Value of Travel Time is Lower When Being Driven than when Driving Oneself

Abstract

How does the value of travel time (VOTT) differ between time spent driving and time spent being driven in a car? We examined revealed choices between ridehailing and free-float carsharing using data from an aggregator app that allowed users to choose between these alternatives based on real-time conditions. We used a mixed logit model to control for price, in-vehicle time, and out-of-vehicle time (walk or wait time). The model results indicate that VOTT declines by an average of $23 per hour (approximately 60%) for members of our sample when riding in a ridehailing vehicle versus driving a carsharing vehicle.