How can the taxi industry survive the tide of ridesourcing? Evidence from Shenzhen,China |
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| Institution: | 1. Sino-US Global Logistics Institute, Shanghai Jiao Tong University, 1954 Huashan Road, Shanghai 200030, PR China;2. Department of Industrial Engineering, Tsinghua University, Beijing 100084, PR China;3. Department of Civil and Environmental Engineering, Hong Kong University of Science and Technology, Clear Water Bay, Kowloon, Hong Kong;4. School of Civil and Environmental Engineering, Cornell University, 468 Hollister Hall, United States;1. School of International and Public Affairs, Columbia University, 420 West 118th Street, New York, NY 10027, United States;2. Department of Civil Engineering, The City College of New York, 160 Convent Avenue, New York, NY 10031, United States;1. Institute for Resources, Environment and Sustainability, 2202 Main Mall, University of British Columbia, Vancouver V6T 1Z4, Canada;2. Food and Resource Economics, Land and Food Systems, MacMillan 341, 2357 Main Mall, University of British Columbia, Vancouver V6T 1Z4, Canada;1. Department of Civil and Coastal Engineering, University of Florida, 365 Weil Hall, Gainesville, FL, United States;2. Department of Civil and Environmental Engineering, The Hong Kong University of Science and Technology, Clear Water Bay, Kowloon, Hong Kong, China |
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| Abstract: | This paper aims to examine the impact of ridesourcing on the taxi industry and explore where, when and how taxis can compete more effectively. To this end a large taxi GPS trajectory data set collected in Shenzhen, China is mined and more than 2,700 taxis (or about 18% of all registered in the city) are tracked in a period of three years, from January 2013 to November 2015, when both e-hailing and ridesourcing were rapidly spreading in the city. The long sequence of GPS data points is first broken into separate “trips”, each corresponding to a unique passenger state, an origin/destination zone, and a starting/ending time. By examining the trip statistics, we found that: (1) the taxi industry in Shenzhen has experienced a significant loss in its ridership that can be indisputably credited to the competition from ridesourcing. Yet, the evidence is also strong that the shock was relatively short and that the loss of the taxi industry had begun to stabilize since the second half of 2015; (2) taxis are found to compete more effectively with ridesourcing in peak period (6–10 AM, 5–8 PM) and in areas with high population density. (3) e-hailing helps lift the capacity utilization rate of taxis. Yet, the gains are generally modest except for the off-peak period, and excessive competition can lead to severely under-utilized capacities; and (4) ridesourcing worsens congestion for taxis in the city, but the impact was relatively mild. We conclude that a dedicated service fleet with exclusive street-hailing access will continue to co-exist with ridesourcing and that regulations are needed to ensure this market operate properly. |
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| Keywords: | Ridesourcing e-hailing Street-hailing Capacity utilization rate Transportation network company |
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