Racial discrimination in transportation network companies

• Published in: Journal of public economics Vol. 190; p. 104205
• Main Authors: Ge, Yanbo, Knittel, Christopher R., MacKenzie, Don, Zoepf, Stephen
• Format: Journal Article
• Language: English
• Published: Elsevier B.V 01.10.2020
• Subjects: Audit study; Discrimination; Field experiment; Peer economy; Sharing economy; Transportation network company; L90; Discrimination; Audit study; Sharing economy; Peer economy; J16; Field experiment; Transportation network company; J15; R40
• ISSN: 0047-2727; 1879-2316
• DOI: 10.1016/j.jpubeco.2020.104205

In a randomized audit study, we sent passengers in Boston, MA on nearly 1000 rides on controlled routes using the Uber and Lyft smartphone apps, recording key performance metrics. Passengers randomly selected between accounts that used African American-sounding and white-sounding names. We find that the probability an Uber driver accepts a ride, sees the name, and then cancels doubles when passengers used the account attached to the African American-sounding name. In contrast, Lyft drivers observe the name before accepting a ride and, as expected, we find no effect of name on cancellations. We do not, however, find that the increase in cancellations leads to measurably longer wait times for Uber. •Travelers completed nearly 1000 rides on controlled routes in Boston, USA using the Uber and Lyft smartphone apps.•Travelers randomized between accounts that used African American-sounding and white-sounding names.•Uber drivers were twice as likely to cancel an accepted ride when travelers were using the African American-sounding name.•Lyft drivers, who see the name before accepting a ride, show no effect of name on cancellations after the trip is accepted.