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Uber, Lyft or transit? The answer appears to align with how people value their time
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Many riders prefer the convenience of ride-sharing services over the lower fares of public transportation. New research led by the University of Michigan helps show why modest surcharges to shared rides won’t change transit usage. Image credit: Miki Tsuchiya
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Research led by the University of Michigan used data collected by the city of Chicago to study people’s use of transport network companies (TNCs) such as Uber and Lyft over public transit, allowing the team to put a value on the time riders saved with their choices. The median value of that number, about $34 per hour, was almost identical to the Chicago region’s median hourly wage.
“I was a bit surprised that our median estimate of the value of time was so close to the regional average wage. The median rider seems to value their time in a reasonable way,” said Parth Vaishnav, assistant professor at the U-M School for Environment and Sustainability. “At first sight, our research shows that people are behaving the way you would expect them to.”
By digging deeper, the team revealed further insights that could encourage commuters to make more sustainable choices. While it's true that electrifying vehicles and "congestion taxes" can mitigate some of the harm from TNC usage, the study suggests that the largest gains would be found if transit were more convenient.
The lead author of the study was Miki Tsuchiya, a research assistant at the U-M Center for Sustainable Systems, and included Anna Cobb of Carnegie Mellon University.