COVID-19

This blog post kicks off a month of coverage focused on micromobility – check back tomorrow for a new journal article on micromobility laws nationwide!

A few weeks ago I wrote about how COVID-19 has disrupted the ridesharing industry, with Lyft and Uber struggling to find their place in our changing world. Those same disruptions have sent ripples through the various bikeshare and e-scooter services that make up the micromobility industry, though that segment of the greater mobility ecosystem may be better positioned to continue functioning during the ongoing pandemic.

First, the bad news – earlier in the pandemic, both Lime and Bird, major e-scooter operators, laid off staff, with Lime shedding 13% of its workforce and Bird laying off a full 30%. Part of this was due to the companies suspending some service in the face of the pandemic. In May, a huge number of bikes owned by JUMP, a Lime-owned dockless bikeshare service, were shown being destroyed in videos posted to social media.

Yet at the same time as those JUMP bikes were being destroyed, the U.S. found itself in the middle of a major bicycle shortage. Even now, months into the pandemic, bike producers are struggling to keep up with demand, though industry leaders acknowledge that they were very lucky to dodge the business losses they originally had feared as the pandemic began. Bicycles represent a convenient means of mobility, and as city dwellers sought to avoid public transit, they turned to their bikes to get them where they need to go. Indeed, in New York City, bike riding increased over 50% across the city’s bridges in March as the weather improved. Likewise, also in March, the city’s docked bikeshare, Citi Bike, saw a 67% increase in demand.

That last number is very interesting to me – even at some of the darkest points of New York’s outbreak, people were still flocking to use bikeshare. Indeed, of all the modes of mobility, micromobility seems the most pandemic-proof. To ride carefully all you really need to do is wipe the scooter or bike’s handlebars down, or generously sanitize/wash your hands after your ride. One company, Wheels, has even released rentable e-bikes with self-cleaning handlebars! And, of course, don’t forget your mask, which frankly could improve the ride experience as it shields your face from the wind. I’ll admit that other than my car, a Spin scooter is the only form of transportation I’ve used since the pandemic began – and I would consider myself more paranoid about COVID exposure than the majority of people.

Across the globe cycling and micromobility are a vital lifeline for people to traverse cities, and have proven to be more resilient than other modes of transport in the face of disasters – as seen in the 2017 Mexico City earthquake. I’ve written in the past about how cities are changing in the face of the pandemic, and stronger investment in the infrastructure to support micromobility and cycling needs to be a part of those changes.

So what can the micromobility industry itself do to encourage consumers to use their services, especially those who can’t afford for get their hands on a bike of their own? As often is the case in the mobility space (or at least our coverage of the space…) Michigan offers a potential path forward. At the end of June, the City of Detroit announced a new pilot program to connect essential workers with affordable e-bikes and scooters. In this case, two micromobility providers, Spin and MoGo, along with GM, leased scooters and e-bikes to the employees of hospitals, grocery stores, pharmacies, and manufactures – but only to those employees living within 6 miles of their workplace. Here, micromobility companies are getting their vehicles into the hands of people who need them the most – and giving them a reliable new way to get to work. While far from a full solution to the companies’ woes, it shows that they can reach customers while also providing a public service.

Like many industries, the automated vehicle industry faced setbacks due to this year’s many COVID-19 related local and regional lockdowns. In the spring, as the first wave of the virus spread, many companies had to stop testing to protect the human safety drivers and, in the case of Bay Area companies, follow local “shelter in place” orders. One partial exception to the rule was Waymo, which has been testing fully automated vehicles without safety drivers in Arizona, was able to keep some of those fully automated vehicles operating, since there were no drivers involved.

Beyond shutting down on-the-road testing, the AV industry has seen other COVID-related fallout. Due to the pandemic Ford delayed the launch of their robotaxi service to 2022, while GM’s Cruise unit laid off 8% of their staff in May. Yet desire to invest in the AV industry appears to remain strong. Zoox, which had (at least temporary) laid off its safety drivers in April, was bought by Amazon in June. Over the summer companies have begun to announce new testing sites – with Aurora testing automated semis and cars in Dallas-Fort Worth, and a Chinese AV developer, AutoX, launching a test around PayPal’s headquarters in San Jose, CA. Closer to home, Russian AV developer Yandex announced it would begin testing in Ann Arbor, their first test in the US, while May Mobility’s AV service in Grand Rapids will resume service at the end of August.

Indeed, two other developments in Michigan show that AV and mobility-related work is still an important focus, even during periods of major upheaval. In July the state of Michigan launched the Office of Future Mobility and Electrification, which is led by the “chief mobility officer.” The office’s structure and mission is based off work done by Detroit’s Office of Mobility Innovation – and hopes to recreate that office’s success at a state level. Part of the office’s mission will be to consolidate the work of 135 different councils, boards, and commissions spread out across 17 state agencies and departments – all of which have been working on some element of mobility. Earlier this month a second major announcement pointed to just how dedicated the state seems to be toward new mobility tech. On August 13th, a public-private partnership, named “CAVNUE,” was announced, with its goal being the creation of a 40-mile long testing corridor between Detroit and Ann Arbor. The corridor would be designed for testing both connected and automated vehicles as well as infrastructure. If this project is successful, it would be a major boon for the many companies in Southeast Michigan – and would signal a move to greater public testing of emerging mobility technology beyond more controlled environments like MCity.  

One lesson of the past year has been that the future can change very quickly, making rosy predictions of future AV successes harder to believe than in “the before time.” But these developments seem to show the AV industry finding its way forward. The future promise (and challenge) of AVs hasn’t diminished, even in our rapidly changing present.

This week a California Superior Court ruled that transportation network company (“TNC”) titans Uber and Lyft have to classify drivers as employees, rather than independent contractors. The suit, spearheaded by the state’s Attorney General, sought to bring the two ride-sharing companies into compliance with Assembly Bill 5 (“AB 5”), which reclassified an array of “gig economy” workers as employees. When gig economy workers are reclassified as employees, they gain access to minimum wage requirements, overtime and sick leave, workers’ comp, disability insurance, and (importantly, in the COVID-19 era) unemployment insurance. Given those added benefits, employees can cost a company 20 to 30 percent more than an independent contractor, which is in part fueling opposition to bill and the ruling.

The decision comes after months of COVID-19 related disruptions that have cratered the ridesharing services at the core of Lyft and Uber’s business models. Lyft has reported a 61% revenue drop in the second-quarter of 2020, though it also reported an uptick in ridership in July. Uber reported a 75% drop in US ridership over April, May, and June of this year. Various lockdowns contributed to that drop – indeed, according to Uber’s own reports, nearly a quarter of its entire business comes from four US metro areas – NYC, Chicago, LA, San Francisco – along with its London operations. While the company has claimed encouraging signs from markets in nations like New Zealand, where the virus is under control, it remains to be seen if that success can be replicated in the US, where the virus is still spreading. In May, Uber announced two rounds of layoffs, cutting roughly 25% of its workforce (around 6,700 people), while Lyft cut 20% of its workforce in April.

Uber’s precarious financial situation makes its response to the Superior Court ruling all the more interesting – toying with a potential state-wide shutdown of their services, a least temporarily. In an interview, Uber CEO Dara Khosrowshahi indicated that if the company’s appeal of this week’s ruling fails, Uber may have to shut down service as they adjust to the new rules – with reductions in service outside major markets upon the service’s reactivation. That shutdown period also times out with the November election, where California voters will decide on Proposition 22, which would exempt ridesharing drivers from being classified as employers under AB 5. In a New York Times op-ed, Khosrowshahi has proposed a “third way” between employee and independent contractor. This system would require all gig economy companies to establish funds to give their workers cash payments to be used for benefits, with payouts based on the hours worked. By requiring all gig companies to pay in, individuals working for multiple companies at the same time remain covered as they switch from app to app. In response to this proposal, critics point out that Uber could already establish such a system, at least for their own drivers, if it wanted to.

California is far from the only place where ridesharing companies are being pushed to change the relationship the companies have with their drivers. In June, Seattle passed a law requiring paid sick time for TNC drivers during the COVID-19 crisis (the leave requirement would expire 180 days after the crisis has ended…). The Seattle bill grants one paid day of leave for every 30 calendar days worked (either full or part time). In Washington, D.C., a Lyft driver has challenged the company’s lack of sick days, arguing drivers should be classified as employees under city law. Indeed, as the pandemic spread workers across the nation have spoken up about the difficulty of obtaining any sick leave from gig economy companies, even when they showed symptoms of COVID-19.

Unemployment insurance has been a major focus in these disputes, especially as drivers have been unable to work due to lockdowns or COVID-related reductions in demand. Traditionally, when drivers are classified as independent contractors, they lose the ability to claim unemployment, as their “employer” doesn’t pay into the system. At the start of the COVID crisis, Congress set up a separate unemployment fund for self-employed workers, though that fund ran out at the end of July. Even while the funds were available,  however, many gig workers had a hard time obtaining them, as existing state unemployment systems struggled to adapt to new rules while being slammed with claims from millions of people newly out of work. In California, the issues surrounding Assembly Bill 5 complicated the process, as the Federal funds were marked for people classified as independent contractors, which, thanks to AB 5, now did not include many gig workers. Drivers in New York, frustrated at their inability to obtain unemployment funds sued the state government, and have won, at initially, building their arguments off two earlier rulings that deemed gig workers eligible for unemployment benefits. Part of the disputes in both California and New York involve the lack of earnings data for drivers, which the state needs to calculate their unemployment eligibility, with a lawyer for the State of New York accusing Lyft and Uber of “playing games” to prevent turning over said data. Elsewhere, the Pennsylvania Supreme Court ruled on a similar case – finding that an Uber driver was not “self-employed” for the purposes of unemployment benefits, while the Massachusetts A.G. has also recently brought suit to reclassify Uber and Lyft drivers as employees.

As the pandemic drags on, it’s hard to know what will happen next. The shortfalls of the current system have been made manifest – something clearly needs to change. Perhaps that could come in the form of Uber’s proposed “third way,” but such a system would need to be much better defined than it is now to prove it could offer a level of benefits comparable to those offered to employees. At the same time, if gig workers are to be counted as full employees, could that limit the entry of new gig companies? The massive growth of companies like Uber and Lyft was fueled in part by the cost savings that came from using independent contractors. Could new companies hope to cut into existing or new markets while also providing greater employee benefits?

For now, I’d say it’s more important to focus on the existing problem. Uber and Lyft are sophisticated technology companies, and both should be more than able to adapt their system to make their drivers employees. Given the COVID-19 related reductions in demand, the time seems right for them to make that change everywhere, not just in California. After all, according to their own plans, Uber won’t be dealing with human drivers forever, so future employee expenses will supposedly reduce with time. And while the pandemic may have harmed Uber’s ridesharing, it has helped grow its delivery service, UberEats. Even if automated vehicles replace gig drivers, they will be less able to replace workers for services like TaskRabbit or Instacart, where human labor is still central. And with expanded government-based safety nets seemingly a distant possibility, for the time being, workers will still need employer-based benefits of one form or another. Just as ridesharing companies disrupted the way people move through the world, it seems the time is right to disrupt the relationship between those companies and drivers that form the core of the TNC workforce.

An IBM report released earlier this month revealed some significant changes in consumer sentiment and public willingness to use certain mobility methods as a result of COVID-19. The study polled more than 25,000 adults during the month of April. Of the respondents that regularly used buses, subways, or trains: 20 percent said they no longer would utilize those options; an additional 28 percent said they would use public transportation less often. 17 percent of people surveyed said they will use their personal vehicle more; 25 percent of that 17 percent said it will be their exclusive method of transportation going forward.

Consumer perception of public transportation and the ways we move has shifted dramatically in just three short months. These results indicate that a significant number of U.S. consumers intend to drastically change the ways they travel in the aftermath of COVID-19. If these sentiments remain in place in the coming years, the decrease in public transportation ridership would mean decreased fee collections, which can lead to several options for cities to fund public transportation, including (1) an increase in ridership fees, (2) an increase in general tax revenue devoted to public transportation, or (3) a decrease in service offerings. All of these options are undesirable, especially in cities where private vehicle ownership is low, and many workers may have no option other than public transportation. The cities with the largest annual ridership numbers for subway or metro are New York City, Washington D.C., Chicago, Boston, and the San Francisco Bay Area.

City

Annual Metro/ Subway ridership (2019)

Population
(2018 Estimates)

Percent of Households without a vehicle (2016)

New York, NY

2,274 Million

8,398,748

54.4%

Washington, D.C.

237 Million

702,455

37.3%

Chicago

218 Million

2,705,994

27.5%

Boston

152 Million

694,583

33.8%

San Francisco

123 Million

883,305

29.9%

Removing 20 percent of public transportation riders completely and decreasing the usage of nearly 30 percent more would be financially catastrophic for any city transit authority. In 2019, the New York MTA brought in nearly $17 Billion. The current decrease in ridership (down 74 percent) has already required the MTA to seek billions in aid from the federal government and led to a first-ever decrease in working hours to sanitize trains overnight. A sustained decrease of more than 30 percent of rides per year would require a systemic overhaul of the metro system or some other drastic measures.

While some respondents indicated they will use their personal vehicles more, it is clear that in cities where public transportation is most utilized, many people do not have access to a personal vehicle. This will place a difficult decision on many underserved and minority communities: return to using public transportation and face an elevated risk of potential infection, struggle to find a job closer to home to avoid transportation, or save for a personal vehicle to avoid public transportation. Owning a vehicle in major cities can be prohibitively expensive for low-income households, and affordable parking can be nearly impossible to find. As transit authorities raise prices to compensate for lost riders, more riders may depart as the cost of ridership becomes too high for their budget. This could lead to a death spiral for public transportation. These systems simply cannot sustain 90 percent ridership decreases.

The same IBM survey also found that the decision to buy a personal vehicle after COVID-19 was “greatly” influenced by a constraint on their personal finances for more than 33 percent of respondents. 25 percent said they would hold off on buying a vehicle for more than 6 months. So for many people who wish to stop using public transportation, there is no safe and affordable option immediately available. Some may point to rideshare services as a safer alternative to the cramped quarters of public transportation. But according to the survey, of the respondents who used rideshare apps and services already, more than 50 percent said they would use the services less, or stop entirely. Uber and Lyft are going to see an incredible drop off in ridership; Uber and Lyft both halted their carpooling services in March. Uber trips were already down 70 percent in some cities in March. These numbers are sure to increase, and the companies will recover financially due to the increase in demand for UberEats during this crisis. However, the surge in ridership seen in recent years will take many years to reach 2019 peaks.

Finally, the IBM survey also asked about working from home, a topic I wrote about at the end of March.  Around 40 percent of respondents indicated they feel strongly that their employer should provide employees the option to opt-in to remote working from home going forward. 75 percent indicated they would like to continue working from home at least occasionally, and more than 50 percent indicated they would like working from home to be their primary work method. Perhaps companies will heed the desires of their employees. It is unlikely that many companies will offer the “work from home, forever” option that Twitter and Facebook have provided. But almost certainly we will see an increase in the ability of employees to work from home, now that their ability to do so has been demonstrated. Especially in cities like New York and San Francisco where the annual cost of office space is more than $13,000 per employee. If more tech companies follow Facebook’s lead and allow many employees to work remotely forever, we may even see housing prices start to decrease in some select areas and a further decrease in public transportation ridership in cities like San Francisco.

Mobility is going to change immensely once this crisis is over, whenever that may be. Public transportation must be overhauled in its current processes and operations if it hopes to regain public confidence and achieve ridership numbers anywhere near 2019 levels during the next decade.

As the COVID-19 pandemic continues and our memories of the “before time” feel ever more distant, some have begun to wonder how this crisis and its aftermath could change how and where people live. Will people abandon expensive and dense major cities for smaller cities, suburbs or even small towns? On the one hand, I’ll admit that living in a small city like Ann Arbor has made weathering the lock down rather easy, which could lead credence to these ideas. Personally, I’ve had no issues finding supplies, or taking a walk without running into too many other people (though my apartment building’s shared laundry rooms are now a fraught location). Of course, Ann Arbor, a wealthy, educated college town with excellent access to medical care has a lot of resources other cities do not, so it may not be the best example.

Alternatively, there are those who argue our cities won’t actually change that much post-COVID-19, and there are even ways that the outbreak could make cities better (with the proper investment). Cities have survived disease outbreaks for millennia, and given that so much of our economy, culture, and infrastructure is built around cities it would be hard to seismically shift to some other model of living. Yet the economic upheaval that the pandemic has ushered in will no doubt influence where and how people live, and could last a good deal longer than the disease itself.

So what changes are well already seeing in cities, and what could that indicate about where we’re heading? In a number of cities, including New York, Seattle, and Oakland, are closing streets to open up more space for pedestrians and cyclists. Streets could also be closed to provide more outdoor space for restaurants, to help them reopen while preserving some measure of social distancing. New Zealand has gone as far as to make such street alterations national policy. Cities and towns in that nation are able to apply for funding to immediately expand sidewalks and modify streets, with the national government covering 90% of the cost. Some suggest these closures and modifications should be permanent – that we should take this opportunity to create more walkable and bikeable cities now, when we have the chance. In many ways these modified streets are similar to proposals for automated vehicle (“AV”) dominated cities. Supporters believe that wide adoption and deployment of AVs would mean more streets could have one lane of traffic in each direction, with the extra space turned over to alternative uses. The current demands of social distancing dovetail with those ideas – could cities use the current crisis to prepare themselves for an autonomous future? Given the difficulty of building new infrastructure, it may not be a bad idea to get ahead of the curve.

As noted by Phillip in a post earlier in the crisis, another effect of the global lockdown has been improved environmental conditions in cities around the globe. In India, for example, where cities have significant pollution problems, massive reductions in travel have led to clear skies. For the first time, we are seeing clear examples of what cleaner energy production could bring (pun intended). Such improvements could lead residents to demand continued reductions in emissions even after this crisis passes. These and other changes made to cities in the short term to cope with lockdowns and social distancing could dictate the future of urban design, but only if governments and citizens are willing to adopt them and protect them from being undone once the crisis passes.

P.S. Those of you who are interested in buying a bike to help navigate the new socially-distanced world may run into an issue – just like masks, cleaning supplies, and toilet paper, bikes are now becoming a scarce resource in some places.

For the past two years, the purpose of this blog and the Law and Mobility Program has been to peak around the corner and see what’s next. We have explored the legal and policy ramifications of emerging transportation technologies and tried to figure out how those technologies, be they automated vehicles, e-scooters, delivery drones, or even flying cars, will fit into our existing transportation and legal systems.

As it has with so many aspects of our lives, the COVID-19 pandemic has complicated our ability to look forward – the world to come is harder to predict. How close to “normal” will we get without a vaccine or treatment? If a significant portion of the workforce moves to remote work (Twitter, for example, is going to a permanent remote work option), what does that mean for our transportation system? Will people retreat from large, dense cities? As the pandemic disrupts state and local budgets, what will happen to transportation budgets? Right now, there are no clear answers.

Going forward, this blog and the Law and Mobility Program will remain focused on the future, with a keen eye on today. We will still explore new technologies and their ramifications, while also seeking a better understanding of how the current crisis is altering the mobility landscape. Later today we’ll publish the first of a series of blog posts dealing with some of the specific disruptions and changes that are already occurring. We hope you’ll enjoy these posts and, as always, invite you to join us in the conversation by submitting posts of your own – outside blog post submissions (of 500-1,000 words) are always welcome at JLMsubmissions@umich.edu (all submissions are evaluated for publication by our staff).

It feels like much longer than two months ago that I first wrote about the coronavirus, Covid-19. At the time of my first blog post on the subject, the world had just witnessed China quarantine more than 50 million people in four weeks. The United States is now under conditions that significantly exceed that number. As of March 26th, more than 20 U.S. states have imposed either statewide orders, or partial orders, for residents to stay at home and shelter in place. Currently, more than 196 million citizens are being urged to stay at home. Social Distancing, Zoom, and Flatten the Curve have become household names and phrases overnight. As I write this, millions of citizens are entering their second or third week of working from home.

As the United States reckons with this outbreak’s severity and we learn to live at a distance, it is crucial to reflect on the unintended secondary effects that have become apparent from en masse “work from home” (“WFH”). Perhaps we can learn something. Perhaps it is just refreshing to note them. Perhaps it could provide inspiration for solutions to many problems we are already facing or will one day face.

Traffic Reductions

Traffic in various cities across the world has decreased dramatically. With millions of people working from home for the foreseeable future, there are fewer cars on the road during traditional rush hour peaks. Traffic in Chicago is moving as much as 60% faster; traffic in Los Angeles is moving 35% more quickly than usual.  8am LA rush hour traffic was flowing around 60 miles per hour, while it typically dips down to 30 mph. Roughly the same increase in speed was measured during the evening commute hour.

Pollution Reduction

A decrease in rush hour traffic was an easily predicted effect of mass-quarantining. One unintended side effect is the sharp decrease in pollution over major cities. There has been a severe downturn in Nitrogen Dioxide (“NO2“) — a significant pollutant released from the burning of fossil fuels — over Los Angeles, Seattle, and New York. The same significant drop in NO2 has been seen over China around Wuhan, Shanghai, and Beijing.

This decrease in pollution and an increase in traffic speeds reflect the anticipated benefits of autonomous vehicles. One of the benefits of AVs is the decrease in emissions that come from daily commutes. Most autonomous vehicle manufacturers and testers use electric vehicles because the electrical power the advanced computer systems draw exceeds the capacity of most car batteries. An increase in electric vehicles on the roads will decrease fossil fuels being burned while driving, which would likely lead to a reduction in pollutants (like NO2) over concentrated areas over roadways.

Another benefit of AVs is the decrease in traffic time. Vehicles the communicate with other vehicles (“V2V”) or that communicate with infrastructure (“V2I”) will, over time, allow for fewer slowdowns and higher average driving speeds. Because vehicles can communicate when they are slowing down, speeding up, turning, exiting, etc. the flow of highway traffic will become smoother as fewer interruptions cause human drivers to hit the breaks or come to a standstill. AVs that platoon in synchronization can also increase traffic speeds.

One of the much-touted benefits of autonomous vehicles is the increased productivity that a driver can experience by freeing up their attention and hands from needing to drive and monitor their vehicle. Although not to the same scale, faster traffic speeds from increased WFH translates into less time wasted on a commute and more time with family and at work. The same is true of WFH; my daily commute has changed from a 15-minute walk to the law school to a 15-second walk from the kitchen up to my desk. 

One metric I am interested in seeing after the Covid-19 social distancing and en masse WFH is worker productivity while working from home. If workers are similarly (or more) productive when working from home, we could see an uptick in companies allowing employees to WFH weekly, or even on an unlimited basis (subject to approval of some sort). Similarly, if some of the benefits that AVs seek to bring — decreased traffic, reduced pollution, increased productivity — can be achieved through en masse WFH, should AV proponents, and others interested in these benefits, be advocating for more WFH in other contexts? Companies could even use WFH to advertise their “green” efforts, by touting the number of driven miles and pollutants they eliminate annually by requiring employees to WFH periodically.

If we anticipate future events like Covid-19, where social distancing becomes crucial, keeping WFH skills sharp may become a necessity. Allowing or requiring workers to stay home one or more days per week could be a method to keep those skills sharp: being productive at home, efficient communication online, and keeping in contact with employees and supervisors. As this crisis continues to unfold, it is essential to remember that this round of social distancing will not last forever. As a country, we will emerge from this crisis changed. How we change is interesting to project, but it is similarly essential to aid in preventing future problems and adapting future solutions.

The past few weeks have shown the intricate connection that access to transportation has with human health and the global economy. The outbreak of Coronavirus in Wuhan China, leading to mass international transportation restrictions, is a case study in the effects that transportation has on our daily lives and on the global economy.

Coronavirus Timeline

  • China first alerted the World Health Organization or several cases of pneumonia in Wuhan at the end of December 2019.
  • The first death in China, which occurred on January 9th,  wasn’t announced until January 11th.
  • The first WHO reported case outside of China, in Thailand, occurred on January 13th.
  • The United States announced it would start screening passengers arriving in airports from Wuhan, after a second death was announced on January 17th. Many European countries followed suit on January 22nd
  • On January 23rd, China quarantined Wuhan, suspending air and rail departures
  • On January 24th, China shut down 13 more cities, affecting 41 million people. Several entertainment venues, including Shanghai Disneyland and sections of the Great Wall, were also shut down.
  • On January 25th, five more cities were placed under travel restrictions, increasing the total number of persons affected to 56 million. Hong Kong canceled Lunar New Year celebrations and restricted travel to mainland China.

In less than 4 weeks, China went from reporting pneumonia-like symptoms to restricting the travel of over 50 million people. Wuhan, a city of more than 11 million people, was shut down right before the beginning of the Chinese New Year, one of the busiest travel weeks in the world. The travel restrictions are meant to prevent the spread of the Coronavirus, a necessary tactic with more than 100 people dead, and more than 6,000 cases of infection.

The U.S., Europe, and Asia began enforcing new regulations to block visitors from China. At the same time, major airlines suspended flights to the country for the foreseeable future. The Chinese authorities shut down commercial flights and prohibited people from leaving Wuhan using buses, subways, or ferries. The restrictions also included blocking expressways. The reason for the shutdown: evidence suggests that the virus passes from person to person through close contact. One unintended consequence of the travel restrictions: stock market crashes.

The primary difficulty in shutting down Wuhan is that it is a central hub for industry and commerce in Central China. It is home to the region’s biggest airport and a deep-water port. Tens of thousands of travelers enter and depart Wuhan every day.

Access to hospitals is one of the most significant concerns about the outbreak. The power of the Chinese government to shut down transportation is perhaps most starkly seen in their goal to build a hospital in Wuhan in less than two weeks.

Restricting travel on the world’s second-largest economy on the eve of the busiest travel week in China caused the single largest day drop in U.S. stocks since September 2019. Millions of Chinese residents would typically make hundreds of millions of trips during the Chinese New Year to visit loved ones, celebrate the beginning of a new year, and enjoy time away from work. Last year, consumers in China spent $148 billion on retail and catering and generated $74 billion in domestic tourism on 415 million trips. China’s movie sector also brought in 10% of its annual revenue during the Chinese New Year. In response to the travel restrictions on January 25th, stocks like Disney, AMEX, and American Airlines all plummeted when markets opened Monday the 27th.

Limits on mobility and transportation affect things much more important than the U.S. stock market. The Chinese New Year is the most important celebration in the Chinese Calendar. It is a time to celebrate family, ancestors, and togetherness. Those affected by travel restrictions decided to forgo trips to see loved ones and visits to important cultural sites, as well as museums, galleries, and other sources of entertainment. The need to protect human health and prevent the spread of Coronavirus is paramount. But other than the Coronavirus affecting people’s physical health, the restrictions on mobility will prevent spiritual and familial connections that underpin Chinese society.

The impact transportation and mobility have on economics, and human health is clearly demonstrated in the Chinese travel restrictions. With 50 million citizens under “city-arrest” and the rest of the country reticent to travel, shockwaves have been felt across the globe. I hope the Coronavirus crisis can be solved quickly and efficiently, and that the Chinese can return to a sense of normalcy and free mobility.