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Faster and Cheaper: How Ride-Sourcing Fills a Gap in Low-Income Los Angeles Neighborhoods

Summary

Ride-sourcing services such as Uber and Lyft have created unprecedented competition for the taxi industry and sparked intense debate between detractors and proponents of the new services. To date, the arguments have been based on emotion and self-interest rather than evidence. Funded by Uber Technologies, Inc.,BOTEC designed and ran a rigorously controlled study in order to generate actual data as to the relative performance of taxis vs. UberX rides in low-income Los Angeles neighborhoods. The findings demonstrate that compared to taxis,Uber is faster and cheaper by a large measure.Data collected in this study shows that an app-summoned UberX ride arrives in less than half the time of a telephone-dispatched taxi and costs less than half as much, even during periods of “surge pricing.” UberX was also more reliable, with no wait time exceeding 30 minutes.

Subject
Transportation
Year
2015
Client/Sponsor
Über Technologies
Type
Report

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