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TECH BUYER Jul 2019 - IDC Perspective - Doc # US44345919

Ride-Hailing/Ride-Sharing Companies and Public Transit Agencies: Symbiosis or Competition?

By: Mark Zannoni, Ruthbea YesnerVice President, IDC Government Insights and Smart Cities

Abstract

This IDC Perspective provides guidance for cities and transit agencies when contemplating partnerships or contracts with a ride-hailing or ride-sharing firm. The movement of passengers away from public transit systems to ride-hailing/ride-sharing companies such as Uber, Lyft, and Via can be detrimental to cities. However, there are models for beneficial coexistence that can improve urban mobility and address transit agency needs, such as services in low passenger density areas enabling an authority to redeploy transit assets to higher-demand areas. Various operating models were examined and assessed along a "competitive to complementary" axis as well as an axis for positive-to-negative impact to cities. Key advisory for cities and transit agencies that must be considered and addressed when structuring potential deals, such as around labor issues or data ownership, whether for a pilot or a longer-term contract, is provided as well.

"This document identifies specific public transit services in which cities and transit agencies can work with ride-hailing and ride-sharing companies to increase mobility for urban residents," says Mark Zannoni, IDC research director of IDC's Worldwide Urban Mobility Program.


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