Tamer Cetin

By Tamer Çetin

Recently, the ride-sharing services have become very popular in urban transport. In particular, the rise of dynamic ride sharing startups have challenged to the traditional taxicab services. Although those dynamic developments within urban transport systems have made ride share services substitute for cab services, it has been controversial in the political sphere. Some researchers and policy makers argue that ride-share will lead to the death of public transportation, if government does not intervene in this area. However, market developments suggest the opposite. While competition between those urban transport modes has led to the dramatic decline in taxi fares, consumer welfare and economic efficiency have improved. Examining the rise of ride sharing and its effect on the traditional taxicab market, this chapter concludes that ride share services introduces a unique opportunity for the users of urban transport, but not threat. However, a mixed regulatory structure including deregulation and regulation policies is needed to improve market welfare in both markets. While economic regulations such as fare controls and entry restrictions are not necessary for both ride shares and taxicabs, social regulations are still crucial to improve the satisfaction of users of rideshare and taxicab services in terms of the quality of service.

Part of the book: Urban Transport Systems