Ride-hailing has become a routine part of urban life in the United States, but its broader economic impacts have been difficult to measure. As Uber and Lyft expanded across hundreds of cities over the past decade, they promised more flexible work for drivers and convenience for passengers. Questions remained, however, about how these promises translated into measurable changes in local economies.
A new study from Carnegie Mellon University set out to provide an answer by analyzing the launch of ridesharing services across 167 metropolitan areas between 2010 and 2019. Because the entrance of these transportation network services (TNCs) was staggered, the team was able to compare economic trends before and after TNC entry while accounting for differences across regions.
By combining publicly available workforce and economic analysis data with modern difference-in-differences methods designed for policies that roll out over time, researchers identified a consistent pattern. After Uber and Lyft entered the region, two indicators shifted: regional GDP per capita increased, and the number of seasonal, temporary, or intermittent jobs rose. And, while they did not observe statistically significant effects on overall employment or wages, these shifts suggest that ride-hailing expanded access to flexible work and unlocked new economic activity tied to increased mobility.
