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Intangible capital and competition in ride sharing: the case of lyft ...

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We use lyft's acquisition of motivate, the biggest bike sharing company in the u.s. at the ... we estimate the effect of the acquisition on lyft's.
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Intangible Capital and Competition in Ride Sharing:The Case of Lyft-Motivate MergerPreliminary DraftSuleyman Gozen† Hasan Tosun ‡AbstractThis study focuses on estimating the role of intangible capital on firms’ competitiveness.We use Lyft’s acquisition of Motivate, the biggest bike sharing company in the U.S. at thetime, to evaluate the degree to which intangible capital affects the competition betweenLyft and Uber. By acquiring Motivate, Lyft gained more consumer data as we interpretintangible capital, and bikes’ presence on the streets potentially helped Lyft build strongerbrand salience by rebranding bikes. We estimate the effect of the acquisition on Lyft’sridership by using a triple-difference model, and employing trip-level ride sharing data fromNew York City before and after the acquisition. We find that the acquisition helped Lyftincrease its ridership by around 10%.† University of Chicago, Ph.D. in Economics. Email: [email protected]‡ University of Minnesota, Ph.D. in Econo...