Ride-hailing has become a routine part of urban life in the United States, offering convenient transportation for passengers and flexible work for drivers. Yet the broader economic effects of services such as Uber and Lyft have been difficult to measure. As the platforms expanded across hundreds of cities over the past decade, questions remained about whether their growth translated into measurable benefits for local economies and labour markets.
A new study from Carnegie Mellon University and Oxford Saïd Business School examined the launch of ridesharing services across 167 U.S. metropolitan areas between 2010 and 2019. Because these transportation network companies (TNCs) entered different cities at different times, researchers were able to compare economic trends before and after their arrival while accounting for regional differences. The team combined publicly available workforce and economic data with statistical methods designed to evaluate policies and services introduced gradually over time.
The researchers found two notable changes after Uber and Lyft entered a region: GDP per capita increased, and the number of seasonal, temporary or intermittent jobs rose. They found no statistically significant effects on overall employment or wages. Together, the findings suggest that ride-hailing services may have expanded access to flexible employment while generating additional economic activity associated with greater mobility.
“Uber and Lyft have made a lot of claims over the years about boosting citywide economies and providing flexible jobs,” said Jeremy Michalek, professor of engineering and public policy and mechanical engineering at Carnegie Mellon University. “We find that the data do, in fact, corroborate some of these claims with evidence that Uber and Lyft have increased intermittent employment and economic output in US cities as they entered.”
Published in Nature Cities, the findings also offer insights into the broader effects of the gig economy. An increase in intermittent employment without a corresponding rise in total employment suggests that digital platforms can reshape labour markets by changing how and when people work rather than simply creating more jobs overall. Higher GDP per capita may also reflect wider economic ripple effects, as easier transportation allows passengers to make trips they otherwise might not take, helps workers travel to jobs and creates new patterns of local spending and economic activity.
The researchers also examined whether Uber and Lyft launched in cities that were already experiencing economic growth. They found no meaningful pre-existing trends in employment or wage growth, strengthening the evidence that the changes were associated with the arrival of ride-hailing services. Michalek noted that ride-hailing has produced a wide range of effects, from disrupting the taxi industry and increasing congestion to reducing discrimination and intoxicated driving. “This new evidence suggests they have had measurable positive effects on local economies, too.” The study provides policymakers and researchers with new evidence for understanding the broader economic footprint of ride-hailing and the growing gig economy.
More information: Adam Koling et al, Effects of Uber and Lyft on jobs, wages and GDP, Nature Cities. DOI: 10.1038/s44284-026-00478-0
Journal information: Nature Cities Provided by College of Engineering, Carnegie Mellon University