Complements or competitors? Equity implications of taxis and ride-hail use in Chicago

Abstract

Taxis have provided on-demand mobility for decades, including to people earning the lowest incomes. However, studies reveal gaps in taxi service across many US cities due to factors such as fleet size limitations, information asymmetry, and discriminatory practices. Since 2010, the emergence of ride-hail services such as Uber and Lyft has revolutionized the transportation landscape, offering faster and more affordable alternatives to traditional taxis. Yet it remains unclear the extent to which ride-hail services may fill spatial-temporal gaps in taxi services or how car access shifted after the arrival of ride-hail services. Additionally, taxis may still play an important role in car access for people who rely on cash payments. This study uses longitudinal trip-level ride-hail and taxi data in Chicago, IL, to examine the shifting trip patterns across the two modes. We compared the spatial-temporal pattern of taxi and ride-hail trips, as well as the share of taxi trips paid for in cash across three periods; we then developed spatial regression models to investigate what factors relate to taxi cash payments. Results show that ride-hail services may, directly and indirectly, fill taxi service gaps. Additionally, population density, land use mix, and the proportion of people of color and zero-car households are positively related to the share of taxi trips paid in cash, while the number of ride-hail trips and banking density are negatively associated with the percentage of cash payments. Policymakers should consider the evolving interplay between taxi and ride-hail services and the significance of cash payments to ensure equitable access to transportation options for individuals without cars.