse, like low-density neighborhoods and during off-peak hours. As such, ridesharing may serve as a more attractive alternative to public transit in these contexts, especially at night when public transit availability is limited.
Conclusions and Implications:
For policymakers and public transit agencies, this study emphasizes the role of ridesharing in solving urban last-mile mobility issues. Governmental bodies should support public-private partnerships between transit agencies and ridesharing platforms, offering subsidies and supportive policies to encourage the use of ridesharing in transit-linked commutes. This approach could reduce traffic congestion, pollution, and dependence on private vehicles.
Public transit agencies, especially those serving low-accessibility communities, should prioritize short-distance ridesharing services below 6 km and increase collaboration with ridesharing platforms during periods of low transit availability. Additionally, ridesharing platforms should optimize vehicle scheduling in these areas to maximize the complementary effect, especially at night or in low-density neighborhoods with limited transportation options.