Journal of Student Research 2018

53 The Impact Of Uber’s Presence On Taxi Fare Of course, the need for future research remains. An analysis that extends beyond one period is necessary to fully understand the impact of Uber and other ride-sharing platforms on taxi fare. Panel data analysis would be beneficial, as it could control for factors that vary over time; it may help identify any potential lags in the response of taxi fare adjustments. Panel data could also identify if the effect of Uber presence on fare softens after Uber has been in the marketplace for an extended period. Another limitation was obtaining ride-share data. Future research should account for the presence of all ride-sharing platforms - such as Uber, Lyft, and Sidecar - on taxi fare. This study displays the effect of Uber specifically, but the additional entry of other ride-share platforms theoretically should decrease the fare even further. The marginal effect of an additional ride-share platform would result in an additional decrease to taxi fare, but because Uber is near market saturation, the marginal effect would be lessened compared to the initial Uber entry. An expansion of the study could gather the impact of ride-sharing platforms overall. Finally, the lower cost business model that ride-share companies operate within allows for a dramatic decrease in tax revenue for states and municipalities. Examination of the consequences to government infrastructure because of these companies should be considered, due to lost tax revenues from taxi companies (Edelman & Geradin, 2016).