As the video points out, what you’re describing is very similar to what was said about Uber & Lyft. At first glance, a cheaper, more available taxi service seems like it should reduce road usage. However, that assumes car trips are replaced by rideshare trips. In actuality, when Uber & Lyft have entered a market, it has resulted in increased road usage. This is because of induced demand, and if rideshares are replacing another form of transportation, it’s usually public transit, walking, or biking, not driving.
As the video points out, what you’re describing is very similar to what was said about Uber & Lyft. At first glance, a cheaper, more available taxi service seems like it should reduce road usage. However, that assumes car trips are replaced by rideshare trips. In actuality, when Uber & Lyft have entered a market, it has resulted in increased road usage. This is because of induced demand, and if rideshares are replacing another form of transportation, it’s usually public transit, walking, or biking, not driving.
In that case, it shouldn’t increase demand since Uber and Lyft already exist.