Ride-Hailing Apps and Traffic Networks
This article talks about recent studies that addressed the increasing concern about how transportation network companies (TNC), like Uber and Lyft, have been contributing to large amounts of congestion in major cities. These types of companies have advertised that their business model will lead to less cars on city streets, however, some studies have found that people who would otherwise use forms of transportation like subways, buses, and bicycles are choosing to take cars instead. For example, a survey involving 944 people in Boston who use ride-hailing apps found that almost six in ten people would have used alternate forms of transportation, like walking, if they did not have access to these ride-hailing apps. This same study found that the largest reason people are deciding to use ride-hailing services is faster travel times. The article also talks about how Lyft and Uber want less people to own personal cars by increasing ride sharing. Uber is attempting to do this by offering an “Express Pool” option where people who are heading in similar directions can share a ride.
The issues surrounding the use of ride-hailing apps in cities relate to the topic of traffic in networks. This can be thought of as a game because people are trying to get from one location to another and can choose to get there using different modes of transportation which all have different travel times. People’s decisions to take a specific mode of transportation based on estimated travel time can involve game theory; transportation networks involve game theory because travelers have to make a decision about which transportation option to use based on the congestion that results from decisions that everyone else makes. Ride-hailing apps have created incentives for people to switch forms of transportation because they can be easier and faster than taking public transportation, however, they also can be more expensive. Uber Express Pool adds another dimension to this “game” because when travelers choose to order an Uber pool and share a car with other riders the cost can be cheaper than public transportation. If you follow the argument that ride-hailing apps increase congestion, then this new “strategy” of using a ride-hailing app to travel can make the “game” of traveling worse for everyone because it increases congestion and therefore travel times. As more people opt to use ride-hailing apps which, according to to this article, increases travel time through more traffic congestion then the equilibrium can shift again. This may cause people to switch back to other forms of transportation like biking or taking a bus.
https://nypost.com/2018/02/25/uber-lyft-drivers-are-making-city-traffic-worse-studies-find/