Going the first/last-mile: evidence from Jakarta on how ride-hailing services complement mass rapid public transport

Abstract

Motorbike-based ride-hailing services are widespread in many of the most congested cities in the developing world, often predating the construction of modern public mass rapid transit (MRT) systems. Ride-hailing services may complement such investments by providing first and last mile connectivity. But, they have also been argued to undermine their viability as people simply continue using ride-hailing services given their convenience, flexibility and affordability. Using an event study research design leveraging proprietary, high-frequency data from one of Indonesia’s largest ride-hailing services, Gojek, we show that the opening of Jakarta’s first MRT line led to large increases in ride-hailing activity in the immediate vicinity of the newly opened stations. This was accompanied by a significant decline in the average distance of the ride-hailing trips made to and from these stations. These findings are consistent with ride-hailing services complementing public transport by providing important first and last mile connectivity. Ride-hailing services significantly improve the MRT system’s ability to attract customers beyond immediate walking distance from its stations. Joint paper with Mark Roberts, Sailesh Tiwari, Putu Sanjiwacika Wibisana, Maria Monica Wihardja, and Ramda Yanurzha.