On-demand Ride-hailing as Publicly Subsidized Mobility: An Empirical Case Study of Innisfil Transit

Abstract

This empirical case study examines Innisfil Transit, a partnership between Uber and the low-density rural Town of Innisfil, Ontario, which subsidizes ride-hailing trips as an alternative to fixed-route transit. The Innisfil Transit program underwent multiple policy changes, providing an opportunity to learn about the links between program design and use. Using descriptive statistics, cross sectional, and panel models, this study explores the predictors of ride-hailing ridership and growth between 2016 and 2020 as a function of neighborhood-level and policy-related variables. Results indicate that the Innisfil Transit program initially eased Uber ridership (implying substitution), however this impact was not long lasting. Evidence indicates that program design impacts both overall ridership and growth over time, and that urbanized areas and young adults are associated with increased ride hailing use. The results of this paper can be used by municipalities considering the implementation of subsidized ride-hailing programs in determining program goals and design.