Measuring the impact of ride-hailing firms on urban congestion: The case of Uber in Europe

Abstract

This paper examines the impact of Uber, the world's largest ride-hailing firm, on congestion. Drawing on data from European cities for the period 2008 through 2016, I find a negative impact of Uber on congestion. The estimated impact in the baseline regression is −3.5 percentage points, but it is higher in cities that do not impose strong regulatory restrictions to ride-hailing services. In addition, the negative impact of Uber on congestion is only statistically significant in denser cities. The Uber effect is gradual given that its impact increases over time. Finally, I find suggestive evidence that the potential endogeneity bias underestimates the negative effect of Uber on congestion.