Impact of the Financial Recession on the Taxi Market

This paper investigates the impact of the economic recession on the taxi market in Greece. Data are used from two questionnaires, addressed to both taxi drivers and users. The perceptions of drivers and users about the effects of recession, service quality issues, and possible solutions to mitigate the negative impacts are recorded. The statistical tests reveal that significant differences exist between the responses before and during the economic recession regarding taxi use and working conditions of taxi drivers. A binary logit model is developed to analyze the effect of financial recession on taxi use. The model shows that trip purpose and frequency are the main factors that influence the possibility of reducing taxi use. Quantitative results provide useful information to the taxi industry, which can proceed in necessary management actions for mitigating impacts of financial recession.

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