Entry and competition in the European bike-sharing industry

FITZOVÁ, Hana, Richard KALIŠ, Vilém PAŘIL and Milan FILA. Entry and competition in the European bike-sharing industry. Transport Policy. Oxford (England): Elsevier, 2024, vol. 149, April, p. 100-107. ISSN 0967-070X. Available from: https://dx.doi.org/10.1016/j.tranpol.2024.02.010.

Basic information

• Original name: Entry and competition in the European bike-sharing industry
• Name (in English): Entry and competition in the European bike-sharing industry
• Authors: FITZOVÁ, Hana (203 Czech Republic, belonging to the institution), Richard KALIŠ (703 Slovakia, guarantor), Vilém PAŘIL (203 Czech Republic, belonging to the institution) and Milan FILA (203 Czech Republic).
• Edition: Transport Policy, Oxford (England), Elsevier, 2024, 0967-070X.

Other information

• Original language: Czech
• Type of outcome: Article in a journal
• Field of Study: 20700 2.7 Environmental engineering
• Country of publisher: Czech Republic
• Confidentiality degree: is not subject to a state or trade secret
• WWW: Transport Policy
• Impact factor: Impact factor: 6.800 in 2022
• Organization unit: Faculty of Economics and Administration
• Doi: http://dx.doi.org/10.1016/j.tranpol.2024.02.010
• UT WoS: 001184661300001
• Keywords in English: Bike-sharing; entry; competition; market structure; market expansion
• Tags: International impact, Reviewed

Abstract

Assessments of the bike-sharing industry traditionally focus on its effects on other markets, municipalities, or general well-being. This paper deviates from this on how the market is or-ganised. Using information on the aggregate number of firms in cities and greater cities across Europe, we found non-proportional changes in market size with respect to changes in market structure. This is crucial information inferring changes in profits, costs, or degree of product differentiation. To distinguish between these three sources, we utilised additional firm-level data on capacity and type of service provided. Our results suggest that the non-proportional increase in market size after an entry is most likely associated with increased intensity of com-petition and new forms of offered services, i.e. product differentiation. We did not find evi-dence that newcomers have been entering with substantially larger capacities per capita com-pared to incumbents. From a policy perspective, entry into the bike-sharing industry has bene-fited consumers through market expansion and caused a potential decrease in profits.

Abstract (in English)

Assessments of the bike-sharing industry traditionally focus on its effects on other markets, municipalities, or general well-being. This paper deviates from this on how the market is or-ganised. Using information on the aggregate number of firms in cities and greater cities across Europe, we found non-proportional changes in market size with respect to changes in market structure. This is crucial information inferring changes in profits, costs, or degree of product differentiation. To distinguish between these three sources, we utilised additional firm-level data on capacity and type of service provided. Our results suggest that the non-proportional increase in market size after an entry is most likely associated with increased intensity of com-petition and new forms of offered services, i.e. product differentiation. We did not find evi-dence that newcomers have been entering with substantially larger capacities per capita com-pared to incumbents. From a policy perspective, entry into the bike-sharing industry has bene-fited consumers through market expansion and caused a potential decrease in profits.

Links

• EF16_026/0008430, research and development project: Name: Nová mobilita - vysokorychlostní dopravní systémy a dopravní chování populace