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Trial Title Platform-Based Incentives and the Diffusion of Electric Vehicles in Nairobi's Taxi Industry Driving Electric Rides: Experimental Evidence on Vehicle Access Contracts, Labor Productivity, and Driver-Firm Incidence
Abstract This study evaluates whether labor and capital incentives combined with rider-and-driver matching platforms can improve drivers' working conditions, safety, firms' business viability, and scalability of EV adoption into taxi industry. We examine how asset-access contracts shape labor productivity and the distribution of returns between workers and firms, drawing on randomized and natural experiments with motorcycle drivers and electric-vehicle (EV) fleet and battery firms in Nairobi. Offering applicants a fixed-wage opportunity to drive EVs increases daily labor hours by 1.37 hours (17 percent) and earnings by USD 1.8 (27 percent), while reducing gasoline expenditures by USD 1.4 (57 percent). Transitioning drivers from the fixed-wage contract to a lease-to-own (LTO) arrangement raises labor hours by 3.52 hours (38 percent) and earnings by USD 4.2 (33 percent), and lowers gasoline consumption by USD 0.45 (20 percent). Treating energy as an intermediate input, we augment drivers’ value-added production function with the labor-effort first-order condition, estimate post-LTO parameters, and backcast them to pre-LTO data to evaluate productivity dynamics and the incidence of returns. Within two months, LTO increases labor productivity by 37 percent through greater income and time flexibility, raises battery-vendor revenues net of grid-electricity costs by USD 1.48 (44 percent), and shifts the fleet supplier toward a mo financially sustainable model. Despite longer work hours, drivers’ average short-run welfare remains unchanged under LTO, although job-satisfaction and mental-health measures remain stable. A one year follow-up survey is completed and long-term consequences and counterfactual analyses are underway as of March, 2026.
Trial End Date May 31, 2025 June 30, 2026
Last Published February 11, 2025 11:10 PM March 07, 2026 12:13 PM
Program Files No
Intervention (Public) Guaranteed salary scheme for drivers on fixed labor hour contracts, Lease-To-Own program for Electric Vehicles (EVs) 1) Guaranteed salary hiring scheme for drivers on fixed labor hours and wage contracts, 2) Lease-To-Own asset access program for Electric Vehicles (EVs)
Primary Outcomes (End Points) labor hours, earnings, fuel costs labor hours, earnings, fuel costs and consumption, other labor conditions
Experimental Design (Public) In the first phase of the experiment, we recruit taxi drivers and randomly assign them to either a treatment group (using an EV-based platform for taxi hiring) or a control group. We track labor and other outcomes for those hired on a fixed salary, compared to those who remain self-employed. In the second phase, we examine the labor dynamics, driving behavior, and other impacts as drivers transition from the EV-based platform model back to self-employment under an EV Lease-To-Own program. In the first phase of the experiment, we recruit taxi drivers and randomly assign them to either a treatment group (using an EV-based platform taxi hiring) or a control group. We track labor and other outcomes for those hired on a fixed salary, compared to those who remain self-employed. In the second phase, we examine the labor dynamics, driving behavior, market welfare, and other impacts as drivers transition from the EV-based platform model back to self-employment under an EV Lease-To-Own program.
Planned Number of Clusters 50 and 420 drivers 49 individuals for first experiment, 427 individuals for second experiment, no clustering
Planned Number of Observations GPS data: millions, Survey data: Approx. 40,000 high frequency responses Survey: 49*90 = 4,410. 427*120 = 51,240. GPS: Millions per each individual (each vehicle).
Sample size (or number of clusters) by treatment arms 25 treated, 24 control and then 420 phase-in treatment changes 25 treated, 24 control and then 427 phase-in treatment changes
Power calculation: Minimum Detectable Effect Size for Main Outcomes 0.14 to 0.39 0.06, 0.02
Keyword(s) Environment And Energy, Labor Environment And Energy, Finance, Firms And Productivity, Labor
Secondary Outcomes (End Points) road safety, idle time, and other driving behavior indicators firm profits, market welfare, carbon implications, road behavior
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External Links

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External Link URL https://scholar.google.com/citations?view_op=view_citation&hl=en&user=oAjVjx0AAAAJ&citation_for_view=oAjVjx0AAAAJ:eQOLeE2rZwMC
External Link Description Working Paper V012026
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External Link URL https://openknowledge.worldbank.org/entities/publication/bad52e28-3320-4bec-85b1-26bb8de7becd
External Link Description World Bank Policy Report
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