The public is increasingly embracing ride sharing. To date, debate has focussed on the implications for the taxi industry. However, ride sharing services, and the technological platforms underpinning them, have the potential to transform (or disrupt) public transportation. This is due to the innovations delivered by the smartphone apps that ride sharing services use — which facilitate real time, direct bookings at low cost. These apps also enable underutilised private cars to provide transport services. As costs get low enough and are combined with the convenience to passengers, ride sharing will have implications for public transportation, in particular bus services. This new bulletin from Frontier Economics discusses these implications and explores some coming policy challenges for government.
Frontier Economics regularly advises governments and private sector clients regarding policy and regulation in the transport sector.