Ride-sharing apps affect car market

By | August 18, 2017
hands holding smartphones showing Lyft app


New research involving¬†U-M’s Transportation Research Institute¬†found that apps like Uber and DriveNow may be doing to cars what the web already did to newspapers. Two academic studies published this year have shown that people say they will reduce their use and ownership of private cars when they have access to ride-sharing or car-sharing apps.

The U-M study of Uber and Lyft users in Austin, Texas, reported a 41% increase in their probability of switching to a personal vehicle after both companies suspended services in the city. Another 42% used another “transportation networking company” (TNC) to ride with. The data suggest that when Uber and Lyft are available people will ditch their cars, and when those apps are taken away a large portion switch to similar on-demand services.