Ride sharing congestion: The result of flexible, cheap ride-hailing services

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Ride sharing congestion: The result of flexible, cheap ride-hailing services

Ride sharing congestion: The result of flexible, cheap ride-hailing services

Subheading text
Uber and Lyft claim that ride-sharing is the sustainable future of transportation, but some studies beg to differ.
    • Author:
    • Author name
      Quantumrun Foresight
    • January 9, 2022

    Insight summary

    Ride-sharing companies promised a convenient and sustainable alternative to personal car ownership. However, several studies suggest that these services may be contributing to increased traffic congestion in urban areas, challenging their claims of sustainability. The implications of this trend include longer commute times, a switch to public transport usage, inefficient business operations, better urban planning, and political debates over regulation and environmental concerns.

    Ride sharing congestion context

    The rise of ride-sharing companies, such as the US-based Uber and Lyft, marked a significant shift in consumer mobility during the 2010s. These platforms offered a level of convenience and flexibility that was previously unseen in traditional transportation methods. Uber dominates the transport network company (TNC) sector with a market share of 69 percent, while Lyft trails behind with 29 percent. These companies have positioned themselves as sustainable alternatives to personal car ownership, arguing that they can help consumers reduce their individual carbon footprints.

    Despite these claims, recent research suggests that TNCs may be contributing to an increase in traffic congestion in major urban areas. A study conducted in 2017 by Schaller Consulting revealed that TNCs had added an additional 50,000 vehicles to the streets of New York City alone. The study's findings challenge the notion that TNCs are a solution to urban transportation issues, instead suggesting they may be a contributing factor to these problems.

    If TNCs are indeed contributing to traffic congestion, this could have a range of negative impacts, from increased commute times to higher levels of air pollution. Furthermore, the increased traffic could strain existing infrastructure, leading to more wear and tear on city roads. 

    Disruptive impact

    The increase in traffic duration could lead to longer commute times, reducing the time available for personal or productive activities. Moreover, the decrease in public transport usage could lead to less investment in these services, potentially limiting options for those who rely on them. Additionally, the minimal decrease in car ownership suggests that TNCs may not be as effective in reducing personal vehicle use as initially thought.

    For businesses, particularly those in urban areas, increased congestion could lead to delays in the delivery of goods and services, impacting operational efficiency. Furthermore, companies that rely on a mobile workforce may find their employees spending more time in transit and less time on productive work. However, businesses could also adapt to these changes, for example, by implementing flexible working hours to avoid peak traffic times or encouraging remote work where possible.

    While regulating these services may be complex due to their unique categorization, it is not impossible. Governments could consider implementing policies that encourage TNCs to contribute to reducing congestion, such as incentivizing shared rides or operating in less congested areas. Additionally, the increased pollution from TNC fleets compared to statewide automobiles highlights the need for environmental regulations that apply to all vehicles, regardless of their use. 

    Implications of ride-sharing congestion

    Wider implications of ride sharing congestion may include:

    • Local governments creating new emission and operating regulations specifically for TNCs.
    • The continued near-term decrease in demand for public transportation options toward TNCs, which may contribute to an increase in road traffic.
    • A long-term increase in public transit usage should urban TNC congestion continue to worsen.
    • A shift in urban planning, with cities prioritizing pedestrian-friendly infrastructure and public transportation over car-centric designs.
    • Companies developing new solutions to manage and mitigate traffic congestion.
    • Political debates and policy changes as governments grapple with how to regulate these new forms of transportation effectively.
    • Advancements in traffic management systems, leading to smarter, more efficient cities.
    • A decrease in traditional taxi driver jobs but an increase in flexible, gig economy roles.
    • A greater focus on electric and hybrid vehicles within these fleets, contributing to a reduction in carbon emissions.

    Questions to consider

    • Do you prefer ride-hailing services to public transportation?
    • How do you think the ride-sharing industry could evolve in the future to further minimize traffic?

    Insight references

    The following popular and institutional links were referenced for this insight:

    Massachusetts Institute of Technology Study finds ride-sharing intensifies urban road congestion