Analysis of taxi demand and supply in New York City: implications of recent taxi regulations

This paper investigates temporal and weather-related variation in taxi trips in New York City. A taxi trip data-set with 147 million records covering 10 months of activity is used. It is shown that there are substantial variations in ridership, taxi supply, trip distance, and pickup frequency for different time periods and weather conditions. These variations, in turn, cause variations in driver revenues which is one of the main measures of taxi supply–demand equilibrium. The findings are then used to discuss the anticipated impacts of two recently enacted taxi regulation changes: the first fare increase since 2006 and the E-Hail pilot program which allows taxi hailing with smart phone applications. The fare increase is estimated to cause varying levels of revenue increase for different time periods. E-Hail apps are not expected to offer considerable improvements at all times, but rather when both adequate taxi supply and demand occur simultaneously.