This paper is analyzing the effects of Uber’s new ride share service on Dollars Vans in Jamaica Queens, New York. Ridesharing became a natural part of daily commute life for many New Yorkers. Any group of people or passengers can share a ride on the same route but not always to the same destination.
“Dollar Van” is an unofficial, privately-owned type of bus service, usually 14-seat Vans, that operate where subways and buses do not-mostly in peripheral, low-income neighborhoods in Queens, Flatbush, Chinatown, Flushing, Sunset Park, that contain large immigrant communities (New Yorker, Aaron Reiss).
Earlier this year Uber has launched a new product – Uber Express Pool. With Uber Express Pool “riders who select Express Pool will be asked to wait a minute or two longer than usual to be matched with a driver. This new service makes Uber’s service cheaper and available for broader population.
In this paper we will discuss history of ridesharing in the United States, history of Dollar Vans, the shared economy and specifics of new Uber Express Pool service. This study will use the case study approach. For the purpose of this research paper the case study area will be Jamaica Queens. Jamaica, Centre Queens is a major transportation hub that serves the northern most part of Queens and some parts of Long Island.
Currently, some research has been done about Dollar Vans and Uber and their individual effects on public transportation. Most studies did not focus on the impact of Uber on Dollar Van industry because the kinds of rideshares provided previously services in different markets.
Now that Uber is introducing a new service, “Uber Express Pool,” the time has come to assess the impact of this new development. This paper will analyze the effects of Uber’s new rideshare service on Dollar Vans in Jamaica Queens, New York based on interviews with Dollar Van’s passengers and driver.
PROBLEM STATEMENT: INTRODUCTION.
A lot has been said about the effects modern rideshare companies are having on the taxi industry and the mass transit system that operates in major urban areas in the United States. Uber, the most popular ridesharing company, was launched in 2010 in San Francisco, and now has a major presence in most cities in America. Uber has disrupted traditional taxi and bus systems and as a result received a lot of push back from those systems. There have been calls for ridesharing companies to be more regulated and some have even called for them to be banned from operating in certain areas of the city.
City legislators in urban areas have come under pressure and have moved to regulate the activities of these ride share companies and protect traditional transport systems. In August 2018, the New York City Council passed multiple bills that will delay the granting of new operating licenses for Uber, Lyft, and other rideshare companies for a year. According to Business Insider, this will allow the city’s Taxi and Limousine Commission (TLC) to conduct a study that is aimed at determining the effects these new ridesharing companies are having on the city's transportation industry.
The focus so far has been on the effects Uber has had on the taxi industry, and little has been said of the effects these new rideshare companies have had on New York City’s traditional ridesharing industries. Long before the current mobility trend of ridesharing, New York City Dollar Vans have been offering rideshare services for decades. Dollar Vans started operating in New York City in 1980 when a transit strike halted city run transportation services. These Vans continue to operate in areas of the city that are under served by the MTA. Dollar Vans run established routes in places like Flatbush, downtown Brooklyn, the three China Towns, Jamaica and Far Rockaway.
Dollar Vans serve mainly immigrant Caribbean, Asian and African communities and operate in a similar faction to transportation services from these areas. The New York City Taxi and Limousine Commission has been issuing Van licenses to Dollar Vans since 1994, allowing vehicles to legally serve city residents.
Uber’s operation might have primarily affected the services of the yellow, green or livery taxi businesses; it does not appear to have been felt by the Dollar Van business so far. The small scope of Dollar Van operations has limited the impact of Uber on their services for the most part until now. With the introduction of Uber Express Pool earlier this year, however, Uber has moved straight into Dollar Van territory. Uber Express Pool is a shared ride system similar to Uber pool that requires you to walk to a nearby pickup location. Instead of being picked up directly at your location and dropped off at your destination, Express Pool rides require that you take a short walk to be picked up and a short walk to reach your destination. Dollar Vans do operate under this model. The only difference is that Dollar Vans operate on an established route while the route of Uber’s Express Pool changes according passengers routes. The minority communities in the outer boroughs of New York depended on this low-cost transportation systems and changes in their networks or an increase in cost will increase the burdens already faced by this distinct group of commuters and drivers.
What effects will the introduction of this new service from Uber have on the Dollar Van industry? This project seeks to look at a vital part of New York City’s transportation system that serves a very small niche of its residents and how modern ridesharing systems operating under a similar model will affect operations of Dollar Vans. It also seeks to examine how new laws like the Commuter Van Reform Act and the City Council’s cap on Uber cabs in the City will affect and shape the future of the industry and the people whose livelihoods depend on it.
LITERATURE REVIEW.
The history of ridesharing in the United States.
Ridesharing became a natural part of daily commuting life for many New Yorkers in the last four years. Most New Yorkers at least once used Uber, Lyft, the famous yellow cabs or a green taxi. Any group of people or passengers can share a ride on the same route but not always to the same destination.
Ridesharing enables passengers to be picked up along a particular route normally used by rideshare commercial cars. Some of these cars are stationed in a specific place where commuters go and board them. “Carsharing is a membership-based service that provides short term access to automobiles” (Transit Cooperative Research Program 2005). This system is very common in New York City, especially in Jamaica, Queens and Brooklyn, where some of these cars are called Dollar Vans. They are stationed at the cross of Supthin Boulevard and Archer Avenue very close to the train station. Ridesharing is attractive to those who need to limit travel costs and reduce stress in their commute. Ridesharing is less stressful compared to bus and train commutes as these cars are available on demand. “On an individual level, the benefits are more tangible. Carpool and Vanpool participants experience cost savings due to shared travel costs, travel-time savings by employing high-occupancy vehicle (HOV) lanes, and reduced commuter stress, particularly for those with longer commuting distances. In addition, they often have access to preferential parking and additional incentives.” (Nelson D et al 2012).
Americans have been ridesharing since car use became more popular and somehow affordable in the ridesharing model. Ridesharing began shortly after the introduction of the Model-T, America’s first automobile priced, for the middle-class. By the end of 1914, the United States had fallen into a recession, and at the same time it was seeing a flood of cheap new automobiles on city streets. In San Francisco, enterprising car owners began offering seats in their cars for the same price as a street car fare. Cars that participated in this form of ridesharing were known as “jitneys”. Within nine months, the “jitney” craze had spread all the way to Maine” (Cozza 2012).
In the United States, car sharing became more popular with government intervention during World War II, when the government promoted “car clubs”. The appearance and evolution of car sharing in the United States occurred alongside, or was influenced by, five main events. Ridesharing in the United States has been in existence for decades and has been through several transformation levels. “North American ridesharing’s evolution can be categorized into five key phases: (1) World War II car-sharing clubs (1942–45); (2) major responses to energy crises (late 1960s to 1980); (3) early organized ridesharing schemes (1980–97); (4) reliable ridesharing systems (1999–2004); and (5) technology-enabled ride matching (2004 to present).” (Nelson D et al 2012).
Car Clubs during World War II were mainly created to convey employees to work stations. The second rise of car sharing came about during the oil crisis of the 1970’s, when many opted for ridesharing to minimize cost. The third phase, in the 1980’s, of ridesharing evolution focused on encouraging the use of ridesharing to save cost, limit car pollution, and reduce congestion. The introduction of modern technology also set a new path for ridesharing. The fourth phase, occurred between 1999 and 2004 when ridesharing became more computerized with more aggressive campaigns. Many ridesharing platforms were created during that time. The fifth stage, which is the current stage of ridesharing in America, is highly computerized with many platforms that have reduced the commute stress for many. The rise of social media has also influenced the ridesharing industry by easily bringing friends and workers together. In addition, various arrangements are designed to render car sharing attractive to commuters. “In recent years, the micro-level social co-ordination of carpooling has been enabled by advancement in social network and smartphone applications which can easily match carpooling partners” (Neo Guan 2017 Pp 447).
Ridesharing is believed to have both individual and public benefits. For the individual, ridesharing is very cost effective, as someone can split a full fare with other passengers without affecting his or her commute. This may involve the same amount of time to the same destination, but at a lesser cost. Some others may choose ridesharing over owning a car or driving because of the burden of vehicle maintenance and parking stress. New York City is known for its parking issues, and some people prefer to share a ride or use public transportation instead of driving. Those who do not drive on a daily basis also resort to ridesharing from time to time. “Those who drive on a limited basis form the next group that stands to benefit from carsharing. Many in this group might temporally trade their vehicles in for a carsharing membership and potentially save money without needing to significantly alter their own driving patterns”. (Michael D 2011 Pp 365). Ridesharing is also a good alternative to avoid costs related to vehicle ownership.
In addition to the benefits of ridesharing for the individual, ridesharing also has some benefits for the general public. Because of the shared cost, this type of commute is affordable for the low-income families and those who cannot afford the full cab fare. Ridesharing does not only benefit the poor, but also limits extensive pollution, as the reduced number of cars also reduces pollution. It also reduces the excessive need for parking lots, therefore making more spaces available for other, more useful and necessary, infrastructures. “In addition to reducing vehicle usage, the total number of vehicles in a city can be reduced through car sharing and, thus, the amount of land and infrastructure needed for parking can be reduced. This could decrease the cost of development, open up more space for development and, in the long run, reduce the spatial footprint of a city” (Michael D 2011).
Even though ridesharing has shown some significant benefits to both the individual and the community, critics point to the inconveniences of rideshares and its disruption of traditional transportation systems. For workers with a longer travel time, ridesharing may not be the best option, as carpooling and ride share are not always available for very long distances. In addition, a commuter or a household that requires a ride to every likely or possible destination may find owning a vehicle more economical and suitable than ridesharing. On the other hand, if a commuter must wait until a car has the required number of passengers before it sets off, ridesharing is no longer convenient as there is no guarantee of length of the wait time. This defeats one of the purposes of ridesharing, which is saving time. “Tsao and Lin (1999) found that the inconvenience of waiting for other carpool members can deter carpooling”. (Neo Guan 2011 Pp 427). The privacy of the commuter is limited in a rideshare vehicle as the car is shared with strangers, unlike in a personal vehicle.
History of Dollar Vans in New York City.
New York is different from all other cities in the United States because of its reliance on public transportation. Nearly 90 percent of Americans drive to work (C. Winston, p.779) , while in New York City, public transport is the dominant form of travel for nearly 55 percent of New Yorkers (NYCEDC).
New York has the most extensive transportation system in the United States. On average, 6 million passengers rides every day, commuting to jobs, schools and other areas of the city. (Metropolitan Transportation Authority, 2018). The Metropolitan Transportation Authority (MTA), the owner and operator of these buses and subways, spends more than $10 billion annually on operating expenses alone (Metropolitan Transportation Authority, 2017). The MTA service reaches approximately 300 square miles of the city. But despite the vast scope of MTA services, semi-formal transportations like Dollar Vans thrive in New York.
“Dollar Van” is an unofficial, privately-owned type of bus service, usually 14-seat Vans, that operate where subways and buses do not mostly in peripheral, low-income neighborhoods in Queens, Flatbush, Chinatown, Flushing, Sunset Park, that contain large immigrant communities (New Yorker, Aaron Reiss).
Nowadays, there are two types of Dollar Vans: one operates without licenses, known as “pirates”, and the licensed ones that are recognized by the City of New York, known as Commuter Vans. TLC-licensed Commuter Vans are large passenger vehicles, with visible markings that travel over a semi-fixed route without a formal schedule (dollarvan.nyc). In 2017, the TLC created a web-site, dollarvan.nyc, on which passengers can find a map of the routes. The unlicensed “Dollar Vans” do not have any web-site or kiosk to help people navigate them; instead, passengers know their routes, through communication with friends and neighbors in the community. Pirate Vans do not have any labeling or visible signs on the Vans. [Figure 1]
Figure 1: The top image shows a TLC licensed commuter Van, note the visible markings on vehicle. Below is an image of pirate Van, note the lack of markings identifying the vehicle’s operating authority and owner.
The first appearance of Dollar Vans is typically attributed to the 11-day strike in 1980 by the Transport Workers Union in New York. Buses and subway trains halted due to a transit strike throughout New York’s five boroughs, when drivers, who were residents of the transit-deprived parts of the city, started offering rides in their private vehicles, Vans, and minibuses to strangers at the price of $1 (New Yorker, Aaron Reiss).
After this strike, Dollar Vans evolved into a shadow mass transportation system that is similar to “por puestos” in South America, “tap-taps” in Haiti, and “matatus” in Kenya, Tanzania, and Uganda. (Grava et al. 1987). It is assumed that it was the combination of the strike and the failure of transit service that enabled the Vans to thrive:
“The establishment and growth of the Van operations have been triggered by deficiencies in the regular transit service and riders’ concerns about personal safety and demand for better accessibility. The transit strike of 1980 gave a significant boost to the private operations, which did not fade much after the strike was settled” (Grava 1987, p. 62). Their role increased again in 2005 during the second transit strike in 2005, which continued for 3 days.
The New York City subway system service declined in the 1970s and 1980s. According to the nycsubway.org web-site: “Conditions were so deplorable that it was amazing that trains even ran. If they did run, they were dark, or completely covered by graffiti. Track conditions were horrible, too – there were hundreds of "red flag" zones where subway trains had to slow to 10mph or less.” Due to the fact that, although the subway system has much improved since the 1970s and 1980s, MTA has been unable to make services sufficiently better to match the convenience of the Vans, the Dollar Vans continue to rise.
The MTA and its “Local 100” union looked on Dollar Vans as threat to the regular bus service. In 1993 Local Law 115 was enacted, giving the City Council veto power over the authority of the Taxi and Limousine Commission to issue licenses to the Dollar Vans. The law also made it illegal for the Vans to pick up passengers along bus routes (Archives of the Mayor’s Press Office 1996). Only licensed Vans routinely follow this rule. Since 1994, the New York City Taxi and Limousine Commission has been issuing permits to Dollar Vans, but the number of illegal, unlicensed Vans continues to outnumber the number of licensed Vans (Aaron Reiss).
An increased safety concerns, and an increase in the number of unlicensed Dollar Vans led to the enactment of new legislation, the “Commuter Van Safety Act” signed by Mayor Bill de Blasio on February 15, 2016. This legislation “cracks down on illegal, rogue commuter Van operators who pose a danger to commuters, while also ensuring that licensed and insured operators can operate safely across the city” (Jumaane D. Williams). Under this law, “any person who knowingly operates a commuter Van without the proper authorization faces a maximum fine of $3,000 for the first violation, and $4,000 for a second violation, if committed within two years of the first violation” (Office of Council Member Jumaane D. Williams, Intro 0861A).
The shared Economy.
Government policies have done a great deal to shape rideshare in America, but the current growth in ride sharing can be attributed mainly to the rise in digital technology, economics, and a cultural shift. There is a new generation that is thriving in the shared economy and this has resulted in this shift, “millennials don't drive as much — or care as much for cars in general — as previous generations their own age did. They're less likely to get driver's licenses. They tend to take fewer car trips, and when they do, those trips are shorter. They're also more likely than older generations to get around by alternative means: by foot, by bike, or by transit” (Badger 2014). We are now in the era of the shared economy. This shared economy includes ridesharing/car sharing platforms like Uber and Lyft, short-term room and apartment rentals/sharing like AirBnB, and shared office space like WeWork and Barworks. “While there is not one widely agreed definition of the sharing economy, it often involves attempts to make more efficient use of labor and capital resources through the use of information technology that lowers the costs of matching buyer with sellers” (Hahn and Metcalfe 2017).
Uber Express Pool.
Uber’s first new product in three years was launched earlier this year. It is Uber’s cheapest service by far. The new service deviates from the familiar door-to-door service of yellow, and green taxis and many app hailing rides. With Uber Express Pool, “riders who select Express Pool will be asked to wait a minute or two longer than usual to be matched with a driver. The idea is that during this additional time, Uber’s algorithm is blasting through hundreds of different drivers, routes, pickup and drop-off locations, and additional riders looking for the optimal match. After the match, riders will be directed to walk a few extra blocks to their pickup location, where (if Uber’s algorithm works the way it’s supposed to) the riders will meet one or two additional riders who have also been matched with the same driver. Ideally, these people are headed to the same general area as the original rider. At the end of the ride, passengers will be dropped off within walking distance to their final destination”. (Hawkins 2018). Uber Express Pool is fifty percent cheaper than Uber express. This service is aimed at making Uber more affordable and attractive to lower income residents who have avoided traditional Uber service due to its high cost.
Currently, some research has been done about Dollar Vans and Uber and their individual effects on public transportation. Most studies did not focus on the impact of Uber on Dollar Van industry because the kinds of rideshares provided previously services in different markets.
Now that Uber is introducing a new service “Uber Express Pool,” the time has come to assess the impact of this new development. Uber is now in Dollar Van territory and, as a result, it might lead to a future decrease of use of “Dollar Van” services and an increase in the price of their rides. This paper will analyze the effects of Uber’s new rideshare service on Dollar Vans in Jamaica Queens, New York.
RESEARCH DESIGN AND METHODOLOGY.
Study Design.
This study uses the case study approach. This approach is defined as “an empirical inquiry that investigates a contemporary phenomenon with its real-life context when boundaries between phenomenon and context are not clearly evident and in which multiple sources of evidence are used,” (Yin, 2003, P. 13). The contemporary nature of the subject matter of this research makes this the most appropriate method to use.
Justification of Case Study.
For the purpose of this research paper, the case study area is Jamaica Queens. Jamaica is a major transportation hub that serves the most northern part of Queens and some parts of Long Island. The center has the E /J/Z/F MTA subway lines, the LIRR commuter train that serves Long Island and over 40 MTA bus services. In addition, Jamaica, Queens serves as a hub for the borough’s Dollar Vans. From here the Dollar Vans run 6 major routes, the 227th St./Belt Pkwy route, the Linden/Belt Pkwy route, the Green Acres Mall route, the Rosedale/Francis Lewis Blwd route, the Far Rockaway/Mott St. route and the Beach 95th St. route. Jamaica has the most extensive network in the Dollar Van ecosystem. This, in addition to the Centre’s significant role in the Queens transportation network – makes the Jamaica Queens area most appropriate for this kind of study.
Research Methodology:
Sources of Data. This study will rely on both primary and secondary sources. Primary data sources will include interviews of Uber Officials, Dollar Van drivers, and passengers. Secondary sources will include articles and publications, legislative instruments, and socio-economic data. More emphasis will be placed on the primary data in order to understand firsthand the effects of Uber’s services on the industry, and because of the limited available secondary research.
Data Collection/ Fieldwork. Primary data collection includes surveys and interviews conducted in Jamaica Queens. A combination of close-ended and open-ended questions were used. Close-ended questions were used to attain quick and straightforward responses and an open-ended questionnaire helped respondents to qualify their answers.
We used three types of questionnaires: one for Uber’s officials and city officials, one for Dollar Van drivers, and one for Dollar Van passengers. Supporting were obtained from books and articles.
Interviews were among the drivers and passengers of the Dollar Vans in Jamaica queens. We were not able to interview the Uber officials and city agencies such as the Taxi and Limousine Commission and the NYC Department of Transportation, because of the time and availability limitation.
Limitation of the Study.
At the moment the major challenge is time, as the whole study has to be planned and executed within a semester. This time limitation will significantly affect the scope of the study. Also, it is uncertain that the data collections phase of the study can be executed successfully, and the interviews and survey process will go as planned.