A note on the impact of Uber on Brazilian taxi drivers’ earnings

OLIVEIRA, CRISTIANO AGUIAR DE; MACHADO, GABRIEL COSTEIRA

doi:10.5935/0034-7140.20210015

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Revista Brasileira de Economia

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Articles • Rev. Bras. Econ. 75 (3) • Jul-Sep 2021 • https://doi.org/10.5935/0034-7140.20210015 copy

A note on the impact of Uber on Brazilian taxi drivers’ earnings

Authorship SCIMAGO INSTITUTIONS RANKINGS

Abstract

This article assesses the impact of Uber arrival on the hourly earnings of Brazilian taxi drivers. Microdata information from a national survey is used to build a longitudinal database that allows the estimation of these impacts through models in generalized differences in differences and in triple differences. The results indicate that Uber's services did not have a significant impact on the hourly earnings of taxi drivers in Brazil. The article provides some explanations for these results, but, concludes that this evidence supports the idea that Uber, in short run, has spread the market to new consumers.

Keywords
Uber; taxi; longitudinal data; Brazil

City	Uber	Uber X
Rio de Janeiro	June 2014	August 2015
São Paulo	August 2014	June 2015
Belo Horizonte	December 2014	August 2015
Brasília	February 2015	August 2015
Porto Alegre	November 2015	November 2015
Goiânia	January 2016	January 2016
Recife	February 2016	February 2016
Curitiba	March 2016	March 2016
Salvador	April 2016	April 2016
Fortaleza	April 2016	April 2016

	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)
Uber	0.6495	−1.1161	0.2821	−0.7309	0.3450	−0.4762	0.1981	−0.4646
	(0.6707)	(1.0929)	(0.9176)	(0.7371)	(0.8144)	(0.8534)	(0.7128)	(0.7978)
p_th_i*		0.8528		0.7939	−0.3602	0.0494	−0.2985	−0.0557
		(0.7306)		(0.7611)	(0.3725)	(0.4062)	(0.4319)	(0.6497)
p_t d_i*		0.9015		0.8236	0.3895	0.5172	0.4206	0.5573
		(0.8162)		(0.8814)	(0.6741)	(0.6999)	(0.6831)	(0.6662)
n	143	277	62	123	489	623	160	221
R² within	0.0191	0.0110	0.0275	0.0073	0.0084	0.0072	0.0005	0.0042
R² between	0.0476	0.0002	0.0794	0.0273	0.0152	0.0040	0.0356	0.0173
R² total	0.0251	0.0022	0.0249	0.0233	0.0117	0.0055	0.0124	0.0151
Definition of taxi drivers	1	2	1	2	1	2	1	2
Control group	1	1	2	2	1	1	2	2

	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)
Uber	−0.5476	−1.7363	−1.9208	−2.4541	−0.4909	−0.4175	−0.3488	−0.9733
	(0.6821)	(1.1536)	(1.4530)	(1.4522)	(0.9657)	(0.9765)	(1.6157)	(1.5197)
p_th_i*		0.9087		1.6813	−0.0247	−0.4373	0.1493	0.3143
		(0.6394)		(1.2375)	(0.5365)	(0.5560)	(1.1214)	(0.6634)
p_t d_i*		0.6593		1.1795	−0.7298	−0.7608	−0.3665	−0.3880
		(0.9468)		(1.5841)	(0.6471)	(0.6542)	(0.6242)	(0.5392)
n	130	289	57	130	506	665	157	221
R2 within	0.0432	0.0171	0.0516	0.0216	0.0128	0.0107	0.0332	0.0173
R2 between	0.0016	0.0147	0.0139	0.0477	0.0002	0.0171	0.0098	0.0273
R2 total	0.0161	0.0000	0.0452	0.0010	0.0037	0.0003	0.0205	0.0055
Definition of taxi drivers	1	2	1	1	1	2	1	2
Control group	1	1	2	1	1	1	2	2

	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)
Uber	0.4475	3.0086	0.8673	1.6782	−0.1725	0.5077	−0.0400	1.3451
	(0.7071)	(2.2852)	(0.5087)	(1.2879)	(0.9541)	(1.3326)	(0.7704)	(1.0804)
p_th_t*		−1.2779		0.1687	0.7527	0.4373	0.5782	-0.7028
		(1.5623)		(0.7031)	(0.5483)	(0.6085)	(0.9934)	(1.2831)
p_td_t*		−1.1860		-0.4594	0.7060	0.4490	0.5698	0.0766
		(1.1644)		(1.2879)	(0.7097)	(0.6918)	(0.5940)	(0.6052)
n	105	243	26	59	470	608	98	131
R2 within	0.0564	0.0054	0.1864	0.0283	0.0205	0.0055	0.0568	0.0203
R2 between	0.0517	0.0227	0.0188	0.0689	0.0031	0.0005	0.0001	0.0010
R2 total	0.0142	0.0030	0.0015	0.0514	0.0029	0.0000	0.0083	0.0031
Definition of taxi drivers	1	2	1	2	1	2	1	2
Control group	1	1	2	2	1	1	2	2

	Other drivers				Taxi drivers
	Control city		Treated city		Control city		Treated city
Variable	Working hours	Hourly earnings	Working hours	Hourly earnings	Working hours	Hourly earnings	Working hours	Hourly earnings
Entry 1
Mean	46.05	6.95	46.07	7.89	48.56	8.33	50.19	10.95
Std.	11.74	4.85	10.63	3.34	15.37	6.95	13.01	7.58
Min	8.00	0.00	30.00	0.49	3.00	0.33	8.00	0.48
Max	112.00	53.57	98.00	17.86	112.00	119.05	84.00	47.62
Observations	319		27		302		66
Entry 2
Mean	46.06	8.18	45.22	9.13	47.00	9.85	48.72	13.22
Std.	11.76	13.98	10.2	3.31	14.00	7.51	12.44	9.47
Min	1.00	0.00	16.00	1.62	4.00	0.00	20.00	2.65
Max	105.00	452.38	77.00	30.42	105.00	71.43	84.00	7.74
Observations	330		46		324		74
Entry 3
Mean	44.44	8.35	43.2	9.13	43.31	10.86	48.92	9.6
Std.	10.96	6.88	5.61	3.51	13.74	9.3	11.79	4.86
Min	6.00	0.00	10.00	3.83	1.00	0.00	30.00	4.26
Max	105.00	101.19	56.00	23.81	105.00	109.13	84.00	32.47
Observations	346		19		289		21

	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)	(9)	(10)	(11)	(12)
t₁* Uber	−0.2023	0.2962	0.0061	0.0438	−0.7991	−0.4849	−1.166**	−0.2551	−0.6646	−0.3269	0.3505	0.0473
	(0.4839)	(0.6352)	(0.7317)	(0.6462)	(0.6620)	(0.7824)	(0.4636)	(0.9139)	(0.7174)	(0.6778)	(0.8132)	(0.7937)
t₁ * Taxi	0.1292	−0.4777	−0.3836	−0.3437	0.39950	0.2819	0.6248	−0.0117	0.1234	−0.2177	−1.9842	−1.3727
	(0.4250)	(0.4988)	(0.4662)	(0.5316)	(0.5103)	(0.4673)	(0.8113)	(0.8355)	(0.8507)	(0.6252)	(1.4448)	(0.8395)
n	489	623	160	221	506	665	157	221	470	608	98	131
Definition of taxi drivers	1	2	1	2	1	2	1	2	1	2	1	2
Control group	1	1	2	2	1	1	2	2	1	1	2	2
Arrival period	1	1	1	1	2	2	2	2	3	3	3	3

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[1] cristiano.oliveira@furg.br