Eliciting Preferences of Ridehailing Users and Drivers: Evidence from the United States

TL;DR

This study analyzes preferences of ridehailing users and drivers in the U.S., revealing insights into their decision-making, vehicle choices, and the impact of TNCs on transportation behavior and vehicle purchasing patterns.

Contribution

It provides novel estimates of individual preferences and vehicle choices among U.S. ridehailing users and drivers using a large, unique sample, informing policy and industry strategies.

Findings

Ridehailing mainly attracts personal vehicle users as riders.

Approximately 10% of users delay buying new cars due to TNC availability.

Preference patterns for TNC usage vary with age, reversing after age 44.

Abstract

Transportation Network Companies (TNCs) are changing the transportation ecosystem, but micro-decisions of drivers and users need to be better understood to assess the system-level impacts of TNCs. In this regard, we contribute to the literature by estimating a) individuals' preferences of being a rider, a driver, or a non-user of TNC services; b) preferences of ridehailing users for ridepooling; c) TNC drivers' choice to switch to vehicles with better fuel economy, and also d) the drivers' decision to buy, rent or lease new vehicles with driving for TNCs being a major consideration. Elicitation of drivers' preferences using a unique sample (N=11,902) of the U.S. population residing in TNC-served areas is the key feature of this study. The statistical analysis indicates that ridehailing services are mainly attracting personal vehicle users as riders, without substantially affecting demand for transit. Moreover, around 10% of ridehailing users reported postponing the purchase of a new car due to the availability of TNC services. The model estimation results indicate that the likelihood of being a TNC user increases with the increase in age for someone younger than 44 years, but the pattern is reversed post 44 years. This change in direction of the marginal effect of age is insightful as the previous studies have reported a negative association. We also find that postgraduate drivers who live in metropolitan regions are more likely to switch to fuel-efficient vehicles. These findings would inform transportation planners and TNCs in developing policies to improve the fuel economy of the fleet.