Must-Read: Judd Cramer and Alan B. Krueger: Disruptive Change in the Taxi Business: The Case of Uber

Must-Read: Judd Cramer and Alan B. Krueger: Disruptive Change in the Taxi Business: The Case of Uber: “This paper… compar[es] the capacity utilization rate of UberX drivers…

…with that of traditional taxi drivers in five cities…. UberX drivers spend a significantly higher fraction of their time, and drive a substantially higher share of miles, with a passenger in their car than do taxi drivers…. 1) Uber’s more efficient driver-passenger matching technology; 2) the larger scale of Uber than taxi companies; 3) inefficient taxi regulations; and 4) Uber’s flexible labor supply model and surge pricing more closely match supply with demand throughout the day.