Re-examining the impact of Uber on the taxi industry in New York City

This study re-examines the impact of Uber rides on Yellow taxi trips in New York City using Uber’s unique dispatched vehicle as an instrumental variable instead of rainfall employed by Mammen and Shim (2018). With the instrumental variable, I find that Uber rides have a significantly negative impact on Yellow taxi trips. Specifically, a one percent increase in the number of Uber rides would yield a 0.318% to 0.324% decrease in the number of Yellow taxi trips. This finding suggests that Uber rides significantly replace, rather than supplement, Yellow taxi trips.